The idea of socializing capitalism, an economic system that combines the idea of open market competition with consumer enforced social ends, has been responsible for the steady birth and growth of creative economic institutions that are realizing economic, social and environmental profits. One of the best examples of social-capitalism’s love-children are the social stock exchanges of Brazil, South Africa and one under development in Scotland.

Brazil’s Environmental and Social Investment Exchange (BOVESPA) was the first incarnation of this idea, and was then emulated by the South Africa Social Investment Exchange (SASIX). These organizations very simply list NGOs that are working toward bettering life for the poor and disadvantaged and the health of our environment. One can "invest" in a particular NGO, or give money to a fund that spreads money across NGO projects that are working toward one particular goal, say reducing air pollution. Although BOVESPA and SASIX are organized like a traditional stock market, they really amount to creative ways to raise money for non-profit projects. "Investors" will realize environmental and social profits on their money but no economic profit.

Scotland, however, is taking this idea a step further. The Cabinet Office of Scotland is working with the Royal Bank of Scotland and Credit Suisse, as well
as ethical bank Triodos, to research the feasibility of the first social stock
market, an exchange which would be restricted to for-profit companies with primarily social
and environmental objectives. The exchange would list companies like Fair Trade retailer Traidcraft and celebrity chef Jamie Oliver’s Fifteen restaurant run by disadvantaged young people in the east end of London. These are profitable businesses that represent a viable economic investment opportunity with social and environmental returns as well.

The establishment of a seperate exchange hosting businesses that pursue a triple bottome line would make it easy for socially-minded investors to find responsible businesses, but it would also help protect the integrity of the business’ mission. "The main concern of social businesses about listing on a mainstream exchange is having their social mission hijacked," said Whitni Thomas, an investment manager at Triodos bank, quoted in The Scotsman.

The economy and businesses are evolving from the narrow focus of basic capitalism toward being more sustainable and just, yet still profitable. The framework of this new economy is being built slowly but surely and Scotland’s new social stock exchange, when launched, will provide another piece of the foundation to be modeled around the world.

Sources: ‘Fair Exchange’ plan for ethical firms