“The economic anarchy of capitalist society as it exists today is, in my opinion, the real source of the evil.”

— Albert Einstein, 1949

10 Cornerstones of the ECG

  • 1. The Economy for the Common Good is a bridge to an ethical market economy, whose goal is not the increase of monetary capital, but a good life for all.

  • 2. Human dignity, solidarity and social justice, environmental sustainability and democracy are guiding values.

  • 3. The Common Good Matrix shows how these values can be lived in everyday business life. It is continually being developed and should be decided upon democratically.

  • 4. Actors use the Matrix to draw up a Common Good Balance Sheet, which illustrates the implementation of the common good values as well as their development potential and make an assessment.

  • 5. Sustainable and ethical companies are recognized and supported by consumers, cooperation partners and common good-oriented sponsors.

  • 6. As compensation for above-average performance, organsiations receive legal advantages in taxes, loans and public contracts as well as in international trade.

  • 7. Business profits serve to strengthen the companies, generate income and provide for long-term financial security of the owners and employees, not, however, to increase the assets of external investors. Thus, the owners are given the freedom to develop common good-oriented business practices, free from pressure to achieve the highest possible return on investment.

  • 8. The drive for economic growth decreases. Opportunities for a fulfilled life are opened up while preserving our natural resources. In work, appreciation and fairness as well as creativity and cooperation can develop better.

  • 9. Limiting wealth inequalities increases the chances for equal participation of all in economic and political life.

  • 10. ECOnGOOD invites people to help shape a new economy based on dignity, social justice and environmental sustainability. All ideas for a sustainable economic order should be developed in democratic processes, decided by people as sovereign and anchored in national constitutions.

Frequently Asked Questions on ECG theory

Companies aspire for profit maximisation so they squeeze each other out of the market until there are only a few large corporations left. These corporations then have power over consumers and states, and can dictate global events. Environmental and social standards get crushed in the quest for profit.

More growth is not possible on a finite planet. Capitalism and communism have failed. We now need new ideas, for example the Economy for the Common Good.

The Economy for the Common Good is focussed on the real purpose of business: meeting our human needs. This primarily involves forging successful relationships: they are a requirement for being happy, and they are a requirement for the common good.

Money, in contrast, is only a means of economic activity: economic output, measured in money, does not indicate whether the common good is rising or falling. To measure whether this purpose is being fulfilled, other indicators are required.

Organisations can assess their contribution to the common good by evaluating how successful their relationship is with suppliers, investors, employees, customers and the social environment based on indicators ​​such as human dignity, solidarity, environmental sustainability, social justice and democratic participation. Alongside a financial balance sheet, they would complete a Common Good Balance Sheet to understand their impact and contribution.

The Common Good Balance Sheet helps organisations understand their impact or contribution to the common good. It provides structured information about areas such as human dignity, social justice, environmental responsibility, transparency and participation in their entire value chain, including operations and management improvement.

Within this context, documented contribution to the common good could support discussions about incentives such as public procurement criteria, access to funding or other policy measures within the relevant legal and institutional framework.

Suddenly, sustainable, fair, democratic and cooperative organisations will have the advantage. Regional economic cycles will gain momentum. Decent workplaces and high-quality products and services will be created, while environmental damage and social problems will be reduced.

Within the framework of fair-trade agreements, countries recognise each other’s Common Good Products. Products and services that damage the common good will have customs duties imposed on them or they will be prevented from importing at all.

More than 100 organisations have applied the Common Good Balance Sheets throughout the globe – and the number keeps growing. Regional groups are being established everywhere, raising awareness to steer towards better policies and decision-making. The first Common Good communities and regions are emerging, and an increasingly strong international movement is evolving, built through collaboration with other initiatives in the alternative economies field – the real economies.

Democratic assemblies and co-determination

“Post-democracy” is a field of political science which discusses the crisis state of democracy. Brexit and the elections of populists around the globe are symptoms that democracy does not function as many would like it to. There are, however, signals of hope. In Munich, Germany the people forced the closure of the coal power plant, in Ireland the Citizen Assemblies have proven very effective, and in Iceland, a People’s Constitution has been drawn up by a citizens’ convention.

ECOnGOOD is constituted upon the values of transparency and co-determination, where citizens hold the final say in decisions of national import. The initial idea consists of a series of reforms and new rights – one of these is the instrument of the “Democratic Assembly”, in which the fundamental questions in a particular city, region or country are discussed and voted on by the population.

Implementation approaches for Democratic Assemblies:

A first example of an economic assembly is included as an appendix in the current edition of “Change Everything” by Christian Felber. This can help people get an idea of what type of questions could be asked. A first exercise could consist in composing democratically the „Common Good Product“. It is a core idea of the ECG model and consists of the 20 most important elements of life quality, a good life for all or – the common good. Different from the UN SDGs, the OECD Better Life Index or Buthan‘s Gross National Happiness, the Common Good Product would be composed directly by the citizens. After sorting out the 20 mostly supported subgoals of an unlimited number of proposals, an implementation committee would have to find 1 to 3 indicators with which the achievement of the subgoals are measured. The Common Good Product can be measured as a whole – e. g. in Common Good Points – or by each and every of its 20 subgoals. The ECG movement is currently preparing such a convention for its own internal organization. The first municipalities and districts have shown interest. The first real conventions are starting in Münster and Minden, Germany.

As part of her Master’s thesis, Martina Schmitt from the University of Kassel, Germany made a survey based on the Book Money – The New Rules of the Game from C. Felber of 121 visitors at an exhibition in Switzerland about money. The 30 questions covered topics such as how our money system should be designed, target setting for banks, guidelines for lending and for the creation of money. In 92.6 % of the cases, the participants agreed to proposals that deviated from current government policy. Favored proposals included limiting the size of banks, allowing bank loans only for real transactions, an ethical credit check and limiting the creation of money to central banks. The proposal “The Common Good should be the primary goal of a bank” was supported by 68%.

In his book “Ethics-based Trade”, Christian Felber has prepared 20 possible questions on 12 key topics for an international trade order. In a first trial round on the Internet, 150 volunteers voted on the proposals. Although this sample is not representative, the result is encouraging. Where will the first formally legitimate and representative convention take place?

Literature

Change Everything - Creating an Economy for the Common Good

by Christian Felber, Zed Books, 2019

Trading for Good - How global trade can be made to serve people not money

by Christian Felber, Zedbooks, 2019

Money - The New Rules of the Game

by Christian Felber, Springer, 2017

Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist

by Kate Raworth, Chelsea Green Publishing, 2017

For The Common Good: Redirecting the Economy toward Community, the Environment, and a Sustainable Future

by Herman Daly

Civil Economy: Efficiency, Equity, Public Happiness

by Luigino Bruni, Peter Lang AG, 2007

Earth Democracy Justice, Sustainability, and Peace

by Vandana Shiva, Penguin Random House, 2015

The Essentials of Theory U: Core Principles and Applications

by Otto Scharmer and Katrin Kaufer, 2018

Free, Fair, and Alive: The insurgent Power of the Commons

by David Bollier and Silke Helfrich

Humanistic Management Protecting Dignity and Promoting Well-Being

by Michael Pirson, Cambridge University Press, 2017

No Contest: The Case Against Competition

by  Alfie Kohn, Houghton Mifflin, 1986 / 1992

Reframing Economic Ethics: The Philosophical Foundations of Humanistic Management

by Claus Dierksmeier, Palgrave Macmillan, 2016