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Economy for the Common Good

{{Infobox organization

| name = Economy for the Common Good

| founding_location = Wien, Austria

| type = Voluntary association

| location_country = international

| membership = 11,000

| founded_date = {{Start date|2010|10|6}}

| homepage = https://www.econgood.org/

}}

Economy for the Common Good (ECG) is a global social movement that advocates an alternative economic model, which is beneficial to people, the planet and future generations.{{citation|surname1=Bernd Sommer, Klara Stumpf, Ralf Köhne, Josefa Kny, Jasmin Wiefek|periodical=Zeitschrift für Wirtschafts- und Unternehmensethik : Zfwu|title=Die zivilgesellschaftliche Bewegung der "Gemeinwohl-Ökonomie" (GWÖ) aus Perspektive der sozialwissenschaftlichen Transformationsforschung und Praktischen Philosophie|volume=20|issue=3|publisher=Nomos|publication-place=Baden-Baden|at=pp. 448–457|issn=1439-880X|id= 2017203-5|date=2019|language=German|doi=10.5771/1439-880X-2019-3-448

|s2cid=213433319 }} The common good economy puts the common good, cooperation and community in the foreground. Human dignity, solidarity, ecological sustainability, social justice and democratic participation are also described as values of the common good economy. The movement behind the model started off in Austria, Germany and South Tyrol (a German-speaking region in Italy) in 2010 and quickly spread to many countries throughout the EU. It now has active groups in Africa, Latin America, North America and Asia.{{Cite web|last=Lindner|first=Matthias|title=Who is ECG|url=https://www.ecogood.org/who-is-ecg/|access-date=2021-04-26|website=Economy for the common good|language=en-US}} As of 2021, the movement consists of over 11,000 supporters, 180 local chapters{{Cite web|last=|first=|title=Local Chapters|url=https://www.ecogood.org/who-is-ecg/local-chapters/|url-status=live|access-date=2021-04-26|website=Economy for the common good|language=en-US|archive-url=https://web.archive.org/web/20200712065658/https://www.ecogood.org/who-is-ecg/local-chapters/ |archive-date=2020-07-12 }} and 35 associations.{{Cite web|title=Economy for the Common Good - Official Website|url=https://www.ecogood.org|url-status=live|archive-url=https://web.archive.org/web/20091121063730/http://ecogood.org:80/ |archive-date=2009-11-21 }}

Christian Felber coined the term "Gemeinwohl-Ökonomie" (Economy for the Common Good) in a best-selling book, published in 2010.{{cite book|last=Felber|first=Christian|title=Die Gemeinwohl-Ökonomie – Das Wirtschaftsmodell der Zukunft|year=2010|publisher=Deuticke|isbn=978-3-552-06137-8}} According to Felber, it makes much more sense for companies to create a so-called "common good balance sheet" than a financial balance sheet. The common good balance sheet is a value-based measurement tool and reporting method for businesses, individuals, communities, and institutions,{{citation|surname1=Niklas S. Mischkowski, Simon Funcke, Michael Kress-Ludwig, Klara H. Stumpf|periodical=NachhaltigkeitsManagementForum {{!}} Sustainability Management Forum|title=Die Gemeinwohl-Bilanz – Ein Instrument zur Bindung und Gewinnung von Mitarbeitenden und Kund*innen in kleinen und mittleren Unternehmen?|volume=26|issue=1|at=pp. 123–131|issn=2522-5995|date=2018-12-01|language=German|doi=10.1007/s00550-018-0472-0

|bibcode=2018SMFor..26..123M |s2cid=254059236 }} which shows the extent to which a company abides by values like human dignity, solidarity and economic sustainability.{{cite news|last=Meier|first=Susanne|title=Menschlichkeit statt Finanzgewinn 16 Tiroler Pionier-Unternehmen erstellen erstmals eine Gemeinwohlbilanz, indem sie ihre Firma in Punkten wie soziale Gerechtigkeit und ökologische Nachhaltigkeit bewerten.|url=http://www.tt.com/Nachrichten/5699582-42/menschlichkeit-statt-finanzgewinn.csp|newspaper=Tiroler Tageszeitung|date=Nov 17, 2012}}

