Business and finance are undergoing profound change. Traditional economic models based on scarce financial capital are becoming increasingly irrelevant in a world of abundant financial capital and scarce human, social and natural capital. The consequence of these profound changes is that we operate today with an outdated and sub-optimal system that is undermining the role of business in society. This system contributes to growing inequality, social unrest, and environmental degradation. Today, there is both a duty and an opportunity for business leaders to reflect the changing needs of society and the environment.
The Economics of Mutuality
Economic research done collaboratively by the Mars Catalyst Think Tank and Oxford University’s Said Business School shows that a new concept, the Economics of Mutuality (EoM), has strong potential to help businesses meet these new challenges. EoM, a concept brought forth by Bruno Roche and his colleagues at the Mars Catalyst Think Tank, is based on the principle of the Jubilee in the Bible (Lev. 25). It leverages the principle of mutuality in business as a driver of value creation.
It is a new multiple capital business model that simultaneously promotes sustainable, profitable business and wider benefits in the form of human, social and environmental well-being. It leverages the power of capitalism, encouraging the concentration of the different forms of capital in the hands of multiple stakeholders. As such, it has the potential to adapt better to the disruptive business climates that many entrepreneurs find themselves in than the Financial Capitalism model pioneered by Milton Friedman. Financial Capitalism focusses on only one form of capital - profit - to the exclusion of all of the others. The sharing aspect of the Economics of Mutuality makes it particularly appealing to a new kind of entrepreneur with the sense of broader purpose to bring prosperity to the many rather than just the few. clearly, it is an idea whose time has come.
I’m happy to announce that a new center, the “Center for Economics & Mutuality” will open on Monday, March 9th, 2020 at the Erasmus University in Rotterdam. A formal invitation for this meeting will be sent out at the beginning of January 2020. For now however, we’re letting you know so that you can save the date.
Center for Economics and Mutuality (CEM)
The Center will be a collaboration between the Economic Summit (www.economicsummit.eu), the Erasmus Initiative for the Dynamics of Inclusive Prosperity (https://www.doipconference.com) and the Rotterdam School of Management (RSM), and Government in the person of one of the members of the Dutch Parliament that the Economic Summit has worked with regularly with in the past. The Erasmus Initiative for the Dynamics of Inclusive Prosperity and the RSM have agreed to create a “Visiting Senior Fellowship” position for Bruno Roche. This will help to give the CEM substance.
The Center will be a charitable foundation based at the Dominion Centre in Amsterdam and at the Erasmus University in Rotterdam. It will exist for 3-5 years in the first instance. There’s the possibility to extend that time if so desired.
Arleen Westerhof, Founder and Executive Director of the Economic Summit, will be its Director.
The aim of the center will be to promote and to further the application of the Economics of Mutuality principles in business. The Center will organize a “Mutual Business Summit (MBS)” highlighting the advances being made in the research surrounding the Mutuality projects that it funds. Masterclasses for entrepreneurs and CEOs, CFOs as well as “Policy Round Table” meetings will also be organized.
Future role of the Economic Summit
A major difference between the center and the Economic Summit will be that the Center will be secular in nature. It is the intention that the Center be an authoritative voice to all of Dutch society and to other Europeans.
The Economic Summit will continue to exist and will maintain its faith-based profile. In the coming years, we will focus on helping SMEs and start-up businesses to apply EoM principles to their management practice and to integrate them into their business models and accounting.
General information about the official opening
Monday March 9th, 2020, 13.00 - 17.30 hrs.
Erasmus University, Burgermeester Oudlaan 50, 3062 PA Rotterdam, Netherlands
Dominion Centre, Ellermanstraat 30, 1114 AK Amsterdam-Duivendrecht