Making the case for consciousness in capitalism

• We shouldn’t underestimate the impact that the global financial crisis has had on how people think about business, the ways in which it operates and the effects it has. In extremis, some commentators have even viewed the near meltdown of the world’s banking system in 2008 as evidence that capitalism as an economic model is irretrievably broken.

• Now some have argued – Charles Eisenstein, for example, writing recently for the Guardian Sustainable Business blog – that there is something of a contradiction in the ‘triple bottom line’. As he says: “Unfortunately, nine times out of ten, the interests of profit blatantly conflict with the interests of people and planet, at least according to any reasonable calculation”. He then goes on to argue that businesses that want to take a significant step towards environmental sustainability or, indeed, any other social good, need to base their decision not on a ‘business case’ but on a more profound motivation based on human values.

• To me, that sounds very much like the concept of ‘higher purpose’ that lies at the heart of conscious capitalism. In other words, I don’t believe there need be the kind of contradiction that Eisenstein refers to. As R Edward Freeman, Professor at the University of Virginia's Darden School of Business, wrote recently: “The old model of business of profit maximisation contributed greatly to the crisis. However, there are real tangible signs that this model is changing. With each new generation, people are wondering if this is what business is all about. We have seen Generation Y embrace companies that do good in society and make money too”.

• Freeman cites a number of examples of successful businesses that have embraced the principles of conscious capitalism – from newer companies such as Whole Foods Market, The Container Store and The Motley Fool to more established names like 3M and Apple. And there are many others.

• Doesn’t the ultimate secret of success in business reside in having people wanting to do business with you?