Joe Kaeser, President and CEO of Siemens AG discusses Actions to Achieve Inclusive Capitalism

In this age marked by a growing concentration of wealth and power, an erosion of trust in leaders and the organizations they lead, and a creeping dissolution of social cohesion, I believe the action that would make the most difference in achieving a more inclusive capitalism is for business leaders to develop an ownership culture in their organizations. By this I mean a culture in which employees are vested as owners of 'their' company and act accordingly. Why? Because owners are not complacent bystanders; they participate. They act responsibly, they innovate, they think long term, they strive to be the best, and they contribute to society. Ownership in this case makes capitalism inclusive as all employee shareholders profit from the long-term success of the company.

Why should business take the lead? Because business can usually act faster than government. Germany has a rich tradition of inclusive capitalism. In the 1880s, Chancellor Otto von Bismarck made Germany the world's first welfare state by developing a program that provided universal social insurance, including universal healthcare, compulsory education, paid sick leave, accident insurance, disability insurance, and a retirement pension. However, with all due respect for Bismarck's achievement, Werner von Siemens, the founder of our company, and his younger brother Carl had set up a permanent Workers' and Officials' Pension, Widows' and Orphans' Fund for employees more than a decade earlier, a benefit the company still finances and offers employees to this day.

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