Conscious Capitalism

1. Conscious Capitalism Timothy Anderson II Michelle Coffey Shannon Ford Rebecca Libstorff Octamecia Sellers Siena Heights University Ethics and Social Justice LDR 604 Dr. David Lucas

2. In past business practices, organizations were solely concerned with numbers. Numbers that indicated a particular profit that was suppose to indicate success. Today, the need for relationships, both within the organization and outside of it determine the overall success of any organization. Conscious Capitalism aims to improve the relationships that are formed between the employer and the organization. In order for any organization to truly achieve success, emphasis must be placed on the employee and not profit. Introduction

3. Conscious Capitalism is the reorientation of business focused solely on the pursuit of profits to one focused on integrity, higher standards, and serving all stakeholders, employees, suppliers, customers, investors, the community, and the world at large. Conscious Capitalism embodies the pursuit of a higher purpose to help people, planet and profits. It assumes that the fundamentals of capitalism (greed, fear, etc) must change if global businesses, communities and governments are going to thrive. Murphy, O. (2010, September 2). Conscious Capitalism Companies. In Octavius.com. Retrieved February 25, 2015, from http://www.octavius.com/conscious-capitalism-companies/ What is Conscious Capitalism Octamecia Sellers

4. Conscious Capitalismis a philosophy based on the belief that a more complex form of capitalism is emerging that holds the potential for enhancing corporate performance while simultaneously continuing to advance the quality of life for billions of people. Quote 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, from Conscious Business Klein, J. (2011, August 5). Defining Conscious Capitalism. In Triplepundit. Retrieved February 25, 2015, from http://www.triplepundit.com/2011/08/defining-conscious-capitalism/ Thornton, L. F. (2012, November 14). What is Conscious Capitalism?. In Leading in Context. Retrieved February 25, 2015, from http://leadingincontext.com/2012/11/14/what-is-conscious-capitalism/ What is Conscious Capitalism Octamecia Sellers

5. Purpose: Recognizing that every business has a purpose that includes, but is more than, making money. 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. Stakeholder Orientation: Recognizing the human and interdependent nature of business, we understand that we need to create value for and otherwise engage our various stakeholders (customers, employees, vendors etc.) who are people! Klein, J. (2011, August 5). Defining Conscious Capitalism. In Triplepundit. Retrieved February 25, 2015, from http://www.triplepundit.com/2011/08/defining-conscious-capitalism/ What is Conscious Capitalism Octamecia Sellers

6. Conscious Leadership: Human social organizations are created and guided by leaders – people who see a path and lead others on a journey along the path. Conscious leaders understand and embrace the higher purpose of business and focus on creating value for and harmonizing the interests of the business’s stakeholders. They recognize the integral role of culture and purposefully cultivate conscious culture. Conscious Culture: This is the ethos – the values, principles, practices – underlying the social fabric of a business, which permeates the atmosphere of a business and connects the stakeholders to each other and to the idea, the structure and the processes that comprise the company. Klein, J. (2011, August 5). Defining Conscious Capitalism. In Triplepundit. Retrieved February 25, 2015, from http://www.triplepundit.com/2011/08/defining-conscious-capitalism/ What is Conscious Capitalism Octamecia Sellers

7. Why Do We Need Conscious Capitalism • Ed Freeman, at Conscious Capitalism, Inc. trustee and Business Professor says: “We need red blood cells to live (the same way a business needs profits to live), but the purpose of life is more than to make red blood cells (the same way the purpose of business is more than simply to generate profits).”  (Freeman, 2015) Michelle Coffey

8. Why Do We Need Conscious Capitalism • Businesses thrive on making money • But we all need a purpose… • Purpose gives us incentive • Purpose stimulates us A conscious business impresses stakeholders and influences employees and customers. Michelle Coffey

9. Why Do We Need Conscious Capitalism • It is a way of thinking for the good of an organization • Potential to make a positive impact on the world • Creates harmony between all stakeholders • Creates values that last Michelle Coffey

10. Why Do We Need Conscious Capitalism • Financial fulfillment does not have to take a back seat to conscious capitalism. • Money can be made and a higher purpose can be found. • This benefits all who are involved Michelle Coffey

11. Why Do We Need Conscious Capitalism We need conscious capitalism to transform managers, organizations, and industries to create a wholesome, profitable, and productive entity. Michelle Coffey

12. Does Conscious Capitalism Work Conscious Capitalism can work if: • Stakeholders concerns are taken into consideration (which makes profits rise) • There is a balance between Stakeholders and profits • The CEO studies for this type of success Shannon Ford

