Progressive Capitalism

So many of the problems facing the world today feel overwhelming and are, indeed, too great for an individual to take on. Faced with looming environmental, health and social crises, it is comforting to turn to the government for solutions. Some problems require government intervention: child labor, food inspection and other public health protections are areas in which most agree government intervention is necessary. Certainly, civil rights had to be legislated nationally because entrenched bigotry had proven to be more powerful than our sense of fairness. However, legislated fixes are not always appropriate and reliance on governmental solutions can be a problem: societal needs will always be greater than available funding; support may target the wrong aspects of a given problem, even inhibiting solutions rather than promoting them; funding for programs is unreliable across administrations; and bureaucracy can consume a large portion of funds granted.

Often the funding for programs designed to improve the long term situation for individuals and the environment fluctuates based on political will rather than societal need. For example, the February 7, 2006, Washington Post reports that “"The $2.77 trillion budget plan President Bush sent to Congress yesterday emphasizes spending on the country's fight against terrorism, while deeply cutting domestic programs . . ."” While national security issues are pressing, domestic problems don't go away.

In the past, policies and programs begun under a sympathetic government have been defunded or sabotaged when the political winds shift. For example, under President Carter's administration, domestic violence programs received significant federal support. With the change of administrations, however, the focus of the domestic agenda shifted, and domestic violence prevention was defunded. Foreign aid money sent to promote women's health internationally was converted to an anti-abortion platform through a medical gag rule. Affirmative Action was initiated specifically to improve the economic circumstances of African Americans through education and employment opportunities, but almost immediately it was expanded to include the majority of the population. The effect has been that the unemployment ratio between White and Black Americans has remained almost exactly the same from 1955 to 2005. White families have benefited far more from Affirmative Action than Black, as White women have reaped great rewards in education and employment. Still, ire over so called “"reverse discrimination" and knee-jerk reactions have made any sort of serious policy reevaluation impossible. That policies and programs created for one purpose can be altered or even reversed without a sound analysis of societal need, but based on political whim, suggests that there are times when no loaf is better than half a loaf.

The bureaucracy involved in running and maintaining federally supported programs is at times staggering. The paperwork alone, even for a small organization, can require a full time staff member, adding expense and an additional layer between the organization and its actual goals. Regulation adds expense, and while making sure that our tax dollars are not misspent is an admirable goal, for small organizations with limited funding, too much of the money received can be lost in the process. It's very easy for organizations to become focused on retaining their funding rather than achieving their stated goals. This can be true of state funded programs as well. For example, in 1980s California began funding organizations to promote independent living among the disabled. However, the accounting for money spent was based on services provided to disabled patrons. If the disabled person demonstrated independence the agency received no credit for serving its clientele and therefore would lose funding. This method of accounting, a bureaucratic decision, placed the goals of these agencies at odds with their execution. Programs that wanted to continue receiving funds in order to do important work had to actually maintain the dependence of their disabled clients, thereby betraying their mission.

While one can not dismiss all government funded programs, we can say that the needs haven't disappeared or even significantly abated. People are still hungry, homeless, suffering from disease, discriminated against, harassed, etc., even in the face of federal and state programs designed to address these problems.

Created Equal joins the powerful groundswell of organizations promoting a change of course. Both past experience and the current political and economic climate suggest that government cannot provide the entire solution. It is probably time to acknowledge that the United States is less of a representative republic than an oligarchy. Even without the recurring scandals about campaign financing and lobbying, it is clearly the case that corporations enjoy much greater influence over government policy than average citizen. As such, corporations are better situated than the general citizenry to determine policy and create government partnerships. The problem is how convince such entities to take on social responsibilities.

The key is enlightened self interest. Because social and environmental issues affect the work force and consumer base, it is in the long term best interest of corporations to mitigate these problems in meaningful ways. This is not a call for greater support of existing non-profits like Created Equal. Corporate funding of needed programs is good and useful, but these contributions are often more of a public relations effort than a push for fundamental change. This is not to say that corporate entities are insincere, but that their support tends to go to organizations whose goals are limited to making tweaks in the system rather than any fundamental shift in policy. Organizations like the United Way can garner tens of millions of dollars every year to provide service to people in need, but organizations seeking to eliminate the need get little. Hence, we're not just advocating for more giving by corporate entities: we are advocating corporate activism, or perhaps more aptly, activist corporations.

It is essential that activists build a sustainable infrastructure to carry on their reform efforts. Activists are not only the most passionate, but usually the most well informed in their areas of expertise. The activist-lead corporation can leverage that expertise into marketable educational tools such as those provided by Created Equal, consulting firms, media for libraries, or even private schools. Having built a solid economic foundation, they can leverage their economic power to influence government as well as accomplishing specific goals.

The activist corporation can be efficient. Public money is frequently earmarked for political gain rather than to address actual public need--pork barrel projects designed to cushion an incumbent's election chances, for example. And when the source of the funding is “"other people's money,"” it's easy to spend wastefully, as it doesn't have an immediate impact on the people making the spending decisions. The corporation will not have such an distasteful advantage, for when the problem it focuses on disappears, the market for the product will also disappear, and the entity will either shift focus or disband.

The activist corporation can be effective: efforts won't depend on tax dollars and therefore will not draw the kind of ire that government based, coercive reform does. As such, non-governmental reform won't suffer the same backlash, and therefore can't be so easily co-opted or reversed by the next administration.

This is not the ideal or the only solution. The problems the world faces are legion and would be better served by the kind of effort that is only put forth when a nation faces the gravest danger. The reality is, however, that the kind of long term danger posed by global warming, for example, can rarely garner the necessary short term attention nor the long term commitment from government. The only structural entity with this ability to focus, inform and influence is the corporation.

Capitalism, when wielded by people who are looking for short-term gains, has proven to be relatively destructive. When used by people searching for sustainable solutions, it can prove to be our salvation as well.

Created Equal is dedicated to being the best example of an activist corporation that it can be. We hereby commit ourselves to seeing our flagship Oasis Project off the ground in 2007. The Oasis Project is the beginning of a new era for battered women by building long term, self sustaining violence recovery centers for women and their children.

 


Created Equal: Education for a Just World

©2006 createdequal.com


Created Equal Home

Copyright © 2006 TeachMac. All rights reserved.