More than 2,000 organizations, mainly companies,{{Cite web|url=https://web.ecogood.org/de/die-bewegung/pionier-unternehmen/|title=Pionierunternehmen|website=web.ecogood.org|url-status=live|archive-url=https://web.archive.org/web/20200812213537/https://web.ecogood.org/de/die-bewegung/pionier-unternehmen/ |archive-date=2020-08-12 }} but also schools, universities, municipalities, and cities, support the concept of the Economy for the Common Good. A few hundred have used the Common Good Balance sheet as a means to do their “non-financial” reporting.{{Cite web|last=|first=|title=What is ECG|url=https://www.ecogood.org/what-is-ecg/|url-status=live|access-date=2021-04-26|website=Economy for the common good|language=en-US|archive-url=https://web.archive.org/web/20200702031308/https://www.ecogood.org/what-is-ecg/ |archive-date=2020-07-02 }} These include Sparda-Bank Munich,[https://www.sparda-m.de/gemeinwohlbericht.php Common Good Report from the Sparda Bank Munich, Germany, 2011] the Rhomberg Group and Vaude Outdoor.{{cite news|last=Spengler|first=Hanna|date=November 8, 2012|title=Kooperation statt Konkurrenz - Die "Gemeinwohl-Ökonomie"|newspaper=aktuell|url=http://aktuell.evangelisch.de/artikel/41107/kooperation-statt-konkurrenz-die-gemeinwohl-oekonomie?destination=node/41107}} Worldwide nearly 60 municipalities are actively involved in spreading the idea.

The ECG movement sees itself in a historical tradition from Aristotle to Adam Smith{{cite web|title=Gemeinwohl in der Geschichte|periodical=|publisher=|url=https://web.ecogood.org/de/idee-vision/seit-400-v-chr/#:~:text=Sein%20Res%C3%BCmee%3A%20%E2%80%9EVon%20Aristoteles%20%C3%BCber,wie%20etwa%20das%20%E2%80%9AGemeinwohl'.|url-status=|format=|access-date=|archive-url=|archive-date=|last=|date=|year=|language=|pages=|quote=}} and refers to the fundamental values of democratic constitutions.

Overview

The model has five underlying goals:{{Cite journal|last=Christian Felber and Gus Hagelberg|title=The Economy for the Common Good - A Workable, Transformative Ethics-Based Alternative|url=https://thenextsystem.org/sites/default/files/2017-08/FelberHagelberg.pdf|journal=The Next System Project}}

  1. Reuniting the economy with the fundamental values guiding society in general. Encouraging business decisions that promote human rights, justice, and sustainability.
  2. Transitioning to an economic system that defines serving the “common good” as its principal goal. The business community and all other economic actors should live up to the universal values set down in constitutions across the globe. These include dignity, social justice, sustainability, and democracy. These do not include profit maximization and market domination.
  3. Shifting to a business system that measures success according to the values outlined above. A business is successful and reaps the benefits of its success not when it makes more and more profits, but when it does its best to serve the public good.
  4. Setting the cornerstones of the legal framework for the economy democratically, in processes which result in concrete recommendations for reforming and reevaluating national constitutions and international treaties.
  5. Closing the gaps between feeling and thinking, technology and nature, economy and ethics, science and spirituality.

The Economy for the Common Good calls for reevaluating economic relations by, for example, putting limits on financial speculation and encouraging companies to produce socially-responsible products.{{cite news|last=Koch|first=Hannes|date=April 14, 2012|title=Der Finanzmissionar - Ein österreichischer Wirtschaftsprediger will den Kapitalismus von innen angreifen – ganz freundlich. Jetzt hat er sich mit einem bayerischen Banker verbündet.|newspaper=die tageszeitung|url=http://www.taz.de/Gemeinwohloekonomie/!91412/}}

Common Good Balance Sheet

The common good balance sheet is an assessment procedure for private individuals, communities, companies and institutions to check the extent to which they serve the common good.[https://www.ecogood.org/media/filer_public/73/da/73dab961-6125-4f69-bf7a-3c8613a90739/gwoe_arbeitsbuch_5_0_vollbilanz.pdf Arbeitsbuch zur Voll-Bilanz] {{Webarchive|url=https://web.archive.org/web/20181021232301/https://www.ecogood.org/media/filer_public/73/da/73dab961-6125-4f69-bf7a-3c8613a90739/gwoe_arbeitsbuch_5_0_vollbilanz.pdf |date=2018-10-21 }}, Version 5.0, Stand: 2018 Ecological, social and other aspects are assessed.[http://www.wiwo.de/technologie/green/biz/alternativer-geschaeftsbericht-oeko-versorger-polarstern-zieht-eine-gemeinwohlbilanz/13553970.html Öko-Versorger Polarstern zieht eine Gemeinwohlbilanz], von Jonas Gerding, Wirtschafts-Woche, 29. Februar 2016[http://www.fona.de/de/17369 3. Internationale Gemeinwohl-Bilanz-Pressekonferenz] {{Webarchive|url=https://web.archive.org/web/20160602153852/http://www.fona.de/de/17369 |date=2016-06-02 }}, Fona, Bundesministerium für Bildung und Forschung, 24. April 2014 The procedure is part of the common good economy and was developed by Christian Felber. In conventional balance sheets, only economic value categories such as profit are taken into account, whereas the common good balance sheet allows reporting on value to society and environment, for example.

