Paul Hawken, author of the seminal Ecology of Commerce postulated in the 90s that we couldn’t look to a more sustainable world without creating a new economic system of “Natural Capitalism”. Fast forward 10 years. Fueled by the desire of brands to stay relevant, meet consumer expectations and make a social and environmental impact trend researchers, academics and marketers are putting this new system to practice. We are now seeing the emergence of Karma Capitalism.

Hemal Vasavada-Gill founder of theeightfold.com
What is it? Could it be real? What would it look like? Trend Buero’s Trend Tag last Tuesday in Hamburg brought together leading Karma Capitalist thinkers to begin asking these questions. Despite speakers as diverse as founder of the Grameen Bank Muhammad Yunus; TU Berlin professor Dr Norbert Bolz; head of trends and strategy at Philips Design Josephine Green and Trendbuero founder Professor Peter Wipperman, common themes emerged to steal a glimpse into the future of Karma Capitalism. Defining Karma CapitalismKarma Capitalism happens at the intersection of a number of trends: growth of the communities and cultural creatives of Web 2.0, concern for the environmental sustainability and a shift to a more moral and ethics-based system for living. We are as a world searching for what Dr. Bolz called a “new soul”:

“We followed the protestant principles and so far it worked out reshaping our system. What happened was that with time the system lost the belief that activated it in the first place, leaving us with a heartless and empty body of what is our system behind. Today we live in a soulless container/body. We are searching for a new soul. “Four Major Shifts to Karma Capitalism Based on each of the speakers at the TrendTag, four major shifts emerge which help envision what the Karma Capitalist world will look like: What we will make: From global aspiratons to local meaning The products and services created in a Karma Capitalist system will not be based primarily on values or aspirations associated with global brands like they are today (think the Coke Side of Life or Adidas’ Impossible is Nothing). It will instead be based on brands that are physically and emotionally beneficial and relevant to all aspects of our everyday life. These “products of substance” will be what Josephine Green coined “deep customized” meaning they will look at our needs holistically (think Coke designing a full-day beverage drinking program based on our diet, exercise, stress level and spiritual needs).How we will make it: From individualism of shareholders to cooperation of stakeholders
All companies will ultimately need to perform and deliver returns in either a conventional or Karma Capitalist economy. The difference is to what end. In a traditional conventional capitalist economy, products and services are driven by ultimate profitability sometimes at the cost of total consumer value. We see this a lot in technology – Apple now dominate portable music because it has developed a product which purposefully breaks down every two years. HP revived itself by selling dirt cheap printers with ink cartridges that need replacing at a premium and often. Thanks to technology this equation should flip. In a Karma Capitalist system, what we make will not be about the product. It will be about consumer value. Consumers are in more intimate relationships with companies than ever before. As Trend Buero founder Professor Peter Wippermann proclaimed consumers are disclosing their private information and photos for data and services, they are demanding better feedback loops, which require honesty, credibility and a well-defined mission.

Technology and ethical consumption will also drive a desire or products to exist in harmony their environment. Cooperation not compromise will be increasingly important. Obsolescence makes money for individual shareholders, but it compromises everyone else’s natural resources. Stakeholders will demand products and services are both human and environment-centric. The resulting mutual progress between society, the environment and companies will drive gains for all.Who will make it: From resource productivity to human potential
Whether we are aware of it or not working 40-60 hours a week exclusively for profits appeals to only one part of human potential. Muhammad Yunus pointed out on Tuesday this was a failure of the traditional system: