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Business 310
The First or the Last
Striving for A Sustainable Capitalist Economy
KeriAnne Gallagher
10-2-2014
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Everyday transactions are made between producers and consumers which ultimately
allow for the continuation of the private market capitalism that the United States boasts as a
foundation for its economy. However, with a growing population and dwindling amount of
natural resources to use in production, the once strong foundation capitalism stood on will soon
be crumbling if producers and consumers cannot realize the importance of a capitalist market
mutually beneficial to all global enterprises. In the book ‘We First” by Simon Mainwaring, the
brand consultant and social-media expert delves into the faults of current day capitalism and how
the present private market can be successful in the future through collaborative efforts of
capitalist markets globally. As a social media expert, Mainwaring has studied the overall impact
and utilization of social media on the marketplace, and as such has determined that in order for a
sustainable capitalist market to become a reality, the market must be led with a mix of “mutual
self-interest, purposeful profit, sustainability, and ethical values” i put into action through
consumer pressure aided by social-media.
In today’s world, a mutual self-interest between corporations and consumers alike needs
to occur in order for the benefits that stem from global interconnectedness through social media
to effect political, social, and economic avenues. In regards to political benefits, the countries of
the world have become increasingly integrated over time in their trade and production
relationships. Capitalism has been allowed to globalize with increases in technology and
companies that were once integrated solely in their state of origin, are now turning into the
multinational companies numbering 63,000 in 2009ii. With past trade groups such as NAFTA,
the North American Free Trade Agreement, CAFTA, the Central American Free Trade
Agreement, and the EU, European Union, being implemented, the rate at which international
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companies interact is only increasing. However, with this knowledge, limited resources and
selfish business practices have led to political unrest. High tensions among countries have
resulted from the lessening availability of resources and terrorist groups such as Al Qaida and
more recently Isis have arisen as a result of opposition between countries.
While transactions between consumers and producers take place efficiently and allow for
the marketplace to remain in action, society’s distribution of resources allows that a “small class
of people amass wealth.” iii As a result of a miniscule part of the population compiling the
wealth, the remaining population can find itself prone to “greed and selfishness” which leads to a
manipulation of “the system, especially when government regulations are absent.”iv In the
capitalist system currently operating in the United States, the class system has led to a large
divide among the upper and lower classes. With the discrepancies among classes, demography
has become a major factor in determining the market segment; however, if the gap among
resources in society lessens, then the ability of consumers and markets to find a mutually
beneficial relationship to clarify needs and wants, will enable resources to be utilized more
efficiently and frugally. Through social media, consumers today are able to declare these wants
and needs through a variety of opinion forums inclusive of Facebook, Twitter, LinkedIn, and
blogs to name a few, and through such social networking cites, global businesses are able to
pinpoint consumer needs and wants more efficiently.
In regards to the economic benefits gained through mutual self-interest, the ever growing
population in the market must be analyzed. With a growing world that Mainwaring reports “by
2050…will contain 9 billion people,”v consumers and producers alike need to realize the
importance of conscientious behavior regarding the scarcity of resources. For example, in
today’s economy, oil, as a natural resource, acts as one of the major sustainers of efficiency for
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many industries as well as consumer lifestyles; however, with the current sources of oil already
dwindling, the respective outcome for future generations could mean disaster if another means of
sustainable energy is not found and employed in production practices. The knowledge of scarce
resources leads to the ultimate reasoning that a mutual self-interest between producers worldwide
needs to take place in order for conservation of resources to be successful. Consumers such as
the millennials have been tackling such issues head on through social media as they are
continually “pushing brands into dialoguing with them about such issues as social responsibility,
sustainability, ethics, and the fair treatment of employees.”vi
Between consumers and producers, profit acts as the force which keeps the marketplace
efficient and through the instillation of purposeful profit, Society can experience the resulting
growth of the capitalist market. Purposeful profit has been brought about as a relevant factor for
market success through consumer interest and corporate competition for sustainable enterprise.
With respect to consumer interests, society needs to take into account that consumers, while
driven by Maslow’s Hierarchy of needs to focus on self-interest, are also highly interested in the
conditions and welfare of those around them. Consumers are empathetic of those around them
and seek to be integrated in the change for a higher standard of living across the globe.
