Inclusive capitalism

Inclusive capitalism, or stakeholder capitalism, is a theoretical concept and policy movement that seeks to address the growing income inequality and wealth inequality within Western capitalism following the 2008 financial crisis.^[1]

Contemporary understanding

Robert Ashford argues that the concept of inclusive capitalism is rooted in the postulates of the binary economics.^[2][3]

C. K. Prahalad opens his 2005 book The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits by asking “Why can’t we create inclusive capitalism”.^[4] He uses the term “inclusive capitalism” to invite readers to focus on underserved consumers and markets in order to create opportunity for all.^[5]

Implementation

In 2012, the Henry Jackson Society created an Inclusive Capitalism Initiative task force in order to start a transatlantic conversation about the growing income inequalities and their threat to the capitalist system.^[6]

In 2014, Conference on Inclusive Capitalism, co-hosted by the City of London and E. L. Rothschild holding company, was held in London where the concept of inclusive capitalism was discussed as a practical measure.^[7] At another conference in 2015 the "Pathway to Action" was brainstormed.^[8] In the same 2015 year, the Coalition for Inclusive Capitalism was registered in the United States as a not-for-profit organization.^[9] Lynn Forester de Rothschild became the founding CEO of the Coalition. At the 2016 Conference on Inclusive Capitalism in New York City, participants expressed commitment to promote inclusive economic growth.^[10] Members of the Coalition expressed a belief that all stakeholders, including business and society, should be engaged in the enactment of an inclusive capitalism agenda^[1][11]

In 2019, the Embankment Project for Inclusive Capitalism (EPIC) undertaken by the Coalition together with Ernst & Young reported its findings in a white paper. It was a pioneering effort to "develop a framework and identify meaningful metrics to report on long-term and inclusive value creation activities that heretofore have not been captured on traditional financial statements".^[12]

In 2020, the Council for Inclusive Capitalism, a partnership of the Coalition with the Vatican, was created.^[13][14][15]

Criticism

John Kay claims that most of the 21st-century businesses are already inclusive.^[16]

Nafeez Ahmed describes the Inclusive Capitalism Initiative as a Trojan Horse assembled to pacify the coming global revolt against capitalism.^[17]

See also

• Community capitalism
• Humanistic capitalism
• Neo-Capitalism
• Progressive capitalism
• Green capitalism
• Pink capitalism
• Purple capitalism
• Binary economics
• Inclusive growth
• Creating shared value
• Corporate social responsibility
• Redwashing