Conscious Businesses

Conscious businesses typically operate with low levels of employee turnover, thus saving on new employee hiring and training. For example, REI is passionate about reconnecting people with nature, and all of its employees are outdoor enthusiasts for whom every day at work is fulfilling because they get to share their passion with customers and help them explore nature.

Conscious businesses typically have to spend very little on marketing. This is because they have satisfied customers who are loyal and passionate advocates for the company. Whole Foods explains: “We want to meet or exceed customers’ expectations on every shopping trip. We know that by doing so we turn customers into advocates for our business. Advocates do more than shop with us, they talk about Whole Foods Market to their friends and others.”

Conscious businesses are very selective about their suppliers, looking for innovative, quality-focused companies that also operate in a conscious manner. Conscious companies that are positioned at a higher point in the price spectrum still offer value to customers, because of the quality of their offerings and the level of service experience that they provide. Examples of such companies include Whole Foods, The Container Store, and Starbucks.

Conscious capitalism is a comprehensive philosophy of doing business.

Conscious businesses have lower administrative costs because they continuously strive to eliminate additional expenses, gathering ideas from their employees and suppliers about how to do so. For example, Whole Foods Market is combating rising healthcare costs through a range of comprehensive employee wellness initiatives that go beyond what could be find at a typical company.

Conscious companies typically operate with much leaner management structures than do traditional businesses. They have created systems in which employees are given autonomy. Most employees operate in the “value zone,” where they are actively creating value for customers rather than “managing” each other. As such conscious businesses are designed to be self-organizing, self-motivating, and self-managing.

Although the conscious capitalism movement offers a holistic approach to understanding the role of business in society, it has received some criticism. Opponents argued that conscious capitalism is an oxymoron and question the ethical ground for capitalism. See O’Toole and Vogel (2011) for a comprehensive discussion of the shortcomings of conscious capitalism