The Law of Gravity and Capitalism: What it Can Teach us About Capitalism Social Enterprise

Capitalism, like gravity, keeps everything rooted. It motivates us to create, learn and improve constantly.

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Gravitation can cause many bad events. Glass falls on the ground and breaks. A person trips over and fractures his or her hip. The plane crashes into the fiery center of the earth after it falls from the sky. We could cancel gravity to avoid these tragic events.

Capitalism is also blamed for many of the social ills we face. Consider all of the terrible activities that humans have created because they are driven by a constant desire to make a profit. Think child labor, high prices for life-saving drugs, inaccessible housing, addiction, and pollution. Some suggest that capitalism should be abolished altogether because of the extent of its social dysfunction.

However, cancelling capitalism or gravity is not a viable solution. It is not an option. Both capitalism and gravity have their advantages, but they also keep the world rooted. Imagine a world where gravity was absent. While no one could break a hip or anything else, it would be impossible to move. It is impossible for plants to grow. It would be difficult to walk down the street. The oceans, lakes, and rivers would all just float away. Only the gravity’s grounding effect makes our planet habitable.

Our society is also grounded by capitalism. Capitalism motivates us all to invent, learn, improve, and create. Although it’s imperfect, it’s essential to our survival.

Related: 4 Ways Entrepreneurs Can Practice ‘Conscious Capitalism’

Social enterprise as it is defined in the 21st century

Even with its flaws, capitalism is able to motivate people to give back and improve the world. The 21st century concept of social enterprise — an idea where an organisation can make a profit while also being a catalyst for social change — is here. Social enterprise is not a clear concept. This has led to much discussion about whether it’s possible for such an amalgam of altruism and capitalism.

There is a distinction between social enterprises and capitalist businesses. A social enterprise seeks out to improve the world while making a profit, while a regular profit-oriented company strives to be profitable while improving the world. Social enterprise is distinguished from capitalist enterprises by the importance of these goals, which are turning profit and improving the world.

Related: Sustainable Capitalism Is the Next Big Thing in Investing

The fine line between profit and pure altruism

Even profit-driven businesses can still claim that their products and services, be they banking, pharmacy, or oil and gas — benefit their customers, and thus make the world a better place (despite criticisms to the contrary). You can’t imagine a profit-driven business that would not make such a claim.

On the other side, social enterprises walk a fine line between pure altruism, profit, and the two worlds. Can they manage it long-term? This is a little like an airplane or bird that appears to defy gravity, but then it becomes subject to the laws and has to return to the ground. It is required by gravity.

Social enterprises are often short-lived. Both the desire to make the world a better place and the drive for profit can be at odds. The danger of trying to cross between the two worlds can lead to instability and peril.

Despite this, our knowledge and experience with social enterprise is limited. Social enterprise, the grand arch of human economics, is still in its infancy. While many social enterprises fade quickly, some are proving to be resilient. It is encouraging to see a growing number of non-profit businesses that emphasize social and environmental responsibility (such as Certified B Corp Companies).

Related: Conscious Capitalism: Are You Driven By More Than Just Money?

Profit and altruism can be promoted by harnessing the power of capitalism

Capitalism and gravity: While both can be criticised for their damage, the world without them would be chaotic.

It is easy to take gravity’s power to improve our lives for granted. Think about how water can be poured into glasses or painting on the walls. The goal is to harness the power of gravity and reduce undesirable outcomes.

Social enterprises offer a unique and creative way for people to do good and make money. While altruism should be the main goal, capitalism’s ability to make a profit could help it to become sustainable over time. We need to be able to help the many social problems we face right now, including climate change, nationalalism, poverty, and pandemics.

Publited at Mon, 6 Sep 2021 15:42:04 +0000

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