Conscious Capitalism: Case Study

Businesses, specifically larger corporations, play a major role in what occurs in society therefore, they are responsible to their stakeholders not only to pursue economic goals but the greater social good as well. Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. (Lawrence, 2010). Social responsibility is becoming the norm so much so that some businesses have incorporated it into their business model. There are three components of the bottom line of social

I will be comparing the corporate social responsibility (CSR) of Whole Foods and Trader Joe’s. Social responsibility means that a company invests in communities, protects the environment, pays their taxes, provides equal treatment, provides adequate health care, etc. CSR is an act of maturity, where companies feel obligated to give back to those who assisted them in their success. A company needs both the employees and customers to be satisfied. Hence, companies feel obligated to give back to their community; a practice of appreciation and sympathy. I will begin with talking about the background of each company, followed by the employees, investors, customers, and environment.

John Mackey, Cofounder and Co-CEO of Whole Market, Believes in "Conscious Capitalism" (pp. 29 & 30)

Helm, B. (2013, April 12). WFM' John Mackey calls for a new kind of conscious capitalism . Retrieved January 17, 2016, from http://www.inc.com/burt-helm/john-mackey.html

Corporate social responsibility refers to business’ responsibility to act ethically and consider their impacts on the community and environment. Corporate social responsibility looks into more what the company wants to achieve and sustainability looks at how they will achieve this. They do however tend to focus on two different things, sustainability looks at a more forward-facing focus, usually with targets to meet and maybe how they will do this. Whereas corporate social responsibility looks backwards at performance as a review of what they have done right and what could have been improved. Both works together in that they understand that the context, community and environment in which a business operates is vital to that business’

Corporate social responsibility (CSR) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism that has business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered stakeholders. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines

The following is an analysis of information gathered from an interview with John Mackey, CEO of Whole Foods Market and coauthor of “Conscious Capitalism”. The objective of this analysis is to discuss the higher purpose of business. During the interview, Mackey offers his ideas on creating value for all stakeholders of an organization, not just the investors. Next, he explains how being more conscious in business will ultimately create a “win, win, win” scenario. Additionally, the differences between corporate social responsibility and conscious capitalism are clarified. This analysis will also describe the benefit of a balance between government regulations and the ideals of laissez faire business. Lastly, the following analysis will elaborate on the author’s suggestion that conscious businesses will outperform others in the 21st century.

Corporate social responsibility (CSR) refers to business practices involving initiatives that benefit society (2). CSR may also be referred to as "corporate citizenship" and can involve incurring short-term cost that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change(1).

According to Anderson (2015), organizations with no consciousness are outperformed by those companies who want to do business with some thought toward what is right and altruistic. Anderson (2015) identifies four key principles of Conscious Capitalism, which include:

1. My church is set up very similar to a capitalist business in many different ways. One of these ways is we take collection every Sunday. I see taking collection as similar to how the government taxes. We use the collection in the church to keep it running and make improvements, just as the government uses our taxes. If the church needs something fixed or wants to renovate, they use the money collected in collection. The church also uses this money to pay for utility bills, and to pay the pastor and any other paid positions in the church. Another way my church is similar to a capitalist business is, before making any major decisions concerning money, it is first run by the board to receive approval. They then discuss the pros and cons of spending the money, and then they vote.

Umair Haque, a next-generation economic thinker, has published a thought-provoking “New Capitalist Manifesto: Building a Better Business.” The premise of the book is that capitalism as a system has run away with itself, but it needs not to be abandoned. The theoretical or conceptual framework from its birth (industrial era capitalism) just needs upgradation. New capitalism could be, what Haque calls “constructive capitalism.” According to author, Capitalism as it’s functioned for last few decades is morally bankrupt and, more importantly, no longer works. Capitalism needs to be reinvented. And, in its new shape, it will help power a new generation of growth – but in a sustainable and long-term manner. This book, as a manifesto, outlines what needs to be done to ensure that this transformation occurs.

John Bogle, in his article Democracy in corporate America, defines capitalism in two different ways, owner’s capitalism and manager’s capitalism. According to Bogle, owner’s capitalism is defined with the idea that purpose of a business or corporation is to make a profit. Manager’s capitalism, Bogle notes, is defined by William Pfaff with the idea that “the corporation came to be run to profit its managers, in complicity if not conspiracy with accountants and the managers of other corporations” (Bogle, p. 26). These two definitions of owner’s capitalism and manager’s capitalism provide great insight about today’s corporate America.

Currently, the public right is getting more and more people to recognize in order to create a fair society. Not only the right to have fair trade, but also the opportunity to access the natural environment are the issues that people are care for. Corporate Social Responsibility(CSR) is a fame that encourages the company to consider the environment, financial and social issues into all their work of operations. Pret A Manger and Burgerville are the famous fast food company around the world. They also have high reputation to be excellent CSR company as they have done a lot for our community, environment and their employees, as well as the quality of food. There are some similarity and difference

Different scholars and professors have defined CSR or Corporate Social Responsibility in many ways. Generally, CSR includes the responsibilities that businesses hold towards the societies they carry their operations in (Cadbury, 2006). The European Commission defines CSR as “a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment.” A more specific definition of CSR explains that businesses must identify their stakeholder groups and understand their needs and values and take those values into their operational and strategic decision making process (Cadbury, 2006).

The concept of CSR was initiated in the 1950’s in USA but it became established in early 1970’s. That time USA was facings social problems like Poverty, pollution and unemployment, also the huge fall in prices of Dollar. During 1980’s to 2000, corporations recognised and started accepting a responsibility towards society. Corporate social responsibility (CSR) is to focuses on the wealth creation for the optimal benefit of all stakeholders – including employees, shareholders, environment, customers, environment and society. CSR refers to the