Conscious Capitalism: What Is It? Why Do We Need It? Does It Work?

Case study “Conscious Capitalism: What is it? Why do we need it? Does it work?”

Kulladit Somwung

MBA-635 Ethics Corporate Culture and Social Responsibility

Southern New Hampshire University

October 29, 2018

Case study “Conscious Capitalism: What is it? Why do we need it? Does it work?”

Capitalist consciousness is a way of thinking about capitalism and business that reflects what we are in human travel, the conditions of our present world, and the inherent potential of the business to create a positive impact on the world. Since businesses will be zinc-based for a higher purpose to service, adjust and integrate the interests of all key stakeholders (Mackey, 2011).

The practice of Conscious Capitalism is based on Four Principles. First, Conscious leadership, organizations reflect the actions and personality of the individual at the top. This is the type of person who wants to follow. Open-minded Mindful leaders are highly motivated and consistently loyal to their team. Second, Stakeholder orientation, Mindful leaders recognize the importance of taking into account all their stakeholders. You will never become a premium brand with a focus on only the shareholders. The critical factor for long-term business success is the employees and customers as well as the vendors and the community. Take care of them, and they will take care of you. Third, Conscious culture, Value-based culture is the culture of people's intentions and actions. When culture is not defined and forcing, your people might not to walk in the same direction. Finally, Higher purpose, companies should be in business doing more than just making money. The great leaders realize that in order to succeed in the long run, you have to give a real value which comes from passionate people and get inspired in their work (Weiss, 2014).

According to Weiss (2014), “Conscious Capitalism: What is it? Why do we need it? Does it work?” there are several reasons for the attacks on capitalism. First, they argue that economists and critics have been smuggled out of capitalism. These factions have placed capitalist systems in narrow and tangible identities to help capitalize on capitalism as a tool to maximize efficiency. Second, many businesses operate at a low level, taking into account the purpose and impact on the world. Third, an industrial age that gives rise to a mechanical view of the business that an employee perceives as a production source, achieving the goal of earning the most return possible. And the expansion of government regulation and size has created a mutant form of capitalism, which is crony capitalism.

Alternative

Following the practice of Conscious Capitalism is an alternative way to be a positive sum game. A conscious that believe that they can be an actual game will win the favor of all stakeholders within the business. Successful businesses improve the well-being of stakeholders and elevate humanity to unprecedented levels. This is a business model in the future. However, following the practice of Conscious Capitalism exactly is not a good idea for any business. Personally, businesses have to understand the practice of Conscious Capitalism clearly and also adapt to your businesses because misunderstanding can cause your businesses to fail or lose the benefit. For example, Whole Foods has failed because of the prioritization of all stakeholders instead of focusing on efficiency and profitability. Whole Food prioritized building a “network of autonomous regional production hubs of small farmers and mom-and-pop food startups.” The cost of conducting a centralized purchase such as Walmart has resulted in the loss of performance and reduced sales. The article concludes that the sale of organisms and the care of the people sound good, but it does not create a sustainable business, so capitalism realizes a failed proposition (Curi, 2017).