It’s time for a new paradigm for business. The current unemployment number stands at 40 million Americans.
Moreover, women, minorities, and low wage workers have been disproportionately impacted by the downturn. National unemployment at 14.7%. It’s 16.7% for Blacks and 18.9% for Hispanics. While women are less than half the workforce, 55% of women are now unemployed. A shocking 40% of workers with household income under $40,000 are now unemployed. This isn’t surprising. It simply shines a spotlight on the systemic inequities.
We need a new paradigm for business. One that corrects the systemic inequities that have been in place since the dawn of capitalism. It’s time for Adam Smith’s vision for capitalism to finally come to fruition. The good news is that there’s a proven model we can use to shift the paradigm. That model is called conscious capitalism.
Conscious capitalism is based on four tenets:
- Higher Purpose. Conscious companies have a purpose beyond profit. In fact, they’ve seen that profit is the natural outcome of business operating from its higher purpose. Their core values are what drives them. They walk their talk. Culture immensely determines their value
- Conscious Leadership. We believe that a company can only be as conscious as the least conscious of its leaders. Therefore, at conscious companies, leaders are committed to building emotional intelligence. They live from their values. They understand and work with systems intelligence. And they understand spiritual intelligence, regardless of their faith.
- Stakeholder Orientation. Conscious businesses take all stakeholders into consideration when they make decisions. They consider shareholders, but they also think about employees, supply chain, and more. A stakeholder is anyone or anything impacted by the business.
- Conscious Culture. It may seem like a conscious culture arises naturally from executing the other three tenets. But it still takes work. Creating a culture isn’t a “one and done” kind of thing. Your company’s culture is a sentient thing. It requires nurturing. That’s never been more true than it is right now. Especially with companies that have decided that remote work will be a more permanent thing.
Why is it time for a new paradigm in business? Three key reasons emerge:
Firstly, we need a new paradigm in business to solve the systemic inequities currently in place. We need to focus on the long term because the time for short term gains at any cost is over. Between 2040 and 2050, the US will no longer be a majority white country. In many parts of the US, that’s already a reality. If we don’t solve the inequities in the system, it will collapse.
Think about what will happen to the economy when the majority of people are Black and Brown. Minorities have historically and currently held significantly less wealth than white people. It’s more difficult for them to get loans. It’s more expensive for them to buy houses. With less wealth comes less consumption. Consumption drives the GDP. Frankly, it serves everyone’s best interests to raise up the economic condition of minorities.
Secondly, in a word: millennials. They are coming into control of the largest pocket of wealth we’ve ever seen. $1.4 trillion is coming into the hands of millennials. They vote with their wallets. Consequently, they buy from companies whose values are aligned with their own. They care about the planet and believe the science about climate change. As a result, they’re doing something about it. And they expect the companies they support to chip in and help.
Lastly, it’s a good business decision. Conscious companies outperform the S&P500 by 10-14 times, depending on what study you look at. Purpose driven companies outperform the S&P500 by 15 times. What’s more, is that employees at conscious companies are 33% less likely to leave. Turnover has a high cost, approximately 133-140% of salary. Lower turnover leads to higher profits.
In any case, we believe that companies that continue to operate as “business as usual” will cease to be relevant in the next 10-20 years. This isn’t a bandwagon you can afford to miss. Ask us how we can help.
About NextGen Orgs
Johanna Lyman is the Founder and CEO of NextGen Orgs. She is a Leadership Consultant and Executive Coach with over fifteen years of experience in implementing organization wide change strategies for both Fortune 500 companies and Small Businesses.
At NextGen Orgs, they use a combination of unique delivery methods and processes that crack the code on establishing lasting organizational behavior changes in a relatively short period of time. Their proprietary and