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Chief among the criticisms leveled at today’s business environment is that too many organizations focus on profit and growth to the detriment of the well-being of people and the planet itself. This has led to the rise of what is known as the “solidarity economy” – or a system in which economic activities focus on achieving social good rather than profits alone.
While the exact nature of how the solidarity economy takes shape may vary across locations and cultures, this movement has demonstrated its potential to create a positive impact on the world at large.
1. Greater involvement of excluded disadvantaged groups
An analysis in “The Review of Black Political Economy” highlights that very often the solidarity economy focuses primarily on uplifting those who have been systematically excluded from traditional economic systems, with limited opportunities for success and economic progress.
With this in mind, solidarity systems create a place where members of excluded groups can make their voices heard and challenge systems of exclusion to ensure their needs are met. For excluded groups, the solidarity economy extends beyond traditional ways of doing business to include activities such as worker cooperatives, community gardens, and family and friends to meet everyone’s needs.
2. Guarantee protection for workers
Business enterprises often pursue profit at the expense of the people who help them generate that profit in the first place. The start of 2023 saw many profitable companies like Microsoft, Google, and Amazon lay off thousands of workers despite being profitable, all in an effort to counteract slowing revenue growth.
Workers are even more at risk in other parts of the world due to informal work structures that result in unreliable work. It is not surprising that unions are generally considered an essential element of the solidarity economy due to their efforts to improve the working conditions of their members and their basis of solidarity among organizational members.
Indeed, in October 2023, an estimated 453,000 workers went on strike in industries ranging from entertainment to healthcare in an attempt to win higher wages and better working conditions. These solidarity efforts often have a very real impact on their members, especially by helping them deal with issues such as inflation.
Related: Widespread strikes have resulted in 4.1 million lost work days in 2023 (so far)
3. Coverage needs not met by government
In many countries, the government does not provide an adequate safety net to meet the needs of the most vulnerable members of the population. For example, as a report by The Solidarity Directory highlights, 77% of the working population in Lebanon are in an informal work structure which results in unsafe and unstable working conditions that are subject to disruption due to a variety of crisis. At the same time, the government does not have sufficient social security systems to address the needs of these groups.
As the report highlights, the solidarity economy has enlisted community groups, nonprofits and others to address diverse concerns while empowering aid recipients. Examples include groups that help people repair homes from structural damage, providing free online consultations, and even helping people grow their own food at home.
4. Worker cooperatives empower workers
Another proven example of a solidarity economy that empowers workers is worker cooperatives. Rather than a single owner capturing all of the company’s profits, companies are instead owned and operated by workers. Decisions on how to use the profits are in the hands of the workers, such as reinvesting, allocating the profits to the community or sharing them.
The Democracy at Work Institute cites several examples of successful worker cooperatives and businesses that have restructured into worker cooperatives, such as Equal Exchange, a fair-trade organic produce distributor with more than 100 workers that also sources produce from farmer cooperatives around the world.
Related: 7 ways to create a healthy and balanced work environment
5. Strengthen communities
Many solidarity economy activities take place at the neighborhood or community level, encouraging families and individuals to become more self-sufficient while contributing to the greater good of their community as a whole. Activities such as community gardens, swap meets and skill-sharing groups help provide access to needed resources, particularly during times of economic uncertainty.
For example, Unity Gardens in South Bend, Indiana, supports a network of local community gardens that rely on volunteer labor and donations of supplies. The gardens do not sell their products; instead, they allow anyone to collect the food they need for free. Unity Garden has further expanded its solidarity economy efforts with events such as haircuts and free meals.
These and other community garden efforts help promote healthy eating and physical activity, while improving community access to quality food, particularly during times of need.
Create a better world
As these examples reveal, although there is much work to be done, the solidarity economy model can have a very real impact on improving the lives of individuals around the world. When companies and other organizations consider how they can be a force for good (and not just a system for maximizing profits), they can help create a better world for all.
Don’t be afraid to look for opportunities to participate in the solidarity economy. Your efforts to improve your community will create a far more significant impact than focusing on your bottom line ever could.