Monday, September 21, 2009

The economics of charity

A short wishful article on the need for larger scale charitable integration with existing capitalism.

If a significant number of companies were advertising that they donate a large share of their profits to charity, then given the option many people will choose to purchase items that involve a charitable contribution. If such an eventuality got very popular then humanity would begin exclusively purchasing products from companies that donate the majority of their profits to charity. Free market capitalism would cause greedy organizations to lose market share. Companies would (just about) universally pledge to donate 50% (or 65% or 95% or 99.9%) of their profits to charitable organizations or else face a potential 0% market share as all customers flock to the companies that advertise that they donate the majority of their profits to charitable organizations.

While this could happen through slow growth in corporate charitable contributions, although I am hopeful something or someone will come along and greatly help speed up this process. Fifty percent of worldwide profits is surely so large that it could have a real impact on the world's billions of poor people.

Here's a funny cartoon I found:

Another cartoon - this time from a big company's shareholder meeting (comic from cartoonstock)