‘Socialist capitalism’: A way for businesses to avoid the tokenistic approach towards ‘people over profit’

In today’s business world, it’s common to hear talk of ‘people over profit’ and corporate social responsibility initiatives, but all too often it feels like a tokenistic approach to prove your business isn’t just about profiteering. 

But what if we could build a world of human-centred businesses, which really were driven by both ethical outcomes AND the bottom line? 

As a ‘socialist capitalist’, I believe we can. 

Because as business leaders and founders, we have the power to create a more just, inclusive, and sustainable world, driving positive change in our societies, economies, and environments. 

So what is a ‘socialist capitalist’?

A ‘socialist capitalist’ mindset recognises that capitalism can generate wealth and economic growth. However, it also emphasises the importance of social responsibility and addressing systemic issues like income inequality, poverty, and access to basic necessities. By leveraging the benefits of capitalism while promoting a more just distribution of resources, we can foster an inclusive society where everyone has an opportunity to thrive.

Profit is essential for businesses, but a ‘socialist capitalist’ approach encourages companies to go beyond profit-making and consider their impact on society. By integrating social goals into their strategies, businesses can create shared value, build trust with stakeholders, and contribute to the wellbeing of communities.

By investing in education, healthcare and essential services, we can provide social safety nets so that no one’s left behind, and a rising tide that lifts everyone. 

Investing in people

Profitable businesses are built on people, but without education, the best people will never get their seats at the table. 

By empowering human capital, we’re investing in people and giving them access to the knowledge, skills, and opportunities to unleash their potential. The businesses of the future need creative thinkers and innovators, and with access to quality education, we can all collectively progress. 

Collaboration counts

Obviously solving the problems of the world can’t rest on the shoulders of one single organisation, so this is where collaboration counts. As businesses, we can collaborate with each other and with government agencies so that we’re using our profits wisely. 

This isn’t about not making a profit, it’s about building successful partnerships built on trust, shared goals, and knowledge exchange, so we can address systemic issues, promote social cohesion, and achieve collective impact.

Being profitable, rather than not-for-profit, means your business can then invest back into the things that matter, and make a positive contribution.

Leading with compassion

Want the best from your people? Then give them something to believe in. The days of being purely driven by profit are numbered. People want more from their employers and consumers want more from the companies they purchase from. 

Leading with compassion is about putting people first, and having a clear commitment to contributing to the greater good. It’s not about tokenistic donations or add-ons, but building an ethical purpose into your overarching mission, so that everyone on your team knows why their work matters. 

Bringing compassion and empathy into your leadership will actually make you a better leader, with the ‘soft skills’ people are drawn to. They’ll want to follow your lead because they feel aligned with your purpose, rather than just because they’re being told to. 

Putting ideas into action

If you’re thinking this all sounds idealistic and unrealistic, here’s how we’ve already put ‘socialist capitalist’ ideals into practice.

I’ve led a number of ‘socialist capitalist’ businesses in recent years, most recently launching Australian Family Law Advisory Services (AFLAS), a platform bringing together service providers and consumers, as a way to solve the problem of overwhelm for families at different life stages. 

Whether it’s the legal implications of moving in with a partner, adopting a child, or separation and divorce, we identified there’s a real need for people to have a place where they can seek objective legal advice and direction.

So AFLAS acts as a platform where people can go for advice and clarity, especially in stressful times when they’re not sure where to turn first. For the people who use it, it’s taking the headache out of finding the right help when they need it, and for the service providers who register, it’s a source of potential clients who are verified as needing their services. 

While it’s ultimately a profit-making business, it’s been designed to solve a need, while also including built-in free and low-cost services, particularly for those who are vulnerable such as domestic violence victims. 

Users also have the peace of mind that we’re advocating for them, ensuring fair fees and connecting them with reputable providers at the right point in their journey. 

It’s just one example of ‘socialist capitalism’ in action. 

What could you do?

If you’re a business leader, how could you shift your approach to embed ‘socialist capitalist’ ideals into your business? We all have the potential to be part of change for the better. 

I truly believe that individuals, organisations, and governments together, can create an inclusive, sustainable, and equitable future, where capitalism serves the betterment of society through profit-generating activities and socialism ensures that no one is left behind.

Will you be part of the solution?

Adam Levine is a ‘socialist capitalist’ and the founder of Australian Family Law Advisory Services (AFLAS).