The World Economic Forum, the unofficial control center of the global leaders in politics, business, science, technology, media, NGOs, culture and churches, has switched its capitalism warning system from green to the alarm since Covid-19. It calls for the “Great New Start of Personal-Financial.comism”. WEF founder and boss Klaus Schwab has been a pioneer for stakeholder capitalism for 50 years and now sees the time to implement his model: “We have to build completely new foundations for our economic and social systems. Every country, from the US to China, needs to join in, and every industry, from oil and gas to tech, needs to be transformed. “
The aim is to structure sustainable capitalism for the 21st century, in which all stakeholders in society are included in the common and sustainable value chain. In practice, this means that a company no longer only serves its shareholders, but also its employees, customers, suppliers, local communities and the environment and society as a whole. As with a computer reset, this requires shutting down the operating system, our system. The restart button can only be pressed after it has been completely revised.
Stakeholder capitalism, as a model, is the only form of organization that combines social responsibility, including environmental issues, with the system of the market economy.
Today’s economic upheaval offers the rare opportunity to transform capitalism. Our shareholder capitalism (for shareholders) had already passed its zenith in the global financial crisis of 2008. Even then, the world’s elite were discussing in Davos whether the pursuit of profit as the main goal of companies has become obsolete. Because: It costs human lives, destroys nature and the climate – our livelihood. No society, no company has the right to direct its own good at the expense of the entire globe. The mantra that companies apply to the global links in the supply chain: “My profit depends on your loss” needs to be rethought. “My profit depends on your profit,” would be wiser. And more sustainable. Because fair.
What does the transformation to a fair, green and smart capitalism look like?
“We need the transition from short-term to long-term thinking, the transition from shareholder capitalism to stakeholder responsibility. Environmental, social and good governance must be an appropriate part of the accountability of companies and governments, ”said Klaus Schwab. In doing so he hits the nerve of the international community. Must be created:
- Fair Markets: Companies have to pay their fair share of taxes, must not allow any tolerance for corruption. It is important to protect human rights in global supply chains.
- A Greener world, in which nature is closely related to all living things. We have to treat the planet like a human being, invest in its sustainability.
- A Smarter world, with a new social contract. The focus is on human dignity and social justice. Social progress must not lag behind economic development.
The complexity of the crises that come with Covid-19 require our collective will.
“The Big New Start” is a commitment. He appeals to our responsibility as citizens, as business leaders and politicians, to work together and urgently to better align the foundations of our economic and social system. The United Nations, the International Monetary Fund, finance and technology companies, the Prince of Wales and international politicians have joined the initiative. They understand that no single stakeholder will save our planet. That is only possible together.
Is the alarm justified?
Let’s take a look at Germany: Europe’s largest economy is deeply in recession. The hardest since the end of World War II. Almost ten million citizens are in prescribed short-term or completely without work this summer. If it were only about Germany’s ailing business location, surrounded by a prosperous world, we would quickly find new strength. But this is not the case. 170 of 189 member countries of the International Monetary Fund feel the same way. Global economic growth is being downgraded every month by the World Bank, IMF and OECD, even though governments and international organizations around the world have provided $ 11 trillion in financial aid.
Who does the German export nation want to trade with when everyone is fighting for survival?
We are witnessing the dissolution of our trade order. There will be no going back to yesterday. It’s imagination. We have to create completely new foundations for our economic and social system. The rescue? A fresh start. A large.
Sibylle Barden-Fear-Not is a publicist, commentator and keynote speaker for socio-economics and politics. Your latest business thriller “The Honey Gazette” is about the dissolution of our world order. Business leaders call it a “wake-up call for Europe”