Optimal conditions can be an excuse for action or non-action. Ultimately, optimal conditions are a matter of perspective. A native American saying goes, “Today is a good day to die.” Any day can be a good day to die, or a good day to take a risk or to do something different or differently.
What are your optimal conditions?
The theme of our October 2011 Reflections is Deepening.
Question: What is Conscious Capitalism?
The short answer: The emerging integration between Conscious Awareness and Capitalism.
Last week I began an ongoing series of posts under the banner of It’s Just Good Business, intended to build a convincing case for the power of Conscious Capitalism and the practice of Working for Good – doing good business by focusing on more than making money.
As promised, in this post I will explore the “Conscious” and “Capitalism” in Conscious Capitalism and outline the principles of Conscious Capitalism.
“To be conscious means to be awake, mindful… A conscious business fosters peace and happiness in the individual, respect and solidarity in the community, and mission accomplishment in the organization.” ~ Fred Kofman, Conscious Business
As reflected by the quote above from Fred Kofman, by Conscious I mean to be aware, awake, mindful, recognizing what we do, how we do it and the effects of our actions.
Capitalism is the socio-economic system based on the principles of property rights, rule of law, voluntary exchange, wealth creation, and entrepreneurial initiative, and the human activity and social organizations (called businesses) reflecting and embodying these principles.
It is fairly easy to see that these principles can manifest very different forms of Capitalism, informed in part by the way the principles are interpreted and applied.
Capitalism can manifest great benefit to many (such as an ongoing increase in basic material well-being for the majority of human beings over centuries) and it can lead to tremendous concentration in power and influence in the hands of a few and to possibly catastrophic impact on the life-sustaining systems of nature. It can foster collaboration and value-creation, and it can feed greed and abuse.
The individual and collective consciousness we bring to Capitalism will define its evolving expression over time.
Conscious Capitalism can be seen as an evolutionary development – a response to individual and collective recognition of the power of Capitalism (and Capitalists) to generate great benefit and to produce profound harm. As with all successful evolutionary adaptations, for Conscious Capitalism to take root, it will have to enhance our ability to survive, propagate and flourish in an increasingly populated planet and complex world.
As articulated by Conscious Capitalism, Inc. and represented on the graphic, the four core principles of Conscious Capitalism are:
(Visit ConsciousCapitalism.org for more information about the four Principles)
As more and more businesses apply and embody these principles and function more consciously, which means their stakeholders are doing so as well – since business and stakeholder are ultimately one and the same – a system of Conscious Capitalism will emerge and ultimately become the predominant form of Capitalism.
In the next post in this series, I will explore in more depth the relevance of Conscious Awareness to business in the 21st century.
Question: Why focus on more than making money in business?
The short answer: It’s just good business!
Over the course of the next several months through articles, blog entries, social media posts, various presentations and a 6-week telecourse entitled It’s Just Good Business, I will elaborate on the short answer and, ideally, build a convincing case for the power of Conscious Capitalism and the practice of Working for Good – doing good business by focusing on more than making money.
I will begin to define key themes and outline the context for this exploration.
The first step – to define business. Business is a form of human social organization: people getting together for a purpose; to do something together; to deliver value to themselves and others. Business is an outlet for creative expression, a structure and process for turning ideas into products and services; and a vehicle for creating wealth – financial, material, intellectual, technological, social, even spiritual wealth – for individuals and society.
In the most simple sense, “good business” = making money by delivering products and services that people want, that create value for others.
The catch is, creating value for others is becoming more complex. Functionality and reliability were once sufficient to satisfy customers. A paycheck and benefits were once sufficient to satisfy employees. Creating jobs and paying taxes were once sufficient for satisfying communities. Generating high ROI was once sufficient for investors.
As our technologies, our social-economic systems, our scientific understandings, and our daily lives become more complex, so too do our brains, our perspectives and our wants and needs, as individuals, communities and societies and, perhaps, as a species.
The idea of interdependence is becoming broadly and deeply recognized as an essential principle of nature and life, and we feel its effects in our daily lives. A financial crisis in one part of the world or one sector of the economy creates ripples throughout the global economy. Natural disasters release toxic wastes that threaten ecosystems and communities in distant lands. Social unrest in one country or continent spills into neighboring countries and distant continents. Technological advances in a laboratory or garage anywhere transform the way billions of people communicate with each other and the possibilities for how we live our lives.
This recognition of interdependence and its effects evokes strong responses from individuals and communities (both geographical communities and communities of shared perspective and interest). Key stakeholders in the ecosystem of business – customer/citizens and employees in particular – increasingly demand that business (in general and the specific businesses with which they engage) recognize this interdependence, consider the effects of their products, services and processes on people and the environment, both now and in the future.
86% of global consumers believe that business needs to place at least equal weight on society’s interests as on business’ interests. Social purpose continues to rank as the number one deciding factor for global consumers above design, innovation and brand loyalty.
64% believe it is no longer enough for corporations to give money; they must integrate good causes into their everyday business.
~ 2010 Edelman goodpurpose© Study
84% of Americans believe their ideas can help companies create products and services that are a win for consumers, business and society; yet, only half (53%) feel companies are effectively encouraging them to speak up on corporate social and environmental practices and products.
~ 2010 Cone Shared Responsibility Study
Stakeholders increasingly expect that companies have an explicit purpose, with a social dimension, that drives their business. They expect companies to create value, beyond the goods and services they deliver and to consider and address their impact of their business on the environment.
In the emerging Conscious Capitalism economy, making money requires more than focusing on making money.
In the next post in this series, I will explore the “Conscious” and “Capitalism” in Conscious Capitalism and outline the principles of Conscious Capitalism.