A Bold Future for Capitalism
With the demise of Communism in 1989, Capitalism has reigned supreme.
However, in the wake of its victory, capitalism has left many inequities that disturb many, especially the disenfranchised and the younger generations here in the United States and around the world.
It’s now time to challenge the future of capitalism by scrutinizing its effectiveness in creating both competitive advantage and economic security.
The Hallmark of Capitalism’s success rests on two foundational powers:
It is not a coincidence that capitalism has flourished best in modern democracies that have produced an educated, trustworthy workforce composed of citizens committed to building a strong social fabric of family and communities.
This freedom guarantee and economic promise is the foundational premise which has enabled a prospering, educated middle class -- the underlying support structure of any modern democracy.
Together this guarantee of freedom and promise of economic security are closely inter-connected.
In today’s global world, the sense of economic security is tenuous. Jobs flee when transactional capitalists spot lower labour costs overseas. Because the global economy is neither perceived as safe nor openly understood/controlled, the citizenry increasingly is becoming disgruntled and losing hope for the future.
Many today, including a large component of the Millennial generation castigate capitalism because of its lack of moral imperative and its untrustworthy behavior. However, a closer look at capitalism gives us new set of possibilities. When we triage capitalism into distinctly different genres, we find there are actually three fundamentally different forms of capitalism all swished together in what appears, on the surface, to be monochromatic.
What is Collaborative Capitalism?
Capitalism has emerged during the last two centuries taking three fundamental pathways.
The collaborative nature of this form of capitalism does not imply the loss of competitive spirit. On the contrary, by aligning the interests of all stakeholders for a common goal, collaborative capitalism creates greater flow and creation of value, as does a winning sports team working together to compete in a contest.
The better all the parts work together, the higher the chances of creating, adapting, learning, and, ultimately winning.
Collaborative Capitalism embraces using people’s minds to produce new innovations, including better processes for production and removal of non-value added work.
Most forms of collaborative capitalism reward workers with either a percentage of the profits or a portion of the equity ownership.
A Strategic Initiative for Capitalism’s Next Generation
Three Faces of Capitalism:
Capitalism is not a monolithic form of economics. There are actually three different competing capitalistic business models, each quite different, each founded on different beliefs and strategies:
Each produces very different results. These three forms are ill-defined and not clearly differentiated in the minds of most business leaders, resulting in a fourth version: Muddled Capitalism
Our Strategic Initiative:
Untangling these three interwoven and often muddled forms of capitalism gives us keen insight on how each form operates and performs; each is as different as the primary colours. We refer to these three forms as the “Three Faces of Capitalism,” the theme of this strategic initiative.
The only sustainable capitalism of the future must continually produce better results than its preceding generations. And, just as importantly, it must be reasonably facile and agile to adapt dynamically to changing conditions.
The Institute’s Strategic Initiative will focus on consolidating the idea of Collaborative Capitalism, studying its impact, producing programs and books, and bringing more public attention to the fact that all stakeholders – investors, employees, management, suppliers, customers, and the community – can be potential winners in the collaborative capitalism game of business.
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