WHAT IS CONSCIOUS CAPITALISM?

The 20th century witnessed a lengthy battle between polar opposite

views of how to organize and regulate economic activity. Although

free market capitalism won that epic struggle decisively, it failed to

capture the minds of intellectuals and the hearts of citizens.

Corporations are probably the most influential institutions in the

world today and yet many people do not believe that they can be

trusted.

Conscious Capitalism is a philosophy based on the belief that a more

complex form of capitalism is emerging that holds the potential for

enhancing corporate performance while simultaneously continuing to

advance the quality of life for billions of people.

The Conscious Capitalism movement challenges business leaders to

re-think why their organizations exist and to acknowledge their

companies' roles in the interdependent global marketplace.

Today's best companies get it. From Zappos to Whole Foods, the

Container Store to Google: they're generating every form of value that

matters: emotional, social, and financial. And they're doing it for all

their stakeholders. Not because it's "politically correct"; because it's

the ultimate path to long-term competitive advantage. Conscious

Capitalism differs from Corporate Social Responsibility (CSR) by

virtue of its origins from within the company as an expression of an

overall perspective on how to conceive and build a business, rather

than as a response to external notions of what counts as "socially

responsible" or external pressure.

Conscious Capitalists are unapologetic advocates for free markets,

entrepreneurship, competition, freedom to trade, property rights, and

the rule of law. They recognize that these are essential elements of a

healthy, functioning economy, as are trust, compassion, collaboration,

and value-creation. Conscious Capitalism is the system-level effect of

a substantial number of companies practicing the four tenets of a

Conscious Business as defined below:

HIGHER PURPOSE

Conscious Businesses adopt a higher purpose that transcends profit

maximization. A compelling sense of purpose can create an

extraordinary degree of engagement for stakeholders and catalyze

tremendous organizational energy.

STAKEHOLDER ORIENTATION

Conscious businesses are explicitly managed for the simultaneous

benefit of all of their interdependent stakeholders, including

customers, employees, investors, suppliers, and the larger

communities in which the business participates. Stakeholders

comprise an interdependent and interrelated system, recognizing that

by creating value for all of the stakeholders (in various and often

differing ways) the whole system advances.

CONSCIOUS LEADERSHIP

Driven primarily by service to the firm's purpose, and focus on

delivering value to the stakeholders, Conscious Leaders adopt a

holistic worldview that moves beyond the limitations of traditional

machine metaphors for business. They view their enterprises as part

of a complex, interdependent, and evolving system with multiple

constituencies. Conscious Leaders see that profit is one of the

important purposes of the business, but not the sole purpose. Most

importantly, they reject a zero-sum, trade-off oriented view of

business and look for creative synergistic win-win approaches that

offer multiple kinds of value simultaneously to all stakeholders.

CONSCIOUS CULTURE

Captured in the acronym TACTILE: Trust, Authenticity, Caring,

Transparency, Integrity, Learning and Empowerment, the word tactile

also suggests that the cultures of these companies are very tangible to

their stakeholders as well as to outside observers; one can feel the

difference when walking into a conscious business.

The Conscious Capitalism movement now includes an expanding

community of CEOs and thought leaders globally. The movement has

a fast growing presence in Europe as well as in Asia.

2012 Conscious Capitalism

CEO Summit

October 9 - 11, 2012

Hyatt Lost Pines

Austin, TX

More Than a Movement – the gist

Conscious Capitalists are enthusiastic advocates for free

markets, entrepreneurship, competition and voluntary

trade. They recognize that capitalism thrives in

environments that foster property rights, freedom to

contract, and the rule of law. And, they are aware that

trust, compassion, collaboration, and value-creation are

essential elements of healthy, functioning economies.