What is Conscious Business?
Think sustainable, forward-thinking, inclusive business. Sound too good to be true? Research shows that prioritizing values over profit has a positive impact on everyone’s bottom line.
I’ll admit - “conscious business” sounds a lot like one of those buzzwords you’d toss out during a nightmare, ill-prepared Shark Tank presentation, alongside “synergy,” “nexus” or “growth-hacking”. Do we know what these things mean?? (*frantically Googles under the table*)
But take a step back and you’ll likely find that many of your favourite brands and businesses fall under the category of conscious businesses, and for good reason.
Conscious businesses are designed to be aware of - and take ownership of - their impact on people and the planet. A broadened scope of what the business hopes to achieve (and who it is accountable to) means that, from day one, conscious business leaders and employees are guided by a common goal of positive change in their field.
Think more like Patagonia (whose mission statement is to build the best product, cause no unnecessary harm, and implement solutions to the environmental crisis) and less like Canada Goose (who, after 60+ years of operation, only just committed to stopping the use of virgin fur by 2022 following activist pressure and an investigation into whether it “made false or misleading representations about the treatment of geese whose down is used in Canada Goose’s apparel”).
People want to feel good about their purchases. So perhaps it makes sense that companies like Patagonia perform ten times better than their competitors. Customers are becoming increasingly aware of their influence and the power of their purchases - we can’t ignore that 66% of consumers will pay more for a product if the business supports social or environmental causes, and 59% are likely to stop supporting businesses that don’t align with their personal beliefs.
Why are businesses conscious, and why is conscious capitalism important? Let’s dive into the basics of conscious business to understand why taking a socially conscious stance could be a savvy move, for both you and the planet.
What is Conscious Business?
Conscious business is a comprehensive and holistic business philosophy that focuses on the impact of business actions on others, aka the relationship between business and society. It is led by conscious leadership, takes all stakeholders (shareholders, the general public, and the planet) into account in the business’s operations and strategy, and has a higher purpose beyond profit generation.
Fred Kofman, a conscious business thought-leader, states that “conscious business seeks to promote the intelligent pursuit of happiness in all its stakeholders. It produces sustainable, exceptional performance through the solidarity of its community and the dignity of each member.”
In short, the underlying idea behind conscious business is that we should try to be a force for community good (and perhaps systemic change) within the current capitalist framework.
Is this counterintuitive?
Let’s get one thing straight - this is still business. Conscious business still recognizes that the baseline reasons for anyone starting a business - economic stability and prosperity - are part of operating within a capitalist system.
However, conscious business insists that we no longer turn a blind (or willfully ignorant) eye towards the impact made by our business activities. And it invites us to go even further than simply mitigating negative impact - conscious business provides an opportunity to “do good,” to create the world we would like to live in, through these same business activities.
What is the difference between Conscious Business and Traditional Business?
Traditional business plans are structured so that the business can attain maximum profits from its products or services. Because of this, the leaders and company mission are primarily motivated by generating profit.
The major drawback of this single-minded focus on profit? Leaders who are primarily motivated by money often lack the ability to authentically inspire, whether that is their customers or their employees. As a result of this lack of larger purpose, traditional businesses can encounter a lack of creativity, innovation, and engagement.
To the extent that traditional business takes a look at social and environmental concerns, they often have corporate social responsibility (CSR) programs (such as philanthropy programs, volunteer efforts, or carbon footprint goals). However, these are often tacked on to traditional business models as separate entities or afterthoughts. While still socially minded, CSR initiatives are not incorporated into the business mission and are therefore at the whim of current leadership, budget, and shifting priorities.
Enter conscious business - by formalizing the responsibility of business towards society, a holistic and sustainable shared mission is created. Because of this, advantages of conscious businesses over traditional business include:
Greater alignment between employers and employees;
Increased employee and customer satisfaction;
Stakeholder loyalty and community engagement, and;
Improvements in surrounding communities and environments.
Starting to see the benefits of conscious business? Let’s take a deeper dive.
Why is Conscious Business Important?
It’s hard to deny the impact and sway of business - as of 2016, there were at least 25 companies that were more powerful than some countries (did you know Walmart exceeds the economies of both Spain and Australia? Oof.)
If some businesses are indeed big enough to rival state economies, combined with their ability to influence their customers across the globe, there may be no bigger vehicle for social change than business.
