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FW Olin Distinguished Professor of Global Business & Whole Foods Market Research Scholar in Conscious Capitalism
Raj Sisodia
Co-founder & Co-Chairman, Conscious Capitalism Inc.
CONSCIOUS CAPITALISM Liberating the Heroic Spirit of Business
Capitalism has done so much for so many in such a short time
0%
5%
10%
15%
20%
25%
30%
35%
40%
Yet, Confidence in Big Business Has Plummeted
% of Americans with a "Great Deal" or "Quite a Lot" of Confidence in Big Business
Such cynicism and distrust have high business and societal costs
Source: Gallup
Where Did We Go Wrong?
The “Profit Maximization” Fallacy
Meaning comes from:
Doing work that matters
Selfless love
Finding meaning in your suffering
Happiness ensues from living a life of meaning and
purpose
Profits ensue from
working toward a higher purpose,
building the business on caring, and growing from
adversity
Happiness cannot be pursued
Profits cannot be pursued
The Corporation’s
“Our bodies need red blood cells to survive. Should we therefore dedicate our lives to producing as many red blood cells as possible?”
R. Edward Freeman
100% SALARY TRANSPARENCY
80% LOWER SPEND ON MARKETING
>2000% RETURN TO INVESTORS
A HIGHER PURPOSE
19:1 SALARY CAP
DECLARATION OF INTERDEPENDENCE
NOT JUST SHAREHOLDERS
NOT ABOUT POWER & MONEY
NOT JUST PROFITS
NOT ABOUT CARROTS & STICKS
THE TENETS OF CONSCIOUS CAPITALISM
HIGHER PURPOSE
STAKEHOLDER INTEGRATION
CONSCIOUS LEADERSHIP
CARING
CULTURE
The difference you're trying to make in the world
Drives everything you do
Matters to all stakeholders
Your reason for being that goes beyond making money
YET… it typically results in making more money than you thought possible
Roy Spence & Haley Rushing
THE POWER OF PURPOSE
Heroic Evolving Aligning Loving Inspiring Natural Galvanizing
With Vinit Taneja
Google Organize the world’s information & make it easily accessible & useful
Unilever Make sustainable living commonplace
Novo Nordisk End diabetes
I INVESTORS
C CUSTOMERS
E EMPLOYEES
S SOCIETY PARTNERS
P E ENVIRONMENT
16
WHOLE FOODS STAKEHOLDER INTERDEPENDENCE MODEL
Strength
Enthusiasm
Long-term Orientation
Flexibility
Love and Care
Emotional Intelligence
Systems Intelligence
S E L F L E S S Spiritual Intelligence
Qualities of Conscious
Leaders
“In the military, they give medals to those who are willing to sacrifice themselves so that others may gain.
In business, we give bonuses to those who are willing to sacrifice others so that they may gain.”
The Link Between Leadership Values and Financial Performance
Autocratic Leadership
Economic Values
Visionary Leadership
H1
Stakeholder Values
H2
H3
Extra Effort
Performance
H5
H5
H4
H6
Firm Age
Industry Cycle
Country Cycle
.32**
-.10†
-.35**
.21**
-.03
.30**
.12*
Chi-Square 598.41; 305 df;
RMSEA .04; CFI .96; GFI = .92 †p<.1; *p<.05; **p<.01
-.02
.18**
.13*
.02
-.04
Mary Sully de Luque at al, “Unrequited Profit: How Stakeholder and Economic Values Relate to
Subordinates’ Perceptions of Leadership and Firm Performance,” Administrative Science Quarterly, (2008)
CULTURE eats strategy
for lunch! breakfast!
T A C T I L E
Cultures of Conscious Businesses
Trust
Authenticity
Caring
Transparency
Integrity
Loyalty
Empowerment
Can you build business on love & care?
Most businesses are run on fear and stress
Heart attacks are 20% higher on Monday
mornings
Actively engaged Not engaged
Actively disengaged
Cost of Disengagement
$550 Billion a year in lost
productivity
Percentage of the US workforce that is
Globally, only 13% are engaged
Love and work are the cornerstones of
our humanness
Source: PRI/Getty Images
Why can’t we combine the two?
LOVE
JOY AUTHENTICITY
CARING
COMPASSION
SOULFUL
14-to-1
“FoE” (1681%)
Cumulative Returns 1998-2013
S&P 500 (118%)
“G2G” (263%)
It matters how you make the money
Businesses Create But Can Also Destroy Many Kinds of Wealth
intellectual financial social emotional
spiritual cultural physical natural
There is no such thing as a side effect
We are all in the same boat!
Humanity is one spirit
Our natural resources are
finite
But our inner capacities are
infinite Ron Pompei
The Opportunity Before Us Adapted from Lynne Twist
Those of us alive today can choose to lead the most meaningful lives humans have ever led
www.ConsciousCapitalism.org
@RajSisodiaCC
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