Inclusive capitalism
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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.[1]
Contemporary understanding
[edit]Klaus Schwab, the WEF's founder, is considered the originator of theory of stakeholder capitalism.[2] He first presented this theory in 1971 in a book named Moderne Unternehmensführung im Maschinenenbau (Modern Enterprise Management in Mechanical Engineering).[3]
Robert Ashford argues that the concept of inclusive capitalism is rooted in the postulates of the binary economics.[4][5]
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”.[6] He uses the term “inclusive capitalism” to invite readers to focus on underserved consumers and markets in order to create opportunity for all.[7]
Implementation
[edit]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.[8]
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.[9] At another conference in 2015 the "Pathway to Action" was brainstormed.[10] In the same 2015 year, the Coalition for Inclusive Capitalism was registered in the United States as a not-for-profit organization.[11] 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.[12] Members of the Coalition expressed a belief that all stakeholders, including business and society, should be engaged in the enactment of an inclusive capitalism agenda[1][13]
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".[14]
In 2020, the Council for Inclusive Capitalism, a partnership of the Coalition with the Vatican, was created.[15][16][17]
Criticism
[edit]John Kay claims that most of the 21st-century businesses are already inclusive.[18]
Nafeez Ahmed describes the Inclusive Capitalism Initiative as a Trojan Horse assembled to pacify the coming global revolt against capitalism.[19]
See also
[edit]References
[edit]- 1 2 Paul Thanos. American Inclusive Capitalism: An Agenda for a New Business Activism, Wilson Center, April 26, 2017
- ↑ Congress, International Federation of Commercial, Clerical, Professional, and Technical Employees World (1995). Report on the ... World Congress. The Federation. p. 50. Retrieved 25 June 2026.
"[...]stakeholder capitalism," which was a theory originally promoted by Klaus Schwab, which he considered a variance of relationship capitalism.
{{cite book}}: CS1 maint: multiple names: authors list (link) - ↑ Morano, Marc (30 August 2022). The Great Reset: Global Elites and the Permanent Lockdown. Simon and Schuster. p. 35. ISBN 978-1-68451-276-8.
- ↑ Robert Ashford. Why Working but Poor: The Need for Inclusive Capitalism, 49 Akron L. Rev. 507 (2016)
- ↑ Professor Robert Ashford’s 'Inclusive Capitalism' Gains International Support, Syracuse University News, September 27, 2017
- ↑ Prahalad 2005:xv
- ↑ Prahalad 2005:xvii
- ↑ Towards a More Inclusive Capitalism. By the Henry Jackson Initiative for Inclusive Capitalism
- ↑ A movement to restore trust in capitalism, September 27, 2016
- ↑ 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
- ↑ Coalition for Inclusive Capitalism
- ↑ 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
- ↑ Actions to Achieve Inclusive Capitalism Mark Weinberger, EY CEO
- ↑ The Embankment Project for Inclusive Capitalism (“EPIC”): A Better Way to Value the American Worker, Coalition for Inclusive Capitalism, 2019.
- ↑ Edgecliffe-Johnson, Andrew (8 December 2020). "Pope Francis gives his blessing to Council for Inclusive Capitalism". New York: Financial Times. Retrieved 24 April 2025.
- ↑ Council for Inclusive Capitalism launches partnership with Vatican, Angelusnews.com, December 9, 2020
- ↑ Anne Quito. Pope Francis is backing a new movement to redefine capitalism as a force for good, Quartz Media, December 8, 2020
- ↑ Moving Beyond “Capitalism”, March 13, 2018
- ↑ Nafeez Ahmed. 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
Further reading
[edit]- Farmer, Paul (2003). Pathologies of Power: Health, Human Rights, and the New War on the Poor. Berkeley, CA: University of California Press. ISBN 9780520235502.
- Goode, Judith; Maskovsky, Jeff (2001). The New Poverty Studies: The Ethnography of Power, Politics, and Impoverished People in the United States. New York: 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). The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid Archived 2008-04-15 at the Wayback Machine. 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
[edit]- Coalition for Inclusive Capitalism Archived 2021-01-18 at the Wayback Machine
- Coalition for Inclusive Capitalism—Press Archived 2019-12-28 at the Wayback Machine
- 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
- The State and Direction of Inclusive Capitalism, Saïd Business School, Oxford University—Deloitte Consulting, LLP
- David G. Green. Inclusive Capitalism: How we can make independence work for everyone, Civitas: Institute for the Study of Civil Society, 2017
Data related to Inclusive capitalism at Wikidata
