James Wallin
Senior Vice President, AB Fixed Income
Inclusive capitalism reflects the fact that private business necessarily operates within the framework of, and leverages, governmental and social institutions.
On the one hand inclusive capitalism embodies the understanding that private enterprise has historically been the best mechanism not only for creating broad-based wealth and prosperity, but also for fostering creativity and innovation in all aspects of society. On the other hand inclusive capitalism places an obligation on private business and other market participants to acknowledge the fact that they implicitly leverage governmental and social institutions and rely upon them to enforce obligations, facilitate commerce and nurture a productive workforce, among many other things.
It follows that private business and market participants have social obligations that must be factored into their financial plans and aspirations. To the extent that private business distances itself from this fact, the long-term consequences will be negative for both business and society.
In promoting inclusive capitalism it is therefore important to include an appropriate focus on the critical supporting role played by fair government and a strong society. Such a perspective should be incorporated into the decisionmaking of businesses and other market participants so that they are prepared to bear appropriate costs and make other appropriate contributions to the maintenance of a strong society.