On Humanistic Capitalism

On Humanistic Capitalist

“We are Humanistic Capitalists.”

If you’ve spent any time around Grovity Leadership, you’ve heard us say this phrase.

And with each passing week, as more businesses implement reductions in force (RIFs), replacing human jobs with automation, machines, and artificial intelligence, this phrase holds increasing weight.

As an economic system, we subscribe to the core tenets of capitalism - a free market that encourages healthy competition built on a voluntary exchange of goods and services.

In its purest form, capitalism rewards excellence, quality, service, and innovation. It rewards behavior that leads sellers to create something of worth and value, such that buyers will offer money for the item sold because it distinctively enhances their life.

It’s these tenets that the ideal of the “American Dream” is built upon. That anyone, regardless of who they are, can earn a virtually unlimited amount of money if they acquire a skill, develop a product, or create a service that others deem to have worth, value, and essence.

And yet, like any economic system, the effects of capitalism are not just economic, but also social. 

They impact how we view humanity, and how we assign worth, value, and significance to others, as well as ourselves.

This is why we don’t just say that we are capitalists, but that we are Humanistic Capitalists.

In that order.

We believe that business matters because human beings matter, not vice versa.

And thus that, the purpose of business is not purely profit for its own sake, but rather to drive profitability as a way of improving the lives of human beings - beginning with their employees and customers and trickling out to shareholders and the broader communities they inhabit. That the primary identifiers to indicate a business’s success are not only shareholder value as determined by Wall Street, but the real value it delivers to the real human beings who are impacted by its existence - yes monetarily, but also humanely by enhancing the human experience through the amplification of virtues such as belonging, meaning, purpose, beauty, and love.

The most powerful aspect of Humanistic Capitalism is the mere coexistence of these two words together. The recognition that humanism and capitalism are not mutually exclusive, but rather symbiotic and mutually reinforcing.

What is best for human beings is what’s best for business.

The key, we believe, is to assess “best” with a long-term, holistic perspective.

To not judge the quality of business decisions based solely on how it drives short-term profitability via quarterly earnings reports or your P&L.

But to also base success on how they contribute to the business’s transcendent purpose through the fulfillment of its mission, the advancement towards its vision, and the alignment with its values; all of which should be aimed towards making the world a better place for its employees, customers, shareholders, and communities alike.

As we share this philosophy, we are aware that it can be perceived as overly reductionistic, idealistic, and utopian.

And so, we do want to say that we understand that the engine of capitalism is relentless and that businesses must often make difficult decisions to remain competitive, or to simply survive. 

This is a harsh reality that all business leaders must face.

We acknowledge that there are times when a business must downsize and adopt technologies to replace human beings to ensure the business continues to exist. 

We aren’t suggesting that there is never a time when this must happen. Rather, we are suggesting that we bring honesty, transparency, and deeper intention and ask moral and ethical questions about how we view and treat human beings.

We are calling for business leaders to be honest with themselves and others about their motives.

• Are people viewed as essential and paramount, or inessential and secondary?

• Are employees seen as an expense that decreases profit, or as an investment that gives the organization its purpose and identity?

• Are decisions evaluated for the effect they have on human beings, or only the effect they have on the bottom line?

Regardless of your place in the system, you have a responsibility to keep the interests, well-being, and flourishing of human beings at the forefront. 

Will you join us in promoting Humanistic Capitalism?