and worked in the process. But its time may be running out.

Democratic socialists like Bernie Sanders and Alexandria Ocasio-Cortez have slammed

the economic system, and even billionaires like Warren Buffett, Mark Benioff and

Ray Dalio admit the system is failing many.

The conversation about capitalism in its current form has been so loud that leaders here at

the World Economic Forum in Davos, Switzerland are questioning its relevance in the world

we live in today. So will we soon see the end to capitalism as we know it?

Capitalism is defined as an economic, political and social system in which property, business

and industry are privately owned by individuals and companies, not the state.

This means capital assets – like land, machinery and buildings – can be purchased by private

individuals or businesses. Companies get you to work for them by offering wages.

And your investments in a business that's doing well can grow.

Capitalism began in 17th century Europe, during a time when colonial powers including France,

England and Portugal had taken control of 84% of the world.

By the 20th century, the idea had spread through most of the globe, often with detours and

violent societal upheavals along the way.

Even China, once a staunch communist country, has adopted state capitalism.

This means private enterprise is a large and dynamic part of the economy, but the government

still sets the agenda and owns several strategic sectors.

The form of capitalism we're most familiar with today is known as shareholder capitalism.

This concept has been embraced by the world's business leaders for decades.

The main idea?

Make money for your investors.

The theory originated from American economist Milton Friedman in the 1970s.

He argued that maximizing profits for shareholders should be a corporation's only objective

– while still following the law of course.

Corporate boards overwhelmingly took on the message. It made sense at the time.

American companies had become bloated and unprofitable.

Shareholder activism became a movement, and leaders like Ronald Reagan and Margaret Thatcher

stood behind it. The fall of the Soviet Union solidified the message.

The mantra became: ”Greed is good.”

Many economists agree this form of capitalism had its advantages.

Hundreds of millions of people benefited during the following decades, as profit-seeking businesses

opened up new markets and created new jobs.

But now, more and more voices are saying we've gone too far in the other direction.

Critics of shareholder capitalism argue the system has had three major side effects.

They say it's harmed the environment, driven inequality and weakened economic growth.

Climate change has been a hot topic for decades, but the rise of 17-year-old Greta Thunberg

forced world and business leaders to pay attention.

In August 2018, she skipped school and camped outside the Swedish Parliament to signal that

more needed to be done to combat climate change.

Thunberg's demonstration galvanized her peers into action, setting off a wave of protests

outside parliaments and city halls worldwide.

Some environmentalists argue prioritizing profit has encouraged risky short-term behavior,

like drilling for fossil fuels.

This has subsequently damaged the planet, and the effects are becoming glaringly obvious.

Between 1993 and 2016, Greenland lost an average of 286 billion tons of ice per year,

while Antartica lost 127 billion tons.

Then there's increasing inequality.

Inequality between nations has actually decreased as countries like India and China embraced

capitalism and free markets.

But inequality between the rich and poor within nations has become much worse.

Boards used executive pay to align their CEOs' decisions with shareholder interests,

and we've seen their earnings balloon as a result.

Since 1978, CEO compensation has grown 940%.

The typical worker, on the other hand, has only seen their compensation grow by 12%.

Take Amazon for example.

Its founder Jeff Bezos is the richest person in the world.

At the same time, the tech giant has faced multiple accusations and reports of poor pay

and working conditions for its warehouse workers.

And it's not just in the United States.

Globally, the bottom half of adults account for less than 1% of the world's wealth,

while the top 1% owns nearly half.

While many may argue this disparity is unfair, some go further and say this obsession with

profit is actually slowing economic growth.

Even the chief executive of BlackRock, the world's biggest money manager, agrees.

In a letter sent to the CEOs of the world's biggest companies, Larry Fink said the pressure

to keep share prices high has led to executives “underinvesting in innovation, skilled workforces

or essential capital expenditures.” The bottom line?

He says businesses are sacrificing long-term value for short-term financial gain.

And as the rich get richer, less money is getting spent and spread throughout the economy.

In 2019, the rich cut down their spending on everything from homes and art to jewelry

and retail, sparking fears of a trickle-down recession from the top.

The average consumer, on the other hand, is more likely to spend their earnings, and drive

economic growth as a result.

These factors are helping to fuel the backlash against capitalism as we know it.

This poll in the U.S. found only about 1 in 5 of 18-34 year-olds have positive feelings

about capitalism, with most responding neutrally or even negatively to the concept.

This change in sentiment may explain why even some of the one percent are beginning to question

the traditional definition of capitalism.

Enter conscious capitalism, also known as stakeholder capitalism or inclusive capitalism.

The buzzwords all convey something similar – an economic system that aims to achieve

more than just shareholder profit.

It calls for corporations to also consider how their decisions will affect other stakeholders,

including their staff, community, collaborators, governments, consumers and suppliers.

For example, an oil company needs to also acknowledge the finite nature of fossil fuels

and their impact on the environment.

Or a retail fashion brand should also be mindful of its supply chain and workers toiling away in factories.

Here in the Swiss Alps, the World Economic Forum has launched a new Davos Manifesto as

it celebrates its 50th anniversary.

It sets ethical principles it hopes will guide companies moving forward.

WEF calls for businesses to tackle corruption, prioritize human rights, advocate for a competitive

level playing field and pay their share of taxes.

Apt as a Dutch historian scolding billionaires for not paying their fair share was one of

the conference's viral moments.

We've got to be talking about taxes. That's it. Taxes taxes taxes.

CEOs in the private sector have already started showing their support.

In August of 2019, the Business Roundtable, comprising the Chief Executive Officers of

nearly 200 major U.S. companies, declared maximizing shareholder value was no longer

the main focus of their corporations.

Wall Street is also embracing sustainable investing, which takes environmental, social

and corporate governance factors into consideration.

According to the Global Sustainable Investment Alliance, these investments grew to more than

$30 trillion in 2018.

And more and more enterprises focused on social good are springing up by the day, including

Patagonia and TOMS Shoes.

But is this a load of talk and no action?

Skeptics say stakeholder capitalism is just a big PR stunt, something the titans of industry,

tech and finance are doing to save themselves.

And shareholder capitalism's advocates say having too many objectives means there is

no true north for companies, meaning the system will eventually fail.

So is capitalism dying?

If the conversation here at Davos it to be believed, the answer is no.

It's simply evolving.

But whether something like stakeholder capitalism can truly take hold – remains to be seen.