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Assignment 2: Course Project—Understanding Creative Capitalism
In this assignment, you will examine the concept of creative capitalism. Bill Gates, cofounder and chairperson of Microsoft Corporation, advocates that in addition to seeking profits, corporations should also become social entrepreneurs in order to help solve social problems. He has called this creative capitalism. Gates argues the desire to help others who are less fortunate should be as powerful a motivator as increasing profits for businesses today.
Read the transcript or conduct a search for the video of Bill Gates’ speech at the 2008 World Economic Forum:
- Gates, B. (2008). Bill Gates—2008—World Economic Forum—Creative Capitalism. Bill and Melinda Gates Foundation. Retrieved from
http://www.gatesfoundation.org/speeches-commentary/Pages/bill-gates-2008-world-economic-forum-creative-capitalism.aspx
Review the following:
- General Electric (GE). (2011 ). Citizenship. Retrieved from http://www.gecapital.com/en/our-company/citizenship.html
- Walmart Corporate. Community and Giving. Retrieved from http://walmartstores.com/CommunityGiving/
Using your textbook, the Argosy University online library resources, and the Internet, research the concept of creative capitalism. Select at least three references for use in your assignment (one may be your textbook).
Complete the following:
- Explain free market capitalism
- Describe creative capitalism
- Explain the three advantages of creative capitalism in relation to businesses
- Explain the concept of corporate social responsibility using two examples of socially responsible companies. Clearly and concisely support your examples and explain why these companies are considered socially responsible.
- Comment on Gates’ creative capitalism. Do you think that creative capitalism can become the future of capitalism in the U.S.? Justify your response with examples and research.
Give reasons and illustrative examples in support.
Write a 5–6-page paper in Word format. Apply APA standards to citation of sources.
Explanation & Answer
Attached.
Running head: UNDERSTANDING CREATIVE CAPITALISM
Understanding Creative Capitalism
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Institution Affiliation
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UNDERSTANDING CREATIVE CAPITALISM
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Introduction
Business organizations are established in order to make profits and hence an organization
main activity is to minimize its costs and maximize sales. However, an organization needs to
establish its social value in the community in which it is established beyond providing employment
opportunities and providing quality goods. Bill gates the Cofounder and chairperson of Microsoft
Corporation advocates that organizations should carry out their business activities as social persons
in order to help solve social problems, a concept he defines as Creative Capitalism. This study
aims at examining creative capitalism and defines its position in the future business. The desire to
help the less fortunate should be an equal motivator to the organization as it does the concept of
increasing profits for business today.
Free Market Capitalism
Free market capitalism refers to an economic system in which the market enjoys freedom
with no government interventions. In such an economic system the government is said to have no
power. The government intervention is maintained in the least position possible and market
logistics control themselves through the interactions of its factors. In this instance, the profit desire
by organizations drives economic growth since organizations will produce more products and
services which will be heavily demanded (Kotz, 2015). Since the organizations will be driven by
a desire to make profits the level of competition will be high such that it will control the prices
maintaining them as low as possible hence increased demand. In this free market capitalism, the
competition will result in the production of high-quality goods and services in the establishment
of competitive advantage. In this free market capitalism there is negative socialism and the
economy will be very stable as those with the ability to buy products will buy as much as they can
and those without will stay out of the ‘game’.
UNDERSTANDING CREATIVE CAPITALISM
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Creative Capitalism
Creative capitalism refers to an economic system in which all the stakeholders;
governme...
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