An interdisciplinary group has unveiled a prosocial market economy model that emphasizes cooperation and ethical behavior as cornerstones for economic success and sustainability. This transformative approach seeks to redefine traditional economic frameworks focused on self-interest and short-term gains.
An unprecedented collaboration between global experts has led to the development of a novel economic model that could reshape how businesses think about success. This paradigm, called the “prosocial market economy,” prioritizes cooperation, ethical behavior and sustainability, moving away from the traditional focus on self-interest and short-term profits.
Led by Jan Pfister, an associate professor of management accounting at the University of Turku in Finland, the international and interdisciplinary team recently unveiled their economic model in the journal Qualitative Research in Accounting & Management.
The study’s framework provides a pathway for organizations to achieve superior performance and long-term sustainability, incorporating evolutionary theory and insights from Nobel Prize-winning economist Elinor Ostrom.
“In the context of global challenges, such as climate change, inequality and resource depletion, this new model offers an alternative to traditional economic paradigms that prioritize short-term profits,” Pfister said in a news release. “The prosocial market economy provides a framework where business success and ethical responsibility coexist, helping companies address today’s complex demands while ensuring long-term viability and positive social impact.”
The prosocial market economy model suggests that businesses fostering prosocial behaviors — those that prioritize collective well-being and collaboration — can significantly outperform those driven solely by self-interest. This approach integrates ethical responsibility into performance measurement, assisting businesses in thriving while also being environmentally sustainable and socially responsible.
From Theory to Practice
The model goes beyond traditional Environmental, Social and Governance (ESG) metrics, which are often criticized for superficial compliance. Instead, it promotes an internal transformation of organizational cultures. By embedding sustainability and cooperation at the core of business values, this approach helps companies foster genuine, lasting practices that avoid greenwashing.
“Our research clarifies why and how prosocial groups — those that prioritize shared success over individual gain — outperform groups driven purely by self-interest. This has profound implications for how we measure and manage performance, and how we cultivate organizational behavior that protects and nurtures a sustainable future,” added Pfister.
The significance of this research cannot be overstated. As consumers, policymakers and investors increasingly demand sustainable practices, the prosocial market economy offers practical tools for both private and public sector organizations. It provides business leaders with principles to design prosocial teams and foster collective success.
This interdisciplinary effort brought together experts from several institutions across Finland, the UK, the United States and the United Arab Emirates, spanning fields such as accounting, management and evolutionary biology. Their combined expertise highlights the importance of integrating behavioral science and management studies to promote a more sustainable and cooperative economic system.
By pioneering a model that intertwines business success with ethical responsibility, the prosocial market economy aims to address the complex demands of today’s world, ensuring long-term viability and a positive social impact for future generations.