If there was one session that entertained, humbled and inspired this was the one.
I have a bit of a podcast fetish and sometimes I come across a podcast that is so riveting and thought provoking I get goose bumps. This session was one of those moments when I had goose bumps the whole time. When you get the feeling that all the pieces are there to move the world radically towards sustainability and social justice all we just need to start to connect the pieces.
The organization was moderated by Shubhro Sen the Executive Director of the Conscious Capitalism Institute. The CCI is very cool institute that looks at how business is more than just an institution for generating economic profits. The 3 speakers were Rajendra Sisodia, Thomas Gladwin and Mark Albion.
Rajendra Sisodia
Rajendra is one of the authors of the book Firms of Endearment. His talk centred on many of the themes of his book how companies profit more from pursuing passion and purpose than pursuing profit alone.
He outlined the disillusionment with the current capitalist system. In 2007, more money was spent on marketing than 85% of the incomes of the world’s population and only 16% of people trust large businesses. He then presented the idea of conscious capitalism, which is:
- Aspiring to a higher purpose
- Stakeholder orientation
- Conscious leadership
- Conscious culture
Companies that embody these characteristics outperform the market 9:1.
Whole Foods is one example of a conscious company. The gap between CEO and the lowest paid employee is capped at 19:1. Executives only receive 7% of the stock options made available while it is typically 75% with fortune 500 companies.
The biggest takeaway for me from his talk was his statement that “it matters what we call great, it is what people aspire to.”
Thomas Gladwin
Tom did not share the optimism of Raj. As a socialist he outlined how the capitalist system is an interconnected web and therefore is extremely difficult to overhaul. He outlined how capitalism almost dehumanizes us.
Stocks are predominantly owned by financial institutions not people. I think this statement deserves some reflection. I think one of the main problems of managing for shareholders is that usually they are so disconnected from the business that they “own” as it operates outside of where they live but this is one step further detached. When I think of mutual funds I am likely part owner of several companies. Do I own Lockeed Martin? Philip Morris? BP? How detached have we become from capitalism where we can condemn the actions of these companies without even realising that we own them.
Tom said that by the time a student reaches one of his courses he or she has been subjected to 11 months of 24 hour-a-day advertising where the message is buy. Buy to be happy, buy to be cool, or buy to define you.
Mark Albion
Mark was the final speaker. He is a former professor at Harvard Business School and one of the founders of Net Impact. To close off I wanted to leave you with a few quotes that I think are worthwhile to ponder.
- “Focus on the actions not the outcomes”
- “Companies should look at stake options and not stock options”
- “If you want to be taken seriously, you must perform and add value”
- “You cannot pursue a life of happiness; happiness ensues from a life of higher purpose”
When looking at the environmental and social problems facing us, it is clear to see that it time for new models and new perspectives. We are interconnected to each other and our environment. The sooner we can recognize that the better.
