Nobel Laureate Dr. Yunus debates on why his previously published views on Creative Capitalism missed the mark... A B&E exclusive
Another question I am repeatedly asked: Are you opposed to profit-maximising businesses? When I talk about social business, people assume that I am opposing the profit-maximising business. I am not. I am talking about a two-business market, not a one-business market. Both will work side by side. Many things which are missed by the first type of business will be picked up by the second type of business. When social business can demonstrate that a new opportunity for profit-maximising business has emerged, they may become attracted to the new business. Sometimes I have expressed it by saying that profit-maximising business is the “means”, and that social business is the “end”. Both are linked. It will be ridiculous to think about the business world without the profit-maximising businesses operating in full vigour. Whatever problems they have we can address them through “creative capitalism” and similar other innovative approaches.
Does a profit-maximising company like Microsoft impact on people’s lives, including the lives of the poor people? Of course, they do. Information technology has revolutionised the world we live in. Many dreams (like e-healthcare, e-banking, e-marketing) have now become reality because of this technology. Microsoft as a company has played a very strategic role in bringing about this revolution.
ompanies, healthcare companies, technology research companies, educational companies have all played a fundamental role. Smaller companies played a subsidiary role in the transformation of the world. Nobody should be against profit maximising companies. What we worry about is the excesses committed by profit-maximising companies. Today these excesses have given rise to blanket accusations against capitalism ¾ such as, casino capitalism, irresponsible capitalism, limitlessly greedy capitalism, insensitive capitalism - all of which caused agony to millions of people around the world. Hopefully, we will find solutions to these problems. But this is not to deny the role played by profit-maximising companies in shaping the destiny of world. Social business is an exclusively designed mechanism to bring many more solutions to the world’s problems in the fastest possible way. It is time to give it a serious try. I thank you in advance for printing my letter so that your readers are not confused about my views.
Another question I am repeatedly asked: Are you opposed to profit-maximising businesses? When I talk about social business, people assume that I am opposing the profit-maximising business. I am not. I am talking about a two-business market, not a one-business market. Both will work side by side. Many things which are missed by the first type of business will be picked up by the second type of business. When social business can demonstrate that a new opportunity for profit-maximising business has emerged, they may become attracted to the new business. Sometimes I have expressed it by saying that profit-maximising business is the “means”, and that social business is the “end”. Both are linked. It will be ridiculous to think about the business world without the profit-maximising businesses operating in full vigour. Whatever problems they have we can address them through “creative capitalism” and similar other innovative approaches.
Does a profit-maximising company like Microsoft impact on people’s lives, including the lives of the poor people? Of course, they do. Information technology has revolutionised the world we live in. Many dreams (like e-healthcare, e-banking, e-marketing) have now become reality because of this technology. Microsoft as a company has played a very strategic role in bringing about this revolution.
ompanies, healthcare companies, technology research companies, educational companies have all played a fundamental role. Smaller companies played a subsidiary role in the transformation of the world. Nobody should be against profit maximising companies. What we worry about is the excesses committed by profit-maximising companies. Today these excesses have given rise to blanket accusations against capitalism ¾ such as, casino capitalism, irresponsible capitalism, limitlessly greedy capitalism, insensitive capitalism - all of which caused agony to millions of people around the world. Hopefully, we will find solutions to these problems. But this is not to deny the role played by profit-maximising companies in shaping the destiny of world. Social business is an exclusively designed mechanism to bring many more solutions to the world’s problems in the fastest possible way. It is time to give it a serious try. I thank you in advance for printing my letter so that your readers are not confused about my views.
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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