Conscious Capitalism: Growing a Business With Care, Purpose & Profits
Can business have a higher purpose? Are there more important benefits than just financial return?
Raj Sisodia, Co-founder of Conscious Capitalism International, believes that businesses that are good, ethical, noble, and heroic…can also be highly profitable. He will share these insights and tools to raise business consciousness as a keynote speaker at the Fourth Annual Nevada Economic Development Conference, Aug. 20-22, 2018 at the Atlantis Casino and Resort in Reno. (Registration/information at www.nvedc.com)
The term “conscious capitalism” is used to describe purposeful businesses that serve the interests of all the major stakeholders of every company: communities, customers, employees, the environment, suppliers—and investors.
“Conscious capitalism is about having multiple perspectives,” Sisodia says. “Leaders who embrace conscious capitalism are looking to create a system where everyone shares at the highest level. Employees are well paid, there is a shared culture of respect and dignity, and customers care about what you do and why you do it.”
A little more than a decade ago, Sisodia began researching why marketing costs for many major businesses were skyrocketing, yet loyalty and customer caring was at an all-time low.
“I began seeking out the companies that were actually spending less on marketing yet were getting higher loyalty and trust from their customers,” Sisodia says.
These companies shared many similarities, that he was able to boil down to four basic principles:
- Higher purpose: Businesses should have a purpose that is greater than simply making money to energize stakeholders in the business.
- Stakeholder orientation: A business needs to create value for all stakeholders. (customers, employees, suppliers, investors, the environment and their communities).
- Conscious leadership: Companies need inspirational leaders to encourage their workers to work for a greater goal.
- Conscious culture: The values, principles, and practices that guide a business should create an atmosphere of trust, caring and success for everyone.
One of these companies that shared these foundations was Whole Foods Market and this research eventually led to a partnership with John Mackey, CEO of Whole Foods Market, who collaborated with Sisodia to write the best-seller “Conscious Capitalism: Liberating the Heroic Spirit of Business.” Their followup, “Conscious Capitalism Field Guide,” is one of Inc. magazine’s top ten change management books for 2018.
Other companies he identified include Starbucks, Patagonia, Panera, Costco, Trader Joe’s, The Container Store, and REI.
His research also revealed that employees’ engagement, typically at 30 percent, was closer to 80 and sometimes 90 percent in these companies.
“This is about infusing capitalism with caring for human beings and meaning and purpose. The millennial generation, as well as most adults mid-life and beyond, are driven by meaning and purpose being connected to their work, not just extracting as high a salary as possible,” Sisodia says.
But profits can come with this holistic approach.
He says companies following the principles of conscious capitalism returned 1,025 percent during his decade-long study. The S&P 500 yielded 316 percent during the same time. In other words, conscious capitalism companies did more than three times as well.
To learn more about Conscious Capitalism register at www.nvedc.com. This event is recognized by the International Economic Development Council (IEDC) as a professional development event that counts towards the recertification of Certified Economic Developers (CECDs).
Tracks for the Nevada Economic Development Conference Tuesday, Aug. 21 and Wednesday, Aug. 22, include Agribusiness, Economic Development, Manufacturing, Transportation/Infrastructure and Workforce Development. The $175 ($200 after July 6) cost before July 6 includes opening sessions, lunch with keynote speakers and Exhibit Hall Reception. A one-day conference pass is $125 ($150 after July 6).
A Pre-Conference Tour and workshop, Connecting Nevada to the Global Economy, on Aug. 20 will visit the SWITCH facility located at the Reno Tahoe Industrial Center. There is a separate registration fee of $75 for this portion of the conference ($100 after July 6) which includes lunch and transportation.
About the Connecting Nevada for a Stronger Economy Conference
The Fourth Annual Nevada Economic Development Conference will explore the ideas, programs and business connections that are defining the new Nevada economy from Aug. 20-22, 2018 at the Atlantis Casino & Resort in Reno, NV. The multi-track conference is presented by the Western Nevada Development District. “Connecting Nevada for a Stronger Economy” will provide opportunities for a broad section of professionals to present and share what is happening in a dynamic, changing Nevada economy For more information and registration, log on to www.nvedc.com.