The Pursuit of Equal Income Distribution
During the last decades, the great weaknesses of capitalism have flourished. Inequality of income distribution has worsened painfully, the gap between rich and poor widens more and more every day, and just a few lucky entrepreneurs in the world are able to enjoy the capital benefits of the global system. Hunger, poverty, demographic explosion, ageing, and unbridled mass migration, among other factors, have become critical social dilemmas directly related to capitalist deviations, all of which cause us to foresee a chaotic world scenario in the near future. The numbers shown in this article confirm that the world’s economic disparity, instead of diminishing, is increasing at an alarming rate. Since the world economy completely depends on capitalism, this system is still extremely powerful and influential in global decision-making, thus further aggravating economic disparity. As it is not possible to avoid the capitalist system, we will make proposals that are feasible for implementing within the current capitalist tendencies in order to alleviate global imbalance. Compassionate Capitalism is an alternative that promotes flexibilization of the system in order to make it more sustainable. It seeks to diminish corporate control over the economy and markets by regaining the State’s economic intervention so that profits are fairly redistributed for the common welfare. The information used for the study is based on the most recent international reports and global circumstances of the topics in question. This work is licensed under a Creative Commons Attribution 4.0 International License. To make sure that you can receive messages from us, please add ‘julypress.com’ domain to your e-mail ‘safe list’. If you do not receive e-mail in your ‘inbox’, check your ‘bulk mail’ or ‘junk mail’ folders.
Good corporate citizenship is a theme of the Davos celebrations. Admittedly, even fewer, just 5%, named CSR in its own right as the single most important criterion; but one might add to this the additional 24% who said that the reputation and integrity of the brand, to which good corporate citizenship presumably contributes, matter most. From an ethical point of view, the problem with conscientious CSR is obvious: it is philanthropy at other people’s expense. Advocates of CSR typically respond that this misses the point: corporate virtue is good for profits. The trouble is, CSR that pays dividends, so to speak, is unlikely to impress the people whose complaints first put CSR on the board’s agenda. Profit-maximising CSR does not silence the critics, which was the initial aim; CSR that is not profit-maximising might silence the critics but is unethical. In a new book, co-written with Karen Southwick, Mr Benioff argues that corporate philanthropy, done right, transforms the culture of the firm concerned*. Unlike some advocates of CSR, Mr Benioff says he opposes government mandates to undertake such activities. In any case, if Mr Benioff is right, and CSR done wisely helps businesses succeed, compulsion should not be needed. Lack of compulsion is exactly what is wrong with current approaches to CSR, say many of the NGOs that first put firms on the spot for their supposedly unethical practices. CSR was conjured up in the first place because government action was deemed inadequate: orthodox politics was a sham, so pressure had to be put directly on firms by organised protest. Ten years on, instead of declaring victory, as well they might, disenchanted NGOs like Christian Aid are coming to regard CSR as the greater sham, and are calling on governments to resume their duties.
Over the years, Mr. Whittaker’s Christian ecumenical humanitarian organization, Opportunity International, has lived up to its growing reputation of giving the poor an alternative to charity. Today, this non-profit group creates entrepreneurial empowerment by providing loans and job training directly to poor people at the grassroots level. By 2007, the organization plans to finance 1 million poor entrepreneurs per year; and by 2010 its goal is to finance 2 million people per year into their own businesses. 98 percent of its clients pay their loans back on time and at market-rate interest! Notions that the poor are not creditworthy are shattered by this reality. Given access to credit and capital, capitalism can be democratized. People must be able to feed themselves and their families. For the majority of the world’s hungry people, food is available. Microfinance is the jumpstart so many people need to begin the process of meeting their most basic human needs; and then, accumulated capital can be saved and invested towards purchasing a home and property to begin the process of real wealth-building. When people are economically deprived, they can be politically and culturally deprived as well. We also know that poverty represents a breeding ground for terrorism, emanating from people’s feelings of desperation. The bottom line is that we must do more to narrow that gap between the rich and poor in our world. When we tap into one of the key economic forces that have made America great, namely, venture capital to energize the spirit of entrepreneurship, and harness it with compassion in the form of credit for the working poor – we have a formula for ending chronic poverty.