Is the Emergence of Social Capitalism an Adaptation or a Threat?

The Emergence of Social Capitalism: Adaptation or Threat?

Dear Ecademist,

In The Emergence of Social Capitalism: Adaptation or Threat? Haydn Shaughnessy, Forbes Contributor, who recently published a timeline of social business, shows in an infographic different ways that technology and marketing are now strongly associated with the idea of "social".

Social business and the growth of shared value

Get inspired by the infographic below:

Is there a new kind of capitalism evolving here, one that is not solely driven by markets and market regulation but instead is more of a socialised milieu, something we are not entirely clear about, but which seems to stand somewhere between socialism and capitalism?

Perhaps a mixture between one country, two systems, that the Chinese have so successfully invented and where I asked in my blog What Does The Chinese Dream Mean to You? how this new social capitalism could look like.

What do you think?

Is the emergence of social capitalism an adaptation or a threat?

Please feel free to comment!

Have a great and happy weekend!

Best,

- Lucas

Join The Swiss Business Club - Join the GuanXi Game Club - Join the Risk Consulting Club - And Join Doing Business Virtually!

Jeff Mowatt

jeffmowatt-232748

Is the Emergence of Social Capitalism an Adaptation or a Threat?

Lucas to put some other events into context, 2008 is probably the year that things start to pick up pace. Bill Gates has just described his concept of Creative Capitalism. I created the Social Business group and Terry offers a definition of social enterprise which relates how from the point of dismissing the idea of poor people using computers Gates shifts his perspective. It's February 2008 when the follow up call on our strategy plan, aptly entitled Genesis for social capitalism is made to the US Senate Committee for Foreign Relations , where Joe Biden is chair and Barack Obama is a member. Later that year, an announcement from candidate Obama, gives reason to be hopeful The concept of a centre for social enterprise and social investment fund described in our 2006 strategy plan is to be implemented in the USA, In 2009 and 2010 the seminars on Economics in Transition are delivered at Sumy State University.

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Jeff Mowatt

jeffmowatt-232748

Is the Emergence of Social Capitalism an Adaptation or a Threat?

Lucas, I left a comment for Haydn describing how the merging of information systems and social purpose started for P-CED. "It began for us with a paper for an alternate economic paradigm which would harness the power of the Information Age. This was 1996. In 2006, as can be seen from this strategy plan we first make the case for capitalism for social purpose having first described in Part 1 how technology will stimulate sharing local economies and empower democracy. Shared value arrived 5 years later" In the core argument for this approach which today is a manifesto, founder Terry Hallman said: "This is where we find ourselves at the advent of the third age of human civilization - the Information Age, following from the Agriculture Age and the Industrial Age. We are for the first time in human history in position to take note of where we are and what we are doing to and with each other. Or, not." In an interview from 2004 describing the impact in Russia and Ukraine he relates how others responded: "The problem is that profit and money still tend to accumulate in the hands of comparatively few people. Money, symbolically representing wealth and ownership of material assets, is not an infinite resource. When it accumulates in enormous quantities in the hands of a few people, that means other people are going to be denied. If everyone in the world has enough to live a decent life and not in poverty, then there is no great problem with some people having far more than they need. But, that's not the case, and there are no rules in the previous capitalist system to fix that. Profit and numbers have no conscience, and anything done in their name has been accepted as an unavoidable aspect of capitalism. I disagree. In 1996, I simply set up a hypothetical 'what if' proposition. What if some businesses decided to change their practices, or institute themselves as new enterprises completely, for the sole purpose of generating massive profits as usual and then using those profits to help people who have little or nothing? That's the way to correct and improve classic capitalism for the broadest benefit worldwide. It's now called social capitalism, or, social enterprise. I still call it the same as I did in 1996: people-centered economic development, and that remains the name of my organization and my web site. At first, the idea seemed heresy - but not for long, simply because it made sense and it didn't step on the toes of any existing enterprises that were in business to enrich relatively few people. None of them were asked to change anything, but it left open the possibility of more forward-thinking people to step in and do business differently. Even now, I am astonished that the idea struck such a deep and sympathetic chord in so many people so quickly - especially in our top business schools, where one might have thought that they were all in it for the money, for personal wealth, with little regard to social benefit or the poorest of the poor." When we got together to develop our UK business plan that same year the following statements were included in this proposal for a national network targeting a 5% share of the rural broadband to be invested in seeding new social enterprise: "Traditional capitalism is an insufficient economic model allowing monetary outcomes as the bottom line with little regard to social needs. Bottom line must be taken one step further by at least some companies, past profit, to people. How profits are used is equally as important as creation of profits. Where profits can be brought to bear by willing individuals and companies to social benefit, so much the better. Moreover, this activity must be recognized and supported at government policy level as a badly needed, essential, and entirely legitimate enterprise activity." "The fundamental policy guide for P-CED is the International Bill of Human Rights . IBHR is comprised of Universal Declaration of Human Rights; International Covenant of Civil and Political Rights; and International Covenant of Economic, Social and Cultural Rights. P-CED's main focus falls within the sphere of economic, social and cultural rights, ICESCR" The history of this development may be found in my blog: You, We, Me, Ethics and People-Centered Economics.

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Solveigh Calderin

solveighcalderin-332372

Is the Emergence of Social Capitalism an Adaptation or a Threat?

There are diffulties I have with this "social capitalism". In Germany there was a "social market economy" for 40 years - till the socislist part of Germany - the GDR collapsed. At this moment died the "social" in this construction very fast! On the other hand, maybe there become a few (compared to all) Chinese very rich (like in Russia), but the mayority of Chinese became poorer than before and have to work under worse and unhealthy, even killing circumstances getting wages they can't live from, like many people in Europe and elsewhere in our world. I agree that the "collective intelligence" emerging in the internet may find new ways of an economy and society, what is more human than any kind of "captialism" ever can be. The developments in the future may show this. "Capitalism" always means "ownership" in houses, sites, machines, mineral resources, people or what ever - and this "ownership" and "exploitation of the ownership" to get the most out of it, lead to the problems we over and over again face since the "ownership" was established many thousand years ago.

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