People often ask about the concept of socially responsible capital, or as some may know it profit with purpose or conscious capital. Whilst this has recently been refreshed as a concept – the basic philosophy has not changed.
The premise is that profit is good – but profit needs to have a purpose. Business can be involved, by operating in an ethical manner whist pursuing profits. It does not diminish profit-seeking.
In practical terms this means the integration of all common interests into the company’s business plan – serving suppliers, employees, customers, shareholder as well as humanity and our environment.
The guiding principles, relate to this higher purpose of profits and could be summarised as:
– businesses should operate ethically
– business should serve all stakeholders, not just shareholders
For further information see Investopedia and writings of John Mackey and Raj Sisodia.
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