Conscious Capitalism in a Globalized World. Not only is it good for innovation and profit, it is the right thing to do.
WHY CONSCIOUS CAPITALISM?
Digitalization is expediting globalization and all borders are becoming blurred. Any form of sovereignty is becoming counterproductive, almost futile. We live in an increasingly connected world and the sooner we realize its our world and work together for the good of all the sooner we innovate and profit at faster rates whilst serving all stakeholders in the ecosystem ecologically.
Watch this week’s video to gain further insight into why Conscious Capitalism.
Instead of building walls build perspectives. Jason Silva
WHAT IS CONSCIOUS CAPITALISM?
Conscious Capitalism is free-enterprise and absolutely pro-profit, though not at the cost of any stakeholder in the ecosystem. As we are all part of a global ecosystem that means operating inclusively of all within that global ecosystem including the planet. Harming the ecosystem harms you. Do your actions harm anyone or anything with the global ecosystem? Conscious capitalism seeks to absolutely make money though through no harm. The irony is not only is it possible, but a S&P 500 study showed that conscious businesses are up to 14 times more profitable than profit only businesses. This rise of conscious capitalism is very much fueled by Millennials and Alphas driven by a desire to correct the current self-destructive path we are on and support purpose driven brands.
The term “conscious capitalism” is used to describe businesses that serve the interests of all of what its advocates argue are the major stakeholders of every company: communities, customers, employees, the environment, suppliers—and investors.
Leaders who embrace conscious capitalism will tell you that by keeping all of those stakeholders in mind, it allows them to focus on a higher purpose than simply making a profit and in so doing increase profits as a default as they have:
- Higher trust among stakeholders.
- A deeper customer understanding (We believe this is THE key to innovation).
- Leaner teams that focus on value creation instead of depending on management to do it.
- High employee engagement.
- Extremely low levels of employee turnover.
All of these are signs of companies—and their people—being “on purpose.”
EMOTIONALLY INTELLIGENT leaders aware of global shifts in consciousness and capitalism are creating purpose-driven cultures, aligning, empowering and incentivizing employees under an overarching organizational purpose that resonates with the values of their employees. This is generating increased levels of employee engagement and creativity, fuelling innovation and profit. https://www.leadersonpurpose.com/the-ceo-study
HOW DOES ONE CULTIVATE CONSCIOUS CAPITALISM?
Cultivating conscious capitalism really does start with inclusion, stepping outside of yourself and cultivating empathy or emotional intelligence. Inclusive and empathetic leaders drive cultures passionate about authentic innovation through inclusive growth. I have spoken in previous blogs of the detail behind the value of diversity in innovation and how developing inclusion starting with self-inclusion and awareness of unconscious bias so I will not delve further into that topic this week. This article though is worth the read, 5 Ways to Be an Inclusive Leader:
On the topic of unconscious bias, this video is brief and worth a watch as it provides a different perspective on what divides the human race and why. The Invention of Whiteness with John A. Powell. https://www.youtube.com/watch?v=bOYzr3mupbk
WHAT IF ONE DOES NOT CULTIVATE CONSCIOUS CAPITALISM?
People are hard-wired to want to have a purposeful and social life. If no effort is made to promote meaningful work for those left behind by technologic change, the results will be disastrous and we will all face the consequences. No one will be immune including you. https://knowledge.wharton.upenn.edu/article/the-future-of-capitalism-paul-collier/