Democracy, Conscious Capitalism And Changing The World, Part II

HOT READS FOR THE PRACTITIONER

Title: A Path to a Better World

Competencies: visionary leadership, entrepreneurial leadership, financial leadership, building strategic relationships, business acumen, driving strategic direction, employee empowerment, painting a vision, political leadership, strategic planning

Who benefits: entrepreneurial leadership, financial leadership, strategic planning, students of business

Consultant Usage: must read for organizational level consultants

What’s it about? Last week I wrote an essay about a road to world peace and the hope for worldwide general prosperity. My hypothesis was and is that the while the road to peace and prosperity is filled with twists, turns and many potholes, the pieces are in place.

Democracy has been on a significant uptick over the past few decades, but the supporting components were not/are not in place. Needed was/is first and foremost a viable economic model where chaos currently exists. Also needed are serious banking reforms that are “of the people” and a better educated populace. The fantastic news is all of those components are now available for adoption or adaptation.

But the cornerstone is the economic model. Last week I suggest you look at book called Conscious Capitalism. This week I would like to describe this economic model in hopes that if you haven’t already decided to read it, perhaps now you will. After all, it offers great hope for a better future, a better world. It is one of the most important business books I have ever read.

What is different about this book? The fundamental principle of traditional capitalism is profit. The primary pitfalls of traditional capitalism are that it promotes short-term thinking (i.e. quarterly goals) and can promote greed and corruption (aka crony capitalism). It is all about the almighty dollar.

The fundamental principle of conscious capitalism is the stakeholders. The primary benefits of conscious capitalism are that it promotes long-term thinking and winning positions for all stakeholders. Stakeholders include (enlightened) investors, customers, vendors, employees, community and environment.

The four tenets of the conscious capitalism: The book describes four core tenets or principles of enlightened business. Here is a brief look at each of them.

Higher purpose and core values: “The Good – Service to others – improving health, education, communication, and quality of life. The True – Discovery and furthering human knowledge. The Beautiful – Excellence and the creation of beauty. The Heroic – Courage to do what is right to change and improve the world.”

Stakeholder integration: In this model, “stakeholders” goes way beyond a strict investor/bank/Wall Street definition. This model includes the six primary groups listed above. All stakeholders are invited to share in and participate in the higher purpose and core values and thus, when conflicts occur, all groups participate in a win-win-win-win-win-win solution, or what the authors call a Win6 solution. No one group can claim higher priority.

Conscious Leadership: Leaders are motivated by serving the higher purpose. They reject win-lose scenarios, they reject zero sum games, they reject the traditional trade-off form of logic and business. They look for a synergistic Win6 approach that creates multiple layers and kinds of values simultaneously.

Conscious Culture and Management: Managers at all levels are hired, developed and retain on their ability to identify with, create, support and manage a culture that is congruent with the higher purpose and core values. This tenet is a nature extension of higher purpose, stakeholder integration and conscious leadership. It is not a fad but a way of life within the organization. Management at all levels exemplifies and demonstrates such competencies/traits as trust, accountability, transparency, integrity, loyalty, fairness, personal growth and care.

I hope these brief descriptions give you chills or get you jazzed. Before closing out for today – and I will have much more to say next week – here are some quotes from the book that are worth pondering:

“Imagine a business that is born out of a dream about how the world could be and should be. The founders are on fire to create something of relevance, resonance, and permanence – a business that will far outlive them, that delivers real value of multiple kinds to everyone it touches. They want to create a business that their parents and children will be proud of, that aspires to do so much more than making money – a force for good that enhances the health and well-being of society. They dream of creating a business that enriches the world by its existence and brings joy, fulfillment, and sense of meaning to who are touched by it.”

“(Seeing) customers … not as consumers but as flesh-and-blood human beings…. (I)nviting its suppliers into the family circle … a business that is a committed and caring citizen of every community. Imagine a business that views its competitors not as enemies to be crushed but as teachers to learn from and fellow travelers on a journey toward excellence. Visualize a business that genuinely cares about the planet … to become a healing force that nurses the ecosphere.”

“Imagine a business that exists in a virtuous cycle of multifaceted value creation, generating social, intellectual, emotional, spiritual, cultural, physical, and ecological wealth and well-being for everyone it touches, while also delivering superior financial results year after year, decade after decade.” (Italics and underline are mine.)

“Conscious Capitalism is not about being virtuous or doing well by doing good. It is a way of thinking about business that is more conscious of higher purpose, its impacts on the world, and relationship it has with its various constituencies and stakeholders.”

Catch you later.

Bill Bradley

Bill Bradley (mostly) retired after 35 years in organizational consulting, training and management development. During those years he worked internally with seven organizations and trained and consulted externally with more than 90 large and small businesses, government agencies, hospitals and schools.