What have we learned from the global economic crisis?
Much has been written about the unprecedented global economic crisis, including the causes – greed, selfishness, financial and loan schemes, rampant consumerism. But, as the saying goes, “Never let a good crisis go to waste”. As a global society, we have a chance to learn from this crisis and ultimately create a new business model for our future.
Our current economic model is not sustainable
Many of us are waking up to this fact. It amazed me years ago when I did my Economics degree, that so little was discussed about the sustainability of our economic model. In the late 1980’s, we were so happy to see the Iron Current fall that we missed the opportunity to examine and learn from the strengths and ultimate failings of the socialist model. Nor did we take the opportunity to reflect on the parts of our model that were not sustainable. I am hoping that we won’t make the same mistake again.
Our profit-driven, highly dualist model is founded on the principles of continued growth. This growth comes from either the opening of new markets or cost reductions, both which are bound by the laws of diminishing returns. In addition, our current model places little value on environmental and social impacts, which have resulted in two of the other big crisis facing our planet: global warming and the growing gap between the halves and halve-nots.
The good news is that we have a chance to rewrite the script, while the whole world is paying attention.
We have a chance to create a new economy based not only on the profit bottom line, but also on the social and environmental bottom lines. Corrine McLaughlin, social change expert, in her book, Spiritual Leadership in a Changing World
To realize this new model that values the interconnectedness of profit, people and planet, we need to examine the levers of change (Education, Innovation, Leadership and Collaboration). How are we teaching our children to think more holistic? How are we encouraging leadership to include more empathy and encourage collaboration? Is there enough incentive for these organizations to create new product solutions?
The changes are happening all around us
Twenty years ago, when I graduated from MBA school, only one course (Business Ethics) of the twenty-four I took would have been considered outside the normal business curriculum of Finance, Marketing and Operations. Today, that same business school, The Rotman School of Management in Toronto, has a whole centre dedicated to Integrative Thinking, with courses like “The Opposable Mind”, “Innovation, Foresight and Business Design”, and “Leadership from the Inside Out”, which practices models of empathy.
But, what about our primary education system? Are we doing all that we can to develop the skills that our children will need in this new economy? Daniel H. Pink, in his book A Whole New Mind
Smaller businesses are leading the charge
“Social Entrepreneurship” is a budding trend. But larger companies are slow to follow. Having worked and consulted for large, global organizations like Bombardier and Rio Tinto Alcan, I understand how difficult it is to steer these Goliaths in a new direction. But, we can’t leave it to the business community to make this transition on their own. We need political and community leadership to help businesses support the shift toward a triple bottom line. Again, the current economic crisis is waking us up to the demand for greater transparency and further regulation. Political leadership needs to hold companies more accountable for their environmental and social impact. And, it is up to us to vote for the leaders that are committed to that change.
Our political leadership need to hold businesses accountable
In my own country, Canada, we see the shameful effects of political leadership putting corporate self-interest ahead of the health needs of developing countries with the continued promotion of the known harmful toxin – asbestos (see full article on CBC). Unlike countries in the European Union, as well as Japan, Australia and Saudi Arabia, Canada has not banned asbestos. Rather, the federal government actively promotes its use globally, supporting our exports to developing countries like India and China. The tobacco industry story is no less shameful, but this story falls closer to home for me, because today, my husband is battling a war against the asbestos-related cancer – Mesothelioma -caused by the ubiquitous use of this substance half a decade ago in Canada.
I find it unconciousable that families on the other side of the world will one day experience the same suffering as our family, because of our political leaders’ short-sightedness and inability to look beyond the profit bottom line to include a view of the environmental and social impacts.
As citizens of our countries, we can’t sit by while our leaders conduct themselves in this way. Like our neighbours to the south, we can vote resoundingly for a new model with the election of a whole systems leader like Obama.
Consumers now have a voice and the power of choice
In our role as consumers, we also have more power than ever before to send the message to companies that we want sustainable products and services that don’t cost more. With our product choices and our voices supported by the new media, we can send companies the message that they must invest in developing new sustainable solutions and business practices. We can also choose to consume less. We can look for alternitives solutoins that don’t always mean creating new products by share previously used and unwanted products and exchanging services.
We are a fortunate generation, the one that Obama refers to as,”The generation that we’ve been waiting for”.
Will we take this opportunity to create a new future on the canvas of the recession? Time will only tell.
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Posted by: Lianne Bridges
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Lianne,
You have written an excellent article here.
We have an unparalleled opportunity to ‘redirect the train’ so to speak, before it speeds over the cliff of global catastrophe. But it’s a ‘limited time offer’ because the longer we wait to make these critical shifts in thought and behavior, the greater the crisis will grow – and perhaps we will have lost the chance to avert the most dire of scenarios.
Social entrepreneurs and small businesses are indeed leading the charge towards sustainability, transparency, and morality in business. And every-day consumers are defining the market by ‘voting with their wallet’. Today, there are many of us becoming aware of the full cost of a capitalism without conscience – those numbers are growing faster than ever before with the use of the Social Media. And let’s not forget the power of the millions of people involved in grassroots movements world-wide, working for social justice, environmental sustainability, corporate responsibility, education, human and animal rights, and peace world-wide.
There is power in those numbers, and most certainly there is hope that we can define a better, more holistic way of living on the planet. We need a forum such as this to help move ourselves forward.
To paraphrase Alan Cohen – Evolution is better than Revolution.
So, let’s co-evolve together here through intelligent discussions on this site.
Peace,
Shauna
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