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Concept
Humanistic capitalism
Résumé
Humanistic capitalism is a concept that seeks to unite humanism, specifically the safety and health needs of people and the environment, with market forces and a market-based economy. It is often seen as a middle ground between the ideas of modern capitalism and democratic socialism.
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.
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.
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.
In Willis Harman's seminal paper "Humanistic Capitalism: Another Alternative" (Journal of Humanistic Psychology, Vol. 14, No. 1, Winter 1974) he writes:...
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