FW Olin Distinguished Professor of Global Business & Whole Foods Market Research Scholar in Conscious Capitalism

Raj Sisodia

Co-founder & Co-Chairman, Conscious Capitalism Inc.

CONSCIOUS CAPITALISM Liberating the Heroic Spirit of Business

Capitalism has done so much for so many in such a short time

0%

5%

10%

15%

20%

25%

30%

35%

40%

Yet, Confidence in Big Business Has Plummeted

% of Americans with a "Great Deal" or "Quite a Lot" of Confidence in Big Business

Such cynicism and distrust have high business and societal costs

Source: Gallup

Where Did We Go Wrong?

The “Profit Maximization” Fallacy

Meaning comes from:

Doing work that matters

Selfless love

Finding meaning in your suffering

Happiness ensues from living a life of meaning and

purpose

Profits ensue from

working toward a higher purpose,

building the business on caring, and growing from

adversity

Happiness cannot be pursued

Profits cannot be pursued

The Corporation’s

“Our bodies need red blood cells to survive. Should we therefore dedicate our lives to producing as many red blood cells as possible?”

R. Edward Freeman

100% SALARY TRANSPARENCY

80% LOWER SPEND ON MARKETING

>2000% RETURN TO INVESTORS

A HIGHER PURPOSE

19:1 SALARY CAP

DECLARATION OF INTERDEPENDENCE

NOT JUST SHAREHOLDERS

NOT ABOUT POWER & MONEY

NOT JUST PROFITS

NOT ABOUT CARROTS & STICKS

THE TENETS OF CONSCIOUS CAPITALISM

HIGHER PURPOSE

STAKEHOLDER INTEGRATION

CONSCIOUS LEADERSHIP

CARING

CULTURE

The difference you're trying to make in the world

Drives everything you do

Matters to all stakeholders

Your reason for being that goes beyond making money

YET… it typically results in making more money than you thought possible

Roy Spence & Haley Rushing

THE POWER OF PURPOSE

Heroic Evolving Aligning Loving Inspiring Natural Galvanizing

With Vinit Taneja

Google Organize the world’s information & make it easily accessible & useful

Unilever Make sustainable living commonplace

Novo Nordisk End diabetes

I INVESTORS

C CUSTOMERS

E EMPLOYEES

S SOCIETY PARTNERS

P E ENVIRONMENT

16

WHOLE FOODS STAKEHOLDER INTERDEPENDENCE MODEL

Strength

Enthusiasm

Long-term Orientation

Flexibility

Love and Care

Emotional Intelligence

Systems Intelligence

S E L F L E S S Spiritual Intelligence

Qualities of Conscious

Leaders

“In the military, they give medals to those who are willing to sacrifice themselves so that others may gain.

In business, we give bonuses to those who are willing to sacrifice others so that they may gain.”

The Link Between Leadership Values and Financial Performance

Autocratic Leadership

Economic Values

Visionary Leadership

H1

Stakeholder Values

H2

H3

Extra Effort

Performance

H5

H5

H4

H6

Firm Age

Industry Cycle

Country Cycle

.32**

-.10†

-.35**

.21**

-.03

.30**

.12*

Chi-Square 598.41; 305 df;

RMSEA .04; CFI .96; GFI = .92 †p<.1; *p<.05; **p<.01

-.02

.18**

.13*

.02

-.04

Mary Sully de Luque at al, “Unrequited Profit: How Stakeholder and Economic Values Relate to

Subordinates’ Perceptions of Leadership and Firm Performance,” Administrative Science Quarterly, (2008)

CULTURE eats strategy

for lunch! breakfast!

T A C T I L E

Cultures of Conscious Businesses

Trust

Authenticity

Caring

Transparency

Integrity

Loyalty

Empowerment

Can you build business on love & care?

Most businesses are run on fear and stress

Heart attacks are 20% higher on Monday

mornings

Actively engaged Not engaged

Actively disengaged

Cost of Disengagement

$550 Billion a year in lost

productivity

Percentage of the US workforce that is

Globally, only 13% are engaged

Love and work are the cornerstones of

our humanness

Source: PRI/Getty Images

Why can’t we combine the two?

LOVE

JOY AUTHENTICITY

CARING

COMPASSION

SOULFUL

14-to-1

“FoE” (1681%)

Cumulative Returns 1998-2013

S&P 500 (118%)

“G2G” (263%)

It matters how you make the money

Businesses Create But Can Also Destroy Many Kinds of Wealth

intellectual financial social emotional

spiritual cultural physical natural

There is no such thing as a side effect

We are all in the same boat!

Humanity is one spirit

Our natural resources are

finite

But our inner capacities are

infinite Ron Pompei

The Opportunity Before Us Adapted from Lynne Twist

Those of us alive today can choose to lead the most meaningful lives humans have ever led

www.ConsciousCapitalism.org

@RajSisodiaCC