Conscious Capitalism (CC) is a business concept created by John Mackey, co-funder & co-CEO of Whole Foods Market and Rajendra Sisodia, Professor of Global Business at Babson College. CC claims to build on the foundations of traditional capitalism incorporating voluntary exchange, entrepreneurship, competition, freedom to trade and the rule of law. These standard factors are essential for a healthy economy to flourish however CC also incorporates four additional elements of trust, compassion, collaboration and value creation. The co-founders of CC confidently propose that:
Conscious Capitalism exists to elevate humanity
The concept of CC is underpinned by four principles which aim to guide businesses in their practices and operations:
A business’ purpose is similar to its mission but really refers to the key factors that truly motivates the organisation. Fundamentally it answers the questions of what you do, why you are doing it and what you hope to achieve. By focusing on a higher purpose, knowing exactly what it is you want to achieve and pursue a business will be able to inspire, engage and energise its stakeholders.
Stakeholders cannot be viewed as distinct entities which require their needs to be addressed in isolation. The network of stakeholders associated with an organisation are interdependent in nature and a business therefore needs to create value for all stakeholders simultaneously without compromising one against another. Everyone should benefit from the business decisions you make resulting in a win, win ,win, win, win situation.
Business leaders need to establish a meaningful purpose and inspire others to join them in achieving it. Conscious leaders understand and embrace the higher purpose of their business and focus their attentions on creating value by harmonising their stakeholders’ needs. Conscious leadership results in the creation of conscious culture.
The culture of an organisation is formed and shaped by its ethos, values, principles and practices. These factors underpin the social fabric of the business which radiates out to connect all stakeholders with their purpose, people and processes. Creating a conscious culture is fundamental to the concept of conscious capitalism.
Following the creation of this concept and the success of the associated book, “Conscious Capitalism: Liberating the Heroic Spirit of Business”, Conscious Capitalism Inc. was established. This is a non-profit organisation dedicated to cultivating the theory and practice of CC through events, presentations, publications and social media. Support is provided for business leaders, entrepreneurs, coaches, teachers and consultants who wish to champion the principles of CC.
Conscious Capitalism is a fantastic business concept and business movement which provides additional ideas and focuses for Corporate Social Responsibility (CSR) professionals. If businesses operate with a higher purpose, better stakeholder orientation, conscious leadership and conscious culture they will better meet the wider needs of society. Find out more about Conscious Capitalism by referring to the resources provided below:
Website: Conscious Capitalism Inc.
Book: Conscious Capitalism: Liberating the Heroic Spirit of Business (US Purchase)
Book: Conscious Capitalism: Liberating the Heroic Spirit of Business (UK Purchase)