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Conscious Capitalism Presentation (10-04-12).pdf


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Conscious Capitalism Presentation (10-04-12).pdf

  1. 1. Creating Success in Your Business, Beyond Just the Bottom Line A FUNDAMENTAL NEW AWAKENING IN BUSINESS: CONSCIOUS CAPITALISM By David Zuza Workplace Leadership Council, Troy Chamber October 4, 2012
  2. 2.  Background and Context  Trends of Capitalism  Conscious Capitalism Explained  Successful Conscious Businesses  Practical Applications OUTLINE
  3. 3.  BS (Health Planning & Administration) Penn State, MBA (Hospital Administration) Cornell  30+ years in Healthcare Administration  Strategic planning and business development  Joined LifeVantage, Troy Chamber in early 2012  Personal mission – Helping others improve their health by reducing oxidative stress (Protandim)  Initial awareness of conscious business concepts – Conscious Business, How to Build Value Through Values (Fred Kofman, 2006) PERSONAL BACKGROUND
  4. 4. “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
  5. 5.  Consciousness is NOT religious  Conscious Capitalism is NOT an oxymoron  Conscious Capitalism is NOT political  Every business has a mission, vision, and purpose  Every business needs profits to survive  Every business is composed of people  Every business depends on its environment CONTEXT
  6. 6. "Conscious Capitalism is a new way of thinking about business that goes considerably beyond the approach that most executives and business teachers take in thinking about business." Raj Sisodia, Firms of Endearment BUSINESS
  7. 7. 7 TRADITIONAL CAPITALISM 1. Private ownership of property 2. No legal limit on accumulation of property 3. Free Market – no government intervention in the economy 4. Profit motive as driving force 5. Profit as measure of efficiency
  8. 8. 8 ADAM SMITH (1723-1790) Intellectual Father of Capitalism who said: 1. Humans motivated by self interest 2. Should be free to pursue profits  Result: “The Invisible Hand” – Efficient economic system; all will benefit because goods will be produced and sold cheaply
  9. 9. CAPITALISM HAS HELPED MANY Improvements in: • Standard of living • Education • Life expectancy • Democratic governments
  10. 10.  Growing mistrust of businesses  75% of our forests are gone  30% of arable land is gone  Large mammals are down 90% in the last century  Large fish are down 95%  Half of all species alive today likely to disappear in 50 years  Toxic burden on humans is rising  Oil supply is decreasing as demand is rapidly rising Source: Raj Sisodia, author Firms of Endearment, How World Class Companies Profit from Passion and Purpose BUT THE TIMES THEY ARE A-CHANGIN’
  11. 11. WIDENING DISPARITY IN INCOME Source: John Mackey, CEO, Whole Foods Market
  12. 12. Performance of Conscious Businesses Purpose, Stakeholders, Sustainable Performance  Towers Perrin 25 “Stakeholder Superstars” beat the S&P 500 by 126% (15 years).  The Fortune “100 Best Companies” up 176% vs 39% for the S&P 500 (7 years).  Firms of Endearment (2007) 28 firms -- eBay, Toyota, J&J, Google up 1111% vs. 100% S&P 500 (10 years). Conscious Capitalists beat Capitalists at their own game – making money
  13. 13. Financial Intellectual Social Emotional Spiritual Cultural Physical Natural BUSINESSES CREATE (AND DEPLETE) MANY KINDS OF WEALTH
  15. 15. GREAT COMPANIES HAVE GREAT PURPOSES  Service to Others: Expressing Love & Care The Good  Discovery & the Pursuit of Truth The True  Excellence & the Quest for Perfection The Beautiful  Changing & Improving the World The Heroic Which of these great purposes are the core of your organization? Source: Raj Sisodia, Firms of Endearment
  16. 16. S ociety P artners I nvestors C ustomers E mployees E nvironment STAKEHOLDERS
  17. 17. LONG-TERM PROFITS ARE MAXIMIZED BY NOT MAKING THEM THE PRIMARY GOAL  Business is not a machine, it is a complex adaptive system of interdependent stakeholders  Leadership’s job is to fulfill the deeper purpose of the business, optimize the health & value of the entire business system, be a servant leader to the business  Optimize entire interdependent system = highest long-term profits & shareholder value  The price system is a tool for leadership to use—a valuable source of information Source: John Mackey, CEO, Whole Foods Market
  18. 18. T ransparency A uthenticity C aring T rust I ntegrity L earning E mpowerment BUILDING A CONSCIOUS CULTURE
  20. 20. OTHER CONSCIOUS BUSINESSES These conscious business have out-performed the S&P by 9 to 1 over 10 years
  21. 21. TRADITIONAL CAPITALISM TO CONSCIOUS CAPITALISM From This To This Profit-focus Purpose-focus Only shareholders win All stakeholders win Short-Term Long-Term Zero Sum Win-Win-Win-Win Self-centered Holistic Conflicts of interest Harmony of Interests Parasitic Mutualistic Exploitative Creating Value Trade-offs Synergies Disliked Valued/Loved Not Trusted Trusted
  22. 22. UNCONSCIOUS VS. CONSCIOUS UNCONSCIOUS CONSCIOUS Attitudes Unconditional Blame Essential Selfishness Ontological Arrogance Unconditional Responsibility Essential Integrity Ontological Humility Behaviors Manipulative Communication Narcissistic Negotiation Negligent Coordination Authentic Communication Constructive Negotiation Impeccable Coordination Reactions Responses Emotional Incompetence Emotional Mastery Source: Fred Kofman, Conscious Business
  23. 23.  Recognize importance of Purpose, Stakeholders, Leadership, and Culture  Accept personal accountability and ownership  Respect the realities of finite natural resources  Embrace servant leadership principles (everyone)  Appreciate the value of cooperation vs. competition  Consider the wisdom of The Four Agreements TRANSFORMATION
  24. 24. The Four Agreements, Don Miguel Ruiz  Be impeccable with your word  Don’t take anything personally  Don’t make assumptions  Always do your best Man’s Search for Meaning, Viktor E. Frankl “Happiness is the outcome of living a life that has meaning and purpose. Happiness cannot be pursued; it ensues from living a life of meaning and purpose.” FINAL THOUGHTS