Compassionate CAPITALISM...

...can redefine the role of business in society

- Saumya Kumar

Compassion and capitalism, two words that till a decade ago, one would’ve thought would be unlikely to appear in the same sentence. Yet, here we are, in this post-COVID reality, talking about just them.

In the realm of MBA education, where future business leaders are groomed to excel in the corporate world, a subtle yet profound transformation is underway. The traditional approach to business education, so often synonymous with unbridled capitalism, is giving way to a more nuanced and compassionate perspective. MBA students are increasingly being encouraged not merely to chase profits, but also to recognise the human side of doing business; to understand the impact of their actions on society, and to support startups that genuinely address real human problems. This shift in paradigm is fostering a new breed of business leaders, who we now call “compassionate capitalists”.

Capitalism, as an economic and business ideology, has been the driving force behind tremendous innovation, economic growth and prosperity over the years. However, it’s essential to recognise that, like any tool that wields power, capitalism too is corruptible. It can, and quite often does, have a dark side. The unrestrained pursuit of profit, without consideration for the consequences, can lead to exploitation, inequality, environmental degradation, and ethical dilemmas. It’s a path that values short-term gains over long-term sustainability and social well-being.

MBA education, which traditionally focused on profit maximisation and shareholder value, is evolving to address these challenges. Leading business schools are redefining their curricula to emphasise a broader perspective that includes ethics, sustainability, social responsibility and empathy. The idea is not to abandon capitalism, but to humanise it instead, to ensure that profit and purpose can coexist harmoniously.