It is clear that we can no longer continue making the acquisition of profit the sole purpose of our commercial landscape. Corporate social responsibility (CSR) has grown in popularity over the last couple of decades. However, this isn’t always the most effective or sustainable approach. It is often treated as a separate initiative from the primary, profit-led business plan. As such, some companies are exploring methods their enterprises can make a more meaningful impact on the world.
This is where conscious capitalism is beginning to make a real difference. This is more focused on how businesses can operate in a way that has a holistic awareness of the current challenges of our world, and takes an integrated approach to social responsibility, rather than just hosting the occasional fundraising event. It is also underpinned by a framework of 4 guiding principles — that businesses operate with a higher purpose beyond profit, that all stakeholders gain value from operations, that leadership embraces the company purpose, and that there is a culture of consciousness throughout the business.
This approach is not opposed to profit. Rather it considers leadership, staff, the community, and the wider world as stakeholders in the enterprise; all of whom should prosper by success. In fact, alongside the social and environmental benefits of this approach, businesses tend to gain a competitive edge. We’re going to take a closer look at some companies that have embraced conscious capitalism successfully, and where they place their focus. We’ll also examine how these principles can be translated and implemented in your enterprise.
Sustainability
Environmental and social sustainability are key concerns of our contemporary world. This means that many businesses committing to conscious capitalism do so with consideration as to how their actions affect local and global resources. The LEGO Group is frequently among the top companies that successfully continue to integrate sustainable practices into all areas of their operation.
Perhaps the primary point of interest is that LEGO is not simply tacking on measures here and there, or responding to issues as and when they arise. Rather it has actively committed to ensuring it has mid-and long-term plans in place to continually identify and implement methods that use sustainable raw materials in production and packaging. However, it also goes further, working with its partners and suppliers to reduce their collective carbon footprint throughout shipping, warehousing, sales, and manufacturing. LEGO also recognizes that sustainability helps communities thrive, and in recent years has baked the importance of diverse and inclusive working practices, and community education into its culture.
When seeking to include sustainability in your conscious approach, it’s important to include the following:
Auditing
Commit to regular review of all your practices. Examine each department of your business, what resources it uses, and how those resources are obtained. Use these findings to explore alternatives.
Carbon Emissions
The harmful effects of pollution have the potential to impact all stakeholders. As such, it should be a priority to be conscious of how these are present in your business. What elements of the supply chain pollute? Are there alternatives to your staff commuting to work every day?
Supplier Relationships
It’s vital to maintain an open dialogue with suppliers and partners. Talk to them about your values and goals when it comes to sustainability, and about their own. Seek to work together to ensure you both understand your use of resources and where your practices can benefit from a sustainable mindset.
Consumer Education
In conscious capitalism, the business’ responsibility doesn’t end once the product has reached the consumer. Use your marketing and social media channels to guide your customers on how they can use, and eventually dispose of your products more sustainably. Sharing your expertise with your customers not only improves sustainability but can also help your business to stand out in the market.
Social Initiatives
In our connected world, we are all beginning to appreciate the importance of being global citizens. That not only can we take advantage of the fact that we have access to people and cultures we wouldn’t have just a couple of decades ago, but also that this comes with a responsibility to one another. In this way, it is just as vital that businesses think of themselves as global citizens, too.
Pfizer is a prime example, here. We have all become particularly aware of the pharmaceutical company through the lens of our pandemic, and how their vaccine can help us transition into life beyond COVID-19. However, they’ve long accepted the concept of corporate citizenship; that part of the core of their business is the responsibility to understand how their expertise can not only generate profit but also make a difference to social health disparity. It provides resources to non-governmental organizations (NGOs) in at-risk communities, to ensure vaccination and family planning resources are available to those who otherwise wouldn’t have access. It also provides educational programs for schools, health professionals, and the general public on medical issues that impact their communities now and in the future.
When seeking to include social initiatives in your conscious approach, it’s important to apply the following:
Use Your Expertise
Remember that your area of special interest can be just as useful to communities in need as any financial donation you might provide. In fact, it’s closer to the conscious capitalism approach to act in this way, as it is more integrated into your overall business operations. Consider how your knowledge and resources can be used by those who need them and reach out to organizations to build long term relationships with them.
Maintain an Open Dialogue
Your business shouldn’t just be wading into social initiatives and assuming control. People who live and work in at-risk communities know more about their challenges than you do. Reach out to them, ask them questions about how you and your business can not just help, but also how your activities can positively and negatively affect them. Seek to understand your impact, and work with them on making it a positive one.
Employee Welfare
It is difficult to overstate just how important employees are as stakeholders of a business. They are not just there to perform vital tasks; they contribute to the overall culture, influence its long-term direction, and inform a company’s position in the local and global community. As such, conscious capitalism makes employee welfare and hiring practices a core part of the business plan.
Starbucks is one of the more visible examples of this. The company not only understands that it has to treat its employees well but also how it as a multinational corporation can use its hiring power to make a difference to at-risk and underserved members of the local and global population. As part of its overall social responsibility efforts, it has pledged to hire 25,000 veterans by 2025, and 10,000 refugee candidates by 2022. It is also cognizant of how experience can kickstart careers in any industry and has committed to giving more young people their first jobs.
When seeking to include employee welfare in your conscious approach, it’s important to apply the following:
Health and Wellness
It’s certainly important to include health insurance and other benefits, but this is really the minimum. Conscious capitalism always goes above and beyond this. Frequently review how the operations of your business affect employee wellness in the short and long term. In the recent past, military workers were exposed to asbestos, leaving them with illnesses such as mesothelioma in later life. This wasn’t just the result of direct military activities, but the actions of suppliers and contractors. Similarly, you need to not just consider the potential harm of your own practices, but those of suppliers and partners.
Embrace Diversity
While not all businesses can commit to the large scale hiring targets of Starbucks, it is still vital to implement a diverse hiring policy. This also has the added benefit of providing the new perspectives you need for your team to thrive. Actively seek to onboard candidates from underserved communities. Beyond this, ensure that you have an inclusive talent development program that nurtures employees to progress through the company, regardless of their background or education.
Conclusion
We each have a responsibility to our planet and its communities. Businesses have an important role to play, and the conscious approach to capitalism allows companies to thrive while also having a positive impact on the world. By following the example of some of the highlighted companies, all entrepreneurs can find ways to implement this approach into their businesses.
