From Capitalism to Sustainable Capitalism?

Economic Systems

We have a world economic system that is unsustainable or not synchronised with the use of its resources.  Evolution will take its path and it is only incremental contributions and leadership shown towards true global egalitarianism will minimise the pain of change.  Economic globalisation is evolving away from a system where resources are competed for to a more sustainable model respectful of equal dignity in quality of life.

The Macro System

The free trade system is free but is not equal in human quality of life terms because competition occurs on a playing field that is not level.  What is required is every trading business needs to be ranked in terms of the five bottom lines and given a global trade factor which then sets a globally standardised weighting tariff.

The Five Bottom Lines

1. How well does this business/activity contribute towards improving quality of life?

2. How much does this business/activity contribute towards the global knowledge pool?

3. How well does this business/activity develop all employees or participants to reach their natural potential?

4. How well does this business/activity utilise its resources in an sustainable way?

5. How well does this business/activity retain its profitability by sustainable and ethical means?

 

The Micro Economic System

Is there nothing more enjoyable than being part of a team that wins over another team that has access to more development resources?  Yes there is - winning over another team on a level playing field.

So when I use my business advantage to beat the opposition, that is fine.  But when I then use most of the profit to grow and squash out more or all opposition by using financial power through unfair practices then I have tipped the playing field.  I no longer need to rely on innovation or business reinvention to survive.  But the others do so watch out.  A business with a one dimensional bottom line (profit) is unsustainable, A business with a five dimensional bottom line is sustainable.

Peter Senge in his book 'The Fifth Discipline - the Art and Practice of a Learning Organisation' explains what it takes to maintain a sustainable  business or organisation.  Look at the work on natural capitalism also.

Thats all very fine but if I take the first step then my business costs will rise and I will be out on the street in a flash.  OK then lets all sit back and wait until someone else does...

Leadership in this context is understanding the business system we operate within and showing the skills to transform ones own business into a sustainable entity thereby putting influence on other elements of the system to follow suit.  The business system has no magic switch - it is through the incremental actions from elements within that will effect change.  In most cases this will be a slow change over time - its ok to start thinking sustainable practices, then follow up with policies and actions.  One of the most important elements is to visualise the future likely business environment and adapt in time.

 

 Transactional Leadership Model                                   Transformational Leadership Model

                                                        

 

In the dodecahedron (transformational) model look at it as representing a total business or organisation.  Each flat plane is a department or unit and at each node is a person who is part of three units or planes.  It displays a network of teams.  The next thing is to look at how people operate in this model.

 

The Freedom of Money

 

Money doesn’t grow on trees

And evil is its root

So best you leave it all with me

(I’ve got to have that loot)

 

Money makes the world go round

But squeaky is the wheel

I’ll oil it a bit – but only a bit

I’ll cut them out of the deal

 

Money’s a finite resource you know

But it’s a secret you must keep

If not we’re shot – we’ll lose the lot

To those have-nots on the heap

 

They make money but I can not

Give me some and I’ll give it a shot

I’ll work very hard at market share

At interest rates they can’t bear!

 

The Guv’mint makes it I know that

It’s sometimes round but mostly flat

They think we’re free but they can’t see

Freedom is actually monetary!

 

Some die for money and some die with none

Some never have any – that’s no fun

Some die from need, some die from greed

Let’s share this dollar and share a feed!