Creative Capitalism Essay Example for Free

Creative Capitalism Essay In an essay for TIME Magazine entitled â€Å"Making Capitalism More Creative,† multi-billionaire computer tycoon turned philanthropist Bill Gates (2008) espouses the potential for capitalism to flex and adapt in ways that can help address the needs of the poor or those in the developing Third World by creatively responding to them as markets with their own unique set of challenges, and as opportunities to build corporate brand recognition and prestige. In effect, Gates charges that by reconciling the self-interest of the profit imperative with that of the humanitarian drive, the world can make ‘lasting progress on the big inequities that remain. ’ Gates slyly implies that while governments, non-profit entities and other civic groups have gone to great lengths in these areas, such progress can sufficiently be hastened through the â€Å"[channeling] of market forces† and â€Å"innovation that’s tailored to the needs of the poorest.† One point of note in Gates’ piece is the benefits which accrue to corporations which can find business opportunities in the avenues of philanthropic interest. Gates opines that philanthropic recognition – such as industry report cards – go a long way to building a better brand that could potentially command the kind of consumer loyalty which makes such acts ultimately profitable. Also, Gates reminds readers that one of the reasons why the capitalist enterprise has so frequently overlooked the markets of the poor and the developing Third World is the extent to which their purchasing power is so limited as to remove them from its priorities. However, Gates notes that such a limitation applies only to individual purchasing power yet â€Å"one study found that the poorest two-thirds of the worlds population has some $5 trillion in purchasing power† and that oversight is largely a result of a failure to study their needs. Furthermore, Gates notes that because young people want to feel better about the institutions which employ them – â€Å"[they] want to feel like their company really is a be positive agent for change† – and as such, it becomes ultimately beneficial to engage in these positive acts because it is made up for with employee dedication and commitment. It becomes easier to recruit and retain them when they feel substantially invested in the company’s goals, especially if they mean more than meeting quarterly fiscal targets. It is on this note that it would be wise to consider what the implications are for companies that engage in such philanthrocapitalism with regards to performance appraisals. Not all employees are created equally and dedication to company goals does not necessarily obviate the need to review their performance and the means by which the company is able to successfully motivate them to the best of their ability. The primary consideration however, is the allocation of organizational rewards. Business consultant W. Edwards Deming (2000) defines a company’s obligations to be to all parties involved; not just to its shareholders, but to its employees, customers and the community it operates in. Therefore, any company which attempts to engage in the creative use of capitalism to address under prioritized markets (i.e., the poor and Third World) must also adopt a similar tact towards its employees. This means that organizational rewards should go beyond the conventional use of salary upgrades and promotions, but recognizing that employees will want to become more involved in the goals of the company which they respect – and that hierarchical superiority, compensation benefits or increased responsibilities are a moot point to such desires. This means acknowledging the areas at which they excel that can benefit the company in that regard, particularly innovation and strategic savvy. REFERENCES Gates, B. (2008, July 31). â€Å"Making Capitalism More Creative.† TIME Magazine. Retrieved September 4, 2008 from: http://www.time.com/time/business/article/0,8599,1828069,00.html Deming, W. E. (2000) The New Economics for Industry, Government, Education. The MIT Press.