What is conscious capitalism? This article will answer that question. Capitalism is the uncontrollable investment of wealth, and it is the quest to turn a profit at all costs. People, products, and ideas are expendable because growth and making money from growth are the main goals.
But there are other ways for companies to grow and make money. Being a conscious capitalist is one of them. There are several ways to act like a conscious capitalist. This article will outline four ways to be a conscious capitalist and still achieve the goals of capitalism.
What Is Conscious Capitalism?
Businesses must make a profit to live just like the body needs red blood cells to live. But the body does more than produce red blood cells, and businesses should do more than make a profit. Making a profit may be the only purpose in the minds of some business people. But profit is one slice of the corporate pie. Conscious business people focus on the other purposes beyond profit. Making money gives some people the only motivation they need to get up in the morning. Other people want social goals, and conscious capitalism provides those goals.
When a business focuses on a deeper purpose, employees, customers, shareholders and others trust that business. Some people even love deep purpose businesses. A conscious business focuses on the whole business ecosystem, and it optimizes value for everyone involved in the enterprise. Conscious capitalism focuses on the we rather than the me that some corporate executives use to run a company. Conscious leaders inspire, transform, foster, and bring out the best in everyone around them.
Conscious capitalism is a culture. Therefore, it embodies the principles, values, and practices that are the social fabric of business. A conscious culture fosters care, and it builds trust between employees, shareholders, clients, and customers. Conscious capitalism is an energizing force. It makes a business more than just a business.
The 4 Principles Of Conscious Capitalism – How to Use Them
When the question, what is conscious capitalism is part of a conversation, the simplest answer is in the four principles of conscious capitalism. They are Conscious Leadership, Shareholder Orientation, Conscious Culture, and Higher Purpose.
Conscious leaders inspire loyalty, and they guide their teams with dignity and compassion. Shareholder orientation means shareholders understand that long-term business success depends on customers, employees, vendors and the community. Shareholders must take care of those things first and profit will come.
Conscious culture means 100 percent participation in the goals of the company. Higher purpose means being true to the goals. Businesses that just chase the money always have a difficult finding it. Businesses that do their best and focus on employees, customers, and helping others, always find the money.
1. Conscious Capitalism Awareness
Conscious capitalism awareness is a skill that enhances the performance of business tools. Conscious awareness reflects position and movement like a mirror reflects the moves of a ballet dancer. It provides feedback for business leaders, so leaders can act like the coach of a winning football team.
Conscious awareness gives business people the ability to live in the now, think about the past, and picture the future. Conscious capitalism awareness brings an acute sense of focus to the other aspects of business. Those aspects are not relative because the quest to beat profit figures and to expand faster than necessary take precedence.
2. A Track Record
Conscious capitalism companies outperform other companies in their market. Some researchers say conscious capitalistic companies outperform other companies by 10 times in terms of performance and goal achievements.
Company profits increase and productivity increases, especially in small companies, and employee loyalty is one of the best features of a conscious capitalistic workplace. Big companies also reap the rewards of conscious capitalism, but it may take a little more time to see the results.
3. Conscious Value
The value of conscious capitalism is in its higher purpose. Eighty-six percent of global consumers say businesses should put equal weight on the interests of society. Social purpose is number one in the minds of global consumers. Then comes brand loyalty, design, and innovation. Global consumers, employees, and even some investors expect and demand businesses to treat people fairly and serve society.
Some of the companies that demonstrate conscious capitalism are Costco, Southwest Airlines, The Container Store, Patagonia, and Whole Foods Market. They are healthy, strong and flourishing thanks to their conscious capitalistic approach to business and to society. There is no significant data to support the fact that conscious capitalistic businesses perform better financially than other businesses, but it’s true. A Russell Investment Group report shows that the 100 Best Place To Work lists three times more conscious capitalism companies as great places to work than normal capitalistic companies.
4. Conscious Capitalism Usage Secrets
Conscious capitalism is all about being socially conscious. It is recognizing and taking responsibility for the needs of society. Conscious capitalistic companies earn profits and they give some of the profit back to the community.
- The first way to use conscious capitalism is to support society. Toms Shoes does that by giving a pair of shoes to a child in need when they sell a pair of shoes.
- Then, you can use conscious capitalism is to invest in community projects.
- A third way is to protect the environment.
- Also, you can compensate employees the right way and to provide excellent customer service.
To Sum It Up
The conscious capitalism movement is catching on, but some corporations are still asking. What is conscious capitalism? There is still a major disconnect between the needs of society and the needs of big corporations. Shareholders are in the dark when it comes to making more and giving more, and the social structures in countries around the world are feeling the effects of that mindset.
Big business doesn’t understand conscious capitalism because big business has pushed conscious aside. So businesses replace it with greed. But the good news is, conscious capitalism is thriving and growing. It’s only a matter of time. Big business will realize that everything is consciousness. Therefore, conscious capitalism is the glue and the future of the global and local marketplace.