Why now
“When the dust settles from this Armageddon, the only companies left standing are going to be the ones that stand for something that improves people’s lives.”
—Roy Spence, CEO, GSD&M Idea City, co-author, It’s Not What You Sell, It’s What You Stand For
Business today needs a new paradigm, because “business as usual” is just not working anymore. Environmental consciousness is exploding; public distrust of business is at an historic high; many employees and customers are disconnected from the companies they work for or buy from; suppliers feel squeezed; communities often organize to keep certain businesses out. The traditional approach to business is like an old operating system that is no longer adequate and needs to be replaced. It is becoming increasingly evident that the old operating system of capitalism is simply not up to the demands being placed upon it in the new millennium.
At the same time that its reputation is deteriorating, the reach and impact of business in the world is growing. Business today has greater power than ever before to enhance or to diminish overall well-being in society. As its power and influence grow, so too must its sense of responsibility and stewardship.
The choice of the term “conscious capitalism” has been made after considerable thought. We believe this term best captures the depth and complexity of the changes in the business-operating model that are needed. It reflects the fact that more people today are at higher levels of consciousness about themselves and the world around them than ever before. This is due in part to natural evolution, but also to the rapid aging of society, which has resulted in a higher proportion of people in mid-life and beyond, when consciousness is raised and higher-level needs predominate. The advent of the Internet has accelerated and cemented this trend, simultaneously connecting hundreds of millions of people and placing great demands for transparency on companies.
Transforming the model for business will engender conditions for government and communities to support innovation in business, leading to increased value creation.