1. who has knowledge of his own existence and ability to think, desire, perceive, etc.
2. which involves reasoning, knowledge, perception, decision
WHAT WILL READ
Conscious Capitalism Overview and Results for Business
How to apply and deploy this vision in your business
Learn more – see interview in the Ideia de Impacto Show at Radio Geek, Brazil about Conscious Capitalism
The world has greater concentration of income, different levels of access and use of resources, social inequalities more and more glaring. According to World Wealth and Income Database shows that the group of the richest 1% of the world population together have 20% of the world income; while the poorest 50 percent get about 9 percent of the world’s income.
Brazil is historically an unequal country: the same survey covers the period from 1990 to 2015 and my country is highlighted in the report by its extreme concentration of income at the top of the pyramid. According to the survey, the richest 1% of the country has 28% of national income – that is, well above the world average, which is 22%.
In a very low consumption pattern, the Earth can sustain much more than the current 7 billion. At the level of increasing consumption in which we live, with the kind of use that is made of natural goods, I believe that we have already exceeded the limit.
What sustains the present volume of population is, paradoxically, the inequality of access to goods and wealth that characterizes the organization of present-day society, with a large volume of population living in very low consumption situations, and a very small (though growing ) of people with a very high standard of resource consumption.
The great challenge of the next decades is the search for the reduction of inequalities, without this means dilapidation / contamination of natural resources. But this requires another style of economic and social development.
WHAT IS CONSCIOUS CAPITALISM
Conscious capitalism is a global movement, a business philosophy, to generate prosperity in a humanized way, based on four principles:
- Conscious Leadership: The conscious leader focuses on the success of all stakeholders, especially the people with whom he works daily. These leaders understand that their role is to serve the purpose of the organization and to help those it leads to make major transformations for the organization and for their personal lives. These are humble leaders, willing to arrest and engage the hearts, minds and hands of their teams.
- Significant Purpose: The legal person should be one of the greatest inventions of mankind as it allows to add talents of several people to meet the needs of society. This in itself is already evidence that the purpose of a company can not be profit, nor a goal or goal, but the consequence of how well an organization meets the needs of the society in which it is embedded. Everyone wants to contribute to making the world a better place. Conscious companies put this idea at the center of their activities. Conscious companies understand that profit is fundamental to their existence, but not the reason for their existence. Failure to make a profit is a social irresponsibility, which can put a huge number of people and families at risk.
- Orientation for actors and partners: John Muir noted that “when we pull something out in nature, we find that it is stuck and connected to all other things in the world.” Conscious leaders understand that this is also true in the business world. Without a healthy ecosystem, the business will fail.
- Conscious Culture: Culture is the mechanism of creating clarity that empowers and engages teams. A strong culture is based on purpose, values, principles, recognition and celebration. Once this structure is well defined and widespread in the organization the role of the leader becomes a resource manager so that everyone has at their fingertips everything they need to succeed. People want to make a difference in their lives, in the lives of their families, in their communities and even in the world. Everyone wants to live a purposeful life. We just need to give them the opportunity in our organizations, and that will hold us back to the great talents and attract more, so necessary for the growth of the company.
RESULTS FOR BUSINESS
In the book “Humanized Companies – people, purpose and performance, “demonstrates that organizations that follow these business principles, creating value for every society based on superior purpose and the integration of their actors perform above the market average.
In an analysis of the leading companies, their performance reaches 1600% versus 168% of the historical market average – the S & P500 stock exchange index for a period of 15 years.
Another performance comparison was made with the companies mentioned in the book “Good to Great” by Jim Collins, which performed 178% over the same period, which is also significantly lower than the performance of humanized companies.
DO IT YOURSELF
But after all, how to do it in practice? How to implement Conscious Capitalism even in a small business or microenterprise? It is possible?
- Take a leading server stance
- Seek out your top purpose: Get to know stories of companies that make a difference and watch videos like TEDx by Simon Sinek (Golden Circle), which helps you understand where the purpose should come from. This is definitely the most challenging exercise, from my point of view. You will need time to think and somehow “digest” the concept before you start verbalizing your purpose. Think about the following questions: Why did you start your business? What makes you wake up every morning and go to work? What do you offer to your customers that goes beyond the company’s product or service? What impact do you have on the lives of people, your community, your neighborhood, your church, your club, your association
- Integration for your partners and other stakeholders: Having a good relationship with all the actors and partners that help you carry out your business, your dream and walk in line with its purpose is a practice that ensures a competitive advantage for the company. When we are concerned with each of the groups we interact with, we establish more loyal relationships, creating greater loyalty-including the community in which we are inserted. Whenever it relates to employees, suppliers, clients, partners, class entities, unions, neighbors, etc. go beyond the financial and utilitarian interest that that person or group has with you. Look for other benefits that can generate value for those involved.
- Develop your responsible culture: Understand what values are most important to your business success, and write down the principles of these values (as you recognize each in action). This helps everyone to understand and embrace these principles by practicing them in their daily lives.
Want to know more? See Thomas Eckschimidt’s interview with Conscious Capitalism for the Impact Idea Show (every Mondey, 1 pm BST at Radio Geek)