Towards a me/we economy
A well-accepted principle in economics is that of Adam
Smith’s “invisible hand”: each individual seeking the best
and demanding products and services that can satisfy him
or her, so that companies supplying us with these have
to compete to convince us that theirs is the best on offer,
thus resulting in a market where the supply most accepted
by the demand prospers, supposedly the best among all
possibilities. Society progresses as we seek our individual
good. Or at least it has so until now.
This «is is no longer sufficient, because the combination of
demand’s individual selfishness and supply’s extreme
competitiveness leads to negative effects on society as a
whole, which ultimately affect both individuals and organizations
(for example, the effect of pollution on our
health and quality of life, or the loss of jobs arising from
the geographical relocation of companies and potential
social unrest that this entails).
An increasing number of companies today are indeed
seeking the good of society as a whole, meeting the needs
of demands (of its citizens), increasing their social prestige
and ultimately selling more. It is the principle of “doing
well by doing good”. This new situation could defined as
Adam Smith’s “second invisible hand”.
A breakthrough in capitalism: each citizen/consumer acting
in his or her own benefit (me), which creates economic value
through markets, but also benefitting society as a whole
(we). The future is, therefore, a me/we economy. For example,
an appliance that uses less energy benefits not only
me (lower cost), but also the planet (energy efficient).
See the case of the Ecomagination line by General Electric.
