Tuesday, August 21, 2012

Common Welfare Economy

The need of a new economy model

We are used to evaluate the success of a company based on KPIs that have basically as main goal to measure how well the company performs in terms of:
  • Profitability
  • Competition
The current situation in western countries, and specially in Europe is showing up that those goals based on the capitalism model are getting obsolete. The current model has developed for many years a mentality in people and businesses that money is not just a mechanism to improve our lifes, but has become just the only goal in life.

This has generated an enormous economical and social crisis because of the speculation of markets, unfairness of global economy and unlimited power of financial banks and big corporations, which are able now to dominate governments elected by citizens in democratic countries.

The need of a more sustainable and collaborative approach by companies and governments is required in order to change the current economical model.

A new model elaborated by Christian Felber is the "Common Welfare Economy".

Common Welfare Economy

The “Common Welfare Economy” provides the basic elements of an alternative economic framework, and basically means to change the measurement of the business success, from profitability and competition to:

  • Common Welfare
  • Collaboration
Explained by Christian Felber:

How to evaluate if we are compliant with the Common Welfare model?

In order to evaluate if our company is successful based on the Common Welfare model the organization created by Christian Felber "Gemeinwohl Ökonomie" provides the "Common Welfare Matrix".

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