#PolicyBlog Capitalism in crisis or simply not enough responsible businesses?

Policy_fact_3What kind of policy could be put in place to make capitalism more ethical? Some would argue that Capitalism is moving us in the right direction, the percentage of people living under 1.25 dollars a day (the world poverty line) has almost halved in the last 20 years. Some of the Millennium goals were met. But is this enough when we see increasing inequality rates and very high youth unemployment? In fact, the exact decrease in poverty depends on how we define poverty. An Oxfam report claims that the 85 richest people own as much wealth as half the world’s population. Is our default capitalistic system not working for us, because it’s inherently meant for selfish individuals? When, in fact, humans often possess both a selfish and selfless side. Or is it simply the selfish people who run our economies that are to blame – i.e. the system is only as good as the people who control it? The latter might be easier to solve – we can build a business network that resides on values and ethics that reflect a world we wish to live in. This could include sufficient and/or equal compensation and environmentally friendly production. Ethical capitalism, as people like to call it, is well a founded concept and proves that taking a long term view can actually bring about higher social and economic profits for stakeholders and society. For example, not giving women the ability to work and have children hinders economic prosperity. Countries like Japan and Italy with high gender inequality could easily increase their GDP by offering sufficient child care and paternity leave. Do you have any further arguments why this is necessary or perhaps ideas about how to make capitalism more ethical?

Article: Maria 

Photo: Flickr 


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