Karma capitalism: going beyond the basics.

• Author: Wolfgram, Sarah

Corporate responsibility. Community relations. Philanthropy. These terms are used across the business sector to describe partnerships between businesses and charities.

In 1983, American Express spearheaded a revolutionary marketing campaign in partnership with restoration efforts for the Statue of Liberty. For three months, American Express donated one cent from every cardholder transaction and one dollar for each new card member signed up to the effort.

The campaign resulted in $1.7 million dollars for the restoration, a 28 percent increase in card usage, and a 45 percent increase in new card applications. A new marketing tactic was born: cause-related marketing.

Cause-related marketing is touted as an effective, cost-efficient way to build customer loyalty, increase sales and visibility, enhance company image and gain positive media exposure, all proven and valid results. But the view on cause-related marketing can also be narrow, and may not include the full system within a company's operations or overall corporate responsibility.

And let's be honest here: Corporate responsibility should never distract from the fundamental economic role of businesses. A business role is to make useful, quality products or deliver services that fulfill a consumer need, and these goods and services should create added value from both a consumer and economic perspective for the company to be successful.

I first saw the term karma capitalism in a BusinessWeek article in 2006 that discussed Indian strategists using the "Bhagavad Gita" to educate and transform Western businesses. But karma is a simple enough principle that you don't need to delve into ancient philosophical or religious texts to put it to work.

Capitalism is an economic system in which investment in and ownership of the means of production, distribution and exchange of wealth is made and maintained chiefly by private individuals or corporations.

Karma is an action in which all deeds actively create past, present and future experiences, thus making one responsible for one's own life, and the pain and joy it brings to oneself and others.

So karma capitalism would be an economic system in which the action of choosing to do good in both one's individual position, the company and the world may result in the creation of wealth for oneself, the company and the world.

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