The modern economic system is deeply flawed, with companies often prioritising the interests of their shareholders above those of employees, customers, and even the environment. This led to a number of negative effects like income inequality, climate change, water scarcity, and many others. Solving these problems will require leaders that follow the business philosophy of conscious capitalism and understand that all stakeholders must be considered in the decision-making process.
This concept was popularised in the book Conscious Capitalism: Liberating the Heroic Spirit of Business written by John Mackey, a co-founder of the grocery store chain Whole Foods, and Raj Sisodia, a professor of marketing at Bentley University. They advise businesses to become more than a profit-making machine, improving their philanthropic activities and caring for employees. A number of companies like Whole Foods, Starbucks, and Trader Joe’s have adopted these principles, as they also positively impact revenue.