One fascinating application of happiness principles is “Conscious Capitalism”, a movement among organizations that believe that business is more than making a profit and that investing in the good is good for business.  Conscious capitalism dovetails with two important principles of happiness studies:

• The importance of purpose and
• Systems thinking.

What is Conscious Capitalism?

Conscious Capitalism was first described by John Mackey, the cofounder of Whole Foods Market and Raj Sisodia, professor of marketing at Bentley University, co-authors of the book, Conscious Capitalism: Liberating the Heroic Spirit of Business (HBR Press, 2013) and co-founders of the nonprofit, Conscious Capitalism, Inc.

For them, conscious capitalism means the following:

• A reframing of capitalism as “the co-existence of free markets and free people, or economic and political freedom.

• And conscious as “being mindful and awake, seeing reality as it is rather than as we wish it to be, recognizing and being accountable for all the consequences of our actions, having a better sense of what is right and what is wrong, rejecting violence as a way to solve problems and being in harmony with nature.”

Conscious capitalism is based on four principles:

• Higher Purpose:

The start of conscious capitalism is knowing your organization’s WHY so that you stay true to your purpose.  These organizations believe that:

Businesses should exist for reasons beyond just making a profit. We see profit as a necessary means to achieving your purpose—not as an end in and of itself.  In fact, they posit that a business must “elevate humanity” through its higher purpose.

• Stakeholder Orientation:

Conscious capitalism recognizes “the interdependent nature of life and the human foundations of business”.  Thus, an organization needs to create value for all stakeholders, not just shareholders, These include its customers, employees, vendors, investors and communities.

• Conscious Leadership:

Leaders of organizations that adhere to conscious capitalism

“understand and embrace the Higher Purpose of business and focus on creating value for and harmonizing the interests of the business stakeholders. They recognize the integral role of culture and purposefully cultivate Conscious Culture.”

• Conscious Culture

Companies need to be intentional about developing a culture based on purpose and values.

Examples of companies that adhere to these principles can be found in many sectors, ranging from large organizations like Patagonia, Hyatt Hotels, Costco and Trader Joe’s to smaller, entrepreneurial ventures. 

https://www.consciouscapitalism.org/our-leaders

The benefits of conscious capitalism.

Conscious capitalism has multiple benefits:

• Socially-conscious business are seen as trustworthy, which can enhance customer loyalty.
• Employees at these organizations are more engaged, productive and provide better customer service.
• Business that practice conscious capitalism are better community partners and enhance the quality of life of their communities.
• Socially-responsible investing and ESG practices are increasingly popular.

https://www.fool.com/investing/stock-market/types-of-stocks/esg-investing/conscious-capitalism-companies/

Conscious Capitalism and Purpose:

What makes conscious capitalism so powerful and transformational as a new business model can be summed up with "purpose." A conscious business aims at solving an important societal or environmental challenge. Profits, therefore, become the fuel for the mission and not an end in itself. https://www.forbes.com/sites/forbesbusinesscouncil/2021/11/12/how-to-unleash-the-full-potential-of-conscious-capitalism-values-habits-and-purpose/?sh=3334f100194d

Indeed, as Mackey recently commented:

I think shareholder value, it's like happiness. If you pursue happiness in life, you probably will not experience it. Happiness is something as a byproduct of purpose. I think profits are an indirect result of creating value for other people. So the purpose of the business comes from the value creation that you're doing in the world.

Conscious Capitalism and Systems Thinking:

Systems thinking is also at the heart of conscious capitalism.  First Union Bank, a conscious capitalism organization, has described the importance of focusing on the interdependence of stakeholders:

“Businesses employing a stakeholder mindset understand that their business wouldn’t thrive without stakeholders. This understanding creates an ecosystem of interconnected groups where the business operates consciously, considering its entire business ecosystem, and works to maximize value for all stakeholders to ensure long-term success.:

In short:

Companies that have a clear sense of purpose, see their organizations and stakeholders as interconnected and valuable parts of the same system create value and meaning for all stakeholders including their employees, their customers, their suppliers and ultimately, shareholders.

For happiness journeyers, conscious capitalism provides evidence that doing good for society benefits us all and serves as a model for a better world at a time when the world is in crisis.