Capitalism has generated massive wealth for some, but it’s devastated the planet and has failed to improve human well-being at scale.
• Species are going extinct at a rate 1,000 times faster than that of the natural rate over the previous 65 million years (see Center for Health and the Global Environment at Harvard Medical School).
• Since 2000, 6 million hectares of primary forest have been lost each year. That’s 14,826,322 acres, or just less than the entire state of West Virginia (see the 2010 assessment by the Food and Agricultural Organization of the UN).
• Even in the U.S., 15% of the population lives below the poverty line. For children under the age of 18, that number increases to 20% (see U.S. Census).
• The world’s population is expected to reach 10 billion by 2050 (see United Nations’ projections)
How do we expect to feed that many people while we exhaust the resources that remain?
Human activities are behind the extinction crisis. Commercial agriculture, timber extraction, and infrastructure development are causing habitat loss and our reliance on fossil fuels is a major contributor to climate change.
Public corporations are responding to consumer demand and pressure from Wall Street. Professors Christopher Wright and Daniel Nyberg published Climate Change, Capitalism and Corporations last fall, arguing that businesses are locked in a cycle of exploiting the world’s resources in ever more creative ways.
“Our book shows how large corporations are able to continue engaging in increasingly environmentally exploitative behaviour by obscuring the link between endless economic growth and worsening environmental destruction,” they wrote.
Yale sociologist Justin Farrell studied 20 years of corporate funding and found that “corporations have used their wealth to amplify contrarian views [of climate change] and create an impression of greater scientific uncertainty than actually exists.”
Corporate capitalism is committed to the relentless pursuit of growth, even if it ravages the planet and threatens human health.
We need to build a new system: one that will balance economic growth with sustainability and human flourishing.
A new generation of companies are showing the way forward. They’re infusing capitalism with fresh ideas, specifically in regards to employee ownership and agile management.