1. Economics of
Happiness
Presented by Christine Cepelak of Responsible Return

2. ResponsibleReturn.com
Consulting & Software as a Service business focusing on bringing social
good out of its silos [in the nonprofit & academic spaces] and fully
integrating systems-oriented principles into business strategy.
Twitter: @responsibleROI
Facebook: /responsiblereturn

3. How do you define
happiness?
Discuss:

4. ...Which concepts
would you attribute to
an economic system?
Now discuss:

5. Like Happiness...
The economics of happiness has spawned a
variety of global interpretations:
● Social Progress Index
● Happiness Index (S. Korea)
● Better Life Index (OECD)
● Multidimensional Poverty Index (Oxford, UK)
● Gross Domestic Happiness (France)
● Green & Happiness Index (Thailand)
● Human Development Index (UNDP)
● Satisfaction w Life Index (IDB)

6. Diverse Examples of Happiness Economics
‘Happiest’ countries:
Wealthy, developed
Scandinavian Countries
● subsidized higher education
● subsidized healthcare
● extensive public transportation
● bike-friendly urban infrastructure
● declared Lutheran, practicing
atheists
Pioneer of ‘happiness’
metric: Impoverished,
Agricultural Bhutan
● lack of access to primary
education
● extreme poverty
● chronic unemployment
● rooted in Buddhist philosophy

7. Origin & History
● Originally addressed in part by ‘Welfare
Economics’ & Behavioral economics (Daniel
Kahneman)
● 1972, first mention of ‘Happiness’ -- King of
Bhutan debuted ‘Gross National Happiness’

8. For today, consider….
● Ultimately, the ‘happiness’ is a misnomer - and is insufficient to
articulate the true gap in our 21st century economy
● The name inspires questions and controversy, which distract from
the true issue:
o Is an economic system really responsible for the individual
happiness of citizens?
o Is it possible to understand happiness on a ‘cultural curve’ (ie
variety of cultural norms which dictate a society’s
perspectives)?
o Is something so complex & subjective possible outside of an
authoritarian/homogenous culture (ie like Bhutan & Denmark)?

9. Focusing on shared underlying principles...
● non-financial indicators of wellbeing
● intangible elements of social inequality
● placing cost on the general decline of
environment/eco. diversity
● quality of life factors (ie health, community,
etc.)

10. Focus: Adding Economic Value
While progress towards a more robust understanding of human
progress is good, it does not fully capture the problem.
● GDP is an insufficient indicator of progress in the 21st
century, negating the true impact of transactions on
future generations + the rest of the world
● However, you may change an economic structure as
much as you want, but without addressing those
affecting different parts of society- change won’t happen
o Example: simply saying that a place lacks ecological diversity still doesn’t get at the heart
of WHY it doesn’t, who is responsible & how you can repair it

11. Example: Real Cost of a Burger
Does a McDonald’s burger really “cost”
society $1?
Considering the eventual healthcare costs (due to lack of nutrition), the subsidization of
beef production, the environmental damage of runoff from most factory meat farms, and
more…..
it’s estimated the true cost of a burger
is roughly $30

12. The Illusion of Price
“It’s the deep, ever-mounting, unpaid debt of
harm that business as usual owes people,
communities, society, the natural world, and
future generations.” (Umair Haque)

13. Opportunity: Corporate Social Responsibility (CSR)
● This is how organizations are held
accountable for the impact they cause in
society
● Trend of CSR has grown with the evolution of
happiness/welfare economics
● Demand for CSR has increased through
customer requests & global government
reporting requirements

14. Problem: Corporates Missing the Mark
● Lack of regulation in CSR leads to false
reports
● Unsubstantiated claims of value creation
● Manipulated data
● Perception of responsibility in limited terms
(ie a “green” company which treats their employees terribly)

15. Responsible Return
● Consulting for businesses that aim to create
authentic value for society (ie be socially
responsible)
● Creating a software product that maps
corporate impact
● Seeking support for the launch of a sister
nonprofit to hold corporates accountable in
this unregulated space

16. Christine Cepelak, Founder & CEO
Twitter: @CLcep
christine@responsiblereturn.com
responsiblereturn.com

17. ResponsibleReturn.com
Consulting & Software as a Service business focusing on bringing social
good out of its silos [in the nonprofit & academic spaces] and fully
integrating systems-oriented principles into business strategy.
Twitter: @responsibleROI
Facebook: /responsiblereturn

18. Resources
● Short Guide to ‘Gross National Happiness’ (GNH)
● Centre for Bhutan Studies & GNH Research
● Buddhist Origin of Bhutan’s GNH
● Nestle in Exacerbates California Drought
● Cultural Bias in Copenhagen, DK
● New Capitalism: Umair Haque