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5) A new approach: The Partnership Model

The cooperative model struggles to attract capital, the capitalist model struggles to take social considerations into account. Perhaps there is a middle ground.

Markets are important to divert capital quickly and efficiently to areas providing an economic surplus. However, a balanced social structure, taking into account inherent human interests, is essential to avoid self-destruction. We may be able to bring the two together by creating a hybrid corporation. One which combines co-operative elements with a capitalist share structure.

This could be done by encouraging relevant stakeholders such as customers, team members, and suppliers to become shareholders. Closer integration of these groups will result in easier information exchange, increased loyalty, and possibly even better decision making if we can harness the wisdom of the crowd.

The result is increasingly socially conscious, efficient and sustainable organisations without the need for an unequal distributive class or divergence from efficient market forces. As well as reducing wider externalities such as income inequality, boom and bust economics and environmental degradation.

If these organisations are demonstrably more successful than traditional approaches, entrepreneurs will create them and capital owners will invest in them.

6) How it’s done

4) Why now is the right time to solve this problem

6) How it’s done