Conscious Capitalism Research Paper

Introduction to Conscious Capitalism An organization employees conscious capitalism when they are taking the leadership role in serving the interest of the customer, employees, investors, communities, suppliers, and the environment. John Mackey, founder of Wholefoods, and his co-author Raj Sisodia created the concept of conscious capitalism which allows businesses to focus on more than just profits. In this solution businesses focus on creating trust and loyalty with customer, employees, suppliers, and the community. Building this relationship with stakeholders will have a payoff in both achieving higher profits but building goodwill. Mackey believes that business “can create a world in which all people live lives full of purpose, love,

Principles of Conscious Capitalism Conscious Capitalism has four core principals which are higher purpose, conscious culture, stakeholder orientation, and conscious leadership. Each of these principles are interwoven in a manner that empowers them. Each principle builds on the other to strengthen the overall concept of conscious capitalism. Many organizations build conscious capitalism into the fabric of their organizational foundation. Southwest Airlines uses conscious capitalism as a part of their organizational purpose. Southwest motivates it employees with their higher purpose which is to “connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.” (Klein, 2014) The higher purpose principle seeks to be meaningful beyond just making product, services, or money. The business wants to motivate and inspire the stakeholders. Conscious culture is a value based culture with a defined set of expectations on behavior. This

This is achieved through the establishment of a rule of law. Government was established to provide goods and services such as public schools and public transportation. The government also provides infrastructure such as bridges, tunnels, roads, ports, and airports. All of these created to connect society and improve social conditions. There is a social component to government as it exists to better society. Business however, exists for the purpose of profit. To this end it business lacks the ability to take into account the conditions that impact society for which government’s first rule of law is to protect. A conscious preservation of the current power structure is a prime motivator for a majority of business leaders today, rather than acting in the common interest of society. (Kipper, 2015) Government requires transparency as decisions impact its citizens. Corporations make decision in boardrooms and have no need to broadcast every decision to the world. Governments have competing issues all the time. One solution may come benefit one group while being a disadvantage constitutional right of another group. In the private sector, efficiency is value number one; in government, it is just one of many values. (Joyce,