Capitalism has been extraordinarily successful over the past two centuries at raising living standards, life expectancy and life satisfaction. But the old way is not working any more. In particular, the narrow and instrumental view of business as existing simply to maximize investor returns has proven to be dangerously myopic and rife with negative consequences for all stakeholders, investors included. We need new ways to think about the purpose of business, about what makes for effective leadership, about how we should view and treat all the stakeholders of the business and how we can create cultures that promote trust, authenticity, transparency and caring.
Conscious Capitalism is an emerging paradigm that realigns business to the emerging realities of our world and the evolving value systems of people worldwide. Conscious businesses deliver extraordinary financial performance while creating multiple kinds of positive value for all stakeholders.
This short presentation highlights key tenets of conscious capitalism and the benefits that companies are realizing by following them. Guiding principles include:
- First, business can and should be done with a higher purpose in mind, and not just with a view to maximizing profits.
- Second, the business is explicitly managed for the simultaneous benefit of all of its stakeholders.
- Third, such businesses have conscious leaders, who are driven primarily by their loyalty to the firm’s purpose, rather than being driven by power or money.
- Finally, such businesses have some unique cultural characteristics.
About the Presenter
Dr. Raj Sisodia is the F.W. Olin Distinguished Professor of Global Business and Whole Foods Market Research Scholar in Conscious Capitalism at Babson. He is also Co-Founder and Co-Chairman of Conscious Capitalism Inc. Professor Sisodia is the co-author (with John Mackey, co-founder and co-CEO of Whole Foods Market) of Conscious Capitalism: Liberating the Heroic Spirit of Business (Harvard Business Review Publishing, 2013), which was ranked #2 on the Wall Street Journal Business bestseller list. In 2003, he was cited as one of “50 Leading Marketing Thinkers” and named to the “Guru Gallery” by the Chartered Institute of Marketing. A frequent and popular keynote speaker, he has made over 500 presentations at leading universities, corporations, non-profits and other organizations around the world.