13. Does Conscious Capitalism Work • Research shows that conscious capitalism works. • FOE companies overall earn higher shareholder returns: • Have premium price-to-earnings ratios • Earn a premium return on equity • All while incurring no more risk than overall stock market (pg.240, Business ethics). Shannon Ford

14. Does Conscious Capitalism Work • Instead of being more concerned with solely making a profit, conscious capitalist companies look to the bigger picture of creating value for their customers, team members, suppliers, society, and investors (pg.230, Business Ethics). • Treating employees and suppliers well, gives an incentive to work harder and take pride in the work that is done. This attitude creates a foundation for innovation and growth. Shannon Ford

15. Does Conscious Capitalism Work • “Capitalism is the most successful form of human social cooperation ever created.” • Capitalism works for the right CEO with the drive to turn a business into a organization with purpose. • It should always be a “win win” situation Shannon Ford

16. Ethics and Conscious Capitalism Ethics play a role in decisions based on Conscious Capitalism. The Merriam Webster dictionary defines ethics as: • The discipline dealing with what is good and bad and with moral duty and obligation • A set of moral principles; a theory or system of moral values • A guiding philosophy • A conscious of moral importance Rebecca Libstorff

17. Ethics and Conscious Capitalism “Conscious businesses have trusting, authentic, innovative and caring cultures that make working there a source of both personal growth and professional fulfillment. They endeavor to create financial, intellectual, social, cultural, emotional spiritual, physical and ecological wealth for all their stakeholders” (Mackey & Sisoda, 2013). Rebecca Libstorff

18. Ethics and Conscious Capitalism • Ethical Cultures and values are important. • Whole Foods – Believes company should operate with a higher purpose beyond profits and create value for all involved. Whole Foods Mission & Values • Firms of Endearment (FoEs) • “company that endears itself to stakeholders by bringing the interests of all stakeholder groups into strategic alignment. No stakeholder benefits at the expense of any other stakeholder group and each prospers as the others do” (Weiss, 2014, p. 237) • Whole Foods (Weiss, 2014, p.238-239) • Decentralization • Transparency • Love & Care • Collaboration Rebecca Libstorff

19. Ethics and Conscious Capitalism “Conscious Capitalism is not about being virtuous or doing well by doing good.  It is a way of thinking about business that is more conscious of its higher purpose, its impact on the world, and the relationships it has with its various constituencies and stakeholders.  It reflects a deeper consciousness about why businesses exist and how they can create more value…” (Connor, 2013). Rebecca Libstorff

20. Conclusion • The decision making process within any organization must include both leaders and their employees. Conscious Capitalism aims to help improve the relationships between employees and their leaders. • Conscious Capitalism does not base its success solely off of profit, but rather on the bonds that exist within the organization. • Placing more emphasis on relationships will improve the overall success of the company, as well as the longevity of the organization. T.Anderson

21. Freeman, E. (n.d.). Conscious Capitalism. Retrieved from http://www.consciouscapitalism.org Conscious Capitalism. (n.d.). An Introduction to Conscious Capitalism. Retrieved from www.consciouscapitalism.org: http://www.consciouscapitalism.org/node/3998 Weiss, J. W. (2014). Business Ethics: Bentley University: A stakeholder and issues management approach (6th ed.). San Francisco: Berrett-Koehler Publishers. Lane, Hillary. (2007). Conscious Capitalism takes hold. Retrieved from Boulder County Business Report website: http://search.proquest.com.ezproxy.sienaheights.edu References

22. References • Klein, J. (2011, August 5). Defining Conscious Capitalism. In Triplepundit. Retrieved February 25, 2015, from http://www.triplepundit.com/2011/08/defining-conscious-capitalism/ • Murphy, O. (2010, September 2). Conscious Capitalism Companies. In Octavius.com. Retrieved February 25, 2015, from http://www.octavius.com/conscious-capitalism-companies/ • Thornton, L. F. (2012, November 14). What is Conscious Capitalism?. In Leading in Context. Retrieved February 25, 2015, from http://leadingincontext.com/2012/11/14/what-is-

23. References • Connor, M. (2013, January 27). Business Ethics. Retrieved February 22, 2015, from http://business-ethics.com/2013/01/27/1154-john-mackeys-conscious-capitalism-simply-a-better-way-to-do-business/ • (n.d.). Retrieved February 23, 2015, from http://www.merriam-webster.com/dictionary/ethic • Mackey, J., & Sisoda, R. (2013, January 14). "Conscious Capitalism" Is Not an Oxymoron. Harvard Business Review. • Weiss, J. (2014). The Corporation and External Stakeholders. In Business Ethics: A Stakeholder and Issues Management Approach (6th ed., p. 237-39). San Fransisco, California: Berrett-Koehler.