Looking beyond Return on Equity for Successful and Sustainable Businesses
The twenty-first century is being hailed as Asia’s Century, with the balance of World GDP significantly shifting towards the continent. While in 1950 it was less than 5% of World GDP, the Asian share now accounts for about a third of it, and is forecast to be over half of it by 2050. With increasing economic output comes geo-political weight and a greater responsibility for the governments to secure the betterment of their citizens.
Capitalism, it is argued, is a social system in which the government is exclusively devoted to the protection of individual rights, including property rights – one in which there exists absolutely no government intervention in the economy.
However, causing a widening wealth disparity, the American and British style of Capitalism that has long been considered as the global standard, may be reaching a dead end. Therefore, to overcome the challenge the writers of the article advocate Public Interest Capitalism (PIC). While George Hara conceptualised the notion of PIC, Manish Uprety is interested in exploring the relevance and application of PIC in the context of developing economies.
Public Interest Capitalism is a corporate philosophy whereby, in the long run, a company sustains fair distribution to all the members who contribute to the company, including its employees, suppliers, customers, community, and shareholders. The fair distribution based on public interest capitalism reduces the increasing disparity and enables a more robust middle class.