Permission to Change blog by Nicola Warwick

Permission to Change

23rd February 2026

Author: Nicola Warwick

4 minute read

After Capitalism

My previous blog, 'In Pursuit of Profit', summarised how Britain and parts of Europe developed into capitalism over hundreds of years.

This next blog takes a broad overview of the future alternatives for the western economies and how you might choose to lead your organisation into the benefits promised.

Where are we now?

Currently, western economies are largely in 'late stage' capitalism, experienced by the majority of people as inherently exploitative and unsustainable.

This stage of capitalism provides people with many benefits, including innovation and technical advancements, the generation of wealth, consumer choice and developed supply-chains.

However, the significant downsides form quite a list, including inequality in wealth, profit prioritisation, ecological damage and resource depletion, employment instability, the pervasive commodification of life and consumer data, and monopolised industries and markets.

Let's explore the alternatives, with the empowering notion that you need no permission to make progress, set an example, and generate positive disruption.

Stakeholder Capitalism

Stakeholder Capitalism is an evolution of capitalism, responding to the argument that a company's success depends on the wellbeing of its entire ecosystem.

An economic model driven by conscious consumerism, investors seeking ESG (Environmental, Social, and Governance) credentials, plus wider societal pressure. The core behavioural difference from capitalism being that companies serve all stakeholders, not only those seeking financial profit.

Stakeholders are defined as those impacted by the actions of the company. Employees, customers, communities, and the natural environment are considered in decision-making, outcomes, the organisation's culture and policies - often with direct representation.

Challenges of Stakeholder Capitalism

Adding the needs of different stakeholders can complicate decision-making, lead to conflicts of interest and slow processes.
Performance metrics change from clear quantifiable financial numbers, adding complexity to goal-setting with accountability to more stakeholders.
The direction and interpretation of investment and benefits can be open to misunderstanding and misuse.

How big is the leap to Stakeholder Capitalism

This is a moderate reform to capitalism, not a full replacement. The fundamental economy features of markets and private ownership remain unchanged.

Stakeholder Capitalism is likely to require government policy support to achieve the required impact on environmental issues, this already exists in various forms.

The United Kingdom Companies Act 2006, Section 172 law requires directors to act in a way that promotes the success of the company for the benefit of members as a whole, while specifically having regard for stakeholders, including employees, suppliers, customers, and the environment.

The United States and Italy already have Benefit Corporation Legislation (over 35 U.S. states) which defines a purpose and corporate structure where directors must consider the interests of all stakeholders.

Germany has a long-held codetermination system with employee representation on boards.

Donut Economics

An economic system for organisations to operate within ecological limits called 'planetary boundaries' whilst meeting minimum social standards.

Developed by Oxford Economist, Kate Haworth, and published in her book 'Donut economics: seven ways to think like a 21st-century economist' as a theory with practical guidance.

Unlike capitalism, growth and profit are not the goals, instead the focus is on achieving wellbeing whilst operating within limits. This is represented visually in a donut-shape with an inner ring of basic human needs, and an outer ring - or ecological ceiling - that must not be exceeded to protect against environmental collapse.

Challenges of Donut Economics

The required change in business mindset can create tensions and resistance.
There is limited impact from individual action, with potential roles distributed over the household, the commons, the market and the state to transform business process.

How big is the leap to a Donut Economy

Embracing Donut Economics as a sudden replacement for capitalism is a paradigm shift. A sudden policy change could, at worst, destabilise the global economy and spark global political unrest.

However, Donut Economics can be gradually introduced and incrementally adopted. This adoption is already underway with some industries and nations setting long-term targets and starting with small tangible actions.

The economic goals are changed from growth, but the markets remain.

Amsterdam, Netherlands, is an example of a key municipal implementation, recognised as the first city to officially adopt the model in 2020 with the 'City Donut' used to guide its Circular Strategy 2020-2025.

In the UK, the Welsh government has engaged with the model through the Wellbeing Economy Governments partnership. Also, Cornwall Council's 'Cornwall Development Decision Wheel' is based on Donut Economics, embedded into its decision-making processes since September 2019.

Circular Economy

This economic system appears to have first been defined in 1970s by Swiss economist Walter Stahel who sketched a vision of an 'economy with loops' for the European Commission. The focus is on product-life extension, reuse, and waste prevention.

Challenges of a Circular Economy

Small incremental changes may not be impactful enough to achieve wider environmental aims.
A mindset change can be required, to view sharing and working with others including competitors.
Business models may need to change toward service, sharing, renting and leasing.

How big is the leap to a Circular Economy

Viewed a a whole, the transition from a capitalist linear 'take-make-waste' model to a circular economy is massive - a systemic, and foundational shift that would require the redesign of global value chains, change to consumer behaviour, and the replacement of traditional waste disposal to regenerative systems.

However, changes to national and global economies have marked human history and the scale of the change has not prevented growing adoption.

The model has already been adopted to various degrees in some nations, most clearly and comprehensively into legislation in the European Union where the European Green Deal contains multiple initiatives targeting product design, waste reduction, and secondary raw materials.

Early this year (2026), England is due to publish its Circular Economy Growth Plan, predicting the potential for substantial growth in employment, addressing resource scarcity and improving the vulnerability of UK supply-chains. Defra's 2018 resources and waste strategy already adopted many of the Circular Economy Taskforce recommendations.

Benefits of Change

Moving away from the capitalist economy systems and towards an alternative could be motivated solely by reversing the consequences of our existing predicament. However, knowing the challenges ahead, it's worth understanding the specific anticipated benefits.

Shared benefits

Whilst some of the listed benefits are more associated with one model than another, they overlap with shared potential across the models:

From Stakeholder Capitalism:

Customer satisfaction and loyalty resulting from valued high-standards in ethics and quality.
Brand equity driven by customer satisfaction.
Employee recruitment and retention resulting from fair wages, safety, and inclusion.
Environmental improvements with demonstrable care.
Society from a positive contribution and impact to community.
Finance and operations stability and resilience from trust-based relationships.
Governance and ethics to support ethical choices and reputation.

From Donut Economy, creating a regenerative economy to achieve:

Restoration and renewal of natural resources without waste.
Distributed wealth, knowledge and opportunity.
An economy view as part of a larger social and ecological system.
Wellbeing for people without the cost of ecological damage.

From Circular Economy, three core principles:

Eliminate waste and pollution
Circulate products and materials
Regenerate nature

Leadership Steps

There are steps you can take as a leader of your organisations to move towards the benefits of a different economy and play a part in moving the larger economy.

Ideas for steps you can take

Explore target-setting and measuring against the benefit topics
Consider how to include employees in your decision-making
Review governance and risk to create stability

Consider your organisation if it were 'agnostic about growth'
Establish finance to serve the work rather than drive it
Think regenerative and distributive when innovating products and designing systems
Focus on eliminating and mitigating damage to the natural environment
Commit to paying living wages
Seek continual improvement - where possible experiment, learn, adapt and evolve

Small-scale supply-chain improvements
Reuse, recycling and waste management
Integrate Circular Economy principles into decision-making

Use Contact & Booking for help and support in setting strategies and implementing projects to achieve these steps - I'd love to hear where you'd like to take this.