HT highligts Creative Capitalism

Dr. Muhammad Yunus has talked extensively about reconceptualizing “capitalism” in his new book, “Creating a World Without Poverty: Social Business and The Future of Capitalism,” suggesting that “capitalism” posits human beings as one dimensional profit maximizers, devoid of complexity and multi-dimensionality. He proposes the reconceptualization of capitalism in the context of social business, where the market contributes to the social good through what he terms “social business entrepreneurs” (SBEs). In the same vein, Bill Gates recently spoke at the World Economic Forum about “creative capitalism”. Hindustan Times in a recent piece covered the speech with a focus on how creative capitalism will impact brands, (Through NextBillion)

At the recent annual World Economic Forum, Davos, the redoubtable Bill Gates spoke of “creative capitalism”-an approach where governments, businesses, and nonprofits work together to stretch the reach of market forces so that more people can make a profit, or gain recognition, doing work that eases the world’s inequities. There is an increasing recognition and acceptance of this new and more complex definition of business. And at a different level, it could be the harbinger of a new way of building sustainable brands and corporations.Unilever group has a tool called ‘Brand Imprint’ that essentially requires the company to qualify and quantify the impact that its brands have – emotionally, socially, physically, spiritually, intellectually and environmentally. It’s like a tool to figure out if there is a holistic contribution towards bettering of the communities being served. This recognition is not based on a sense of charity alone, it could actually mean reaching out to a new market that was largely untapped, but has much potential. More often than not, market forces fail to make an impact in many segments not because there’s no demand, or because money is lacking, but because not enough time, effort and resources, are spent studying the needs and limits of those markets.

Its interesting to see that the idea of Creative (and Kinder) Capitalism is getting traction and coverage in India. Of course, It was not long ago that Prime Minister Manmohan Singh made a controversial speech at a CII gathering, highlighting the need for Inclusive Growth.To read the entire HT article, go here.