Question

An individual manager's ability to make ethical decisions is influenced by many factors, such as individual traits and corporate culture. Applying conscious capitalism principles typically starts with a plan from the CEO and requires the plan to be implemented through various management levels and all employees. What role does ethics play in conscious capitalism and how do the ethics of conscious capitalism impact management tactics within an organization?

Answer 1

When thinking beyond self-interests, demonstrating care for stakeholders at the global level using a long-term time orientation and seeing the company’s role in the world is called as conscious capitalism. In the business the idea of moral responsibility has been expanding over the years. While in business which followed the laws used to be considered good, there is now so much more that they need to do in order to be considered as an ethical business.

With conscious capitalism, we have the responsibility for our role on global markets and quality of life in addition to our duties on local communities. Here, when in business one must understand that Conscious Capitalismis a philosophy based on that complex form of capitalism which is emerging that holds the potential for enhancing corporate performance while continuing to advance the quality of life.

The conscious capitalism movement challenges business leaders to rethink why their organizations exist and to acknowledge their roles in the interdependent global marketplace. While conscious capitalism benefits people and communities, there are also clear benefits for the businesses that embrace this philosophy.

There are various benefits of business philosophy which includes aspects like, better financial performance, where the value of conscious capitalism is underscored by the fact that companies that adhere to these principles outperformed the market. Then it is, relationships and Synergies for the long term, the virtues of being generous with vendors, noting that cultivating strong relationships with suppliers pays off when times become difficult. It is in fact all about deriving value from synergies.

Thereafter, Stakeholder and Employee Engagement, sense of purpose can create a high level of engagement by the stakeholders and generate tremendous organizational energy. This is done by Sharing Meaning and Purpose, the principles of Conscious Capitalism brings a deeper sense of meaning and purpose to your employees and customers, as well as higher financial returns in the long run. This shows that business is about relationships, about creating value and not extracting value from those relationships. This Increases Innovation and Trust, in the employees morale and engagement increase, innovation flourishes and the principles of your relationship with consumers, namely trust, is reinforced by living core values that align with your consumers’ own values.

In the business doing good is its own reward, conscious capitalism is the view, as business leaders, can make money and make the world a better place at the same time. This is not an unrealistic dream, this is a new way of leading that an increasing number of companies are choosing, and those leaders choosing conscious capitalism are finding out that the old saying is true – that doing good is its own reward.