The businesses that thrive will be those that acknowledge the power of collaboration, are able to engage in meaningful ways with their customers, workers and suppliers, are proficient in investing in long-term relationships and embrace the ethos of co-creation and co-design.
It’s not often that 'economics' and ‘carnage’ are used in the same context. Yet this is exactly the word chosen to describe the current impact of the ‘old economic model’ in a paper in which Professor Noreena Hertz predicts that ‘co-op capitalism’ will be the ‘next economic era’.
‘It’s time to embrace a new model of capitalism, Co-op Capitalism, for reasons of social justice but also enlightened self-interest,’ says prof Hertz in a paper published today by Co-operatives UK.
The paper – Co-op capitalism: a new economic model from the carnage of the old – claims that other countries ‘with a more co-operative mindset’ are growing because of a more collaborative relationship between the state, market, individual and society. It also highlights how businesses that embrace the co-op ethic are weathering the economic downturn better than traditional ones.
Professor Hertz says the era of ‘Co-op Capitalism’ will have four distinctive characteristics:
‘In the Co-op Capitalism era, says prof Hertz, ‘the businesses that thrive will be those that acknowledge the power of collaboration, are able to engage in meaningful ways with their customers, workers and suppliers, are proficient in investing in long-term relationships and embrace the ethos of co-creation and co-design.’
Commenting on the publication, Ed Mayo, Secretary General of Co-operatives UK, said: ‘It is no coincidence that in thriving economies such as the BRIC countries (Brazil, Russia, India and China), 15% of their population are member-owners of co-operative enterprises. Co-operation is a proven global model that is well-equipped to meet new economic needs.’
Prof Hertz will present ‘Co-op Capitalism’ in a keynote speech at ‘The Co-operative Opportunity’ in London this Wednesday, 15 February. Further details are here.
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