Mainwaring introduces this idea by manipulating consumer emotions, utilizing an experiment in
which the same towels were advertised as different by their labeling; one headed by a label
promoting the towels as made by workers in fair working conditions and a healthy environment,
while the other was left blank. After the sale of the towels for one month, the conductors of the
experiment, Michael J. Hiscox, a professor of social sciences, and his student, Nicholas F.B.
Smyth, had results depicting “unit sales of the labeled towels went up 11 percent, with a dollar
increase of almost 5 percent, while sales of the other brand dropped.” vii Although the two towels
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advertised were of the exact same make and quality, this experiment goes to show the increasing
power of goodwill on the purchases of Consumers. As Consumers make purchasing decisions,
they will utilize the Consumer Decision Making Process and as such “after recognizing a need or
want, consumers search for information about the various alternatives available to satisfy it.”viii
With consumers converting to a new form of purchase decision making, producers must align
their production with consumer wants, and through this idea the movement towards corporate
social responsibility (CSR) has begun to take shape in society and the marketplace. As social
media availability has increased, consumers can be more highly involved in shopping for
products dealing with social responsibility through company websites displaying reviews and
manufacturing techniques, as well as utilizing QR codes, quick response codes, which can be
accessed through the scanning of the code on an item through a smartphone application. With
such applications available, the ability of consumers to find goods they feel support societal
welfare is much more pertinent.
With regards to consumer opinion and the overall desire to achieve a profit, producers
have begun to sing a different tune and have adapted selling techniques to support greater causes.
In employing cause -related marketing (CRM) as an effective selling technique, companies have
made consumers “prove how much they care about a chosen cause.”ix As the market develops to
be inclusive of more products that are supportive of causes and societal welfare, consumers that
do not partake in the buying of goods and services relating to causes may be more apt to feeling
cognitive dissonance more strongly, in that they would feel guilt pertaining to purchasing
something that had no impact on the greater good. In 2009 an Edelman survey of 6,000
consumers measured the importance to consumers of making a better world and resulted in
statistics showing “83 percent of consumers…willing to change consumption habits” and “61
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percent have bought a brand that supports a good cause even if it was not the cheapest brand.”x
As consumer interest in the support of causes through profit expands, companies seek to gain a
profit through continual advertisement of linkage with charities and Non-governmental
organizations (NGOs). In the article “How Companies Manage Sustainability: McKinsey Global
Survey results,” McKinsey and Company, a global management consulting firm, revealed
through survey data that “Seventy-six percent of executives say engaging in sustainability
contributes positively to shareholder value in the long term” and that “companies that manage
sustainability proactively are much likelier to…find value creation opportunities.”xi Through
these acts of corporate social responsibility, executives can boost the reputation of the company
amongst consumers by supporting such causes as sustainability. With an increase in causeawareness, social media sites that also seek to promote CSR have evolved such as SocialVibe
which helps “consumers to identify charities and find brands to support them” through social
media and Participant Media which “creates entertainment that seeks to inspire change.”xii In
order for the current capitalist market to have success in the future, the partnership between CSR
and producers must be made stronger so that profits made can benefit not only the private
market, but the problems that exist within it.
In today’s capitalist economic system, resource distribution finds itself at the center of
many quarrels as prices fluctuate with shortages and surpluses; however, with this in mind,
producers and consumers need to be aware that the only way to ensure the continuation of equal
resource distribution is through a sustainable business enterprise system. As population
increases, the rate at which society consumes resources has begun to outweigh the amount
available and with this in mind the market needs to heed the warning that “business practices
today must ensure…enough resources for future generations.”xiii Facing the inevitability of
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depleting resources, the idea of an Ecological Debt Day has been created by the New Economics
Foundation and through this concept, the date at which the globe depletes its resources per year
can be found and “in 2010, it was August 23.”xiv The implications of this date indicate that in
2010 the world was using up its resources for the year with four months remaining for yearly
consumption. With the impending depletion increasing per year, Mainwaring addresses the idea
of integrating sustainability globally through capitalism in five ways concerning economic,
moral, ethical, environmental, and social activities. All five sustainable avenues can be
accredited to being integrated in the global retailer of Walmart. Walmart poses as one of the
largest retailers worldwide and as such has sales of “$405 billion and profits of about $15
billion.”xv As profits continue to rise with increases in population and technological advances,
Walmart proves itself to be a major supporter of employment, with its employment rates in the
U.S. exceeding 1 million and 2 million globally.xvi With such a heavy presence in the
marketplace, Walmart acts as a major leader in economic growth and as a sustainable leader.