The idea of conscious business goes back to the 1960s when the theory of corporate social responsibility was introduced, meaning that companies began to be seen as being responsible for their impact on the communities and environments in which they operate. This bloomed into the idea of the “Triple Bottom Line,” which states that businesses are not just about Profit, but about People and the Planet, too. And as the mindfulness movement gained steam in the late 1970s and people became more aware of themselves and their place in the world, the societal seeds were planted for work and career to be aligned with values and a sense of purpose.
From this, conscious business philosophy was born. The idea is to transform the traditional business model of extracting value for the creation of wealth (extracting time and skills from people, and extracting resources from the planet) to creating value. Through the emphasis on a sense of greater purpose, people and the planet are treated as more than just resources to be extracted for profit generation - they are centred and supported.
Conscious business is important because it is a shift in mindset - from extracting value to creating value; from hierarchy to humanity; from exploitation to investment. Instead of the businessperson as a profiteer, conscious business says, let’s position the businessperson as a community leader.
4 Pillars of Conscious Capitalism
Looking for the basic structure of conscious business? There are 4 key components to keep in mind:
Pillar 1: Deeper Purpose
A conscious business has a higher purpose that goes beyond profit maximization. Leadership is clear about - and focused on - fulfilling that higher purpose. So before even starting product development or service marketing, ask: what is the purpose of this business? Will this business contribute to and be supported by the community? Will business activities be beneficial to all parties?
This purpose should also be allowed to evolve over time, because at the core of conscious business is an entrepreneurial spirit. This philosophy is innovative and believes that just because we have always done things a certain way does not mean that is the only way they can or should be done. Allow your business purpose to be dynamic and to grow with you and the needs of your community.
Pillar 2: “Stakeholder” Consideration
A business must create value with and for its various stakeholders, including customers, employees, environment, investors, communities, etc. When making decisions, all stakeholders have to have to be considered to understand how potential outcomes will support the larger, interconnected system of relationships. Healthy stakeholders = healthy business ecosystem.
Consider the following three questions when thinking about your stakeholders:
Are your products and services aligned to your customers’ needs?
Have you considered innovation and sustainability at all stages of your operations?
How can you foster supportive industry partners in your business locations?
Be strategic in working towards positive impact at each step, and commit to offsetting and eliminating any potential harm caused.
Pillar 3: Conscious Leadership
A conscious business requires leadership that embodies - and delivers on - the mission for the company in a sustainable and transparent manner. Think empathy, emotional maturity, and unwavering integrity. Because doing things differently likely means the business will encounter opposition on its path - leadership needs to be grounded and committed to the fulfillment of the company’s purpose, which leaves little room for large egos or those motivated by personal gain.
Leadership that is willing to develop, learn, and pivot alongside the company will be in the best position to build value, harmonize stakeholder interests, and develop team-building within the business.
Pillar 4: Team-building
Also referred to as conscious culture, a strong priority on team-building is essential for conscious businesses
We know there is more value in retaining current customers than finding new customers, and the same goes for employees. People are more likely to support and stay with companies that are aligned with their own values, and employees who are treated well and who are committed to company goals are happier, perform better, and stay with the company longer.
Team-building and shared culture create alignment and passion around the company’s deeper purpose and provide the structures and stories that define the business. In order to implement your business values in the world, they have to be found within your business first - as within, so without!
Summary
Conscious business is a comprehensive and holistic business philosophy that focuses on the relationship between business and society. It is led by conscious leadership, takes all stakeholders (shareholders, people, and the planet) into account, and has a higher purpose beyond profit generation.
As we collectively begin to untangle ourselves from the endless push towards exponential profit, consumption, and growth-for-growth’s-sake, we can invite each other to take a step back and reflect on what we really hope to achieve by developing our businesses. Could becoming conscious around our business practices, even within a capitalist system, be a stepping stone to imagining and materializing a new system? Let’s be active in creating the world we want to see.
Authentic mission statements and transparent web copy are key in communicating to your clients and customers what you believe in and how you will bring those beliefs to reality. Remember: your website is often the first place your clients go to understand who you are.
Need some help articulating what you do best, and why you do it? I offer unique and conscious website copywriting services that let your voice be heard by your customers - let’s chat about how I can focus on your writing, so you can focus on your work.
