Two Tales of Capitalism: Potential Third Option Emerges at BB&T Colloquium

People love or hate capitalism, but a potential third option emerged Sept. 30, 2014, at the BB&T Colloquium on Capitalism, Ethics and Leadership.

“Why has capitalism been so morally controversial for the last quarter millennium?” asked keynote speaker Jonathan Haidt, a professor of ethical leadership at the NYU-Stern School of Business.

He said opponents of capitalism tell a story of exploitation and greed. “They say business is bad and government is good,” Haidt told an audience of about 250 Smith faculty, staff and students.

Proponents of capitalism tell a second story of liberation. They say government is bad and business is good.

“Stories one and two both have undeniable truth,” Haidt said.  But a potential third story could blend “psychological realism,” which considers human irrationality and exploitability, and “institutional realism,” which considers the need for and the limits of government.

Haidt calls the third option “realistic liberation,” which requires an understanding of six foundations of morality: Care versus harm, fairness versus cheating, liberty versus oppression, loyalty versus betrayal, authority versus subversion, and sanctity versus degradation.

During the question-and-answer session that followed, Haidt addressed a variety questions ranging from shareholder values to “short-termism,” which he says is a huge problem. “It is easier to be ethical if you have a long-term view,” he said.

The event was hosted by Smith’s Center for Leadership, Innovation and Change (CLIC) and sponsored by BB&T, a strong supporter of the Smith School for nearly 15 years.

In March 2010, Smith received $1.5 million from the BB&T Foundation to support its business ethics and leadership programs, including the annual colloquium. The gift also supports CLIC’s mission to advance individual, team and organizational effectiveness.

Afterward, attendees continued the discussion at a dinner reception with Haidt, Smith Dean Alex Triantis and BB&T Group President Daniel Waetjen.