In today’s rapidly evolving financial landscape, the sophistication of financial products is paralleled by an increase in associated frauds, particularly in areas like cryptocurrency, hacking, and digital theft. The complexity of these issues can overwhelm many individuals, often leading to mental health challenges. However, money, at its core, is a social and cultural construct, created to meet basic human needs such as food, clothing, and shelter. Yet, this servant of society has seemingly become its master, influencing every aspect of life, including health, wellbeing, love, and relationships, which have become increasingly transactional.
The current state of the planet, marred by significant environmental damage, necessitates a re-evaluation of our financial motives and institutions. The goal should be nurturing the Earth instead of extracting and exploiting it. Over the past five decades, finance has expanded its influence, often subsuming other business disciplines like marketing and management, with a primary focus on maximizing profits and shareholder wealth. This trend, known as financialisation, has contributed to rising inequality and environmental degradation.
In light of these challenges, it’s crucial to examine the fundamental ethics and beliefs underpinning finance. This involves questioning when these principles went astray and exploring how they can be reformed to foster a sustainable future. The diversity of cultures and religions worldwide offers a rich tapestry of perspectives on money, each with unique insights into creating a more inclusive financial system.
The concept of organic finance, akin to organic farming, emphasizes respecting the health of the soil, air, and water. Tradition, morality, culture, and belief play pivotal roles in cultivating sustainable societies. Many world religions espouse strong views on money and debt, often cautioning against the accumulation of wealth for its own sake and highlighting the dangers of greed and materialism. These principles starkly contrast with the teachings of modern economics and finance, which often ignore environmental and social considerations.
Countless cultures emphasize the importance of kinship, charity, volunteering, and service in building communities and fostering social relationships. Trust and mutuality, central to many belief systems, are frequently overlooked in the teachings of modern finance. In contrast, indigenous traditions often place minimal emphasis on money, focusing instead on community well-being. For example, the Jain community has a centuries-old tradition of philanthropy aimed at supporting people, animals, and the environment.
The first chapter of the book “Organic Finance” is aptly titled “Evil Finance,” highlighting how competition, exploitation, and expropriation have come to define some financial practices. Multinational corporations wield immense global power, often escaping effective governance and regulation. This is typically accepted as a reality of modern finance, despite its unsustainable nature.
To forge a responsible future for finance, a shift towards nature and spirituality is essential. A grassroots approach that includes kindness towards all living beings, including rural communities and animals, can help maintain a focus on environmental health. This would ensure that humans remain humble and nurturing.
For millions of small businesses worldwide, the aim is not exponential growth but providing valuable services while maintaining manageable expansion. Sustainability is deeply embedded in their culture, with trust and relationships valued more than profits. Yet, the relentless pursuit of profit maximization has led to pollution and job insecurity, sidelining crucial concepts like morality, trust, and community.
Reforms in finance, such as ESG (environmental, social, and governance) investment criteria, can only go so far unless there is a fundamental shift in understanding the cultural and ethical nature of money. Finance professionals must recognize the limits of materialism, ensuring that finance serves society and nature. By placing ethics and culture at the center of finance education, we can foster environments that respect diverse cultures and traditions, promoting mutual learning and cooperation towards an equitable society and a healthy planet.
Note: This article is inspired by content from https://theconversation.com/ive-studied-faiths-and-cultures-around-the-world-heres-how-finance-can-be-made-more-inclusive-and-sustainable-258254. It has been rephrased for originality. Images are credited to the original source.