How To Apply Conscious Capitalism To Your Business

Conscious capitalism seeks to align profit-making activities with a greater sense of purpose and social responsibility. It highlights the idea that companies shouldn't just concentrate on generating shareholder wealth and rewarding the world's bosses; instead, they should serve the interests of all stakeholders, including workers, consumers, suppliers, communities, and the environment.

Key Principles Of Conscious Capitalism

Conscious capitalism promotes the idea that businesses should have a higher purpose beyond just making money; they should instead aim to make a positive impact on society, contribute to the well-being of all stakeholders and the environment, and build mutually beneficial relationships. In practice, a company's culture, management, and leadership should promote integrity, trust, and a sense of purpose while creating an environment that supports all members' personal development and well-being.

The conscious approach to business is to do good by all stakeholders—that is, by everyone who, in essence, touches the firm—instead of the traditional method, which was centered on increasing the value for the shareholders. And if you accomplish that, your company will be able to spread positivity to your employees, partners and customers. This in turn translates into higher levels of profitability, stronger employee engagement and a better customer experience.

Five Tips To Apply Conscious Capitalism To Your Company

1. Make delivering value number one

Money is a byproduct of value. However, making money should NOT be the main priority of your company. It should be delivering value. Look at your value chain, and think about all of your stakeholders and how you can provide them an optimal experience. The same holds for all parties—suppliers included. When you provide a great service, are easy to work with and make people feel valued, everyone wins and profits increase.

2. Live by your core values, vision and mission

Truly understanding your core values, vision, and mission and infusing them in all decision making is crucial to establishing meaning and purpose in your interactions, transactions, and activities and building authenticity. You can use these three elements as a guide to help your business implement conscious capitalism. Make them visible to customers, instill them in your employees, and never waver from your beliefs.

3. Establish a thoughtful corporate culture

Open communication, honesty, teamwork, and a commitment to employee welfare are traits of a conscientious workplace culture. There are so many elements that can create the optimal culture for your organization. As a leaders, the culture needs to come from you and the board as you set the tone. Most importantly is to be genuine and engage your employees regularly on ways to improve and enhance the culture in everything you do.

4. Your employees are your business

Your employees are your greatest assets and are vital to the success of your business. They perform the day-to-day operations of your company. They interact with customers, research and produce products/provide services. Without them, your business simply wouldn’t exist. They are the ones who come up with innovative ideas, who strive to improve processes, and who can help your business grow and thrive. Lastly, they are the face of your business. They are the ones who represent your brand, your values, and your reputation. If your employees are unhappy or dissatisfied, it will show in their interactions with customers. While your employees are motivated, satisfied, and engaged, they are more likely to provide exceptional customer service, which can lead to increased customer loyalty and sales.

5. Your client is your WHY

Your clients are your biggest asset. Without a strong customer base, you won't have a business. So many businesses focus on acquiring new clients which is necessary for business growth, but maintaining and growing your relationships with your current clients is just as important. Truly understanding your clients’ needs and being able to meet their demands will give your business a competitive edge.

The goal of conscious capitalism is to show that companies can prosper while addressing social issues, upholding justice, and making the world more inclusive and sustainable. It is about establishing a win-win situation in which social and environmental well-being and financial prosperity coexist. If you find a way to provide as much value as possible to as many people as possible, then your business becomes a vehicle for doing good in the world, which ultimately is what will make you the richest person you can be.