It is the duty of organizational leaders to choose the best course of action for their companies. If you study purpose-driven business or conscious capitalism, you will be on the path to finding new ways to increase profits. What does conscious capitalism entail? Several benefits of this strategy are available to stakeholders, including economic, ecological, cultural, social, emotional, and psychological benefits. In addition to considering the health of our planet, conscious capitalists also think about the community at large.
Entrepreneurs, executives, and business leaders are adopting conscious capitalism to improve their businesses. A marketing professor at Michigan University named Raj Sisodia, along with John Mackey, founded Conscious Capitalism in 2005. During their explorations of capitalism and business, they learned that they can reflect humanity, the environment, current events, as well as actions for improving society.
How is conscious capitalism different?
Conscious capitalism puts the needs of the people first. To ensure a successful implementation of the philosophy, business leaders must involve and respect all the principal stakeholders. There is often an absence of key stakeholders in business meetings, such as customers. Customers and investors play a key role in the business decisions made by capitalists who are mindful of their stakeholders. Moreover, environmental and community effects must also be considered.
The purpose of what they do is at the very core of businesses that practise conscious capitalism. There has been a shift from job relationships that are more professional to those that are more personal. Despite its heartlessness and unforgiving reputation, capitalism is practised by many. According to capitalism’s traditional notion of success, entrepreneurs need to be highly competitive in order to be profitable and successful. Being solely profit-driven is Capitalism’s downfall.
What are the primary principles of the movement?
Leaders who think in terms of conscious capitalism may be able to explain their success by looking at its core components. Conscious capitalism is based on four principles. These are the four guidelines, according to conscious capitalists and leaders.
1. Greater purpose
Conscious entrepreneurs, consider the benefits of their business before establishing it. To keep them on track, it is crucial that they focus on their mission. Higher purpose functions as a compass for a company. Conscious capitalism requires companies to be more than just profit-driven.
2. Stakeholder awareness
Conscientious capitalists are aware that their organizations have an impact on people. The community in which such businesses operate, their customers, employees, and investors. Businesses can flourish and engage their stakeholders when capitalism is conscious
3. Being a conscious leader
Companies practising conscious capitalism guide their employees in a purposeful direction. Those who are inspired by others are those who are passionate about what they do. Harmony between stakeholder groups is essential to their success. They also acknowledge each individual within their organization. As a leader who promotes social responsibility, a conscious capitalist defines himself.
4. Conscious culture
Intentionally created work cultures are essential to the success of organizations. Organizations that uphold their values, principles, and practices are seen as valuable by their stakeholders. An organization’s mission and goals shape the lives of its members.
Benefits of Conscious Capitalism?
Leaders who are committed to the purpose of the organization are more likely to make their employees happy. Keeping employees on board is a lot easier when they know that the company’s motives extend beyond just profit. Their contributions to the brand make it stronger.
The workplace becomes more creative when employees are engaged. Consequently, businesses can innovate more frequently, which results in increased growth. If conscious capitalism is practised, the following benefits may also arise:
Customer and employee relationships augmented
More loyal customers who support their mission
Sincere community engagement
Why be a conscious capitalist?
Conscious capitalism is an option available to business leaders conscientious of capitalism’s current practices. As part of conscious capitalism, socially responsible practices are mainstreamed, and investment is made in them.
Through capitalism, humanity can advance and social cohesion can be achieved. In history, there has never been a more compelling idea. If we adopt conscious capitalism, we will be able to achieve even more.
Guest Post by Marc Bromhall
Marc Bromhall is a digital entrepreneur and founder and editor of Africa’s leading startup newsletter, African Tech Story