Is ethical capitalism possible?

By Devin T Stewart

I was scheduled to deliver a keynote speech next month to more than 1,000 business executives on the topic of whether ethical capitalism is possible. The event organizers, a Tokyo-based consultancy that specializes in corporate social responsibility, had the foresight to pose this question last autumn. Ironically, the intervening events of the global economic downturn - caused by misguided incentives, greed, and moral lapses - forced the company to cancel the event.

For me, this recession has been defined by frustrating paradoxes. Easy money, overcapacity, and reckless consumption are what got us into this mess, yet governments must react by lowering interest rates and pushing through enormous fiscal stimulus packages with the hope that the housing, retail, and investment markets won't fall much more. Similarly, long-term sensible investments in clean energy and social welfare are hindered by falling oil prices, a lack of funding, and fresh anxiety about corporate bottom lines.