The Limited Times

Now you can see non-English news...

Poor capitalism, poor capitalism

2020-05-02T02:17:26.418Z


[OPINION] “The wake that the pandemic is leaving has generated significant leadership crises and perhaps a great questioning of the economic system that prevails in the world & # 822 ...


  • Click to share on Facebook (Opens in a new window)
  • Click to share on Twitter (Opens in a new window)
  • Click to share on LinkedIn (Opens in a new window)
  • Click to email a friend (Opens in a new window)

(Credit: ADEM ALTAN / AFP via Getty Images)

Editor's Note: Roberto Rave is a political scientist with a postgraduate degree in international business and foreign trade from the Externado University of Colombia and the Columbia University of New York. With studies in Management from the IESE University of Spain and candidate for MBA from the University of Miami. He is a columnist for the Colombian economic newspaper La República. He was chosen by the International Republican Institute as one of the 40 most influential young leaders on the continent.

(CNN Spanish) - The wake that the pandemic has left behind has generated major leadership crises and perhaps a great questioning of the economic system that prevails in the world. Moses Naim masterfully expounds it in his column "Big Problems, Small Leaders": It may be that the problem is in the leaders and not in the system.

Today, the premise of conscious capitalism is here to stay, not as an elimination of the traditional vision of capitalism, which despite the difficulties, has done humanity a lot of good, but rather as the evolution of a young and dynamic system. that is transformed to better serve economic and human development.

The world is hungry for spontaneous solidarity and conscious capitalism, not induced by the State, but the fruit of constant self-evaluation by companies of their actions and behaviors.

Among so many criticisms of the citizens in this pandemic, it is necessary to ask ourselves if confinement is the fruit rather of our culture, sometimes dominated by "liveliness" and contempt for the norm. In this regard, two reflections have arisen: the first, if our historical behavior were a reflection of citizen culture and order, would we be forced into quarantine? Are we the living representation of the citizen who meets the standards? Perhaps the measures taken by Latin American governments have a lot to do with our habits. Surely, if the scenario were different, government decisions could be more flexible. This is why I think that the momentary solution to this pandemic lies in us, in our capacity to be good citizens, to keep social distance, to put ourselves in the other's shoes and to trust. Because when we are taking care of the pandemic, we are also taking care of others. There will be no better opportunity to be better as a society.

Returning to the topic of capitalism, in the face of the numerous affirmations about its ends, it is transcendental to affirm that this model has never been so valid before. Its transformation is also imminent, since current realities demand great reflection in the private sector, which must be aware of its impact, not only from financial profitability, but also from the possibility of contributing differently to society, not only via taxes and employment. In addition, in terms of profitability we could take into account the theory put forward by Raj Sisodia, Jag Sheth and David Wolfe in their book Firms of Endearment after years of research, regarding results on which business is profitable. That text states that conscious companies, characterized by a humanistic approach and a culture of care, produced a cumulative performance 14 times higher than the S&P 500 index between 1998 and 2013.

Specifically in Colombia, two companies in this field stand out: AngloGold Ashanti and Bancolombia. An example of the presence of awakened capitalism in Latin America is the one referring to the government of President Iván Duque with its Decree 2046 of November 12, 2019, which regulates the Collective Interest and Benefit Societies (BIC), created by Law 1901 of 2018. This law aims to promote companies that have a goal higher than mere profitability, proposing human development in its corporate purpose. Another clear example that -beyond profitability- for some companies is the common good.

The evolution of capitalism towards a more universal and human consciousness lies in a transformation of the business purpose that goes beyond mere profitability and concentrates on the development of all those who have to do with the company. This without forgetting that the current vision that we have of this system has a solid moral background. On previous occasions, I have already mentioned some of Adam Smith's statements in his text "The Theory of Moral Sentiments": "As selfish as he wants to suppose himself to man, there are obviously some elements of his nature that make him interested in the fate of others, in such a way, that the happiness of these is necessary, although from it nothing obtains, unless it is the pleasure of witnessing it ”.

At the moment, it is transcendental to get out of this confinement by being better citizens and also evaluating the leaders who govern us with better conscience and judgment. At this time we are easy prey for populism. From private business, without a doubt, the heroism of standing will be the common factor as capitalism continues its evolution towards a greater awareness and understanding of what Adam Smith preached.

Capitalism

Source: cnnespanol

All news articles on 2020-05-02

You may like

News/Politics 2024-02-19T04:40:51.612Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.