Unchecked capitalism has pulled the roots of Mother Nature on several occasions for accelerated economic growth. The wealth created at a cost to the environment directly affects a majority of the population.
In recent years there have been discussions around the idea of compassionate capitalism and people-oriented business models with a purpose higher than merely generating profits. Several industry leaders and business tycoons in recent years, such as NR Narayana Murthy, Bill Gates, Elon Musk, and Mark Zuckerberg, have espoused some of the principles of compassionate capitalism, such as protecting the environment, reducing inequality, basic income, and gender diversity.
Patagonia and Compassionate Capitalism
The crux of compassionate capitalism is that corporations are accountable for the environmental effects of their businesses and their impact on the communities. The change in paradigm is from “profit at all costs” to ethical and equitable business practices that benefit everyone involved and not just the few who are on the top.
If the profit-centric wheel of capitalism does not stop, we will soon enter an unimaginable dystopia. The pressing need for change can only be brought about by the financial behemoths who have the resources and the means to do so. Consider the case of Patagonia’s founder, Yvon Chouinard, who gave up his fortune to help in the struggle against climate change. In an open letter on the company’s website, Chouinard declared that the Patagonia Purpose Trust would have all his voting stock, and his family would oversee the trust. He wrote:
“Instead of extracting value from nature and transforming it into wealth for investors, we’ll use the wealth Patagonia creates to protect the source of all wealth.”
The Need for Compassionate Capitalism
The crisis we face now is of an order that has never been seen in the history of humankind. Climate change threatens the very foundations of civilisation while the income inequalities and ridiculous wealth gap are breading much social unrest. Added to that is the rapid progression of technology that destabilises the social contract, which is the basis for worldwide relations. Considering the variables, compassionate capitalism is no longer an abstract idea but something that holds a promise for a better future. It is essential that the critics and believers of compassionate capitalism meet halfway to reconcile their differences and chart a road to a more sustainable future.
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