Raj Sisodia, Author of "Firms of Endearment" keynote speech. Sponsored by Nedbank.

1. CONSCIOUS CAPITALISM
ACTUALIZING BUSINESS AND HUMAN POTENTIAL
Raj Sisodia
Professor of Marketing, Bentley University
Chairman, Conscious Capitalism Institute

3. WHAT CAPITALISM
HAS ENABLED IN A
VERY SHORT TIME

4. A Tale of Two Short Centuries
GDP per Capita, 2000 $
2010: $7,278
$6,055
$2,113
$1,262
$873
Industrial Revolution Begins
$596
$467 $667
$566 $615
$453
Year 0 500 1000 1500 2000
Source: www.VisualizingEconomics.com; Angus Maddison, University of Groningen; www.prb.org; www.worldbank.org

5. The Economic Success of Capitalism
is Unprecedented in World History
Real per capita income has increased:
• 16x in developed countries
• 35x in Japan
• 3x in Africa
• 100x in the U.S. (adjusting for quality
and affordability)

6. Capitalism is Ending Poverty on Earth
The percentage of
people living on World Population Living on Less Than
less than $1 per $1/Day (in ‘03$ )
100%
day has dropped
from 85% in 1820
to about 17%
50%
today.
If current trends
continue, poverty 0%
will be virtually
eliminated in the 1800 1950 1980 2003
next 50 years.
Source: World Bank (constant 2003 dollars)

7. Business is noblebecause ititcan elevate our existence
heroicbecause itit lifts people out of poverty
ethical because creates value
good because based on voluntary exchange

8. Yet, Mistrust of Business is Pervasive
Americans’ confidence in big Only 2 percent of investors
business has declined steadily, believe that CEOs are “very
from about 34% in 1975 to a trustworthy”; 72 percent
historic low of 16% in 2009, believe that wrongdoing is
rebounding to 19% in 2011. commonplace at companies.
2011: 79% believe
business is too
2011: 88% of Americans concerned about
believe that big companies making a profit and not enough
have too much influence on about responsibilities to
government, up from 83 workers, consumers, and the
percent in 2004. environment.

9. “The whole growth
model we created over
the last 50 years is
simply unsustainable
economically and
ecologically… Both
Mother Nature and
Father Greed have hit
the wall at once.”
March 7, 2009

10. After just one century of modern living…

11. 75% of forests are gone

12. 30% of arable land is gone

13. Large mammals are down 90%

14. Large fish are down 95%

15. Half of all species alive today are
likely to disappear in 50 years

16. Toxic burden on humans is rising

17. Oil supply is decreasing just as
demand is rapidly rising

18. After 1980, we started using more than
Nature can renew; now 1.3 times

19. If everyone lived as Americans, would
need FIVE earths…
…as Europeans, THREE earths

20. Confidence in Big Business
% of Americans with a "Great Deal" or "Quite a Lot" of Confidence in Big Business
40%
35%
30%
25%
20%
15%
10%
Such cynicism and distrust have
huge societal costs
5%
0%

21. WHY has this happened?
THE WORLD has changed
PEOPLE have evolved
BUSINESSES have not kept up

22. We are changing…

23. 1989
THE WORLD CHANGES

24. In 1989, for the first time in U.S. history, the
majority of adults were over 40

25. Who is this
man?
What did
he do to
change the
Tim Berners-Lee world?
He invented the World Wide Web in 1989

29. A finer sense of right and wrong
Understand all the consequences of our actions
Commitment to the truth
Fully mindful and awake
Reject violence
Live in harmony with nature
Peter Senge

30. “The dogmas
of the quiet
past are
inadequate to
the stormy
present.”

31. What will it take for companies to
flourish in the future?
To flourish in the future, companies
will have be aligned with the new
realities of our lives and embody a
more conscious way of being

32. “A conscious business fosters peace and
happiness in the individual, respect and
solidarity in the community, and mission
accomplishment in the organization.”
Fred Kofman, Conscious Business

33. A HIGHER PURPOSE
DECLARATION OF INTERDEPENDENCE
19:1
93%
ANIMAL COMPASSION STANDARDS
MEETINGS END WITH APPRECIATIONS
MINISCULE MARKETING SPENDING
MEMORIAL DAY FLOOD
FUTURE SEARCH
1800%

34. The Tenets of Conscious Capitalism
STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP
HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT

35. Can you build a business on love?

36. Can you build a
business on love?

37. “Heart
attacks are
highest on
Monday
morning.”

