Inclusive capitalism
{{short description|Theoretical concept and policy movement}}
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Inclusive capitalism, or stakeholder capitalism, is a theoretical concept and policy movement that seeks to address the growing income inequality and wealth inequality within Western capitalism following the 2008 financial crisis.{{ r | Thanos_2017 }}
Contemporary understanding
Robert Ashford argues that the concept of inclusive capitalism is rooted in the postulates of the binary economics.Robert Ashford. [https://core.ac.uk/download/pdf/232679329.pdf Why Working but Poor: The Need for Inclusive Capitalism], 49 Akron L. Rev. 507 (2016)[https://news.syr.edu/blog/2017/09/27/professor-robert-ashfords-inclusive-capitalism-gains-international-support/ Professor Robert Ashford’s 'Inclusive Capitalism' Gains International Support], Syracuse University News, September 27, 2017
C. K. Prahalad opens his 2005 book The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits by asking “Why can’t we create inclusive capitalism”.Prahalad 2005:xv He uses the term “inclusive capitalism” to invite readers to focus on underserved consumers and markets in order to create opportunity for all.Prahalad 2005:xvii
Implementation
In 2012, the Henry Jackson Society created an Inclusive Capitalism Initiative task force in order to start a transatlantic conversation about the growing income inequalities and their threat to the capitalist system.[https://www.mckinsey.com/~/media/mckinsey%20offices/united%20kingdom/pdfs/towards_a_more_inclusive_capitalism.ashx Towards a More Inclusive Capitalism]. By the Henry Jackson Initiative for Inclusive Capitalism
In 2014, Conference on Inclusive Capitalism, co-hosted by the City of London and E. L. Rothschild holding company, was held in London where the concept of inclusive capitalism was discussed as a practical measure.[https://www.finsbury.com/2016/09/27/lynn-forester-de-rothschild-interview-inclusive-capitalism/ A movement to restore trust in capitalism], September 27, 2016 At another conference in 2015 the "Pathway to Action" was brainstormed.Marsh, P., Dimson, E. and Staunton, M. Inclusive Capitalism: The Pathway to Action. Thoughts from the 2015 Conference on Inclusive Capitalism. London: Coalition for Inclusive Capitalism, 2015. {{ISBN|9780993379703}} In the same 2015 year, the Coalition for Inclusive Capitalism was registered in the United States as a not-for-profit organization.[https://projects.propublica.org/nonprofits/organizations/472359798 Coalition for Inclusive Capitalism] Lynn Forester de Rothschild became the founding CEO of the Coalition. At the 2016 Conference on Inclusive Capitalism in New York City, participants expressed commitment to promote inclusive economic growth.[https://www.businesswire.com/news/home/20161010005815/en Global Private Sector Leaders Make Commitments to Investment and Business Practices That Stimulate Long-Term Value Creation at the 2016 Conference on Inclusive Capitalism in New York City], Business Wire, October 10, 2016 Members of the Coalition expressed a belief that all stakeholders, including business and society, should be engaged in the enactment of an inclusive capitalism agendaPaul Thanos. [https://www.wilsoncenter.org/article/american-inclusive-capitalism-agenda-for-new-business-activism American Inclusive Capitalism: An Agenda for a New Business Activism], Wilson Center, April 26, 2017[https://www.huffingtonpost.com/inclusive-capitalism/mark-weinberger-eys-globa_b_10350606.html Actions to Achieve Inclusive Capitalism] Mark Weinberger, EY CEO
In 2019, the Embankment Project for Inclusive Capitalism (EPIC) undertaken by the Coalition together with Ernst & Young reported its findings in a white paper. It was a pioneering effort to "develop a framework and identify meaningful metrics to report on long-term and inclusive value creation activities that heretofore have not been captured on traditional financial statements".[https://www.law.nyu.edu/sites/default/files/Forester%20de%20Rothschild%20Lynn%20-%20The%20Embankment%20Project%20for%20Inclusive%20Capitalism.pdf The Embankment Project for Inclusive Capitalism (“EPIC”): A Better Way to Value the American Worker], Coalition for Inclusive Capitalism, 2019.
