23 Aug 2019
Making capitalism work for us all
We have long been advocates in growing shareholder value alongside social purpose – with inclusive capitalism now being recognised by the G7.
Our strategy for inclusive capitalism has long been a key part of how we invest customer money and financially safeguard their futures by investing in things that benefit everyone – like roads, housing, railways, bridges, digital infrastructure, education, or financing start-ups like SalaryFinance and Care Sourcer. It’s a way of creating new assets and new jobs, rather than just pushing money back and forth within a small section of the economy.
This month, global leaders will meet in France for a G7 summit to discuss economic growth under the banner of “Business for Inclusive Growth”; with input from the Organisation for Economic Cooperation and Development (OECD) with a mission to bring together major organisations from various sectors to help fight inequality and deliver social impact.
It’s time for an end to short-termism
We have been explaining how inclusive capitalism can have huge impact on society and breathe new life into underdeveloped parts of the UK since 2016, and are delighted to be invited to sign the OECD pledge. It means we can really start to encourage investing in revitalising third-tier cities; building affordable housing and tracking the leadership of companies in which they invest, through active ownership and by holding them accountable.
There are many ways of using capital to make society better—more emerging all the time—and businesses must use their own financial ingenuity as well as get behind the innovators who are figuring out how to do it.
By working alongside other highly influential businesses, it is important to reinforce the point that Capitalism and social progress aren’t opposing forces: through collaboration they are socially enhancing. To achieve this successfully we need to all take longer-term view, with an approach that’s less about quick wins and more about real, sustainable gains.
This demands an inclusive, compassionate attitude. Businesses must take this first step toward inclusion and equality – we can’t wait to share our successes with the OECD.
The joint G7 – OECD - Business collaboration to deliver Inclusive Growth is closely aligned with our own strategy of ‘Inclusive Capitalism’. Delivering shareholder value and furthering social progress are not mutually exclusive. It is the opposite – companies which aspire to prosper in the long term have to be both socially and economically useful. With more money to invest globally than ever before, we can both generate returns for customers and shareholders and move from measuring the gaps in our society towards closing them. Given our great track-record we’re delighted to be working with like-minded global firms to support this.
Nigel Wilson, CEO