100%(3)3 out of 3 people found this document helpful
This preview shows page 1 - 4 out of 9 pages.
Running head: CONSCIOUS CAPITALISM 1Conscious Capitalism Unit 1Assignment Joseph Gills Purdue University Global GB601 Capstone Dr. Ilene RinglerJune 28, 2020
Conscious Capitalism Conscious Capitalism Conscious capitalism is based on the idea that businesses should operate ethically, and focus on the interests of all stakeholders. It is a philosophy that is centered on the beliefs that a business can enhance performance while, at the same time improve the quality of life for all its stakeholders. It was founded by John Mackay and Raj Sisodia. Conscious capitalism is characterized by four interrelated principles: A higher purpose, stakeholder orientation, consciousleadership, and conscious organisational culture (Legault, 2012). These principles are usually applied to business. However, what if they were applied to governments? This paper will discuss the four principles of conscious capitalism and how they may relate to operating government as a business. In addition, this paper will analyze three countries: Netherlands, Brazil, and India in efforts to reach a conclusion based, in part on conscious capitalism, as to which countries would be a smart choice to expand a fictitious business. Finally, a recommendation of which country to expand into will be presented. Principles of Conscious Capitalism A higher purpose essentially indicates that businesses should not only focus on profits, but be a conscious organization that focuses on both purpose and profit, and engages all stakeholders. These stakeholders include customers, employees, investors, suppliers and the community (Legault, 2012). Stakeholder orientation reveals the need to not only focus on the shareholder’s return on investment, but to focus on the whole business ecosystem. By focusing on the whole business ecosystem it creates value for all stakeholders, which leads to sustainable business. It is important, when applying the concepts of conscious capitalism, to realize that without all stakeholders there is no business (Maldonado, 2015). By focusing on the engagement of all 2
Conscious Capitalism stakeholders, the organization can achieve competitive advantage through being viewed by all stakeholders in a positive way, a place people want to work, and a business where consumers want to be involved. It can help draw customers and also allows the opportunity to realize the needs of all, including the community in which it operates. Conscious leadership refers to the ability of the leader to view their role as serving the organization, supporting the people, and creating value for all stakeholders. The conscious leader will see the need for a culture of trust and care, be inspirational, and be able to motivate and influence others in ways that create value, which ultimately creates profit (Maldonado, 2015).