Capitalism and making money are synonymous. Don't let the term "Conscious" mislead you or think this is about "going green" or "social justice", or any other ideology. It is about profit. While making profits, a cleaner environment, social prosperity, freedom, passion for living, and happiness are part of the process. They go together like the proverbial "Hand in Glove". Check our "performance graph" and you decide. it is all available through alignment.
Conscious Capitalism about long term out-performance. If Conscious Capitalism was not more profitable I would not promote it. It is more profitable because it creates long term synergy between all the stakeholders. Each person is totally committed to making their company the best, especially the leaders who know that employees, selected for passion, are their best friends and customers. A great consumer base is needed for capitalism. Conscious Capitalism is a management model that improves return on investment. Simple as that. Conscious Capitalistic company stocks predictably outperform other stocks. Once the companies were reviewed for servant leadership, stakeholder model implementation, and deeper purpose, then the stock prices were compared and contrasted with the S&P 500 and Jim Collin's "Good to Great" (GtG) companies. See the results for yourself.
The Conscious Capitalism Institute coined the new term, "Conscious Capitalism". It is ultimately about the value business brings to society when it is allowed to openly compete and self-organize in a Laisse-faire manner. Outstanding profits are made by following the three principles of business management listed above.
Conscious Capitalists love to make profit and share it among those who helped make it by applying these three principles. In one empirical study, these type of companies outperformed the S&P 500 by nearly 10:1 and the Good to Great Companies by about 3:1. Check out the chart!
1. The Servant Leadership Center develops leaders who are first servants of the organization and second leaders of others in the organization. These leaders consciously help people related to the business become what they need and want to become to be profitable to the business supports their personal development to promote happiness in their life. Employees, investors, suppliers, and community are viewed as more than a means to an end, they are an end in themselves.
2. The Stakeholder Model of Business was developed formally in the early 1980s. In this model businesses are viewed as citizens with both rights and responsibilities within the law and the ability to volunteer, if they so choose to volunteer. These businesses balance and nurture long term relationships with society, partners, investors, customers, and employees. The first letters of the aforementioned stakeholders spells "SPICE". The wealth that everyone generates by excited cooperation is shared equitably and the returns are huge. These firms out-performed the S&P by 10 to 1 over a 10 year period from 1996 to 2006. In the recent crisis from 2006 to 2010, these firms lost only 8% of stock value while the S&P lost 18%. That is huge. None of them went bankrupt during the crisis or afterwards, if you happen to think the crisis is over. No business has to become a "conscious company"...but those that do usually become clear winners.
3. Deeper Purpose is the value business brings to the lives of those it serves in the form of a commodity, service, product, or other value it delivers. Profit is a beautiful by-product of adding value to other people’s lives. Some "deeper purposes" might be: health, nutrition, enjoyment, beauty, connections, information, mobility, or development. When a business focuses on what it provides to enhance the lives of everyone, especially the customer, they are are generally more profitable. If short term profits are sought at the expense of adding value to the stakeholders then the deeper purpose has been compromised.
This book provides details of the study on 35 companies selected only for the principles of Conscious Capitalism they followed. The empirical financial information and research provides the basis for validation of Conscious Capitalism.
It's about Profit! 3 Principles of Conscious Capitalism
1. Stakeholder Model 2. Deeper Purpose 3. Servant Leadership
CEO Article on Conscious Capitalism
Tangible results of what alignment does.
Investors call it "Alpha".
Did you ever consider that everything you have, including yourself, is always invested somewhere?
Conscious Alignment in all areas makes a great difference.
