Nov 2020

The New Social Impact Ecosystem

Published November 2020

Bruno Roche, Economics of Mutuality Founder & Executive Director, recently presented the Economics of Mutuality in a webinar at the The John D. Gerhart Center for Philanthropy, Civic Engagement and Responsible Business, which is part of the American University in Cairo School of Business.

The webinar formed part of a series entitled ‘The Aftermath of COVID 19: The New Social Impact Ecosystem’, which was set up to explore concepts with the potential of becoming mainstream as a result of changes to the business landscape wrought by the global pandemic.

The recording is available to watch below and a short extract from Bruno’s contribution has been transcribed.


I believe the Covid crisis is going to accelerate the transition of companies understanding that purpose is the next frontier for value creation.

The value extraction model that has been the rule over the last 50 years, which is essentially Milton Friedman’s doctrine, is coming to an end. This outdated model is driven by the macroeconomic principle that economics is all about managing scarcities.

Saying that our economic model will have to adjust because financial capital is overly abundant whilst human, social, and natural capital are now becoming scarce is not an ideology – it’s an observation. My hope is that the transition will happen through research and education – not through civil wars or catastrophic events.

If business leaders don’t embark on this kind of management innovation, not only will they expose their company to a high level of risk, but they will also expose their company to a missed opportunity. There are a growing number of companies that understand the shareholder primacy model is outdated, dysfunctional and sub-optimum – even for the shareholder.

Header photo: Cairo, Egypt

Share
EmailLinkedIn

Other Articles

Jun 2024
Lisbon Conscious Business Education Conference 2024: Evolving Education for Ethical Business Practices 
Mar 2024
Asia Economics of Mutuality Forum 24-25 April 2024

Korean and global leaders in business, academia, government, and civil society will gather at Hanyang University in Seoul, South Korea, to launch the inaugural Economics of Mutuality Foundation and Hanyang University’s Global Forum on the role of business and investing in society. The event will take place from April 24 to 25, 2024. The two-day event will include addresses by Professor Colin Mayer, former Dean of Oxford University’s Said Business School; Chairman Moon Kook Hyun, President of the New Paradigm Institute and former CEO of Yuhan-Kimberly, and Dr. Jay Jakub, the Executive Director of the Economics of Mutuality Foundation, and co-author of the book, “Completing Capitalism.” The event will highlight the roles of academia, corporations, investors, family offices and entrepreneurs in creating an ecosystem of mutual value co-creation by how companies deploy their capital in society.

Mar 2024
Oxford Virtual Executive Education Program, September 12 – October 31, 2024

Driving Impact Through Mutual Value Creation, an 8-week online course brought to you by Oxford University’s Saïd Business School and the Economics of Mutuality team, will equip you to walk the talk of Stakeholder Capitalism.

Mar 2024
Nordic Economics of Mutuality Forum October 15-16

The first Economics of Mutuality forum to be held in Scandinavia, this event taking place October 15-16, 2024 will be hosted by Brandinnova, the Center for Brand Research at the Norwegian School of Economics (NHH), Jæren Sparebank, and the Economics of Mutuality Foundation.