This document outlines the concepts of conscious capitalism as an alternative to traditional capitalism. It discusses how conscious businesses focus on purpose, stakeholders, and leadership rather than just profits. Examples are given of conscious companies like Whole Foods that have outperformed traditional businesses financially by taking a long-term, stakeholder-focused approach. The key aspects of conscious business are described as having a higher purpose beyond profits, prioritizing all stakeholders, and creating a culture of trust, caring, and integrity.

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.  Background and Context
 Trends of Capitalism
 Conscious Capitalism Explained
 Successful Conscious Businesses
 Practical Applications
OUTLINE

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. “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.  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. "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
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
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. CAPITALISM HAS HELPED MANY
Improvements in:
• Standard of living
• Education
• Life expectancy
• Democratic governments

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. WIDENING DISPARITY IN INCOME
Source: John Mackey, CEO, Whole Foods Market

13. 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

14. Financial
Intellectual
Social
Emotional
Spiritual
Cultural
Physical
Natural
BUSINESSES CREATE (AND DEPLETE)
MANY KINDS OF WEALTH

15. CONSCIOUS BUSINESS PARADIGM
Source:
 PURPOSE
 STAKEHOLDERS
 LEADERSHIP
 CULTURE

16. 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

17. S ociety
P artners
I nvestors
C ustomers
E mployees
E nvironment
STAKEHOLDERS

18. 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

19. T ransparency
A uthenticity
C aring
T rust
I ntegrity
L earning
E mpowerment
BUILDING A CONSCIOUS CULTURE

20. BUSINESS FRAMEWORK AT WHOLE FOODS

21. OTHER CONSCIOUS BUSINESSES
These conscious
business have
out-performed
the S&P by
9 to 1
over 10 years

22. 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

23. 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

24.  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

25. 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