PERUVIAN-AMERICAN CHAMBER OF COMMERCE OF CHICAGO: 6 Benefits of Conscious Capitalism for Your Small Business
Peruvian-American Chamber Of Commerce Of Chicago issued the following announcement on May 18.
More organizations want their work to make a difference beyond the bottom line. Here’s how it could benefit the growth and influence of your small business.
The idea of conscious capitalism isn’t exactly new, but it has gained an upsurge of traction in recent years due to increased consumer awareness of how the companies they support function behind-the-scenes. BBC News defines this term as the “moral approach to what is often seen as the ‘dirty business’ of business.”
So what does that mean precisely? Well to unpack this definition, conscious capitalism thinks outside a company’s own self-interests and factors social responsibility into the equation. Instead of fixating on just the bottom line, organizations who adopt a conscious culture show authentic concern for both people and the planet. They engage with their stakeholders, customers and community. They take an ethical stance on environmental impact. They rank purpose over profit. Moreover, they understand the value of connection and interdependence within this global economy.
Conscious capitalism is changing how the world does business, and more organizations are joining the movement for a simple reason — they want their work to matter. So if you have considered making the transition to a conscious capitalism model, here’s how it can benefit the growth and influence of your small business.
Increase Your Consumer Loyalty
Today’s consumers are informed about where the products or services they purchase originate from. And with this knowledge comes a gravitation toward companies who uphold sustainable and ethical business practices. In fact, based on results from the Cone Communications-Echo Global Report, 93% of adults surveyed worldwide demonstrate more trust and loyalty for an organization that is socially responsible, and 91% are likely to switch from a mainstream brand to the more conscious option, even if that means a higher price. This yields both a competitive edge and financial return-on-investment.
Fortify Stakeholder Relationships
Companies who maintain positive relations with their stakeholders — which can include anyone with a vested interest in the enterprise — are more integrated in the marketplace due to the strong networks they’ve built. From suppliers to partners to investors to clientele, organizations who practice conscious capitalism treat all these stakeholders as respected entities who contribute to the shared goals and long-term success. Instead of exploiting them as just another source of revenue, conscious businesses forge personal connections with their stakeholders and involve them in key decisions.
Boost the Morale of Employees
When they recognize the work they’re doing leaves an impression on society and isn’t just grinding for the corporate machine, employees tend to feel more productive, motivated and collaborative. According to the Trust Index Employee Survey, a meaningful and affirming workplace experience results in higher levels of performance. The organizations with the most consistent productivity are those who foster pride, camaraderie and intention among all members of the team. Employees want to know the “why” behind their roles, so when they’re part of a value-based culture, an enhanced work ethic follows. For example, at Valeo, our mantra is “Work Hard. Have Fun. Help Others.” and we engrain it in our day-to-day company culture — helping us to boost morale and retain top talent.
Grow Your Leadership Integrity
The corporate hierarchy might be familiar and conventional, but this rigid dynamic can restrict teamwork, creativity and goal orientation across all business functions. Becoming a conscious leader means not basing decisions on status or ego, but developing self-awareness instead. It also means being present and accessible, communicating from a place of emotional safety and compassion, actively listening to different opinions, delegating to others and reinforcing their strengths, embracing diversity and inclusion, and creating an environment of open dialogue where ideas are exchanged and objectives are shared.
Promote Community Engagement
The “ecosystem” of a business, so to speak, extends beyond just those working for the organization or consuming its deliverables — the entire community is affected by how a business conducts itself, which makes civic engagement so foundational. Companies that designate people as their central focus take on a relatable, human quality. The more direct interaction they have with members of their target demographic, the more brand recognition they’ll earn within that community. This authentic and personable course of action sends the message, “our company’s mission is to serve your needs.”
Create Sense of Higher Purpose
Striving toward a higher purpose outside the profit margin will inspire innovation and passion within all the sectors of business operation. Whether that purpose manifests itself through adopting green office solutions to reduce the carbon footprint, choosing ethical manufacturing to support humane factory conditions, being mindful of where supplies and materials are sourced from, or donating portions of the revenue to philanthropic causes, there are multiple ways to infuse that sense of purpose. This global approach shifts the business narrative from a one-sided “story of me” to a collective “story of us.”
Conscious capitalism is a holistic framework that keeps moral conscience at the heart of all business activities. It promotes the idea that companies should not exist for their own interests, but for the common good of society. And this model is not without its rewards — business leaders who practice conscious capitalism have the unique opportunity to earn income while making the world a safer, kinder and more sustainable place.
Ted W. Rollins is a seasoned real estate entrepreneur with more than 30 years of experience in real estate investment banking, development, structured finance, start-up businesses and construction. Rollins currently serves as the Founding Partner and Executive Chairman of Valeo Partners, a multinational, niche-focused, vertically integrated housing company with interests in the UK, Ireland, Scandinavia and the United States.
Original source can be found here.