Conscious Capitalism

¶ … Conscious Capitalism John Mackey refers to six independent stakeholders that have an interest in any business: customers, employees, suppliers, investors, larger communities, and the entrepreneur(s) that founded the business. These constituents voluntarily exchange with business to create value for themselves and others. In a capitalistic market if customers are unhappy with the prices, services or selection they are free to take their business elsewhere. Employees are free to look for employment elsewhere if they are dissatisfied with some aspect of their work.

Suppliers are free to seek alternative outlets to sell their products if they want better terms or different product placement than the business is willing to give. Investors who are unhappy with economic returns are free to sell their interests and invest elsewhere. All of these constituents exchange voluntarily for mutual benefit and are free to exit the relationship at any time. The larger community benefits if a business is a good citizen, a responsible member of the community incorporates ethical practices into it daily activities.

The entrepreneur(s) that founded the company have a vested interest in seeing their vision of the purpose of the enterprise realized. Mackey asserts that the purpose of business is more than to maximums profits. There are a multitude of individual reasons other than this on which a company may have been originally founded. In any case the ultimate purpose of business is to better the lives and conditions of the people they come in contact with either directly or indirectly.

If this is accomplished all stakeholders will benefit in the long run. Mackey believes that the truly great companies have a deeper more transcendent purpose which is highly energizing to all the various stakeholders. He categorizes these purposes into four groups "The Good," "The True," "The Beautiful," and "The Heroic." "The Good" manifests itself through service to others. It is based on genuine empathy which leads to development, growth, and expression of love, care, and compassion.

Dedication to this purpose fosters emotional intelligence within the organization and reciprocates the goodwill of customers. This is a deeply motivating purpose and provides emotional fulfillment to those that embrace this ideal. "The True" encompasses the excitement of discovery and the pursuit of truth. This purpose leads to great discoveries that benefit mankind. "The Beautiful" is the search for excellence and the quest for perfection. Companies that follow this purpose enrich the lives others in various ways.

The pursuit of excellence is inspirational to others and adds to the joy of life. "The Heroic" deals with the desire to change the world by making it better -- to solve insoluble problems. This ideal encompasses good, truth, and beauty, but is in more. It is risky to attempt to do the courageous, and accomplish what others say is impossible. Businesses that follow this purpose must overcome many barriers in order to succeed, however the results are truly profound.

Business that have these higher purposes and ideals as part of their core values there change people and change the world. While I do believe there are many businesses.