Humanistic capitalism
Encyclopedia
Humanistic capitalism is a concept that seeks to marry humanism
, specifically the safety and health needs of people and the environment
, with an embrace of market forces and a market-based economy.
Muhammad Yunus
describes Humanistic Capitalism as a socially conscious business world where investors are content to recoup their investments but do not expect additional dividends. http://www.alliancemagazine.org/online/html/aojun07e.html
The idea of humanistic capitalism is linked with the idea that fundamental changes must take place in economics
today, as humanistic capitalism requires that there be a blending of the non-profit and for-profit sectors. If investors can accept the decrease in financial returns for those on a social level, humanistic capitalism will become a successful force in driving economic and social change
. Philanthropy
is a fundamental concept to humanistic capitalism. While the idea of humanistic capitalism is still growing, over “72% percent of social entrepreneurs say that raising money is a problem,” and fundraising is a major issue to social entrepreneurs, who rely on philanthropy
for support and funding.
JEP Foundation promotes the philosophies of Humanistic Capitalism to create a kinder, gentler economic approach. The principles of Just Enough Profit (JEP) are used by companies to define what they stand for, how they treat their customers and employees, and how they serve humanity.
Ira Rohter, a professor in the Political Science Department at the University of Hawaii
, promoted Humanistic Capitalism as a way to restore power to the people of Hawaii
and their environment. He advocated that all growth be sustainable, self-reliant, and not only focused on profit, but the needs of people. Another key concept of humanistic capitalism, he added, is a democratic economy way based on “cooperation [and] openness” in order to meet the needs of Hawaii’s people and environment.
Humanism
Humanism is an approach in study, philosophy, world view or practice that focuses on human values and concerns. In philosophy and social science, humanism is a perspective which affirms some notion of human nature, and is contrasted with anti-humanism....
, specifically the safety and health needs of people and the environment
Environment (biophysical)
The biophysical environment is the combined modeling of the physical environment and the biological life forms within the environment, and includes all variables, parameters as well as conditions and modes inside the Earth's biosphere. The biophysical environment can be divided into two categories:...
, with an embrace of market forces and a market-based economy.
Muhammad Yunus
Muhammad Yunus
Muhammad Yunus is a Bangladeshi economist and founder of the Grameen Bank, an institution that provides microcredit to help its clients establish creditworthiness and financial self-sufficiency. In 2006 Yunus and Grameen received the Nobel Peace Prize...
describes Humanistic Capitalism as a socially conscious business world where investors are content to recoup their investments but do not expect additional dividends. http://www.alliancemagazine.org/online/html/aojun07e.html
The idea of humanistic capitalism is linked with the idea that fundamental changes must take place in economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
today, as humanistic capitalism requires that there be a blending of the non-profit and for-profit sectors. If investors can accept the decrease in financial returns for those on a social level, humanistic capitalism will become a successful force in driving economic and social change
Social change
Social change refers to an alteration in the social order of a society. It may refer to the notion of social progress or sociocultural evolution, the philosophical idea that society moves forward by dialectical or evolutionary means. It may refer to a paradigmatic change in the socio-economic...
. Philanthropy
Philanthropy
Philanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
is a fundamental concept to humanistic capitalism. While the idea of humanistic capitalism is still growing, over “72% percent of social entrepreneurs say that raising money is a problem,” and fundraising is a major issue to social entrepreneurs, who rely on philanthropy
Philanthropy
Philanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
for support and funding.
Businesses today
There are also many businesses today that already combine the needs of the environment with the needs of people and the environment. SustainAbility , a company established in 1987, defines their purpose as to “seek solutions to social and environmental challenges that deliver long term value,” and has worked on projects to “identify opportunities to innovate products and services with a reduced environmental footprint.”JEP Foundation promotes the philosophies of Humanistic Capitalism to create a kinder, gentler economic approach. The principles of Just Enough Profit (JEP) are used by companies to define what they stand for, how they treat their customers and employees, and how they serve humanity.
Other views
In Willis Harman's seminal paper "Humanistic Capitalism: Another Alternative" (Journal of Humanistic Psychology, Vol. 14, No. 1, Winter 1974) he writes "...corporations [must] assume an active responsibility for creating a healthy society and a habitable planet—not as a gesture to improve corporate image or as a moralistically undertaken responsibility, but because it is the only reasonable long-run interpretation of "good business." In the end, good business policy must become one with good social policy."Ira Rohter, a professor in the Political Science Department at the University of Hawaii
University of Hawaii
The University of Hawaii System, formally the University of Hawaii and popularly known as UH, is a public, co-educational college and university system that confers associate, bachelor, master, and doctoral degrees through three university campuses, seven community college campuses, an employment...
, promoted Humanistic Capitalism as a way to restore power to the people of Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
and their environment. He advocated that all growth be sustainable, self-reliant, and not only focused on profit, but the needs of people. Another key concept of humanistic capitalism, he added, is a democratic economy way based on “cooperation [and] openness” in order to meet the needs of Hawaii’s people and environment.