After receiving complaints from consumers regarding production practices, Walmart reverted to
the idea of being a completely sustainable and environmentally friendly retailer, and as such has
become “the largest private producer of solar power in the United States.”xvii
As a sustainable retailer, Walmart has effectively encompassed all five avenues of
sustainable capitalism in that it is cognizant of the environment with usage of solar power and
the reduction of net waste, and it allocates jobs and profits to international brands, enabling them
to make a living, therefore encompassing moral, ethical, social, environmental, and economic
activities all with efficient store production. When consumers view retailers such as Walmart and
realize the company’s drastic change in production in order to help create a sustainable future,
they too must realize their contribution to sustainable capitalism. Due to high amounts of
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consumption, the availability of natural resources has drastically reduced stemming from
“industrialization, deforestation, and pollution.”xviii With the scarcity of natural resources on the
frontlines, consumers have flocked to social media to engage in opinion forums and campaigns
to help with the continuation and preservation of the planet. One study conducted by Chadwick
Martin Bailey as well as iModerate Research Technologies found results showing consumers
following brand accounts on twitter and Facebook “are 51 percent and 67 percent…more likely
to buy a product post-connection.”xix The utilization of social media as a means for
advertisement and brand recognition has become a major part in today’s market and as
consumers seek to enhance the sustainability of the world, companies are realizing their
responsibility and long-term effect on the planet and future consumers.
The more consumers advocate for a sustainable means of production, the less companies
seek to deviate and in order for sustainable capitalism to become a reality, companies must
utilize proper ethical values in order to fully integrate into a sustainable capitalist economy. With
increased technology has come an increase in the means of connectedness of consumers globally,
and as such a cooperation between consumers and producers globally has seen a boost in
activity. As consumers are more able to access information on companies, they are also able to
find consumers with similar interests, and complaints regarding brands that may take part in
greenwashing and other ethical hoaxes. In the case of two major sugar retailers, Nestlé and
Cadbury, consumer pressure lead to sustainable production and the humiliation of a company
with unethical business practices. Both Cadbury and Nestlé made use of palm oil obtained
through the deforestation of rainforests, and as consumers protested the ingredient and demanded
for an alternative additive, both companies sought to appease consumers when they took part in a
GreenPalm program “created by the newly formed Roundtable on Sustainable Palm Oil;”
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however, this became known as an unethical action when it was revealed that the companies
received recognition as long as a fee was paid, while misuse of resources still occurred.xx
Through the extensive social media avenues regarding YouTube videos which targeted Nestlé in
a negative light and its lack of regard for the environment and Facebook groups dedicated to
boycotting the brand, Nestlé sales plummeted and the brand lost much of its market share.
Unethical practices are no longer taken for granted in a society with scarcity prevailing among its
resources, and the desire for a sustainable future on the rise within the consumer market.
Unethical actions performed by companies only lead to a further detriment in sales when
a lack of trust is lost between producer and consumer. With the prevalence of social media in the
marketplace, producers and retailers find it difficult to engage in unfair practice, and when they
do, the sting of public humiliation and decrease in sales tends to create an ethical turnaround. In
order for a sustainable capitalist economy to be a realistic goal in the future, producers need to
maintain a trusting relationship with consumers so that profit can be efficiently regulated
throughout the economy. With added trust, comes an increase in relationships between not only
consumers and producers, but also global trade and collaboration. For example, the five
companies of Nike, Starbucks, Levi Strauss & Company, Sun Microsystems, and Timberland
have collaborated to form the group: Business for Innovative Climate and Energy Policy
(BICEP) which seeks to lower the risks of global climate change through the reduction of
greenhouse gases and rather the utilization of renewable energy.xxi Through collaborations like
BICEP, businesses not only help to increase worldwide recognition for each other, but also add
to the overall benefit for world sustainability. Consumers play a large role in these collaborations
since brands must fully engage themselves in what Mainwaring calls the “brand’s broader
purpose” which entails “having conversations with customers about meaningful issues that can
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affect their lives or that can contribute to a better world.”xxii Consumer collaboration with
companies will enable sustainability in a capitalist market through an ethical understanding of
production techniques and responsible resource application.
