By Economy for the Common Good we mean an economic model that is based not on profit but on the core values of the common good, social justice, environmental protection and democratic participation. The Economy for the Common Good represents an alternative approach to the conventional capitalist economic order, in which the focus is no longer on maximising profit but on the well-being of people and the environment.
The concept of the Economy for the Common Good was developed in the 1990s by Christian Felber, an Austrian author and alternative economist. Since then, the Economy for the Common Good has grown into an international reform movement, and numerous companies and organisations have begun to operate according to its principles.
At the heart of the Economy for the Common Good are the so-called "Common Good Balance Sheets", which help companies and organisations to assess their performance not only on the basis of financial indicators, but also on the basis of their positive impact on society and the environment. Values such as human dignity, solidarity, environmental responsibility and democratic co-determination assessed and included in an overall rating.
The Economy for the Common Good calls for a reorientation of the economy towards a social and responsible approach. Companies should not only maximise their own profit but also contribute to the good of society. This can be reflected, for example, in fair wages, good working conditions and social engagement.
However, the Economy for the Common Good does not mean abolishing the market or entrepreneurship. Rather, it is about shaping the rules of the economic system so that they are in harmony with the needs of people and the environment. Companies that follow the principles of the Economy for the Common Good should also be rewarded and supported in the process.
In the meantime, a number of regions and municipalities have begun to incorporate the ideas of the Economy for the Common Good into their political and economic decisions. International organisations and institutions are also increasingly looking into this model as a possible path towards a fairer world.
All in all, the Economy for the Common Good remains an exciting concept which, in our opinion, is fit for the future and shifts the focus from the pure pursuit of profit to the long-term well-being of people and the environment. Whether it will be widely adopted in the long term depends on the willingness of society, business and politics to strive for and implement such a change. We are on board and we're staying on board! In our next blog you'll find out more about our ECG report and our reasons for drawing up the balance sheet!
For further information:
Link to ecogood: https://web.ecogood.org/de/
YouTube video: https://www.youtube.com/watch?v=wsW_GNKdm9w