Challenge

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Maintaining and growing the economy has become the principal political goal of almost all governments. Growth has accelerated the environmental impacts of economic activity. Yet this policy focus has in many cases failed to produce stable, secure and resilient economies.

Modern economies have failed to deliver well-being for all. Nor have they actively channelled creativity and innovation towards solving humanity's social and environmental problems.

Instead, economic activity has increasingly focused on short-term rewards, particularly where private equity and shareholder-owned businesses dominate. 

Large businesses, including oligopolies and monopolies, have a powerful influence on politics - sometimes through systems such as political party funding. This has created a closed circle of vested political and business interests which prioritise short-term rewards. 

Yet businesses could be a powerful force for good: rewarding stakeholders by creating jobs, driving innovation and solutions to enhance well-being, and acting as effective long-term stewards.

Research questions

• How can we encourage businesses to strive for longer-term returns - good for people and the environment?
• Can we do this without major changes to the way economies run?
• Would the resulting economy be stable and sustainable? If not, what else would be necessary?

Use of the research

This work will inform the development of campaigns by Friends of the Earth's Resource Use and Economics Programme. Our campaigns in this area are likely to work closely with others to reform the way businesses operate and are regulated. This work will involve lobbying as well as campaigning by the public and through the media.