Conscious Capitalism in the World

Conscious Capitalism In the world of business today, it is all too often the case that greed and competition have led to the downfall of many an initially honest and hard-working CEO. For some, the opportunity to gain at the cost of all else is simply overwhelmingly tempting. While many such underhanded dealings have been exposed in the form of public scandal such as Enron and BP, others go undetected, even while they continue harming their stakeholders and partners.

John Mackey's essay, "Conscious Capitalism: Creating a New Paradigm for Business," suggests an alternative to cutthroat measures for ensuring top results, not only in the financial arena, but also in terms of integrating maximum benefits for all stakeholders. While many regard Mackey's ideas with a good measure of scepticism, many companies are already implementing some of his suggestions in their drive for corporate consciousness and a basic sense of ethics. Mackey refers to six constituencies in his essay.

The first and most important is the customer, since the customer determines whether the business survives or not. Satisfying customers is therefore a primary concern. The second constituency is the team member. Team members work directly with customers and can perform their work at the required level of excellence only when they are happy as well. They are also an important component of the business. Investors are the third constituency, for whom it is important to create value, wealth, and profits.

Without these, investors may withdraw their funding, which could also lead to the end of the business. Suppliers are the fourth constituency, who also perform an essential function in the business. The fifth constituency is the community within which the company functions, while the sixth is the environment. The final two constituencies are important because they provide the support structure for the continued and sustainable function of the business.

According to Mackey, the constituencies are all interdependent, each depending upon the others or at least related to them in some way. Happy customers, for example, mean that the business can continue benefiting from their patronage. According to Mackey, team members are required to ensure that customers are happy. This can only occur when the happiness of team members is also ensured. For this reason, Mackey's company takes various measures to ensure that team members experience the highest possible level of job satisfaction.

Value can be created for investors when customers continue to spend money at the establishment, which creates a type of cycle; happy customers are ensured by happy team members; which in turn leads to high profits and value. Suppliers ensure the survival of the business by providing high quality goods. The community and environment provide the structure within which the business functions and should therefore be treated in a sustainable and ethical manner.

One major benefit that Mackey believes will result from Conscious Capitalism is a decrease in the general hostility that is generally leveled against the concepts of business and capitalism. In other words, valuing not only investors and shareholders as part of the business purpose and paradigm will.