Capitalism is limited by its own reality and mentality, it has always had a constantly strained bond with ethically acceptable behaviour, and this capitalist system is inconceivable without the essential desire for personal gain (Eppler, 2009). All forms of capitalism and its intrinsic practices, associations, and political cultures have distinctive advantages as well as disadvantages (Powell, 2000:6). Chien (2001:41) in an effort to define capitalism described it as the promotion of unrestrained and unrestricted market ascendancy, which is fundamentally dependant on the interplay between the natural inclination of self-interest in consumers and the producer’s inherent drive for competitiveness, to automatically impel and steer economic activity. Eppler (2009:8) explained that capitalism is based on the selfishness of individuals, with a focus on acquisition and acknowledgment.
Capitalism and democracy are two of the most prevailing ideologies of the 21st century. According to Esposito (2014:33):
Although they both have religious premise, their influence is derived from an appeal to secular values, such as autonomy and success in the case of capitalism, and community and fairness in regards to democracy. The fact that they have coevolved within many of the same societies has led to the assumption that their rather awkward marriage is an instance of compatibility.
He however through a study of the parameters and an analogical comparison of the dominant values in each, went on to argue that there is a definite divergence developing, and he in fact concluded that ‘… they are growing increasingly incompatible if not antagonistic’ (Esposito, 2014:42).
Capitalism’s inadequacies have become evident in the light of globalisation, hence the establishment of the World Trade Organisation, meant to facilitate the resolution of disputes that have arisen as a result regulatory authorities hindering the free exchange of money across borders (Hertz 2001; Reich 2007; cited in Esposito 2014:42). Also in reviewing the work of Reich (1991), Herold (1991:96) explained that the evolution in scope of economies from national to global has rewarded the most skilled with greater wealth than ever before, while dismissing the less skilled to waning standards of living. Powell (2000:26) explained that ‘… to many, capitalism has grown both leaner and meaner, exacerbating social inequality.’
‘The modern economy is a hybrid of two tyrannies: an uncontrolled market and illegitimate transaction. This has enabled piracy on a scale unknown in human history’ (E. Schuitema, 2012:17). Business has for too long obsessed over the bottom line, to the detriment of the customer, employee and society as a whole. Success at all costs and competition for market share has far too long been the order.
The success of a business in todays’ society is measured by its profits and in turn its dividends declared to investors. A company whose primary motive is the enrichment of shareholders is ultimately concerned with the glorification of those in command and is at the core, malevolent and incapacitating (E. Schuitema, 2012:16). In most instances this means that the human resources within the organisation are viewed as exactly that, resources, which by definition is meant to be drawn on and used, in order to provide benefit, often to the extent of its depletion.
In the International Journal on World Peace, Bandow (2002:39) accurately stated that although the free market has prevailed superior in meeting our needs, many still blame capitalism for the world’s ills. He says, ‘The global triumph of Capitalism fails to fully satisfy the human spirit’ and that ‘… many idealists, especially religious activists still believe that Capitalism is immoral in theory.’
Schuitema (2012:117) profoundly stated that, ‘When every transaction in a society is concerned with brazen self-interest, you have an impoverished economy. You have the wholesale rape of resources and the implosion of the system.’ Our headlines are being dominated by corruption, financial crisis and management criminality. While debates about greed, cold heartedness of top global business leaders, and their unlawful or dubious management methods, all depict diminishing values, which are ‘… eliciting pleas for the return of the honourable businessman of the Middle Ages’ (Wieland, 2010:243).
In the recent years there has been a sharp increase in the regulatory and legislative requirements regarding business interaction of any kind. Each of which, promotes through injunctions and notices, more equitable trade, fairness, transparency and social responsibility. The need for this fanatical reform was triggered by the 2008/2009 financial depression which affected many industries across the world. E. Schuitema (2012:17) suggested that the necessity for this super-ordinate control is as a direct result of unjust individual transactions in the market.
With no regard for the well-being of others, expediting their detriment, this endemic attitude of self-interest is what necessitates control and governance, which when applied in access is debilitating to business itself. E. Schuitema (2012:17) explained that when the individuals in society are primarily concerned with getting as much as possible for as little as possible, the social order requires incessant governance and super-ordinate control, without which such a society will collapse.
Legislative and regulatory rulings has resulted in various codes of conduct, codes of ethics, compliance requirements, whistle blowing, ethics hotlines and other such initiatives. However, all the concerns these legislations seek to address, have to some degree been addressed centuries ago in the aforementioned texts, one therefore cannot overlook the fact that although not directly attributed to, these initiatives have at least some foundation in the Abrahamic scriptures. This stands to reason that the teachings, lessons and injunctions, have to some degree indirectly served as guidance for regulatory authorities and policy makers, seeking to heal or cure some of the ills of modern day capitalism.
If you would like a full reference list please email faique@schuitema.co.za