Conscious Capitalism

Taken from a book called Confronting Capitalism by Philip Kottler

I went to a marketing lecture last month via a video link to Chicago from renowned Marketer Philip Kottler to find out he is also an esteemed economist. Now talking about capitalism sounds heavy stuff and somewhat political which isn’t in my nature. Please note some of my thoughts on this book and maybe they might have an impact on you too?

Have you heard of Winston Churchill’s famous defence of capitalism – “democracy is the worst form of government, except for all those other forms that have been tried from time to time”. Conscious Capitalism ( www.consciouscapitalism.com ) could be the way forward?

• Companies should embrace a higher purpose for their business, than just profits
• Companies should seek to benefit not only the investors but all the involved stakeholders in shared prosperity
• Company Leaders need to be committed to the community responsibilities of their company
• The Company’s culture should place a strong value on trust, authenticity, caring, transparency, integrity, learning and empowerment. – look what’s happened to the reputation of VW when a number of these values have been ignored!

Kottler quoted that CEOs in the USA used to earn 40x the income of the average employee; now it is 300x! There is a similar picture in the UK where distribution of wealth has deteriorated badly.

Healthy Capitalism or Conscious Capitalism should include:

• Create an economic system whose operation leads to a broad level of happiness and well-being of its citizens
• Use its resources to permit all people to realise their potential and to obtain the basic necessities of life
• Marketing should be to create a healthy desire in its citizens for the acquisition of material goods beyond the basics of food clothing, and shelter thereby creating demand and spreading wealth
• People to work hard to produce a liveable income to acquire the goods they desire. The system should also include consistent responsible credit facilities
• Capitalism develops high quality and luxury products to encourage citizens to work hard to attain a “good life”. The affluent middle class keeps the economy going
• The hope is that the rich and super rich take on more responsibility to share their good fortune with those who are less fortunate

It sounds simple doesn’t it! How can India have such a high number of billionaires yet have such extreme poverty and the UK send so much financial aid there?

I have a feeling that the youth of today have a lot more social responsibility than in my day. When you are living in the “muck and bullets” of everyday life, providing for your family, you don’t normally have time to consider such topics. May be political parties, companies and the youth of today are more aware and want to make a difference?

There is no call to action today except perhaps read Confronting Capitalism by Philip Kottler or look around you and see if there is somebody who could do with your help.