The Search For A New Way Of Doing Business
The events of recent years from the global financial crisis of 2008 to the ongoing
problems in the UK and continental Europe have prompted a great deal of soul-searching from politicians. The deleterious impact of outsourcing on jobs, wage repression and the increasing entrenchment of social inequality form the backdrop to the crisis that faces us currently, leading many people to ask some distinctly awkward questions about the kind of society weve built for ourselves in the early 21st century. While some sections of the press have chosen to zero in on state spending and blame profligate governments for the current malaise, others have chosen to take a more nuanced approach.
The way in which we do business with one another has come in for particular scrutiny over the last few years. The shareholder value maximisation model the cornerstone of Anglo-American capitalism has itself been called into question, with sceptics claiming it encourages management to prioritise short-term returns at the expense of long-term stability. They point to alternative methods, such as the social market model of Germany, which reminds businesses of their obligation to a wide range of stakeholders including not just shareholders but employees, the wider community and, in the case of large-scale firms in certain important industries, the national interest.
Others, meanwhile, have delved into their history books for inspiration. There has been renewed interest in mutualism and community enterprises, which advocates say promote long-term thinking rather than the more ad hoc approach of other business models. While the co-operative movements roots stretch back to the 18th century, many mutuals have endured for generations and continue to support local economies all over the UK. Indeed, in their efforts to claim moral capitalism for themselves, politicians of all stripes have hinted that they too would be willing to extend worker ownership. However, these sentiments are yet to translate into concrete policy for the most part.
Whatever route we manage to find out of the present slump, its clear that changes will have to be made if we are to avoid repeating the same mistakes that got us into this situation in the first place. A new generation of mutuals may well come to play a crucial role in driving British society as well as the economy forward into a new era of stability, providing working people with real power and responsibility, as well as showing faith in them to manage their own businesses collectively and productively.
by: Amy
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