Businesses are now centering themselves around coexisting with the employee and the customer, making it beneficial for a developing new economy.
In contrast with the old economy, the new economy stocks are the leading companies in a revolutionary transition to digitalization. Mainly, the most important actors have been named by the public, with Facebook, Google, Apple, Amazon and Netflix taking the stage as the loudest voices in this digital evolution by adopting new methods of giving value to what surrounds us.
Growth at all cost vs. Morality and compassion
The concept of the old economy is used to describe the early parts of the 20th century, the economic era where industrial innovation was expanding around the world.
In comparison, the new economy refers to high-growth and innovation, focused around globalization and the technological boost happening around us.
This old economic model – which we are still using today - was centered around financial growth, leaving little to no space for innovation and integration of customer desires and ethics.
Nowadays, there is a clear distinction between the old and new economy, with the main characteristics of the latter being boldly underlined by the new generations that are actively demanding that the society keeps up the pace.
New-age economy has bold characteristics, distinguishing itself from its older sibling with innovation, exploration, and a final definitory trait – collaboration.
The latter stands for what the new economy business is all about: a shared focus on building and educating communities, individuals, and cultures.
Corporate phraseology: mixing sentiment with economics
This is where the buzzwords corporate social responsibility come in. Although popular in the past decade, the concept is now becoming more critical to investors, with a bold rise in environmental, climate, and alternative investment subjects streamed throughout the world.
Looking at how many channels and methods of reaching your customers can be baffling as they have become infinite – with the challenge of today being: to know your customer.
Looking back in time to charity
Historically, a company’s CSR activities related to charitable actions or the help offered to local communities, schools, elderly homes, and such.
Nowadays, as the youngsters are gaining more and more vocal power, they want their actions and investments in companies to reflect their ethics and principles.
CSR has now become an integrated part of how companies operate, now underlined as an umbrella term for the plenitude of ways that companies should mind their impact on the world before profit and loss.
Providing transparency and more trust, the core of the company has to be built around CSR policies with the purpose to strengthen the relationship between clients and the brand.
What stands out the most about the new economy is the fact that big corporations can act as catalysts for change, setting the trends, and becoming leaders in the green movement.
With the future economy centered around delivering better quality with a genuine impact on customers, the consumers are now informed, connected and curious, putting their core values above comfort. The new-age individual is currently looking for long-term improvement, instead of momentary relief.
Investing: the old versus the new
Distinguishing between the 2 economies proves important to the contemporary individual, as they both have different attributes: risk profiles, return potentials, psychological returns, and so on.
Mixing the two can add value to the financial literacy that the present-day investor should focus on, as more and more branches are expanding into actual trends.
At the end of the day, the population is now directly shaping the society with their growing interest in high-scale collective subjects.
Ultimately, there are no guidelines for the melting of new-economy values into actual business ethics.
Regardless if they might be adopted as an excellent ethical force or an exercise in brand enhancement, the future economy can rely on it being an integral part of the global business landscape, thus leading to new opportunities for everyone, be it individuals or big corporations.
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