Conscious Capitalism: 7 Mistakes Founders Make And How You Can Get It Right

Picture this: you've built a company that stands tall in your industry. But as you shift towards a more Conscious Capitalism focus, you realize that integrating these principles is complex, full of unexpected challenges. The desire to create a business that balances profit with purpose is noble, but the path is often fraught with pitfalls.

Conscious Capitalism represents a seismic shift in how businesses operate. It’s a philosophy that demands more than just a shift in strategy; it requires a deep, systemic change. If you’re committed to this journey, understanding and avoiding common mistakes is crucial.

Let’s explore these pitfalls together and ensure your efforts translate into meaningful, lasting impact.

Mistake #1. Misalignment Between Purpose and Practice

When Purpose Becomes Just a Buzzword

Of course, purpose sounds awesome in theory, but it’s the execution that counts. Too many companies declare a higher purpose without weaving it into their daily operations.

Needless to say, this disconnect can quickly erode trust and authenticity.

Solution:

First - it's important that the Founder gets super clear on their own purpose as well as what I call their 'Supernatural Genius'. And - their most up-to-date version of that, as our purpose can change over time.

The company and the founder need to be in alignment. Without that alignment, its a recipe for failure. Thie 'Supernatural Genius' process goes beyond Ikagai and the Golden Circle. Beyond Human Design, Gene Keys and Astrology too.

It's a comprehensive process of identifying and awakening their Divine Blueprint - or their instruction set for life. (you can read more about it here)

Once the founder is clear, it's time to articulate the company's purpose AND higher purpose (there's a difference).

Next - ensure your purpose is reflected in every aspect of your business operations. Regularly audit your practices to ensure they align with your stated values.

"Purpose-driven companies attract the best minds, the most passionate employees, and the most loyal customers." — Raj Sisodia, co-author of Conscious Capitalism.

Raj Sisodia on LinkedIn

Mistake #2. Overlooking Stakeholder Engagement

Focusing on Profits at the Expense of Stakeholders

"Your brand is what people say about you when you’re not in the room." — Jeff Bezos, highlighting the importance of stakeholder perception.

Many founders still prioritize shareholder returns over broader stakeholder value, missing out on the holistic benefits that Conscious Capitalism can bring.

Simply - the more involved they are in the process, the more ownership they take, the more engaged they are, the more of an impact you'll have, and the more money you'll make.

In some camps, there's still the notion that purpose and profit don't mix.

Solution:

Engage regularly with your stakeholders, understanding their needs and integrating their feedback into your decision-making process.

King Arthur Baking Company is a great example. They are an American company known for its high-quality baking products, including flour, baking mixes, and ingredients. And it’s deep connection to their stakeholders has baked in some extraordinary results (pardon the pun ;-):

1. Sustainably Sourced, Uncompromising Quality: By handpicking ethical ingredients, they’ve cultivated a brand that stands for purity and integrity, drawing in customers who crave authenticity and trust in every bite.
2. Happy Employees, Thriving Business: Their unwavering commitment to employee well-being and growth fuels a workforce that’s not just satisfied, but passionately engaged, driving the company forward with energy and purpose.
3. Education That Inspires: Through their baking classes and resources, King Arthur isn’t just selling products—they’re sparking creativity and building a community, cementing their role as the go-to guide in the baking world.
4. Unshakeable Market Leadership: Their all-in approach, rooted in values and vision, has carved out a place at the top, earning them fierce brand loyalty and admiration in a crowded market.
5. Impact That Resonates: With every sustainable choice, they’re not just making a difference—they’re amplifying it, creating ripples that resonate with consumers who care deeply about the world they live in.

So - question for you...

What can you do today to involve your stakeholders in your conscious capitalism plans?

Next we have ...

Mistake #3. Ignoring the Power of Conscious Leadership

Leading from the Top—or Not Leading at All

Leadership is the driving force behind Conscious Capitalism. Without it, the principles can fall flat. Founders often forget that conscious leadership isn’t just about setting goals—it’s about living the values they promote.

Here's a great example of that ...

Tony’s Chocolonely has set a powerful example by embedding their mission to eradicate slave labor into the very leadership structure of the company. The leadership team embodies transparency and ethical practices, making their mission resonate on all levels.

Solution:

It all starts with the founder and their level of consciousness, their approach to self-transcendence, their level of alignment with their own purpose and core values (as well as the company's) and how they approach leadership.

