Compassion, sustainability and social justice: advice for good governance

May 2024 | SPOTLIGHT | BOARDROOM INTELLIGENCE

Financier Worldwide Magazine

May 2024 Issue

In a world often characterised by economic disparity, environmental degradation and social turmoil, we should be constantly searching for new inspiration to find innovative solutions to our problems. One path forward is to implement and follow strong corporate governance guidelines – but how can this be achieved?

Inspiration can come from unexpected places. Perhaps the answers are not where people usually look, and interesting insights can be found elsewhere – for example in the teachings of Buddha and Pope Francis. Both spiritual leaders emphasised principles of compassion, sustainability and social justice, which are integral to creating a more equitable and sustainable society.

In this article we look at how these philosophies can benefit good governance, including their relevance to conscious capitalism. After all, it is pretty clear we are not going to be able to move forward and succeed, both as a planet or as individual companies, doing what has already been done.

A Buddhist approach to economics

The concept of a Buddhist economy emerged in the mid-20th century, primarily through the works of E.F. Schumacher, a British economist. It presents an alternative economic model grounded in Buddhist principles and values, offering a holistic approach to economic development that prioritises wellbeing and sustainability over profit maximisation. This economic model is deeply rooted in Buddhist teachings, particularly the principles of right livelihood, interdependence, compassion and non-harm.

At the core of the Buddhist economy is the idea of sufficiency. Instead of the endless pursuit of material wealth and consumption, it advocates finding contentment with what is necessary for a dignified life. This aligns with the Buddhist concept of the ‘middle way’, which emphasises moderation and balance in all aspects of life. In practical terms, this means promoting sustainable consumption patterns that do not deplete natural resources or harm the environment.

Another key principle of the Buddhist economy is the concept of interdependence. According to Buddhist teachings, all phenomena are interdependent and interconnected. This principle extends to the economic realm, where actions taken in one part of the economy can have far-reaching effects on other parts. In the context of the Buddhist economy, this principle underscores the importance of considering the social and environmental impacts of economic activities.

Compassion is also a central pillar of the Buddhist economy. It emphasises the importance of empathy and concern for the wellbeing of others, including future generations. This principle is reflected in the way resources are managed and distributed, with a focus on reducing inequality and ensuring that everyone has access to the basic necessities of life.

Non-harming, or ahimsa, is another key principle of the Buddhist economy. It emphasises the importance of avoiding harm to all living beings, including animals and plants. In the economic context, this translates into promoting sustainable and ethical practices that minimise harm to the environment and living beings.

In practical terms, a Buddhist economy advocates for a decentralised and human-scale approach to economic development. It emphasises the importance of local self-sufficiency, community empowerment and the preservation of traditional wisdom and culture. It also promotes the use of appropriate technology that is environmentally friendly and socially beneficial.

Overall, the Buddhist economy offers a vision of economic development that is in harmony with the principles of Buddhism. It seeks to create a more equitable, sustainable and compassionate world, where the wellbeing of all living beings is given primacy over material wealth and consumption.

Francis, Clare and an economic model based on love

The economy of Francis and Clare refers to a socioeconomic model inspired by the lives and teachings of Saint Francis of Assisi and Saint Clare of Assisi, two figures renowned for their dedication to poverty, humility and simplicity. This economic model is rooted in the Franciscan tradition and reflects their values of solidarity, love, community and care for the environment. Nowadays, Pope Francis advocates for these principles, encouraging younger generations to be a part of this economic development.

Central to the economy of Francis and Clare is the concept of voluntary poverty. Both Francis and Clare renounced material wealth and lived lives of simplicity and austerity. They believed that by embracing poverty, they could more fully emulate the life of Jesus Christ and live in closer communion with God. This principle of voluntary poverty is central to the Franciscan economic model, which emphasises the importance of living with only what is necessary and sharing resources with those in need.

Another key aspect of the economy of Francis and Clare is the idea of stewardship. They believed that all creation is a gift from God and that humans have a responsibility to care for the earth and its resources. This principle of stewardship is reflected in the Franciscan commitment to environmental sustainability and the promotion of practices that respect and protect the natural world.

Community and solidarity are also central to the economy of Francis and Clare. They emphasised the importance of living in community and supporting one another in times of need. This principle is reflected in the Franciscan tradition of mutual aid and solidarity, where resources are shared among members of the community to ensure that everyone’s basic needs are met.

The economy of Francis and Clare also emphasises the importance of work and creativity. They believed that work is a form of prayer and that all labour has dignity and value. This principle is reflected in the Franciscan commitment to meaningful work and the promotion of economic activities that contribute to the common good.

In practical terms, the economy of Francis and Clare promotes sustainable and equitable economic practices. It emphasises the importance of local economies and small-scale production, as well as the promotion of fair trade and ethical consumption. It also encourages the use of renewable resources and the development of technologies that are environmentally friendly.

Overall, the economy of Francis and Clare offers a vision of economic development that is rooted in the values of simplicity, solidarity, love and care for the environment. It seeks to create a more just and sustainable world where all people can live with dignity and respect.

How can good governance benefit from these new economic models?

First of all, it is imperative to highlight that although both the Buddhist economy and the economy of Francis and Clare have their roots in the teachings of religious leaders, following their economic philosophies has nothing to do with religion. Think of it as a way to have a broader and innovative perspective with regard to improving how we understand the economic dynamics of the world.

Good governance can benefit significantly from the principles and values espoused by these economic models, as well as from the ethos of conscious capitalism. Each offers unique insights and approaches that can contribute to more effective, inclusive and sustainable governance.

By implementing principles of the Buddhist economy, governments and private organisations can adopt policies that promote moderation in consumption, reduce inequality and protect the environment. This approach can lead to more balanced economic development that considers the long-term wellbeing of both people and the planet.

Similarly, the economic model of Francis and Clare can inspire governance that prioritises social justice, inclusivity and community empowerment. Institutions can adopt policies that promote economic cooperation, social cohesion and environmental sustainability, reflecting the values of Francis and Clare. This approach can lead to more equitable and sustainable development that benefits all members of society.

Meanwhile, conscious capitalism is a concept that seeks to reconcile the pursuit of profit with social and environmental responsibility. It emphasises the importance of businesses acting as good corporate citizens, balancing the interests of shareholders with those of other stakeholders. The principles of the Buddhist economy and the economy of Francis and Clare align with the values of conscious capitalism, emphasising the importance of compassion, sustainability and social responsibility in economic decision making.

Incorporating the principles of these economic models into governance can lead to several benefits. First, it can promote more inclusive economic growth that benefits all members of society, reducing inequality and poverty. Second, it can lead to more sustainable development that preserves natural resources and protects the environment for future generations. Third, it can foster a sense of community and solidarity, leading to greater social cohesion and stability.

In conclusion, good governance can benefit from the Buddhist economy and the economy of Francis and Clare by incorporating their principles and values into decision-making processes. These economic models emphasise sustainability, social justice and inclusivity, which are essential for effective governance. By promoting ethical and sustainable practices, good governance can build trust between businesses, governments and society, leading to more inclusive and sustainable development.

Ana Paula P. Candeloro is the founder and chief executive of Yiesia. She can be contacted on +55 11 96919 1818 or by email: anacandeloro@uol.com.br.

Ana Paula P. Candeloro

Yiesia