Nobel Laureate Dr. Yunus debates on why his previously published views on Creative Capitalism missed the mark... A B&E exclusive
My interview titled as “I don’t believe in ‘Creative Capitalism’!” was published in Business & Economy as a part of a cover story titled “Saving Capitalism” on October 16, 2008. The interview gives a completely different presentation of my actual views on the subject. This will create total confusion in the readers mind. I would like to clarify my views on the basic issues. I hope you will publish my letter to remove the misgivings in the minds of the readers.
The appropriate title of the interview would have been “Creative Capitalism with Social Business”, because that is what I have been pleading for. I was very excited when Bill Gates proposed the path of “Creative Capitalism”. It made my job immensely easier. It needed courage and conviction for Bill Gates, a life long beneficiary of capitalism, to say in unambiguous words that capitalism as practiced now misses out many important issues of human life ¾ poverty, health, nutrition, housing, etc. He took the initiative to direct capitalism to those areas and called it “creative capitalism”. Of course, any human organisation has to be creative. That is not the creativity Bill Gates was referring to. He had very specific idea of the nature of the creativity. I support his initiative fully. As one, the leaders of the business world, his voice will carry tremendous weight.
I have been proposing something different. I have been saying that human beings are multi-dimensional. There is a selfish dimension to a human being, as well as a selfless dimension. Selfish dimension is very adequately (and sometimes, unfortunately, very aggressively) addressed by the existing type of business, i.e., profit-maximising business. The selfless dimension remains unaddressed by the business world. I am suggesting creating a new type of business to address this dimension: a non-loss, non-dividend business with a social goal. Instead of being profit-driven, this business will be cause-driven. It will make profit, but profit will not go to the investor, except to getting back the investment money. Creative capitalism and social business will be working in the same direction, but in different formats, one within the existing format, and another within a new format.
My interview titled as “I don’t believe in ‘Creative Capitalism’!” was published in Business & Economy as a part of a cover story titled “Saving Capitalism” on October 16, 2008. The interview gives a completely different presentation of my actual views on the subject. This will create total confusion in the readers mind. I would like to clarify my views on the basic issues. I hope you will publish my letter to remove the misgivings in the minds of the readers.
The appropriate title of the interview would have been “Creative Capitalism with Social Business”, because that is what I have been pleading for. I was very excited when Bill Gates proposed the path of “Creative Capitalism”. It made my job immensely easier. It needed courage and conviction for Bill Gates, a life long beneficiary of capitalism, to say in unambiguous words that capitalism as practiced now misses out many important issues of human life ¾ poverty, health, nutrition, housing, etc. He took the initiative to direct capitalism to those areas and called it “creative capitalism”. Of course, any human organisation has to be creative. That is not the creativity Bill Gates was referring to. He had very specific idea of the nature of the creativity. I support his initiative fully. As one, the leaders of the business world, his voice will carry tremendous weight.
I have been proposing something different. I have been saying that human beings are multi-dimensional. There is a selfish dimension to a human being, as well as a selfless dimension. Selfish dimension is very adequately (and sometimes, unfortunately, very aggressively) addressed by the existing type of business, i.e., profit-maximising business. The selfless dimension remains unaddressed by the business world. I am suggesting creating a new type of business to address this dimension: a non-loss, non-dividend business with a social goal. Instead of being profit-driven, this business will be cause-driven. It will make profit, but profit will not go to the investor, except to getting back the investment money. Creative capitalism and social business will be working in the same direction, but in different formats, one within the existing format, and another within a new format.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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