The IMF’s recognition that corporate profits drive inflation highlights the urgent need to reimagine what and who business is for (“IMF warns of stark choice in inflation fight”, 27 June).
Our mainstream business model is broken, with a tiny minority accruing wealth at extreme cost to wider society. Business should make profit through innovation and investment, not by taking advantage of consumers — and Davos discussions on responsible capitalism this year show that business leaders themselves want this.
More businesses need to start as — and become — social enterprises, which make profit but use it for purpose. Social enterprises are owned by and for the communities they serve, with missions to support people and the planet embedded into their operations. Profits from social enterprises are invested back into building a stronger, fairer, more resilient economy.
The UK has more than 100,000 social enterprises employing 2mn people and contributing £60bn to the economy; this growing strength in British business must be nurtured. Tackling inflation needs more social enterprise, not corporations forced to extract profit at any cost.
Emily Darko
Research and Policy Director
Social Enterprise UK