GQR was founded with a commitment to conscious capitalism. We infuse that commitment into our culture at every step, from our work with New Story to our interactions with clients and job seekers. We are not lone crusaders in this mission; however: Companies in every industry and of every size are embracing the benefits of conscious capitalism. These include companies you might expect, such as Patagonia, New Seasons Market and TOMS. But you may be surprised to learn that companies such as JP Morgan Chase, BlackRock Financial Planning & Investment Management, KeyBank and The Container Store embrace conscious capitalism as well. Why are so many companies welcoming this business model? In short, because it works. Let’s explore:
What Is Conscious Capitalism?
At the core, conscious capitalism is the philosophy that capitalism can be a positive force for the world and that enterprise can be conducted in a way that benefits the business itself, along with its workers, its community and the environment. Instead of serving only profit as the Bottom Line, a conscious company serves the Triple Bottom Line: People, Planet and Profit. Furthermore, profit is still a key motivator, but it is not the only motivator. Conscious capitalist companies are still very much capitalistic at heart.
“We believe that business is good because it creates value, it is ethical because it is based on voluntary exchange, it is noble because it can elevate our existence, and it is heroic because it lifts people out of poverty and creates prosperity.” – From the Conscious Capitalism Credo
Why Should I Care About Being Conscious in My Business?
Your company, like GQR, is in business to earn profits for shareholders. So why take the time and effort to care about other stakeholders? Does that not hurt profits?
As it turns out, research over the past decade has reached the opposite conclusion: Companies who care about other stakeholders often grow larger and more profitably than the competition. As far back as 2013, Harvard Business Review found that companies that practiced conscious capitalism performed up to 10x better than their peers and competitors. Think of the high-profile companies we listed at the beginning of this article, all of which are very robust and profitable, and attribute this success to the Triple Bottom Line. There is a strong business case for being conscious!
Employees Stay With You & Are More Productive
Today’s employees search for more than just a paycheck from work: They seek meaning, social connection, advancement opportunities and intellectual stimulation. They want to feel like their work means something bigger than just money in the bank. Having a greater mission stimulates productivity, energizes workers, and keeps employees feeling like they are part of something good. A culture of being conscious, in short, is a huge motivator. The effects can tangibly be measured by fewer sick days, higher customer service ratings, and other benchmarks such as deadlines hit versus missed.
Consumers Demand Conscientious Companies
Gone are the days of “Business is business”: Over 76% of consumers are drawn to brands committed to quality ingredients, and across the globe, over 63% of customers will avoid a company that does not reflect their values. Consumers want to see evidence that the business is taking a conscious stand on protecting the environment (76%), treating workers fairly (65%), and improving the community (62%). These statistics are only growing over time. Perhaps this is why a study from 2006-2018 concluded that brands with a high sense of purpose saw a valuation increase of over 175% compared to the median 86% increase in valuation for all companies.
People Think More Highly of Conscious Brands
Brands with purpose-driven marketing scored 50% higher than average on brand equity surveys and were viewed as 75% more trustworthy than brands with transaction-driven marketing (read: features and benefits). And 90% of people have stronger emotional connections and more positive associations with a purpose-driven brand.
The Current System Is Untenable
An article on conscious capitalism in Forbes from 2019 explains how the legacy system of capitalism has benefitted only a few people and how unsustainable it has become. Even if you have a large, successful company, if everyone in the company and the surrounding community is cared for with needs met, it will be even better and more sustainable in the long run.
Conscious Capitalism at GQR
At GQR, we take conscious capitalism seriously by balancing the needs of our top-caliber clients and our hard-working and highly accomplished candidates. More than that, in the spirit of conscious capitalism we take great care of our talented and dedicated employees, we run initiatives to improve the community, and we continually work to preserve and enhance the environment. We have created a mission-driven culture with conscious capitalism as part of the core. Check out some of our volunteer initiatives, corporate social responsibility events, and employee wellbeing offerings!