Bob Riley Jr. and I are continuing our series on a post-Covid, Aspirational World with a focus on the Seven Capitals. This is our 4th show and today we take a close look at Financial or Economic Capital, also known as Conscientious Capitalism.
During the past few weeks, we’ve had great discussions with our guests on Natural & Social Capital and today’s look at Financial Capital is the final core capital of what is often referred to as the three legged stool.
These discussions are guided by the hope that we emerge from this pandemic - wiser, kinder, and more connected so that we are ready to work together to make our communities more sustainable, resilient, economically viable, and vibrant.
Financial or Economic Capital, as defined in the University of Nebraska-Lincoln, Agricultural Economics article, “Includes the financial resources available to invest in community capacity building, underwrite businesses development, support civic and social entrepreneurship, and accumulate wealth for future community development.”
In a 2019 Forbes article, The Rise of Conscious Capitalism, written by Gretchen Fox, she states “We have seen the construct of capitalism gain more and more power over the last 500 years, to the point where it holds an extraordinarily high place in modern society. One could say the system has been given the highest status of anything – above lifestyle, above health, above family, above happiness – and above humanity itself.”
Thus the evolution of Conscious Capitalism. A re-thinking of how we invest in and direct Financial Capital.
Our guests lending their expertise and insight in the discussion today are:
- Cory McAnelly, Intellectual Property and Patent Attorney and
- Craig Rowles, Veterinarian and Director of Cage Free Operations for Versova Management Company, LLC
Bob introduced our discussion with a deeper explanation of what Financial Capital is within the realm of the Seven Community Capitals. As he stated in his intro, something he has always believed is that, “profit is the by-product of quality.” Bob also quoted Ayn Rand who stated, “Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” Multiple examples were shared by Cory and Craig on how companies are finding ways to contribute and give back to the communities where they reside. It was a great conversation that often focused on that balance between self-interest and the common good.
Some of the insights shared are noted below.
Key Takeaways:
- We’re stuck in thinking that anything that disrupts or alters our ability to increase growth in income is bad, instead of taking this moment to pause and say – How can we re-think this for the benefit of all and for the long-term viability of our planet.
- It is imperative, for successful businesses, to align with moral & ethical beliefs held in the community.
- During Covid, we’ve seen a flooding of investment in the health and welfare of the community.
- “Don’t tell me what you value, show me your budget and I’ll tell you what you value.” – Joe Biden
As Calvin Coolidge once said . . .
“No enterprise can exist for itself alone.
It ministers to some great need, it performs some great service
Not for itself, but for others . . . or failing therein,
It ceases to be profitable and ceases to exist.”
Thank you for listening to today’s discussion. Let’s continue to engage and learn from each other.