As the four pillars of a sustainable capitalist market have been viewed, consumers are
seen as a driving force in the decisions concerning action taken towards sustainability. For the
overall goal of sustainability to be realized, mutual self-interest, purposeful profit, sustainability,
and ethical values all must work together for contributory consumption and the Global Brand
Initiative (GBI), which seeks to have corporations and partners that would work together for the
advancement of CSR and general welfare.xxiii Mainwaring adapts these ideas for We First
capitalism in that he seeks to promote goodwill and sustainability through everyday transactions
in the marketplace. Certain brands have already begun to incorporate such practices into their
market transactions. For example, TOMS shoes has begun a global bandwagon in which
companies are seeing consumer interest in giving back to others along with consumption. The
TOMS philosophy deals with the idea of “One-for-One” in which every pair of shoes bought
gets another pair donated to children in need.xxiv As popularity for TOMS has increased not only
because of taste and preferences, but also because of consumer empathy being targeted, other
worldwide producers have followed suit with Sketchers producing a similar model called BOBS
which again utilizes the one-for-one idea and Warby Parker which gives people in need
prescription glasses.xxv These one-for-one business practices display a sustainable capitalist
economy in which all levels of class are being aided and follows that profits will be distributed
equally for good causes. The actions of these companies not only present a model of CSR being
used, but also as participants in Mainwaring’s model of the GBI. Through the GBI, which
Mainwaring promotes as an integral part of We First capitalism, businesses will take action to
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integrate CSR throughout their production tactics and use collaborations with world partners to
further charitable benefits stemming from profit made in the economy. Mainwaring further states
that the GBI would seek to “engage the untapped cross-pollination of brands to enhance the
private sector’s response to the world’s problems.”xxvi Through social media consumers have
been able to take part in further change for the world though forums such as the Google Project
in 2008 which allowed consumers to submit ideas concerning world change and Google took the
five best ideas and donated $10 million to their continuation.xxvii
With a capitalist market plagued by recession and occupied with unfair business
practices, a sustainable means of market interaction is proposed to further benefit future
generations in order for the market to continue successfully. Mainwaring has suggested the
introduction of mutually beneficial capitalism titled We First in which consumers and producers
can seek to have sustainable market enterprise. In order to achieve sustainability, the actions of
mutual self-interest, purposeful profit, sustainability, and ethical values must be integrated into
everyday markets to lead consumers and producers alike on a path to success. Through the
utilization of these principles, it is hoped that the current downward spiral of the market can be
reversed in order to build up a future with a strong and sustainable capitalist market to benefit
global preservation, lest the economy should fall and find itself last on the influential ladder.
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i
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New York:
St. Martin’s Press LLC, 2011), 18.
ii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 31.
iii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New York:
St. Martin’s Press LLC, 2011), 10.
iv
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 10.
v
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 35.
vi
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 41.
vii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 43-44.
viii
Joseph F. Hair, Jr., Charles W. Lamb, and Carl McDaniel, Marketing 7 (Mason, Ohio: South-Western, 2014), 83.
ix
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New York:
St. Martin’s Press LLC, 2011), 54.
x
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New York:
St. Martin’s Press LLC, 2011), 49.
xi
Sheila Bonini, Stephan Gorner, Alissa Jones, McKinsey & Company, How companies manage sustainability:
McKinsey Global Survey results,
http://www.mckinsey.com/insights/sustainability/how_companies_manage_sustainability_mckinsey_global_survey
_results (Sep. 29, 2014).
xii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 56.
xiii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 65.
xiv
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 73.
xv
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New York:
St. Martin’s Press LLC, 2011), 67.
xvi
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 67.
xvii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 67.
xviii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 73.
xix
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 132.
xx
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New York:
St. Martin’s Press LLC, 2011), 79.
xxi
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 84.
xxii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 86.
xxiii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 212.
xxiv
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 195.
xxv
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 195.
xxvi
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 213.
xxvii
Simon Mainwaring, We First: How Brands and Consumers Use Social Media to Build a Better World (New
York: St. Martin’s Press LLC, 2011), 214.