Why communities will out preform corporations over the next 3-5 years. A briefing from Futurist Chet W. Sisk
All indicators are pointing to effective, agile, well organized community groups will start to swing more power in the next few years as they respond to climate change, income inequality, systemic racism and automation unemployment. Check out the comparison to corporations.
Corporations: The culture of shortsightedness . The massive stock buy back frenzy that followed the recent trillion dollar tax cut is a classic demonstration of what happens when your company doesn't want to put money into or wait for innovation but wants money now. This was called illegal as a form of stock manipulation that artificially inflates the value of your company until 1982 when the Reagan administration eliminated 10b-18 of the Securities Exchange Act. This rule was originally designed to prevent short term stock manipulation so that companies don't crash and burn in the long run. This scenario can't end well.
Communities: The new haven of creativity and innovation. The challenges of climate change, income inequality along with revolutionary technology is providing fertile ground for communities to quickly implement tools, resources and products that can transform their environments to be climate ready, tech able and income empowered. If you have some innovative and creative assets, you'd be better off taking them to community groups instead of corporations.
Corporations: No longer producing broad economic prosperity. What some would call a time of prosperity in the US between 1947 - 1979 was when corporations saw the importance of developing the communities that their workers lived in and contributing to the public good. That wasn't the case for all communities (African Americans suffered greatly under systemic racism) but there was a different idea behind the corporation. That idea has been transformed as corporations pushed forward on stock buy back and automation, creating middle-class wage stagnation and the unprecedented income and wealth inequality.
Communities: The opportunity to create broad economic abundance. Cooperative models, leveraging technology, galvanizing local talent and a shared sense of destiny are the tools that more communities will use to fill in the leadership gap previously given to large corporations.
Corporations: No climate change vision. Many corporations are simply clicking their heels together, closing their eyes and hoping that the potential disasters of climate change and natural world collapse will not affect their profits. They are stuck in a "business as usual" feedback loop.
Communities: More flexibility in creating climate change response. Of course, communities have the potential to be more agile than corporations as long as there is an efficient awareness campaign. Once more people are up to speed about the stakes involved, municipalities can move fairly quickly and with flexibility.
Corporations: Maximize profit at all costs. It is this corporate mantra that has led us to the extinction level event of climate change. If profit, not society or it's people, is the at the center of the corporate belief system, there is no incentive to rethink strategy or position in relation to quality of life.
Communities: An expanding people-oriented investment vehicle. Communities will take on super importance over the next few years because they can provide a better ROI than corporations right now. That ROI isn't measured in dollars but in lives saved, investment in human capital and the future of the planet.
There are a ton of resources looking for places to go in light of the massive changes happening in society and the world. Smart communities can provide that landing space.
Chet W. Sisk is an author and one of the world's leading Social Futurists. He is also expert on the current world paradigm shift. Find out more about him and the LEAD Global Team at www.leadtheshift.com or you can write him directly at firstname.lastname@example.org