Conscious business explained

Conscious business^[1] enterprises are those which choose to follow a multiple stakeholder approach, as opposed to 'traditional business' strategy, which focuses primarily on shareholders and profit maximation. In contrast, conscious businesses can be double-bottom line, triple-bottom line, or more, by focusing on other stakeholders (beyond shareholders) such as employees, customers, measurable positive societal impact, the community, or the environment.

The conscious capitalism movement in the U.S. emerged from the theory of corporate social responsibility, which pushes for a "values-based" approach where values represent social and environmental concerns both locally and globally. This effort is related to not-just-for-profit business models, conscious consumerism, conscious leadership, impact investing, and conscious capitalism. The conscious capitalism movement has grown to include Benefit corporations, which are now legal in 36 states, and impact investing, which has grown to more than $25 billion in assets under management. Awareness of the conscious capitalism movement grew from the Presidential campaign of Jason Palmer

There is an alternative way of thinking about conscious business emerging in the U.K., and perhaps other countries, which tries to avoid reification, regarding it less as a thing or a type of business which can be categorised, and more as an ongoing process including awareness, self-awareness, awareness of purpose, practice (social theory) and relationships.^[2]

In Italy, De Nardi Gianluca illustrates through the use of business cases how every company could adopt conscious business processes.^[3]

Conscious business criteria

Doing no harm

It is generally agreed upon that the product or service of a conscious business should not be intrinsically harmful to humans or the environment.^[4] However, it is possible for such a business to be taking part in the conscious business movement if it is taking conscious steps to be more aware of its social and environmental effects, and to adopt more beneficial social or environmental practices.

Triple Bottom Line Model

Most conscious businesses subscribe to a Triple Bottom Line model of success. They aim to provide positive value in the domains of people, planet, and profit.^[5] The phrase "Triple Bottom Line" was coined by business writer John Elkington in 1994.

Notes and References

Kofman, Fred (2006). Conscious Business: How to Build Value Through Values. Boulder: Sounds True.
http://www.amed.org.uk/page/welcome-to-e-o-p-winter-2013/ Pete Burden and Rob Warwick: Exploring Conscious Business Practice: Sensing as we act, reacting to what we sense
https://www.academia.edu/40307434/The_business_model_of_conscious_companies_The_EcorNaturaS%C3%AC_case/ De Nardi, Gianluca (2017), The business model of 'conscious companies' The EcorNaturaSì case. in M. Fasan and S. Bianchi in The sustainable company. Trends, tools and case studies, Ca’ Foscari University of Venice, pp. 129-158 (Italian version), English version 2019
Web site: Howes. Lewis. 5 Secrets to Building a BusinessWith Heart. Entrepreneur Magazine. 5 August 2014 . 17 April 2015.
News: Triple bottom line. 17 April 2015. The Economist. Nov 17, 2009.
Book: Sisodia, Rajendra. The healing organization : awakening the conscience of business to help save the world. Gelb, Michael J.. 0-8144-3981-0. New York. 1090842187.

Conscious business explained

Conscious business criteria

Doing no harm

Triple Bottom Line Model

See also

Further reading

Notes and References