72% APAC consumers say they try to buy products from brands that act responsibly, even if it means spending more
There are signs of a reset in attitudes towards wealth, money, and status. Many people want brands to help society, and claim to be prepared to pay more to support them.
We are seeing a movement away from shareholder value at all costs to a more holistic understanding of the human and environmental impacts of capitalism.
The combined effects of the pandemic, the climate emergency and the cost of living crisis may be driving a reassessment of individual goals and priorities.
In the past, capitalism was all about growth. Indeed, it has always been couched in the narrative that it allows for greater competition and greater innovation, which in turn lead to lower prices and higher wages overall. It has often been coupled with democracy as well, then the assumption being that free people and markets will benefit the largest number of people, but those ideals are now being decoupled and closely examined.
New ways of thinking about the role of businesses, economics and institutions are prompting a re-examination of capitalism and an exploration of alternative models that consider the needs and well-being of multiple stakeholders rather than simply maximising profits for owners.
While activists may hope for an end to capitalism, a more accurate prediction may be that we're entering a new era of capitalism that questions the way business is conducted and the toll it takes on people and the planet.
There has been a growing realisation of the ecological toll of capitalism and the human impact of inequality within and across markets.
We are now considering the impact of capitalism, exploring investor-friendly economics, and coming up with better alternatives, such as Triple Bottom Line, which realigns businesses' goals against ESG metrics.
Thought Starters
Do you truly know what your consumers value - and does that trump what your shareholders value?
Does your business model really serve stakeholders, or society? How can you incorporate ESG impacts?
Is your business defined by its next-quarter returns instead of long-term growth? If so, how can you transition to a more sustainable business model?
