Conscious Capitalism summary

Over the last 200 years, free-enterprise capitalism has created extraordinary prosperity and innovation that has transformed life for billions of people. In just two centuries, businesses and entrepreneurs have helped increase global per capita income by 1,000 percent and the average life expectancy has risen from 30 to 68 years. Capitalism has enabled billions to earn a living and find meaning by creating value for others.

Despite these achievements, capitalism has earned little affection. It’s often vilified as exploitative and blamed for problems like inequality, community fragmentation, and environmental degradation. The reputation of business has suffered as a result. For example, Americans’ confidence in big business had declined from 34 percent in 1975 to just 19 percent by 2011.

Why this disconnect? A root issue is that too many businesses operate with low consciousness about their true purpose and impacts. In a narrow pursuit of profits, some companies have caused unintended negative consequences for people, communities, and the planet. Many businesses fail to recognize their significant environmental and social impacts, treating these as externalities.

Within companies, symptoms of dysfunction abound, like low employee engagement, stagnant wages contrasted with exorbitant executive pay, and lack of workplace solidarity. It’s understandable that the reputation of business has suffered.

That’s why we need better business practices: the path forward is to operate with greater consciousness of purpose and impact. Conscious leaders deliver value to all stakeholders – treating employees, partners, customers, and communities not as merely means to an end, but as ends in themselves. They build trusting relationships and understand the human elements of business, like creativity, collaboration, and a sense of higher purpose. Conscious businesses seek to create financial, intellectual, social, cultural, emotional, spiritual, physical, and ecological wealth. They have a deeper purpose that goes beyond short-term profits.