MarkTrueblood

"What the developed world has plowed money into isn't innovation or investment, but raw, transient, consumption...

We don't need to do economic harm to profit; in fact, the less economic harm we do, the more we profit." -Umair Haque

The New Capitalist Manifesto is the work of the renowned thought leader Umair Haque. Mr. Haque is a provocative thinker with valuable insights on the current state of the world and constructive paths to the future. The New Capitalist Manifesto shows how some businesses are experiencing remarkable success by becoming Constructive Capitalists. Mr. Haque says:

Constructive capitalists have an advantage in the kind of value they are able to create, not just its amount. Because higher quality value is less risky, less costly, more defensible, and more enduring, it is usually worth more to stakeholders of every kind: people, communities, society, future generations, employees, regulators, and investors alike.

It's about creating businesses that profit through providing better outcomes. The customers are better off, harms to the world are minimized, and the business does well.

The New Capitalist Manifesto provides the beginnings of a road map for folks who aspire to be Constructive Capitalists. It is a deep and rich text that will provide many different insights to different people, depending on where you're coming from. Here's a few exclamation points and question marks that stood out to me.

The Exclamation Points

Government Isn't The Answer- When some well-meaning thinkers discuss capitalism, they too often call for sweeping new government regulations or government programs. Umair Haque correctly points out that capitalism works best when government meddles as little as possible. He says, "I believe the best economic system is one that rewards entrepreneurship and risk taking, maximizes customer choice, uses markets to allocate scarce resources, and minimizes the regulatory burden on business."
We are not living in a democracy, or operating in a free market. Rather, the US is a grotesque plutarchy and a rigged economic system. Government regulation and corporate welfare are the primary ways that the ruling class screws over the general public. "Progressives" and others who claim altruistic intentions reveal their ideological blinders when they propose growing government as a solution. Haque's strong intent to evolve capitalism with a wise, creative, and unencumbered private sector is much appreciated.

Corporate Social Responsibility = Trip To Dentist For CEOs- Umair Haque does not blow the trumpet of Corporate Social Responsibility (CSR.) Rightfully so. Let's face it: Businesses have often had an uneasy relationship with CSR. While I appreciate and learn from advocates of CSR, I feel it is a lackluster approach to evolving capitalism. When interested groups call for CSR, they seem to expect corporations to be altruistic enterprises. This is unrealistic. It is too easy for an organization to answer back "Our responsibility is to our shareholders, period."
CSR programs also have a history of underwhelming outcomes. Sometimes, they result in products with higher prices that can't compete in the marketplace, or that only high-minded wealthy can afford. Also, some businesses take advantage of CSR to "greenwash" their actions. In my opinion, Constructive Capitalism is a step beyond CSR that will help businesses reap the rewards of positive intent and enduring value.

Higher Value, Authenticity, and Meaning- As an advertising professional, I'm always looking to pinpoint insights on where my industry can evolve. Mr. Haque has powerful advice for marketers. In the book, he asks "What are the wellsprings, deep and true, of a more enduring, meaningful, authentic prosperity?" Let's replace "prosperity" with "brand" in that sentence. Wow! Yes, the advertising industry is in dire need of building more enduring, meaningful, and authentic brands. Our industry is circling the drain right now, because (fairly or not) the business community perceives us as a commodity service that doesn't deliver the goods.
While I know many ad professionals are both skilled and dedicated, we are being punished for the mediocrity and myopia that often triumphs in our industry. Advertising is not sufficiently meaningful, authentic, or respectful of our audience. As a result, they are tuning us out. And then we get blame from our clients when the cash registers don't ring with the desired frequency.
We can't always control how our clients run their businesses, or persuade them to produce our best ideas. But we can try harder to create advertising that is respectful, useful, uplifting, and relevant to our audience's lives. If we help our clients make their brands more enduring, they'll value us more. And we'll be able to do work that we're proud of.
(I wrote about creating advertising with higher value here.)

The Question Mark

People Desire Stupid Things- Umair Haque does a wonderful job of showing how corporations can grow their business by providing higher value to their customers. He also correctly points out the toxic nature of modern-day consumption, exemplified by Big Macs, SUVs, and McMansions. However, the Hummer in the room is that many consumers love things that are bad for them. GM deserves heaps of scorn for their anti-competitive lobbying efforts and their fixation on wasteful pollution machines. But that doesn't change the fact that consumers LOVED SUVs. GM would not have sold them if people did not want to buy them. Same goes for junk food, generic housing, toxic debt, and countless other examples of dumb consumption.
So, I'm inspired and excited by The New Capitalist Manifesto. But I know very well that there is still big money to be earned by companies selling stupid things. What's the solution? We could encourage companies to do better. But their answer will be "We're serving the demands of our customers." And they're right. People have the right to make stupid choices with their money.
Perhaps the solution comes from trying to inspire our fellow citizens to purchase more thoughtfully. For that, we need products with higher value and brand communications with meaning. People are going to buy what they want, not what we'd like them to want. Let's inspire them to want better outcomes for themselves and the world.

The Summary

The New Capitalist Manifesto is an important business book, and so much more. It's a joyous celebration of the entrepreneurial spirit. It's a love poem that reconciles the individual will and the human collective. It's a promise to a future yet unmade that we all have a hand in creating.

The Extra Credit

I've written several advertising-related blogs based on Umair Haque's insights.

Attention Is A Precious Resource suggests that brands must respect the time and the intelligence of their audience.

Awesomeness, Advertising, and You applies Umair's Awesomeness Manifesto to the advertising industry.

Every Advertising Professional Should Read Umair Haque is self-explanatory. ;)

Update

Umair Haque has created a page with links to several reviews.