In 2020, the Council for Inclusive Capitalism, a partnership of the Coalition with the Vatican, was created.{{Cite news|url=https://www.ft.com/content/0e615ffe-ce44-4bd7-8fad-80e1ebc54394|title=Pope Francis gives his blessing to Council for Inclusive Capitalism|last=Edgecliffe-Johnson|first=Andrew|date=8 December 2020|publisher=Financial Times|location=New York|access-date=24 April 2025}}[https://angelusnews.com/news/vatican/council-for-inclusive-capitalism-launches-partnership-with-vatican/ Council for Inclusive Capitalism launches partnership with Vatican], Angelusnews.com, December 9, 2020Anne Quito. [https://qz.com/work/1942727/pope-francis-backs-the-council-for-inclusive-capitalism/ Pope Francis is backing a new movement to redefine capitalism as a force for good], Quartz Media, December 8, 2020
Criticism
John Kay claims that most of the 21st-century businesses are already inclusive.[https://www.johnkay.com/2018/03/13/moving-beyond-capitalism/ Moving Beyond “Capitalism”], March 13, 2018
Nafeez Ahmed describes the Inclusive Capitalism Initiative as a Trojan Horse assembled to pacify the coming global revolt against capitalism.Nafeez Ahmed. [https://www.theguardian.com/environment/earth-insight/2014/may/28/inclusive-capitalism-trojan-horse-global-revolt-henry-jackson-society-pr-growth Inclusive Capitalism Initiative is Trojan Horse to quell coming global revolt: Henry Jackson Society's pre-emptive PR offensive seeks to popularise parasitic economic growth for the few], The Guardian, 28 May 2014
See also
References
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Further reading
- {{cite book |last=Farmer |first=Paul |year=2003 |title=Pathologies of Power: Health, Human Rights, and the New War on the Poor |location=Berkeley, CA |publisher=University of California Press|isbn=9780520235502}}
- {{cite book |last1=Goode |first1=Judith |last2=Maskovsky |first2=Jeff |year=2001 |title=The New Poverty Studies: The Ethnography of Power, Politics, and Impoverished People in the United States |location=New York |publisher=New York University Press}}
- Hammond, Allen L. and C. K. Prahalad (2004). Selling to the Poor, Foreign Policy, 142:30-37.
- Hammond, Allen L., William J. Kramer, Robert S. Katz, Julia T. Tran, Courtland Walker (2007). [http://www.wri.org/stories/2007/11/top-10-outcomes-2007 The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid] {{Webarchive|url=https://web.archive.org/web/20080415181257/http://www.wri.org/stories/2007/11/top-10-outcomes-2007 |date=2008-04-15 }}. Accessed April 25, 2008.
- O'Connor, Alice (2001). Poverty Knowledge: Social Science, Social Policy, and the Poor in Twentieth-Century U.S. History. Princeton, NJ: Princeton University Press.
- Prahalad, C. K. and, Allen Hammond (2002). Serving the world's poor, profitably, Harvard Business Review, 80(9):48-58.
- Yelvington, Kevin A. (1995). Producing Power: Ethnicity, Gender, and Class in a Caribbean Workplace. Philadelphia: Temple University Press.
External links
- [http://www.inc-cap.com Coalition for Inclusive Capitalism] {{Webarchive|url=https://web.archive.org/web/20210118081642/https://www.inc-cap.com/ |date=2021-01-18 }}
- [https://www.inc-cap.com/press/ Coalition for Inclusive Capitalism—Press] {{Webarchive|url=https://web.archive.org/web/20191228225646/https://www.inc-cap.com/press/ |date=2019-12-28 }}
- [https://cdn.americanprogress.org/wp-content/uploads/issues/2011/03/pdf/worker_productivity.pdf Inclusive Capitalism for the American Workforce: Reaping the Rewards of Economic Growth through Broad-based Employee Ownership and Profit Sharing], Center for American Progress, 2011
- [https://www.sbs.ox.ac.uk/sites/default/files/2020-01/in-pursuit-of-inclusive-capitalism-V2.pdf The State and Direction of Inclusive Capitalism], Saïd Business School, Oxford University—Deloitte Consulting, LLP
- David G. Green. [https://www.civitas.org.uk/content/files/inclusivecapitalismweb.pdf Inclusive Capitalism: How we can make independence work for everyone], Civitas: Institute for the Study of Civil Society, 2017
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