By David Henzel, co-founder of TaskDrive—we support sales and marketing teams with personalized lead research and outbound campaigns.
Conscious capitalism is an approach to business that seeks to align profit-making activities with a greater sense of purpose and social responsibility. It emphasizes the idea that businesses should serve the interests of all stakeholders, including employees, customers, suppliers, communities and the environment, rather than solely focusing on maximizing the shareholders’ value and rewarding the bosses of the world.
The concept of conscious capitalism was popularized by John Mackey, co-founder of Whole Foods Market, and Raj Sisodia, a business professor, who co-authored the bestselling book Conscious Capitalism: Liberating the Heroic Spirit of Business. They sought to redefine capitalism by incorporating a greater emphasis on purpose, stakeholder orientation and social responsibility.
In short, the belief is that conscious capitalism can lead to more sustainable and prosperous businesses that benefit society while also being profitable. This concept led to a new movement for business and inspired countless entrepreneurs, including myself, by giving a name to the principles many always worked to abide by.
Key Principles Of Conscious Capitalism
Conscious capitalism promotes the idea that businesses should have a higher purpose beyond just making money; they should instead aim to make a positive impact on society, contribute to the well-being of all stakeholders and the environment, and build mutually beneficial relationships. In line with the concept, the leadership, management and culture of a company should value purpose, trust and integrity and establish a workplace that fosters employee well-being, personal growth and development.
The old way of doing business was based on increasing the shareholders’ value, but the conscious way is to do good by all stakeholders—everyone who, in essence, touches the business. And if you do so, then your business can serve as a vehicle for positivity in the world. This concept has motivated me to build an outsourcing company based on the drive to employ as many people as possible, put food on their table and provide a great work environment. It has also inspired me to develop a passion project geared entirely toward enriching people’s personal development.
Five Tips To Apply Conscious Capitalism To Your Company
1. Make providing value the focus.
Money is a side effect of providing value. Make the focus of your business providing value to others. Ideally, strive to provide value across the board—from employees by ensuring they have a positive work experience to customers by making their lives easier. The same goes for suppliers and everyone involved. I believe that when you can provide value to others, your business will succeed in making money, as money is simply a side-effect of providing value.
2. Have core values, a vision and a mission.
One of the most important ways to establish purpose and meaning in your actions, interactions and transactions is to know your core values, vision and mission. These three components are what can serve as the road map for incorporating conscious capitalism into your company. Drill them into your staff, make them clear for customers to see and never stray from what you say you stand for.
3. Create a conscious company culture.
A conscious company culture is characterized by open communication, transparency, collaboration and a focus on employee well-being. I recommend applying the Japanese concept of “Kaizen,” which advises consistent continual growth among all stakeholders as well as embracing challenges as an opportunity to problem-solve and progress. From my perspective, this is a sound guideline for establishing a conscious company culture.
4. Hold level 10 meetings.
Based on the Kaizen concept, level 10 meetings are formatted to allow team members to share their progress and challenges and receive positive feedback and assistance when warranted. Start by sharing wins and pain points to open the door to deeper connection, transparency and accountability. Then rate the success of the meeting to allow for open communication and the opportunity to troubleshoot for optimization.
5. Keep the customer in mind.
One of my favorite sayings is, “Be customer-centric or die!” That’s because my entire professional life has been based on how I can make interacting with my businesses an awesome experience for customers. As we want to provide value to the people we serve, it all starts with the question, “How can I create an elevated experience for customers?”
Overall, conscious capitalism seeks to demonstrate that businesses can be successful while simultaneously addressing societal challenges, promoting fairness and contributing to a more sustainable and inclusive world. It is about creating a win-win scenario where financial prosperity goes hand in hand with social and environmental well-being. If you find a way to provide as much value as possible to as many people as possible, then your business becomes a vehicle for doing good in the world, which ultimately is what will make you the richest person you can be.
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