Conscious Capitalism - Not an Oxymoron

A rising number of people, including the CEOs of businesses like Whole Foods Market, Trader Joe's, Patagonia, the Container Store, and Starbucks, are creating companies on the foundation that there is more to business than just turning a profit. It has to do with a greater goal.

As a member of the Conscious Capitalism organization, I have been fortunate to attend a series of conferences annually to hear, from brilliant leaders, the tenets and optimal corporate conduct that has been collectively dubbed "conscious capitalism." I am excited to share that attendance grows regularly and its a positive sign to see more and more leaders align with these values each year.

Often when people first hear of the concept of conscious capitalism, one of the most common reactions is, "That's an oxymoron!"

It is an odd combination of terms. People associate the word "conscious" with a variety of meanings. It's defined as being aware and awake, perceiving reality as it is rather than as we would like it to be, accepting responsibility for all the consequences of our actions, being more morally and ethically aware, rejecting the use of violence as a solution to issues, and living in balance with the natural world.

When you look up "Capitalism" in Merriam Webster online, the definition is "an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market."

Capitalism is the co-existence of free markets and individuals or economic and political freedom. It is a benign concept. Among all the animals on Earth, humans are the only ones with a natural tendency to exchange goods and services with one another. This is innate to who we are. The evidence is overwhelming: Humans have prospered, increased in number, and lived longer, better, more peaceful lives whenever they have had the unrestricted freedom to do so throughout history. We have regressed when we have allowed our innate inclinations to interact and exchange freely with others to be inhibited.

Think about what has transpired in the last 200 years, when capitalism became widely accepted in many societies. Global per capita incomes have climbed by almost fifteen times in constant dollars after tens of millennia, during which 85–90% of people lived on less than $1 per day. Approximately 16% of people survive on less than $1 daily. When quality and cost are considered, the average American is thought to be 100 times wealthier today than they were 200 years ago. In that time, the average life expectancy increased from roughly 30 to over 67 years, and the number of people on the planet increased from one billion in 1820 to over seven billion.

That represents incredible progress for the majority of humanity and the lucky few. Thus, we consider these truths self-evident:business is good because it creates value, it is ethical because it is based on voluntary exchange, it is noble because it can elevate our existence and it is heroic because it lifts people out of poverty and creates prosperity. The most effective system ever devised for social cohesion and human advancement is unrestrained enterprise capitalism. It's among the most potent concepts humans have ever come up with. However, we can still aim much higher.

"Conscious Capitalism" is an approach to capitalism and business that more accurately captures the current state of the world, our place in the human journey, and the inherent ability of business to improve the world. Higher purposes that support, harmonize, and integrate the interests of their key stakeholders energize conscious enterprises. Their elevated consciousness enables them to perceive the inter-connectedness of all parties involved, enabling them to identify and capitalize on opportunities from circumstances that would otherwise appear full of compromises.

They have leaders driven by a conscious desire to serve the organization's mission, the people it impacts, and the planet we all share. The cultures of conscious companies are ones of trust, authenticity, innovation, and compassion, which fosters employee growth and job satisfaction. All its stakeholders aim to produce prosperity in the following areas: financial, intellectual, social, cultural, emotional, spiritual, physical, and ecological. There is growing evidence that these enterprises generate many different forms of well-being and do substantially better financially than typical businesses.

Ultimately, as the world progresses to even higher levels of wealth, conscious businesses produce enduring value by assisting billions of people in thriving and leading lives full of passion, purpose, love, and creativity—a world of freedom, harmony, prosperity, and compassion.