Conscious Capitalism. John Mackey
ADVANCE PRAISE FOR CONSCIOUS CAPITALISM
“Capitalism, done consciously, is the most powerful system for uplifting humankind to unimaginable levels of prosperity, peace, and happiness. This book identifies the forces of light and makes an impassioned plea for them. I can’t imagine better advocates than John and Raj.”
—Fred Kofman, author, Conscious Business
“In this wonderful antidote to the plethora of recent books on capitalism in crisis, Mackey and Sisodia set out a compelling and inspiring vision of a new form of values-based and purpose-driven capitalism. Essential reading for those who need persuading that the old ways of doing business will simply not suffice.”
—Paul Polman, CEO, Unilever
“I have long believed that companies have a responsibility to balance profitability with a social conscience, yet few leaders have an inherent understanding of just how to do it. In Conscious Capitalism, John Mackey and Raj Sisodia provide a timely, realistic framework so companies can better serve a variety of stakeholders. I highly recommend listening to what they have to say.”
—Howard Schultz, chairman, president, and CEO, Starbucks
“Conscious Capitalism is a welcome explication and endorsement of the virtues of free-enterprise capitalism—properly comprehended, there is no more beneficial economic system—and a simultaneously pragmatic and inspirational extolment of higher purpose and humanism in business. I hail and revere the tenets of Conscious Capitalism!”
—Herb Kelleher, former Chairman and CEO, Southwest Airlines
“This book provides the script for a much-needed different narrative for free-enterprise capitalism. Businesses need to be driven by a purpose higher than maximizing profit, and they must ensure optimal benefits to all stakeholders. Only if that happens can capitalism deliver to all humanity the full societal benefits it is capable of.”
—Ratan N. Tata, Chairman, Tata Sons
“By so clearly and thoughtfully articulating the tenets of Conscious Capitalism, Raj and John have helped me understand the power behind the sustainable success in our business, raising my consciousness in guiding REI forward to serve a new generation of outdoor enthusiasts and environmental stewards.”
—Sally Jewell, CEO, REI
“John Mackey’s journey to awakening is an inspiration not just to entrepreneurs, but to anyone who believes in a new definition of success for capitalism—one that includes positive societal impact as well as traditional business metrics.”
—Biz Stone, Cofounder and Creative Director, Twitter
LIBERATING THE HEROIC SPIRIT OF BUSINESS
CONSCIOUS CAPITALISM
John Mackey
Raj Sisodia
Harvard Business Review Press
Boston, Massachusetts
Copyright 2013 Harvard Business School Publishing Corporation
All rights reserved
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
Conscious Capitalism is a registered trademark of Conscious Capitalism, Inc., a nonprofit organization.
No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to [email protected], or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.
Library of Congress Cataloging-in-Publication Data
Mackey, John, 1954-
Conscious capitalism : liberating the heroic spirit of business / John Mackey & Raj Sisodia.
p. cm.
Includes bibliographical references.
ISBN 978-1-4221-4420-6 (alk. paper)
1. Social responsibility of business. 2. Business ethics. 3. Capitalism—Moral and ethical aspects.
4. Corporations—Moral and ethical aspects. 5. Social values. I. Sisodia, Rajendra. II. Title.
HD60.M28 2013
174’.4—dc23
2012025305
To my father Bill Mackey and to my wife Deborah Morin—the two people who have taught me the most in life.
John Mackey
To my children Alok, Priya, and Maya, and my nephews Shiva and Krishna: don’t fear the future, but welcome it with love, joy, courage, and optimism.
Raj Sisodia
CONTENTS
Foreword: Getting Capitalism Back on Track, by Bill George
Introduction: Awakenings
1 Capitalism: Marvelous, Misunderstood, Maligned
2 Conscious Capitalism and the Heroic Spirit of Business
PART ONE
The First Tenet: Higher Purpose
3 Purpose: The Corporation’s Search for Meaning
4 Discovering and Growing Purpose
PART TWO
The Second Tenet: Stakeholder Integration
5 Loyal, Trusting Customers
6 Passionate, Inspired Team Members
7 Patient, Purposeful Investors
8 Collaborative, Innovative Suppliers
9 Flourishing, Welcoming Communities
10 A Healthy, Vibrant Environment
11 The Outer Circle of Stakeholders
12 The Interdependence of Stakeholders
PART THREE
The Third Tenet: Conscious Leadership
13 The Qualities of Conscious Leaders
14 Becoming a Conscious Leader
PART FOUR
The Fourth Tenet: Conscious Culture and Management
15 Conscious Cultures
16 Conscious Management
17 Becoming a Conscious Business
18 The Power and Beauty of Conscious Capitalism
The Conscious Capitalism Credo
Appendix A: The Business Case for Conscious Capitalism
Appendix B: Conscious Capitalism and Related Ideas
Appendix C: Misconceptions About Conscious Capitalism
Notes
Acknowledgments
About the Authors
FOREWORD
Getting Capitalism Back on Track
This is the book I always wanted to write. As a committed capitalist, I worry a great deal to see how capitalism has gone off the rails the past quarter century and acquired such a bad name, much