Running a business is serious business. When the realization is made that the game should not be all about making profits, but about making the world a better place, progress can begin to take place towards a more responsible way of doing business. In a sense, businesses can be a force for good – if we make them so. And in order to make our businesses into a force for good, it’s helpful to have a framework to live by. One framework that has proven particularly helpful is something called conscious capitalism.
What is Conscious Capitalism?
The term “conscious capitalism,” coined by John Mackey and Raj Sisodia in 2014, is a new economic model that advocates for a more sustainable, ethical and equitable way of doing business.
It is a form of capitalism where businesses strive to address social and environmental concerns alongside the company’s profit motive. It also teaches companies how to generate profit while being socially conscious.
In order to reach the goals of conscious capitalism, there have been several other movements happening around the world such as social entrepreneurship and sustainable business practices which show promising results in the movement towards conscious capitalism.
The principles that John and Raj outline in their book of the same name, are by no means easy for a business to live by. It requires a completely different outlook on how things are done. But for business leaders and executives who are able to successfully align their business with the principles of conscious capitalism, it will definitely be worth it once the right systems have been set into place.
How to Apply Conscious Capitalism in Your Business
Many people think that the term “conscious business” is just a buzzword, but in reality it is so much more than that. Conscious capitalism champions the idea that a business should be a force for good, not just profit. The goal of conscious capitalism is to create shared value for all stakeholders.
The first thing you need to do to apply conscious capitalism in your business is to focus on your vision, mission and value proposition. This will enable you to become a mindful leader who knows where their company stands and what they stand for in terms of values and principles. These focus areas are absorbed into the principles that John Mackey shares.
4 Principles of Conscious Capitalism
The principles of conscious capitalism are the backbone of every successful company. A simple way to think about this is that a company should:
- have a higher purpose,
- focus on stakeholders,
- be led by conscious leaders who are living the values that they preach, and
- have a conscious culture.
If all of these principles are being adhered to (in the best measure that is realistic), then a company is aligning itself with the way that conscious businesses are run.
A More Holistic Approach to Business
The concept of Conscious Capitalism is a new perspective on Capitalism. It sees profit as an outcome and not as an end goal. It takes into consideration the effect of capitalism on society. It emphasizes a more holistic approach to business.