First of all, thank you for sticking with me! I’m hoping that you’re just as excited as I am to explore Conscious Capitalism. To kick things off, we’ll take an in-depth look at the four main principles.
In the last post, we laid out the basics. We have the misconception that business is bent on the destruction of employees, the environment, and all morals. That is definitely not the case! Conscious Capitalism is the belief that businesses can, and should, create a better world.
Before we start, it should also be noted that profit is not the only measure of success. It is important, yes! However, we should also consider what the company is doing for their environment, employees’ health, and their ethical behavior. Developing that higher purpose will allow your business to improve the world, while also improving the lives of your stakeholders. As a bonus, becoming a conscious business will also improve your bottom line.
Four Tenets of Conscious Capitalism
Purpose
It’s simple, but it can be complicated. Purpose is the reason you exist. Ask these questions: “What are we doing here?” “What are we doing that makes a difference in people’s lives?” Before you can create a conscious business, you first need to discover what your purpose is, and what core values you will hold in your business. They are the arrow that points you in the right direction. Purpose is the inspiration!
Stakeholder
Who are the stakeholders in your business? Not shareholders, I said stakeholders! Who would miss your business the most? (Ex. Employees, Vendors, Community members, etc.) These are the people that you affect on a daily basis. When you work toward discovering your purpose, consider all of these groups. Why? Because you have a responsibility to create value for all of them. Remember, value doesn’t necessarily mean money! Buy-in by stakeholders will decide whether or not you succeed. Above all, creating value is how you create a healthy environment for all your stakeholders.
Leadership
Without good leadership, nothing can be accomplished! Similarly, if you intend to have a purpose driven business, you must lead by example! Your job is to create conditions for growth, happiness, and meaningfulness for your stakeholders. Leading with purpose in the future will be critical to your success.
As a leader, your employees are likely your most valuable asset. Demographics of today’s employees are changing. Baby boomers are headed for retirement, while millennials and Gen Z workers are flooding the market. Baby Boomers expected a boss and are motivated mostly by paychecks. In contrast, millennial-aged workers want a coach, and they also value purpose over paycheck. Millennials and Gen Z are much more likely to stay with a company that has values! Consequently you’ll have to make that transition to inspire loyalty from your new employee base.
Culture
Finally, culture. This is the product of the proper implementation of the first 3 tenets. It is the personality of your business. There is a catch. Simply creating a plan for purpose isn’t enough. Without implementation and religious practice of values, the culture of your business will not change. You must have buy-in from your employees to change the culture of your business. Try including them in the brain storming and creation of your core values and purpose. It will allow your team to feel ownership, and also give you a better idea of what your employees are excited about.
I hope this helped explain the different areas that we will be focusing on! Next week, we’ll look at some national companies that have developed a purpose and follow these tenets of Conscious Capitalism. After that, I’ll give you some practical advice and some exercises you can do to find your purpose, identify your stakeholders, and more!
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