Common good balance sheets should be easy for everyone to understand;[http://www.stuttgarter-nachrichten.de/inhalt.vaihinger-werben-fuer-gemeinwohloekonomie-profit-ohne-maximierung.a7b8a842-852e-4599-b34b-9c645cc1e6af.html Profit ohne Maximierung], von Markus Klohr, Stuttgarter Nachrichten, 10. März 2016 companies should be able to make their common good performance transparent on a single page.[http://www.pv-magazine.de/nachrichten/details/beitrag/gemeinwohl-konomie-und-energiewende_100022135/ Gemeinwohl-Ökonomie und Energiewende], PV Magazin, 24. Februar 2016 In doing so, companies can decide whether to prepare the balance sheet on their own, assess each other in a "peer-group", or appoint an independent auditor.[http://www.spiegel.de/karriere/nachhaltigkeitssiegel-fuer-unternehmen-wo-soll-ich-mich-bewerben-a-1087027.html Wie nachhaltig ist mein Unternehmen?], von Anne Haeming, Spiegel-online, 26. Mai 2016 This distinguishes the common good balance sheet from conventional sustainability reports, which are prepared by the companies themselves. The balancing process for small companies is relatively cheap (1,000 Euros).[https://www.merkur.de/lokales/starnberg/andechs/wirtschaftsfoerderung-unternehmerverband-druckerei-oeko-siegel-punkten-gemeinwohl-bilanz-5220038.html Punkten für Gemeinwohl-Bilanz], Merkur.de, 9. Juli 2015

To date, around 250 companies in the German-speaking world prepare their balance sheets according to Gemeinwohl guidelines,[http://enorm-magazin.de/ein-banker-geht-aufs-ganze Ein Banker geht aufs Ganze], enorm, Ausgabe 1/2016[http://www.badische-zeitung.de/wirtschaft-3/gemeinwohl-bilanz-darum-will-eine-freiburger-firma-mitmachen--97159633.html Gemeinwohl-Bilanz: Darum will eine Freiburger Firma mitmachen], Badische Zeitung, 16. Dezember 2014[http://www.forum-csr.net/News/8413/DieGemeinwohlBilanz.html Die Gemeinwohl-Bilanz, Unternehmen sollen Nutzen stiften, nicht nur Rendite], Forum Nachhaltig Wirtschaften, 1. Januar 2015 in Europe there are 350-400 companies (as of early 2016).[https://diefarbedesgeldes.de/das-aktuelle-wirtschaftssystem-produziert-eine-endlosreihe-von-kollateralschaeden/ Das aktuelle Wirtschaftssystem produziert eine Endlosreihe von Kollateralschäden], Die Farbe des Geldes, online-Magazin der Triodos Bank, 3. Juni 2016[http://www.schwaebische.de/wirtschaft/aktuelle-nachrichten_artikel,-Gemeinwohl-Orientierung-bringt-Unternehmen-langfristig-Vorteile-_arid,10438392.html Gemeinwohl-Orientierung bringt Unternehmen langfristig Vorteile], Schwäbische.de, 22. April 2016[http://derstandard.at/2000034370183/Oekonomen-machen-gegen-Attac-Aktivisten-Felber-in-Lehrbuch-mobil Ökonomen wollen Ex-Attac-Aktivist Felber aus Lehrbuch streichen], von Andreas Sator, Der Standard, 8. April 2016 In total, there are 590 German, 631 Austrian, 67 Swiss and 70 South Tyrolean companies that have registered as supporters of Gemeinwohl-Bilanz.[https://www.ecogood.org/de/stuttgart/unterstutze-uns/ UnterstützerInnen der Gemeinwohlökonomie][http://www.sueddeutsche.de/reise/suedtirol-die-saubermaenner-1.2897982 Die Saubermänner], von Elena Witzeck, Süddeutsche Zeitung, 10. März 2016 All peer-group and externally audited Gemeinwohl-Bilanzen are publicly available.[http://balance.ecogood.org/gwoe-berichte GWOe-Berichte], Gemeinwohl-Ökonomie

