Social Capitalism?

Is Social Capitalism the Right Approach? by Gavin Berkey

Social capitalism, humanitarian capitalism, and common-good capitalism are all descriptors of the same principle - applying business principles to benefit many facets of society. This article contrasts more traditional methods of dealing with long-standing social issues with new, emerging models that seems to be gaining popularity, and actually achieving results.

First, let us assume we want to address the issue of childhood malnutrition.

In traditional models, using the "world hunger" issue, charities solicit donations from caring consumers and organizations to purchase basic staples such as grain that then gets distributed to starving children around the world who are at risk of premature death. The charity enlists volunteers to solicit the donations, but incurs costs for shipping and distribution, and any overhead associated with administering the operation. Some of the donations must go to cover their costs. And while people feel good about helping, when economic times get tough, donations drop as donors become cash strapped.

Employing a social capitalism model, a more nutritious food line is developed by an organization that pays "distributors" to sell the meals for donation or consumption, to the same caring donors, but in this case, they can leverage their efforts by offering an incentive to the donors to assist in the process, with the end goal of being to help more dying children by increasing meal distribution.

Some might say it is not right to profit from poor, impoverished people, or from doing what is just common sense. But, how long have these problems existed using traditional methods? What real, tangible progress has been made over the past few decades? Should it be considered corrupt to make a good living when the focus is on benefiting mankind?

Think about how much we pay professional athletes, cable or satellite operators or gourmet coffee makers, just to satisfy our urges? Is it not better to pay for results that make a meaningful difference?

Social capitalism is a growing trend. When done right, many people can become more prosperous. It is certainly worth considering the possibilities of using the social capitalism model, or the consequences of doing what we've always done, and getting the same results we've always gotten.

Gavin Berkey is a Successful Entrepreneur, Author and Success Coach. Mr. Berkey runs multiple home-based businesses in the largest and fastest growing industries in the world, including one in the emerging "common good capitalism" arena. He helps individuals assess business ownership options, and provides Coaching and Consulting to those interested in pursuing their dreams. Mr. Berkey can be reached at 877-463-6811, via email at gavin.berkey@gmail.com or http://www.hometravelbiztrends.com/

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