The current world runs and operates within the capitalist theory and practice. Many countries have greatly benefited from the established globalization model and continue to build new ways of advancing their intertwined and interdependent economies. However, recent events relating to financial, environmental, and societal problems arising around the globe have found many supporters of the anti-capitalist movement. They believe that the system does not respond to contemporary needs and prevents equal prosperity by being profit-oriented and uncontrollable by the public. Although this was true decades ago, opponents of capitalism fail to acknowledge changes and transformations the system has gone through to become more responsible, ethical, and inclusive, which continues to fulfill the function of bringing “good”.
Today, capitalism is often associated with the greed and corrupt nature of business. It is believed to be evil and harmful for society as a whole by only enriching the long-standing strong while exploiting others. The anti-capitalism debate began in the late 20th century and has strengthened after the 2008-2009 financial crisis (Freeman, p. 450). People’s perspectives on business transitioned from idolizing it and pursuing economic advantage to disbelief and controversy. Moreover, when it comes to capitalism, individuals tend to separate it from ethics and responsibility. In fact, less than 20% of the global population trusts corporate leaders (Freeman, p. 454). This misconception and misunderstanding of the contemporary model is related to the outdated approach and does not represent the modern system truthfully.
Businesses have changed and adapted to both the real and internal needs. It can be seen in regulations promoting equal market access, environmental protection, and transparent and unbiased employment. Though there are many control measures implemented by the current governments, many of them are still inspired by the anti-capitalism approach. However, some scholars believe in the variety of regulation types that can positively impact not only businesses and the economy but also society and the environment. Even within the free-trade and free-market approach, regulation is needed and is critical to derive benefits (Drahos, p. 299). Such measures can be restructured as “progressive policy instruments” that would motivate companies to be more responsible and inclusive, meanwhile providing the public with access to business and new opportunities (Drahos, p. 298). The world does not need more regulation if the current approach can be redesigned to act as a tool that would function in hand with capitalism and not against it.
Responsible capitalism is becoming more prominent and widely established to regain public support and trust. For instance, the notions of “corporate social responsibility and sustainability” are being accepted and implemented within numerous companies’ missions and plans (Freeman, p. 450). Nevertheless, many of them continue to dismiss the consumer part of doing business and tend to operate unethically by infringing basic human rights to privacy and security. Such policies lead to damaging outcomes not only for the state of the economy but also for the companies themselves in the long run. Modern long run is ethically aware and considerate, so more boundaries should be put in place to prevent untrustworthy conduct and promote responsibility.
Despite all the criticism it receives, capitalism has played a key role in many of the humaachievests, including technology, science, and culture. The contemporary system is not as harmful as many believe. In order to gain an advantage from everything, capitalism has to offer and prevent negative societal impacts, regulations that are currently in place should be restructured. Likewise, many more businesses and companies should begin to adopt responsible and sustainable measures within their organizations to promote inclusiveness and equality. Thus, capitalism can prove itself “good” in the face of numerous opponents.
References
Drahos, Peter, editor. Regulatory Theory: Foundations and Applications. Australian National UP, 2017. OAPEN.
Freeman, Edward R. “The New Story of Business: Towards a More Responsible Capitalism.” Business and Society Review, vol. 122, no. 3, 2017, pp. 449-465. Wiley Online Library,DOIi: 10.1111/basr.12123.