According to proponents of the movement, the success of a company should not be determined by how much profit it makes, but rather by the degree to which it contributes to the common good.Johannes Pennekamp: Die Bessermacher. In: der Freitag Newspaper. September 26, 2011 Companies receive more points in this balance sheet when, for example, employees are satisfied with their jobs or when the top managers do not receive exorbitantly more than the lowest paid worker.Guido Mingels: Die Achse der Guten. In: Der Spiegel. October 10, 2011

See also

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References

{{Reflist|30em}}

Further reading

  • {{ill|Christian Felber|de}}: Change Everything: Creating an Economy for the Common Good, ZED Books 2015, {{ISBN|9781783604722}}.
  • [https://journals.sagepub.com/doi/pdf/10.1177/1035304620949949 The ‘economy for the common good’, job quality and workers’ well-being in Austria and Germany] by Ollé-Espluga L, Muckenhuber J, and Hadler M. The Economic and Labour Relations Review. 2021;32(1):3-21. doi:10.1177/1035304620949949.
  • [https://www.routledge.com/The-New-Systems-Reader-Alternatives-to-a-Failed-Economy/Speth-Courrier/p/book/9780367313395 The New Systems Read: Alternatives to a Failed Economy], Edited by James Gustave Speth and Kathleen Courrier, Routledge, Taylor & Francis Group, New York and London, 2020, ISBN 978-0-367-31339-539-5.
  • [http://www.ft.com/cms/s/20b4fe80-6b19-11e4-be68-00144feabdc0,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F20b4fe80-6b19-11e4-be68-00144feabdc0.html%3Fsiteedition%3Dintl&siteedition=intl&_i_referer=http%3A%2F%2Fwww.ft.com%2Fhome%2Feurope A corporate balance sheet with a little added love], Chris Bryant, Financial Times, Nov. 19, 2014.
  • [https://www.theguardian.com/lifeandstyle/wordofmouth/2014/jan/21/microvinyas-ethical-vineyards-wine-investor-small-plot Microvinyas: ethical vineyards producing wine for the common good], Trevor Baker, The Guardian, Jan. 21, 2014.
  • [https://www.theguardian.com/sustainable-business/values-led-business-morals-economy-common-good Can we create an 'Economy for the Common Good'?], Bruce Watson, The Guardian, Jan. 6, 2014.
  • [http://www.networkofwellbeing.org/index.php/blog/post/economy-for-the-common-good Economy for the Common Good], Diego Isabel, Article for Network of Wellbeing, May. 08, 2014.
  • [http://www.dailykos.com/story/2013/12/09/1261291/-The-Economy-for-the-Common-Good?detail=hide The Economy for the Common Good], DowneastDem, Daily Kos, Dec. 9, 2013.
  • [http://www.spiegel.de/international/world/warsaw-climate-conference-shows-capitalism-root-of-climate-failure-a-937453.html Climate Summit Trap: Capitalism's March toward Global Collapse], Harald Welzer, Spiegel Online, Dec. 9, 2013.
  • Christian Felber: Die Gemeinwohl-Ökonomie, Eine demokratische Alternative wächst. Aktualis. u. erw. Neuausg., Zsolnay 2012, {{ISBN|3-552-06188-6}}, {{ISBN|978-3-552-06188-0}}.
  • Christian Felber: Die Gemeinwohl-Ökonomie - Das Wirtschaftsmodell der Zukunft, 2010, {{ISBN|978-3-552-06137-8}}.
  • [http://p2pfoundation.net/Common_Welfare_Economy Article on Economy for the Common Good from the P2P Foundation]
  • Die Furche: [http://www.genios-presse.de/artikel,FURC,20100826,die-gemeinwohl-konomie,0700850820670720690952010%2008261616160027.html Die Gemeinwohl-Ökonomie], August 26, 2010
  • [http://www.scu.edu/ethics/practicing/decision/commongood.html The Common Good], by Manuel Velasquez, Claire Andre, Thomas Shanks, S.J., and Michael J. Meyer
  • [https://www.sueddeutsche.de/muenchen/freising/vortrag-in-der-innenstadt-den-menschen-soll-es-gut-gehen-1.4958609 Den Menschen soll es gut gehen], by Donato Nicolaidi, Sueddeutsche Zeitung, July 6, 2020

External links

  • {{official website|https://www.ecogood.org }}

Category:Social movements

Category:Economic systems