“A new kind of capitalism seems to be emerging, one in which companies value communities, the environment, and workers just as much as profits,” according to Prof. Elizabeth Schmidt of the University of Massachusetts writing in The Conversation.
Till now, it has been “shareholder capitalism,” where the only reason to run an enterprise to seek profits. However, in the last decade or so there has been tremendous ‘rebellion’ by consumers, Left-inclined workers, and environmentally-conscious investors to change the profit focus behavior in the corporate world.
The social and environmental commitments seem to be the emerging culture in the conduct of businesses as that seem to be the new routes to ultimate success and profitability.
Laurence Fink, founder, and CEO of BlackRock, the world’s largest asset manager, says: “To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society,” reports Prof. Schmidt.
-By Promod Puri