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This presentation highlights the key dimensions that define shareholder capitalism and describes the changes required if we are to successfully transition to a sustainable economy.
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The Transition to a Sustainable
Economic Model
Human instinct
Shareholder capitalism
Shared value capitalism
Sustainable capitalism
LEVEL OF
EQUALITY
UNIT OF
VALUE
MORAL INTENTIONS
& OUTCOMES
MARKET
DYNAMICS
DIMENSION
OF CSR
VALUE
CREATION
FOCUS
ECONOMIC GROWTH
ASPIRATIONS
ENVIRONMENTAL
IMPACT
Survive
and
thrive
The economic systems created by humans are ultimately designed to support our instinctual quest to survive
and thrive.
Human instinct
Shareholder capitalism
Shared value capitalism
Sustainable capitalism
LEVEL OF
EQUALITY
UNIT OF
VALUE
MORAL INTENTIONS
& OUTCOMES
MARKET
DYNAMICS
DIMENSION
OF CSR
VALUE
CREATION
FOCUS
ECONOMIC GROWTH
ASPIRATIONS
ENVIRONMENTAL
IMPACT
Survive
and
thrive
Self-interest
(good for me)
Competition
(survival of
the fittest)
Pro
fit
befo
re
pla
net S
ocia
l
inequality
Individual
(egocentric)
Grow
th
economy (no
decoupling)
Econ
omic and
lega
l
Emph
asis on
human
-mad
e
capita
l
The dominant model, shareholder capitalism, is powered by our basest instincts – self-interest and “survival
of the fittest” competition.
Human instinct
Shareholder capitalism
Shared value capitalism
Sustainable capitalism
LEVEL OF
EQUALITY
UNIT OF
VALUE
MORAL INTENTIONS
& OUTCOMES
MARKET
DYNAMICS
DIMENSION
OF CSR
VALUE
CREATION
FOCUS
ECONOMIC GROWTH
ASPIRATIONS
ENVIRONMENTAL
IMPACT
Survive
and
thrive
Self-interest
(good for me)
Reciprocity
(good for
society)
Cooperation
(creating
shared value)
Competition
(survival of
the fittest)
Harm
min
imis
ati
on
Pro
fit
befo
re
pla
net
Socia
l equality
Socia
l
inequality
Individual
(egocentric)
Community
(anthropocentric)
Grow
th economy
(relative decoupling)
Grow
th
economy (no
decoupling)
Econ
omic and
lega
l
Ethica
l
Emph
asis on
human
-mad
e
and
social
capita
l
Emph
asis on
human
-mad
e
capita
l
We are currently seeing an evolution to the possibility of a more equitable system, based on the creation of
shared value. But this is not enough.
Human instinct
Shareholder capitalism
Shared value capitalism
Sustainable capitalism
LEVEL OF
EQUALITY
UNIT OF
VALUE
MORAL INTENTIONS
& OUTCOMES
MARKET
DYNAMICS
DIMENSION
OF CSR
VALUE
CREATION
FOCUS
ECONOMIC GROWTH
ASPIRATIONS
ENVIRONMENTAL
IMPACT
Survive
and
thrive
Self-interest
(good for me)
Reciprocity
(good for
society)
Altruism
(good for the
planet)
Symbiosis (harmony
between people,
planet and profit)
Cooperation
(creating
shared value)
Competition
(survival of
the fittest)
Envir
onm
enta
l
regenera
tion
Harm
min
imis
ati
on
Pro
fit
befo
re
pla
net
Ecolo
gic
al
justic
e
Socia
l equality
Socia
l
inequality
Individual
(egocentric)
Community
(anthropocentric)
Biosphere
(ecocentric)
Low/no grow
th
economy: “stasis”
(relative decoupling)
Grow
th economy
(relative decoupling)
Grow
th
economy (no
decoupling)
Econ
omic and
lega
l
Ethica
l
Phila
nthr
opic
Balanc
e be
twee
n
human
-mad
e, soc
ial
and
natu
ral c
apital
Emph
asis on
human
-mad
e
and
social
capita
l
Emph
asis on
human
-mad
e
capita
l
Our imperative is to evolve our economy to a truly sustainable model where our ability to survive and thrive
is actually maximised – but what will it take to get us there? It will require a new moral philosophy, a
reassessment of where humans fit in the world, and a redefinition of the core purpose of business.
Corporations must
reimagine
themselves as
vehicles for
creating social and
environmental
value, in addition to
the requirement
that they make a
profit.
LEVEL OF
EQUALITY
UNIT OF
VALUE
MORAL INTENTIONS
& OUTCOMES
MARKET
DYNAMICS
DIMENSION
OF CSR
VALUE
CREATION
FOCUS
ECONOMIC GROWTH
ASPIRATIONS
ENVIRONMENTAL
IMPACT
When describing the biosphere and the place of different species within it, ecologists commonly use the
analogy of a spider’s web.
Evolutionary biologist Charles Darwin believed that the highest moral achievement is concern for the welfare of all living
beings, human and nonhuman.
Darwin wrote: “Sympathy beyond the confines of man, that is humanity to the lower animals, seems to be one of the latest
moral acquisitions… This virtue [concern for lower animals], one of the noblest with which man is endowed, seems to arise
incidentally from our sympathies becoming more tender and more widely diffused, until they extend to all sentient beings.”
The spider’s web analogy is useful because it highlights the interconnectedness of the biosphere and the
accompanying need for humans to extend notions of morality to include all life.
“Humankind has not woven the web of life. We are but one thread within it. Whatever we do to the web,
we do to ourselves. All things are bound together. All things connect.”
― Chief Seattle, 1854
To survive and thrive into the future, we must evolve our economic model
to embrace sustainability, to the extent that economic activity has a
restorative impact on the earth’s natural systems.
Pollen Strategy
PO Box 5363
East Victoria Park
Western Australia 6981
M: +61 419 923383
E: info@pollenstrategy.com.au
W: www.pollenstrategy.com.au
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