Post by account_disabled on Feb 25, 2024 6:04:51 GMT 1
I'm sure my readers hadn't noticed. I write about almost everything that has to do with CSR but until now I had resisted writing about the Economy for the Common Good, EBC . Honestly because I didn't think the issue was worth it and now that I have finished the article I am even more convinced . But to be able to give an informed opinion you have to know what you are talking about, which is why I have studied it more in depth. I hope that the discussion that follows can contribute a little to improve your understanding and clarify its potential contribution to the well-being of society and its relationship with CSR, and in the process stimulate a discussion (although, as in the case of the encouragement of CSR, the indifference of interested parties makes it unlikely). [1] a fable Let's start with my version of a fable, not very well known but very illustrative of the EBC: Three castaways were on a desert island , with only sand and some trees and bush debris, when suddenly the waves brought in a large can of tuna. The problem is how to open it. The physicist suggests heating it over high heat, hoping that the internal and external temperature differential allows a crack to open in the can. The chemical engineer proposes burying it in sand, partly covered by salt water since the seal on the lid is made of a different metal than that of the can, with the salt water an electric microcurrent will be produced that will corrode the edge and when pressed it will break. you will be able to open the can. To which the economist says: I have a simpler solution: suppose we have a can opener...... It seems that in the end the physicist and the engineer gave up opening the can and ate the economist (transparency: I am a chemical engineer , apologies to the economists). What is the Economy of the Common Good? Suppose, suppose, suppose According to the author of the initiative: “The Economy of the Common Good is defined as an alternative non-partisan economic system, which proposes to build based on universal human values that promote the Common Good. We place our focus of action on cooperation and not on competition, in the common good and not in the desire for profit.
Human dignity, solidarity, ecological sustainability, social Phone Number List justice, transparency and democratic participation are substantial elements for this . ” This declaration is laudable and reflects principles that are generally universally accepted (at least in the West), although difficult to implement in practice. But as a starting point there should be no objections. The problem is how they translate into practice. The interested reader can consult the book that gave rise to the concept, The Economy for the Common Good by the Austrian economist Christian Felber, very prolific author of more than 10 books translated into several languages, and founder of Economy for the Common Good , from where he promotes the EBC. The reader who is only curious can limit himself to the site although unfortunately this site and the one of the initiative in English contain very few details about what the ECB is. You can also hear a summary in Christian Felber's TEDx talk (the one in the head is the author). The Solidarity Economy portal (independent of the ECB) includes a good summary of 20 central points, which we summarize below, including only 12 that we consider the most relevant, with some comments: The economy of the common good is based on the same values that make our relationships flourish : trust, cooperation, appreciation, democracy, solidarity. Fine until now. The economic legal framework is undergoing a radical shift, changing the rules of the game from profit motive and competition to cooperation and contribution to the common good . How do we change the legal framework in all countries simultaneously so as not to be disadvantaged and avoid competition that, according to the EBC, is not desirable? How do you make the transition from the current system to the ideal system? How does the current market react during the transition? Economic success is not measured by monetary indicators such as financial profit or BIP, but with the balance of the common good (at the company level) and the product of the common good (at the system level).
Salaries and other expenses, are they paid for by the common good? Companies with good balance sheets for the common good will enjoy legal advantages: reduced tax rates , advantageous tariffs, cheap credit, privileges in public purchasing and when distributing research programs, etc. If the legal framework changes, it presumably changes for all companies. Can EBC companies coexist with companies from the current economy in the new legal framework? The financial balance will be the secondary balance. Financial benefit goes from being an end to being a means . This serves only to increase the 'new' business purpose: Contribution to the common good. Fourth Sector companies balance both objectives (see Fourth Sector: Towards greater Corporate Social Responsibility ), but the second cannot be prioritized at the expense of the first: If the company is not profitable it ceases to exist. Differences in income and assets will be limited: Maximum income of, for example, 20 times the minimum wage. Properties that will not exceed10 million euros, the right of transfer and inheritance, 500,000 euros per person, in family businesses 10 million euros per child. The surplus over these limits will be distributed through a “ generations fund” as a “democratic dowry ” to the following generations. No comment. In large companies with a large number of employees (for example, more than 250), decision-making and ownership rights partially and progressively pass to employees and citizens . And, what do we do with the current shareholders and owners who are the ones who provide the money? Do they donate the property to employees and citizens? How will capital be raised in these companies to finance their growth or periods of losses? (this was the reason for the collapse of the Savings Banks in Spain). An important democratic good is the democratic bank .
Human dignity, solidarity, ecological sustainability, social Phone Number List justice, transparency and democratic participation are substantial elements for this . ” This declaration is laudable and reflects principles that are generally universally accepted (at least in the West), although difficult to implement in practice. But as a starting point there should be no objections. The problem is how they translate into practice. The interested reader can consult the book that gave rise to the concept, The Economy for the Common Good by the Austrian economist Christian Felber, very prolific author of more than 10 books translated into several languages, and founder of Economy for the Common Good , from where he promotes the EBC. The reader who is only curious can limit himself to the site although unfortunately this site and the one of the initiative in English contain very few details about what the ECB is. You can also hear a summary in Christian Felber's TEDx talk (the one in the head is the author). The Solidarity Economy portal (independent of the ECB) includes a good summary of 20 central points, which we summarize below, including only 12 that we consider the most relevant, with some comments: The economy of the common good is based on the same values that make our relationships flourish : trust, cooperation, appreciation, democracy, solidarity. Fine until now. The economic legal framework is undergoing a radical shift, changing the rules of the game from profit motive and competition to cooperation and contribution to the common good . How do we change the legal framework in all countries simultaneously so as not to be disadvantaged and avoid competition that, according to the EBC, is not desirable? How do you make the transition from the current system to the ideal system? How does the current market react during the transition? Economic success is not measured by monetary indicators such as financial profit or BIP, but with the balance of the common good (at the company level) and the product of the common good (at the system level).
Salaries and other expenses, are they paid for by the common good? Companies with good balance sheets for the common good will enjoy legal advantages: reduced tax rates , advantageous tariffs, cheap credit, privileges in public purchasing and when distributing research programs, etc. If the legal framework changes, it presumably changes for all companies. Can EBC companies coexist with companies from the current economy in the new legal framework? The financial balance will be the secondary balance. Financial benefit goes from being an end to being a means . This serves only to increase the 'new' business purpose: Contribution to the common good. Fourth Sector companies balance both objectives (see Fourth Sector: Towards greater Corporate Social Responsibility ), but the second cannot be prioritized at the expense of the first: If the company is not profitable it ceases to exist. Differences in income and assets will be limited: Maximum income of, for example, 20 times the minimum wage. Properties that will not exceed10 million euros, the right of transfer and inheritance, 500,000 euros per person, in family businesses 10 million euros per child. The surplus over these limits will be distributed through a “ generations fund” as a “democratic dowry ” to the following generations. No comment. In large companies with a large number of employees (for example, more than 250), decision-making and ownership rights partially and progressively pass to employees and citizens . And, what do we do with the current shareholders and owners who are the ones who provide the money? Do they donate the property to employees and citizens? How will capital be raised in these companies to finance their growth or periods of losses? (this was the reason for the collapse of the Savings Banks in Spain). An important democratic good is the democratic bank .