38. An Epidemic of Apathy
The Shame of “Management”

39. TODAY!

40. COMPASSION
LOVE
CARING
SOULFUL
JOY
AUTHENTICITY

42. 10.5-to-1
performance
“FoE”
(1646%)
S&P 500
(157%)
Stock Returns over a
15 Year Period (’96-’11)

43. FoE Compared to Good to Great
15 Year 10 Year 5 Year 3 Year
Cumulative Annualized Cumulative Annualized Cumulative Annualized Cumulative Annualized
FoE Return 1646.1% 21% 254.4% 13.5% 56.4% 9.4% 77.4% 21.1%
GTG Return 177.5% 7% 14.0% 1.3% -35.6% -8.4% -23.2% -8.4%
S&P 500 Return 157% 6.5% 30.7% 2.7% 15.6% 2.9% 10.3% 3.3%

44. What is a “Great” Business?
Enriches the world
Brings joy, fulfillment, and a sense of
meaning to all its stakeholders
Maximizes “total value created”
Enhances the overall health and well
being of society

45. Businesses Create, and Destroy,
Many Kinds of Wealth
financial intellectual social emotional
spiritual cultural physical natural

46. The Tenets of Conscious Capitalism
STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP
HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT

47. Happiness
Meaning comes Profit
ensues from
from: ensues from
living a life of
Doing work that working toward a
meaning and
matters higher purpose,
purpose building businesses
Selfless love
on love, and
Finding meaning growing from
in suffering adversity

48. Uncompensated effort is
Compensated engagement going up – volunteer work
The Purpose Institute
is going down is nourishing people in a
way that paid isn’t

49. Great Purposes are HEALING
Healing: To restore to H Heroic
health or soundness; to E Evolutionary
cure; to restore to
spiritual wholeness; to A Aligning
become whole and
L Loving
sound.
In a world with too much I Inspiring
suffering and ill-health, N Natural
healing is divine work.
G Generous

50. The Power of Purpose
 The difference you're trying to make in the
world
 Drives everything you do
 Matters to all stakeholders
 Is your reason for being that goes beyond
making money
 YET… typically results in making more
money than you thought possible
Roy Spence

51. Southwest Airlines
Give people the freedom to fly

53. Google
Organize the world’s information and
make it easily accessible and useful

54. REI
Reconnect people with nature

55. The Tenets of Conscious Capitalism
STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP
HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT

56. Whole Foods Market Stakeholder
Interdependence Model
56

57. S P I C E E
SOCIETY PARTNERS INVESTORS CUSTOMERS EMPLOYEES ENVIRONMENT

58. Business, Society and the Planet
The PLANET
The PLANET SOCIETY
BUSINESS
BUSINESS SOCIETY
Traditional View Conscious View

59. Conscious Capitalism ≠ CSR
• Shareholder-centric • Stakeholder-oriented
• Independent of purpose • Incorporates higher purpose
• Often grafted on to • Societal orientation is at the
traditional business model core of business model
• Easy to meet as a charitable • Requires genuine
gesture transformation
• Performance implications • Significantly outperforms
unclear traditional business model
• Independent of type of • Requires conscious
leadership leadership

60. The Tenets of Conscious Capitalism
STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP
HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT

61. “We must be
the change we
want to see in
the world.”

62. Conscious Businesses Need
Conscious Leaders
Authentic
Purpose-driven
Caring
Systems thinkers and “systems feelers”
Emotionally intelligent Spiritually evolved
Strong character and integrity Trustee oriented

64. The Tenets of Conscious Capitalism
STAKEHOLDER CONSCIOUS
INTEGRATION LEADERSHIP
HIGHER
PURPOSE &
CORE VALUES
CONSCIOUS CONSCIOUS
CULTURE MANAGEMENT

65. Culture
eats
strategy for
lunch!
breakfast!

66. T Trust
A Accountability
Cultures of C Caring
Conscious T Transparency
Businesses I Integrity
L Loyalty
E Egalitarian

67. Humans are
born to care.
Our institutions
magnify or
depress the
human capacity
to care.
Jane Dutton
University of Michigan

68. Conscious
Management
Beyond Theory Y
• Self-Organizing
Self-Motivating
Self-Managing
• Decentralization
• Empowerment
• Teamwork
• Collaboration

69. Conscious Capitalism works Higher sales intensity & growth
Lower gross margins, higher net margins
Lower marketing, product return costs
Lower legal and administrative costs
Greater employee retention & engagement

70. Creative, Caring Human Energy!
The biggest difference between
ordinary and conscious businesses?

71. We are all in the
same boat.
71

72. “I would not give a fig for the simplicity
on this side of complexity but I would
give my life for the simplicity on the
other side of complexity.”
Oliver Wendell Holmes, Jr.
US Supreme Court Justice

73. Humanity Natural Our inner
is one resources are resources
spirit finite are infinite
Ron Pompei

74. The Opportunity
 Those of us alive today have the
opportunity to lead the most
meaningful lives ever lived
 Our challenges are great, but so
is our consciousness and our
ability to change things
 We have all the tools we need;
we just need to unleash human
ingenuity on our challenges in a
holistic, conscious, caring way
Lynne Twist

75. Essential Reading for Conscious Capitalists

76. www.ConsciousCapitalism.org
Raj.Sisodia@ConsciousCapitalism.org
Please email me if you are interested in being involved with
setting up a South Africa Conscious Capitalism Chapter

77. Some Questions
Can successful profitable organizations
really be built on “love”?
Is a “Conscious” agenda realistic in tough,
recessionary times?
How can we embed conscious living and
conscious business principles in young
people early on?