Is Capitalism Broken?

Think of me as equal parts idealistic “hippy” and pragmatic capitalist. 

However, for those looking for some Karl Marx level insight, this isn’t the place.

I’m passionate about building a better world, and, spoiler alert: I think one of the best ways to do that is by helping businesses grow through their impact.

Business and Good Deeds: Can They Coexist?

It surprises me when people expect companies to be motivated solely by doing good. 

Sure, the world would benefit if businesses had purely altruistic goals. But let’s be honest: the raison d’être of a business is to make money. That’s the foundational purpose. Where things have gone slightly off-kilter is our current model of shareholder capitalism. 

This model prioritises short-term profits, often at the expense of people and the planet.

Stakeholder Capitalism: A Better Way?

Back in 1971, Klaus Schwab, the founder of the World Economic Forum, popularised the concept of stakeholder capitalism. It’s a mindset shift: instead of putting shareholders above everything else, you take all stakeholders into account—employees, suppliers, the community, the environment, and yes, still the shareholders. 

But here’s where it gets misunderstood: people think caring for people and the planet has to come at the cost of profit.

klaus schwab

A Vision for Purposeful Capitalism

Let’s reimagine this. What if, instead of treating purpose and profit as trade-offs, we saw them as complementary forces? 

Picture a world of “purposeful capitalism,” where creating impact and making money are part of the same equation. 

Companies that align their health with the well-being of communities could transform how we do business, creating a sustainable synergy that benefits everyone.

It’s important to acknowledge the incredible work NGOs and mission-driven organisations are already doing to improve world impact. 

One of the world's largest NGOs, BRAC empowers millions through education, healthcare, microfinance, and social enterprises, lifting communities out of poverty across Asia and Africa with sustainable impact.

We need to ensure that the impact of both NGOs and businesses is measurable and meaningful, driving real, positive outcomes in tandem.

The Takeaway: Measure What Matters

So, is capitalism broken? In some ways, yes. But it’s also the tool we can leverage to solve some of our world’s most pressing challenges. While some changemakers work tirelessly to overhaul these systems, I believe there’s also immense potential in driving change from within the system. And that’s where impact measurement comes into play.

At my company, Impact Advantage, we’re all about outcomes, not just outputs. It’s easy to get caught up in the metrics, number of donations made, hours volunteered, but what about the outcomes? Are we actually moving the needle on issues that matter? That’s the power of measuring impact with purpose.

We see a world where purpose and profit coexist. If you’re curious about our approach to impact measurement or feel like debating light-hearted questions like whether capitalism is beyond repair, I’d love to chat.

And remember: Don’t do good in silence.