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Thursday, 1 December 2022

[New post] What Capitalism and Social Enterprise can learn from the law of gravity?

Site logo image hanjoon23 posted: " Capitalism, like gravity, keeps things rooted, driving us to learn, develop, and continually improve. Because of the Earth's gravity, a lot of negative things happen. A glass shatters as it falls. Someone trips and falls, breaking their hip. If we cou" Social Entrepreneurship

What Capitalism and Social Enterprise can learn from the law of gravity?

hanjoon23

Dec 2

Capitalism, like gravity, keeps things rooted, driving us to learn, develop, and continually improve.

Because of the Earth's gravity, a lot of negative things happen. A glass shatters as it falls. Someone trips and falls, breaking their hip. If we could remove gravity, a plane would plummet from the sky and collide with a flaming ball.

Similarly, capitalism is blamed for many of our society's issues. Consider all the heinous actions fueled by humans' insatiable quest for profit: child labor, outrageous costs for life-saving medications, expensive housing, addicting drugs, and pollution, to mention a few. The litany of social dysfunction is so long that some argue that entirely.

However, abolishing capitalism — or gravity — is not a viable answer. It's also not an option. Despite flaws, gravity and capitalism keep everything grounded. Consider a world where there is no gravity. Nobody would break a hip, but nothing else would stay put. Plants were unable to grow. It would be impossible to walk down the street. Oceans, lakes, and rivers would vanish. Only gravity's grounding effects keep our planet habitable.

Capitalism also contributes to the stability of our society. It inspires us to learn, invent, create, and continuously improve. It's not ideal, but without it, we'd be stranded.

The concept of "social enterprise" in the twenty-first century

Despite its flaws, capitalism can inspire us to serve others and improve the world. Enter the concept of "social entrepreneurship" in the twenty-first century, which holds that a corporation can earn while still serving a social purpose. Because there is no unambiguous definition of social entrepreneurship, there is considerable disagreement about whether such a mix of capitalism and charity can exist.

One proper contrast between a social enterprise and a capitalist enterprise is that a social enterprise tries to improve the world while making a profit. In contrast, a regular for-profit company seeks to improve the world while also earning a profit. The importance of these two purposes — profit and making the world a better place — distinguishes social entrepreneurship from capitalist enterprise.

Walking the fine line between compassion and profit

Even the most profit-driven businesses would argue that their products or services, whether in banking, medicines or oil and gas, serve their consumers and hence help make the world a better place (despite claims critics might make to the contrary). It is challenging to envision any profit-driven corporation not making such a claim. On the other hand, social enterprises walk a fine line between pure compassion and profit. But will they be able to do so in the long run? It's similar to how a bird or an airplane can appear to resist gravity for a while before succumbing to the rules of physics and returning to the ground. Gravity requires it.

As a result, social enterprises frequently have a short duration. The motivations of altruism for creating the world a better place to live and profit are at clash. Straddling the two worlds is dangerous and unstable.

We have limited expertise with and knowledge about social enterprises. In the United States, social entrepreneurship is still in its infancy. The grand scheme of the human economy. And, while many fade away fast, there are enough examples of others that have lasted. Furthermore, the growing number of for-profit businesses stressing social and environmental obligations (such as certified B Corp companies) is a positive trend.

Using the power of capitalism to promote kindness and profit

Both gravity and capitalism can be condemned for the harm they do, yet without them, the world would be in turmoil.

We frequently take gravity's capacity to make our lives better and easier for granted - consider pouring water into a glass or hanging a painting on the wall. It's all about harnessing gravity's strength while minimizing the less desired results.

Similarly, social enterprises provide a fresh and imaginative approach for individuals to do good while also making money. Altruism must be the fundamental goal, although capitalist profiteering can make it more sustainable in the long run. Given the massive societal difficulties, we are currently witnessing around the world,

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