Advertisement

Compassionate Capitalism, the Workplace, and Social Capital

  • Sharon HuntEmail author
  • James Mattson
Chapter
Part of the Issues in Children's and Families' Lives book series (IICL)

Abstract

While compassionate capitalism may seem like a contradictory statement, examples of this practice suggest the power of this model. In this chapter, we review key components of capitalism and compassion. We explore governmental intervention through the Great Depression, the New Deal programs initiated by President Franklin D. Roosevelt and Milton S. Hershey’s groundbreaking business philosophy that was beneficial to the company and to his employees. We then look at the present-day examples of business models that do not sacrifice the community and environment for profit, provide examples of companies that are implementing these models, discuss the business case for doing this, discuss new regulatory support for the concept of compassionate capitalism, and explore how companies are rated by their employees and the community on their “giving back” practices.

Keywords

Compassionate capitalism Corporate social responsibility Corporate citizenship Job satisfaction Best or great places to work Benefit corporations Strategic corporate philanthropy Employee engagement 

References

  1. 1920-30.com. (n.d.). Business and economy from boom times to depression. Retrieved December 12, 2014, from http://www.1920-30.com/business.
  2. Annenberg Learner. (2014). The twenties, 1913–1929. Retrieved December 12, 2014, from http://www.learner.org/biographyofamerica/prog20/feature/page02.html.
  3. Ataselim-Yilmaz, S. (2014, January 23). Is corporate philanthropy dead as we know it, or should it be? [Web log comment]. Retrieved December 12, 2014, from http://www.huffingtonpost.com/senay-ataselimyilmaz/is-corporate-philanthropy-dead_b_4158382.html.
  4. Benioff, M., & Southwick, K. (2004). Compassionate capitalism: How corporations can make doing good an integral part of doing well. Franklin Lakes, NJ: Career Press.Google Scholar
  5. Cohen, D., & Prusak, L. (2001). In good company. How social capital makes organizations work. Boston, MA: Harvard Business School Press.Google Scholar
  6. Committee Encouraging Corporate Philanthropy [CECP]. (2015). About CECP. Retrieved March 14, 2015, from http://cecp.co/about-cecp.html.
  7. Cone, C. (2012, April 25). Introducing: Goodpurpose 2012. Retrieved January 30, 2015, from http://purpose.edelman.com/slides/introducing-goodpurpose-2012/#sthash.06N3xmuI.dpuf.
  8. Dill, K. (2014a, December 8). The companies with the best CSR reputations. Retrieved January 12, 2015, from http://www.forbes.com/sites/kathryndill/2014/12/08/the-companies-with-the-best-csr-reputations/.
  9. Dill, K. (2014b, December 10). The best places to work in 2015. Retrieved January 22, 2015, from http://www.forbes.com/sites/kathryndill/2014/12/10/the-best-places-to-work-in-2015/.
  10. Edelman. (2012). About Goodpurpose. Retrieved January 30, 2015 from http://www.edelman.com/insights/intellectual-property/good-purpose/about-goodpurpose/.
  11. Encyclopedia Britannica. (n.d.). Economic Opportunity Act. Retrieved March 13, 2015, from http://www.britannica.com/EBchecked/topic/178451/Economic-Opportunity-Act.
  12. Entrepreneur. (2008). Milton, S. Hershey. Retrieved January 15, 2015, from http://www.entrepreneur.com/article/197530.
  13. Espenson, A. (2014, July 23). 5 Companies doing corporate social responsibility right. Retrieved January 15, 2015, from http://www.business2community.com/social-business/5-companies-corporate-social-responsibility-right-0951534.
  14. Fallon, N. (2014, December 22). What is corporate social responsibility? Retrieved January 15, 2015, from http://www.businessnewsdaily.com/4679-corporate-social-responsibility.html.
  15. Friedman, M. (1962). Capitalism and freedom. Chicago, IL: University of Chicago Press.Google Scholar
  16. George, J. M. (2014). Compassion and capitalism: Implications for organizational studies. Journal of Management, 40(1), 5–15.CrossRefGoogle Scholar
  17. Great Place to Work. (2015a). What is a great workplace? Retrieved January 18, 2015, from http://www.greatplacetowork.com/our-approach/what-is-a-great-workplace.
