New Economic - Sustainability Paradigm Proposed

A team of researchers led by Associate Professor Jan Pfister from the University of Turku in Finland proposes a new paradigm for economic performance and sustainability, emphasizing cooperation and ethical behavior as key drivers of success. This prosocial market economy model integrates these values into organizational practices, challenging traditional economic frameworks focused on self-interest and short-term gains. The research, funded by the Research Council of Finland and published in Qualitative Research in Accounting & Management, draws on evolutionary theory and insights from Nobel Prize-winning economist Elinor Ostrom. It suggests that organizations prioritizing collaboration and collective well-being outperform those driven solely by self-interest. The prosocial market economy offers a framework for businesses to achieve economic success while contributing positively to environmental sustainability and social well-being. This approach is particularly relevant in the face of global challenges such as climate change, inequality, and resource depletion. The interdisciplinary research, involving experts from Finland, the UK, USA, and the UAE, highlights the importance of integrating behavioral science and management studies to foster a more sustainable and cooperative economic system. Practical tools are provided for organizations across industries, both in the private and public sectors, to design prosocial teams and foster collective success. The prosocial market economy focuses on transforming organizational cultures from within, embedding sustainability and cooperation into core values. This research moves beyond the conventional Environmental, Social, and Governance (ESG) debate, which often relies on external measurements. The prosocial market economy emphasizes genuine, lasting sustainability, avoiding greenwashing and superficial ESG compliance. In summary, the prosocial market economy offers a pathway for organizations to be both economically successful and environmentally and socially responsible, challenging traditional economic paradigms and promoting a more sustainable and cooperative future.

Source: miragenews.com
Published on 2024-10-04

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