PRINCIPLE 5

Market-Based Solutions Are Optimal

In brief: In general, market forces generate superior outcomes than alternative means of allocating scarce and valuable resources, such as government mandate. While stakeholders have an interest in shaping the behavior of for-profit firms, the mechanism by which this occurs most effectively is the market.

As indicated by Principle 4, business is a collaborative exercise. It is in society’s best interests to encourage capitalism because for-profit firms are able to foster social progress above and beyond any other organizational form in any other economic system:

It’s multinational corporations, and not governments or non-profits, that have the vast human and financial capital, advanced technology, ...

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