Philanthro-capitalism, also known as ‘venture philanthropy’ is the method of running non-profit organisations using profit-making methods.
Philanthro-capitalism, also known as ‘venture philanthropy’ is the method of running non-profit organisations using profit-making methods. While it is still debatable as to who is the best manager of funds between charity and the corporate world, it is clear that profit-making, or capitalism, is both needed and morally justifiable if no corruption is involved. Without profit, there wouldn’t be any growth or enough funds to give to charity or the poor.
Due to the financial burden caused by the global credit crunch, some voices have been heard claiming that capitalism is evil and should be replaced. But even socialists and communists use capitalist methods when it comes to business and the economy. China is economically growing through profit making! Yet at the same time, like any other system, capitalism should be regulated and accountable.
All that is needed for capitalism to remain moral is to avoid corruption. That is why the corporate world, markets and banks should adopt the ideals of corporate social responsibility (CSR) and socially responsible investment (SRI). Absent corruption, both capitalism and globalisation can remain morally justifiable.
Not only would the lack of profit hinder free enterprise and cripple many innovative and development projects, it would also seriously affect the non-profit sector. Since the birth of philanthro-capitalism, the profit-making sector has been to some extent merging with the not-for-profit sector, creating a new charitable giant, an example of a well-organised, more accountable and more efficient organisation for tackling holistic challenges such as poverty, diseases, illiteracy, global warming – the list goes on.
It is important to note, however, that the billions of dollars donated to charity by Bill Gates, Warren Buffet and other rich individuals come from profit-making businesses. And as philanthro-capitalism continues to gather momentum, it is becoming almost imperative for major companies, firms, corporations and other capitalist enterprises wanting to be morally and globally respected to adopt the aforementioned ideals of responsibility.
But the only way both SRI and CSR will have any credibility is to adopt a genuine and transparent code of ethics that does not allow any kind of corruption, exploitation or greed. This calls for a very strong regulatory system that is accountable, transparent and consistent in its dealings, run by morally competent individuals endowed with integrity, good conscience and blamelessness.
It’s also worth reminding anyone who makes a profit that it is mandatory to pay taxes according to the laws of the country you’re in. Tax evasion isn’t only a crime, it’s also immoral. You should also pay the tithe to God in your church as is required by the Bible. These are obligations for every good citizen since Jesus Christ said: “Give to Caesar what is Caesar’s and to God what is God’s” (Mark 12:17). But in order to give to God, we cannot steal; neither should we rob Peter to pay Paul.
Pastor Thomas Baganineza is an ordained minister who has been pastoring for more than 10 years. He graduated from Global University and is currently a freelance columnist and writer.