  18. Great Place to Work. (2015b). 2015 Fortune 100 best companies to work for. Retrieved January 18, 2015, from http://www.greatplacetowork.com/best-companies/100-best-companies-to-work-for.
  19. Gross, R. (n.d.). Corporate social responsibility and employee engagement: Making the connection. Retrieved January 20, 2015, from http://www.charities.org/sites/default/files/corporate_responsibility_white_paper%20copy.pdf.
  20. Hanlon, P. (2012, September 23). Conscious capitalism: Can empathy change the world? Retrieved January 12, 2014, from http://www.forbes.com/sites/patrickhanlon/2012/09/23/conscious-capitalism-can-empathy-change-the-world/.
  21. History.com. (n.d.). New deal. Retrieved December 30, 2014, from http://www.history.com/topics/new-deal.
  22. Klein, P. (2011, April 26). The five elements of the best CSR programs. Retrieved December 30, 2014, from http://www.forbes.com/sites/csr/2011/04/26/the-five-elements-of-the-best-csr-programs/.
  23. Maak, T. (2007). Responsible leadership, stakeholder engagement, and the emergence of social capital. Journal of Business Ethics, 74(4), 329–343.CrossRefGoogle Scholar
  24. Milton Hershey School. (2014). About, a brighter future begins here. Retrieved December 30, 2014, from http://www.mhskids.org/about/.
  25. Paleologos, N. (2013, March 21). The case for compassionate capitalism. Retrieved January 15, 2015, from http://cognoscenti.wbur.org/2013/03/21/nick-paleologos.
  26. Points of Light. (2015). Our history. Retrieved February 15, 2015, from http://www.pointsoflight.org/who-we-are/our-history.
  27. Porter, M., & Kramer, M. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80(12), 56–69.PubMedGoogle Scholar
  28. Public Broadcasting System. (2014a). The great depression. Retrieved December 12, 2014, from http://www.pbs.org/wgbh/americanexperience/features/general-article/dustbowl-great-depression/.
  29. Public Broadcasting System. (2014b). The new deal. Retrieved December 12, 2014, from http://www.pbs.org/wgbh/americanexperience/features/general-article/dustbowl-new-deal/.
  30. Reputation Institute. (2015). Global RepTrak ® pulse study. Retrieved January 30, 2015, from http://www.reputationinstitute.com/thought-leadership/global-reptrak.
  31. Saguaro Seminar on Civic Engagement in America. (2000). Better together, 2000. Retrieved February 11, 2015, from http://www.bettertogether.org/pdfs/Work.pdf.
  32. Sisodia, R., Sheth, J. N., & Wolfe, D. B. (2014). Firms of endearment: How world-class companies profit from passion and purpose (2nd ed.). Upper Saddle River, NJ: Pearson Education.Google Scholar
  33. Sisodia, R., Wolfe, D. B., & Sheth, J. N. (2007). Firms of endearment: How world-class companies profit from passion and purpose. Upper Saddle River, NJ: Wharton School Publication.Google Scholar
  34. Stewart, A. J., & Plotkin, J. B. (2013). From extortion to generosity, evolution in the iterated prisoner’s dilemma [abstract]. Austin, TX: William H. Press, University of Texas at Austin.Google Scholar
  35. The Economist. (2009, November 17). Triple bottom line: It consists of three Ps: Profit, people and planet. Retrieved January 12, 2014, from http://www.economist.com/node/14301663.
  36. The Hershey Company. (2014a). Corporate social responsibility. Retrieved December 30, 2014, from www.thehersheycompany.com/social-responsibility.
  37. The Hershey Company. (2014b). Our story, discover Hershey’s history of happiness. Retrieved December 30, 2014, from www.thehersheylegacy.com.
  38. Thorpe, D. (2013). Why CSR? The benefits of corporate social responsibility will move you to act. Retrieved January 12, 2014, from http://www.forbes.com/sites/devinthorpe/2013/05/18/why-csr-the-benefits-of-corporate-social-responsibility-will-move-you-to-act/.
  39. Whitford, D. (2011, March 30). Can compassionate capitalists really win. Retrieved January 12, 2014, from http://fortune.com/2011/03/30/can-compassionate-capitalists-really-win/.
  40. Woulfe, J. (2014, July 15). B corps vs. benefit corps—What’s the big difference? Retrieved January 30, 2015, from http://ctinnovations.com/resource/70/BCorpsvsBenefitCorps.

Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.BowieUSA

Personalised recommendations