Traditional capitalism and traditional management (i.e. Frederick W. Taylor’s ideas about utilization of people, and Shareholder-centric ideas about profits) have outlived their usefulness – in terms of providing livable wages, equitable and survivable living conditions and sustainable economic business models that will endure, prosper and provide for a proper quality of life on our planet.
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”
– Charles Darwin
Fortunately there IS a more evolved mode – a new approach to conducting the affairs of a business enterprise – CONSCIOUS CAPITALISM. Not only is conscious capitalism a better way to provide livable wages, equitable and survivable living conditions, and the proper balance needed for a quality life on our planet – it is also a great business model.
The 18 public companies highlighted in the book Firms of Endearment (first edition) significantly outperformed the market (9-to-1) over a 10 year period.
(An updated version of the book expands the list of 18 firms to 78. Blog post on the full review of the new version coming soon!)
These early results indicate that the Conscious Companies continued to significantly outperform the market during the great recession and have recovered at a quicker pace as well.
In the book Conscious Capitalism, Sisoda and Mackey report the updated data spanning a fifteen-year period from 1996 to 2011 in which these same firms outperformed S&P 500 index by a factor of 10.5 over that period. According to Sisodia, the results were even more surprising given that many of these firms paid above award wages, provided generous benefits and made substantial investments in their communities, and in reducing the company’s impact on the environment. The factors that differentiated performance were largely having a strong positive business culture that treated people as genuine stakeholders in success, and having visionary leaders who cared strongly about people.