I’ve been meaning to reblog this for a while:
The question of creative capitalism is whether there is some role for institutions that falls between traditional profit-making and nonprofit firms. Is the world being well served with these two clearly distinguished types of entities, one of which serves only shareholders and the other of which has some other goal? Does it make sense to consider hybrid organizations that have an obligation to earn financial returns, for some of their investors, and social returns for others? In a sense, the world has long had such hybrids in the form of profit-making subsidiaries of philanthropies and companies, like Ikea, that are owned by foundations.
Such hybrids will always be messy and may end up being unworkable. Perhaps the Friedman-Posner-Summers distaste for them is correct.