I’m working with AuthorsGlobe on some really interesting online MasterClasses which give people easy access to some of the most progressive business thought leaders of our time. The masterclass series kicks off in the New Year on January 26th with Dr. Raj Sisodia.
A few years ago, as part of a long process of questioning traditional marketing & even fundamental business practices, & while writing his book “Firms of Endearment,” Raj began the process that lead to his founding the Conscious Capitalism Institute. I asked him a few questions to explain this exciting movement.
How do you define conscious capitalism?
We define conscious capitalism as having four key characteristics:
What’s changed to make this important today?
Business as usual will not work because people have changed, & also because our collective sense of urgency about the need for radical change has never been stronger. As Tom Friedman wrote in the New York Times recently, “Mother Nature & Father Greed have hit the wall at the same time.”
The world has changed significantly, especially in the past 20 years. What used to be acceptable in the past is no longer acceptable today. Think about it. 150 years ago, slavery was widely acceptable to a large number of people. 100 years ago, many thought it acceptable to deny women the right to vote. 75 years ago, colonialism was still widespread & generally accepted. 50 years ago, most people accepted segregation as a way of life.
As human beings, we did not stop evolving when we got up on our hind legs. Our evolution continued, but became more internally driven. As these examples illustrate, our consciousness about what is right & what is wrong is constantly evolving. The data also suggests that human intelligence has been rising at an average rate of 4% every decade for the past 70 to 80 years. This is known as the Flynn Effect.
Some of the greatest changes in society occurred about 20 years ago. The fall of the Berlin Wall in 1989 triggered the collapse of communist regimes all over Europe, something that had been unthinkable just a few years before. This essentially ended the defining ideological debate of the 20th century between competing systems for organizing human societies. Capitalism & democracy decidedly won that battle, & the only question now was the type of free markets & democracy that worked best.
1989 was also the year in which, for the first time, there were more adults over the age of 40 than below in the United States. The psychological center of gravity shifted into midlife & beyond, triggering a gradual but deep transformation of the zeitgeist towards a greater concern with meaning, purpose & other centeredness. We refer to this as the beginning of the “Age of Transcendence.”
In 1990, Tim Berners-Lee created the World Wide Web, an invention that would transform the world like no other, perhaps in our history. Within a few short years, the web ushered in an era of true information democracy, in which the average person had free access to more information more rapidly than the richest persons in the world had enjoyed previously. People became infinitely better informed, & were soon far better connected as well, through the web as well as through mobile technology. We now live in an era of almost total transparency, in which all corporate actions & policies become public knowledge, especially if they are controversial.
Taken together, all of these changes have resulted in a dramatically transformed landscape for business. The so-called feminine values of caring, nurturing, relationships & compassion are on the ascendance in most spheres of society. People today care about different things, are better informed, better educated & better connected than ever before. They are looking for different things from companies, in their roles as customers, employees, suppliers, investors & community members. However, most companies have not evolved to keep pace, & are still conducting business according to norms that were developed in a much different time.
Companies that operate according to the principles of conscious capitalism are far better attuned to the sensibilities & needs of people today. These companies create multiple kinds of wealth: social, economic, intellectual, ecological, cultural, spiritual & of course financial. Our research (reported in the book Firms of Endearment) found that such companies outperformed the market by a 9 to 1 ratio over a ten-year period, while paying their employees better, having profitable suppliers, paying taxes at a higher rate, providing great customer service, investing in their communities, & having a positive impact on the environment.
Dr. Raj Sisodia
What companies or individuals are the best examples of being conscious capitalists?
Our book features 28 companies, 18 of them publicly traded. Outstanding examples include Whole Foods Market, The Container Store, Southwest Airlines, Costco, New Balance, Timberland, Wegmans, Trader Joe’s, UPS, Starbucks & Google. A great example outside the US is Tata, one of the leading companies based in India. Tata has truly been a conscious capitalist for well over 120 years, always acting from a sense of higher purpose that puts society’s needs as paramount & seeing profits as the natural outcome of meeting those needs in an effective & efficient manner.
What’s an example of a company that’s represents the opposite of a conscious capitalist company?
An easy example is British Petroleum, which has just gone through a very public & humiliating ordeal that has revealed how hollow its claims of being a responsible, environmentally sustainable company truly were. A company that is rapidly evolving towards greater consciousness is Wal-Mart. For a number of years after the death of Sam Walton, Wal-Mart became a relentless cost-cutting machine, squeezing its employees, suppliers & communities in order to eke out low prices for its customers & high returns for its investors. After a decade in which its stock price was virtually unchanged, the company has gradually started to better align itself with the value system that is increasingly prevalent today. Other companies that are transforming in a positive way include McDonald’s and PepsiCo.
What will it take to make this a mainstream idea?
The business world, like many other spheres of society, is highly imitative. As they say, nothing succeeds like success. As conscious businesses continue to outperform their competitors, other companies will be forced to start emulating their business philosophy in order to survive. Our purpose in the Conscious Capitalism movement is to help this change more rapidly & in a more conscious manner, so that companies understand what it truly takes to be an authentically conscious business & not just one that pays lip service to the idea.
Our mission at the Conscious Capitalism Institute includes three elements: research, education & development. We will conduct research that will help improve our understanding of the principles of conscious capitalism & how they can be best implemented. We will develop educational materials (including cases, courses & simulations) that can be used to better educate the next generation of managers coming to our business schools. Finally, we are developing executive education programs to help current managers understand & implement this approach.
Our hope & dream is that one day soon, Conscious Capitalism will come to be seen as the “normal” way to do business. When that happens, we will be well on our way to creating a society that creates a rising level of well-being for all our citizens in a manner that is sustainable for the indefinite future.
What will people learn from listening to your masterclass?
Through the virtual masterclass, people will understand how the world is changing, why businesses need to respond, the key elements of conscious capitalism, the impact of these on performance, & how companies can start the change process of becoming truly conscious businesses. They will understand that business transformation starts with individual transformation, & that they must embark on a journey of raising their own consciousness. They will leave with a new lens with which to view the world, & a new perspective on the kinds of companies they should look to associate with, as customers, employees, investors & community members.
What advice do you give your 3 children in terms of how they can support or contribute to this idea that’s so important to you?
I have tried to get them to understand the consequences of conscious versus unconscious decision making in all spheres. By now, they are all pretty well indoctrinated into the philosophy of conscious capitalism. I am sure that when they look for a job, or perhaps one day when they start a business themselves, they will keep these principles in mind so that their own prosperity does not come at the expense of other people or the planet itself.
You can register here (FREE) to participate in Raj’s January 26th virtual MasterClass at AuthorsGlobe. What a great way to have direct access to Raj, without ever getting on a plane.
Jules Pieri
Founder/ CEO of Daily Grommet
Follow me @julespieri
Join the conversation & our community
Hi just wanted to give you a quick heads up and let you know a few of the images aren’t loading correctly. I’m not sure why but I think its a linking issue. I’ve tried it in two different internet browsers and both show the same outcome.
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