It starts with emphasizing conscious leadership by fostering transparency, ethical decision-making, and empathy within your leadership team.

Digging deeper, it also involves:

• Clarify your Higher Purpose Blueprint or Divine Blueprint
• Dig deep to clarify your Supernatural Genius (superpowers) - not just Ikagai or Golden Circle (although they are both useful) but multi-dimensionally, cosmologically, and morphogenetically too
• Clarify and embark on their unique path to Self-Transcendence (it's different for everyone)
• Identify the business model and leadership style that they are most aligned with
• And employ 'enlightened leadership' principles.

: "Leadership is not about being in charge. It’s about taking care of those in your charge." — Simon Sinek, emphasizing the essence of conscious leadership.

Simon Sinek on LinkedIn

Mistake #4. Failing to Integrate Conscious Culture

When Culture Eats Strategy for Breakfast—And Not in a Good Way

"The only way to do great work is to love what you do." — Steve Jobs, reminding us that passion is the cornerstone of a strong company culture.

While strategy outlines where you want to go, culture determines how you get there. Many founders underestimate the power of culture in sustaining the values of Conscious Capitalism.

Tony Hsieh, the late CEO of Zappos and author of the book Delivering Happiness, understood this deeply. He transformed Zappos into a company synonymous with exceptional customer service by cultivating a culture centered on core values like empathy, passion, and fun. Hsieh’s approach didn’t just help achieve strategic goals; it built a company where employees thrived and customers felt genuinely valued. His legacy continues to inspire entrepreneurs to prioritize culture as the foundation for long-term success.

Solution:

Read 'Delivering Happiness' if you haven't yet had the chance. Then - nurture a conscious culture by embedding your values deeply within the organization, ensuring they are reflected in every decision and action.

5. Neglecting Long-Term Vision for Short-Term Gains

Sacrificing Tomorrow for Today’s Profits

In the race for quick profits, long-term vision often takes a backseat. Founders who focus solely on immediate returns risk compromising the sustainability and ethical foundations of their businesses.

New Belgium Brewing Company exemplifies the power of long-term thinking. Their commitment to sustainability and employee ownership has fostered a thriving business that stands the test of time.

Solution:

Maintain focus on long-term value creation by setting goals that align with your company’s purpose and ensuring that short-term decisions support these objectives.

"Success is not the key to happiness. Happiness is the key to success." — Albert Schweitzer, underscoring the importance of long-term fulfillment over short-term gains.

Mistake #6. Lack of Measurement and Accountability

What Gets Measured, Gets Managed

"Measurement is the first step that leads to control and eventually to improvement." — H. James Harrington, stressing the importance of tracking progress.

Setting lofty goals without measurement and accountability systems can render them ineffective. Founders need to track their progress and hold themselves accountable to ensure their Conscious Capitalism initiatives lead to real impact.

Solution:

Implement robust measurement systems that track not only financial performance but also social and environmental impact. Regularly review these metrics to stay aligned with your purpose.

The KPIs to measure will depend on the size and nature of your organization. Here are some that might give you inspiration.

• Employee Engagement and Satisfaction (eNPS)
• Customer Net Promoter Score (NPS)
• Corporate Social Responsibility (CSR) Score
• Community Impact Score
• Purpose-driven Revenue Growth

Mistake #7. Underestimating the Power of Community

Going It Alone When You Don’t Have To

Building a business on Conscious Capitalism principles is most effective when done in community. Founders who isolate themselves miss out on the collective strength and wisdom that a community can provide.

Solution:

Create Strategic Partnerships:

• Join the B Lab and Certified B Corporations community to collaborate with companies committed to social and environmental impact.
• Connect with Conscious Capitalism chapters to engage with leaders dedicated to ethical business practices.

Engage and Empower Your Community:

• Build a branded community on Mighty Networks, fostering customer connection and idea-sharing.
• Utilize LinkedIn Groups for discussions on sustainability and ethical practices.

Support Local and Global Causes:

• Partner with 1% for the Planet to align with environmental initiatives and connect with like-minded businesses.
• Engage with the U.S. Chamber of Commerce to support community initiatives.

So - as you reflect on your own practices, consider how you can better integrate the principles of Conscious Capitalism into your business. Let’s continue the conversation—share your thoughts, challenges, and successes in the comments, and connect with me for more insights on building businesses that matter.

ABOUT THE AUTHOR:

Kristina Elphinstone (formerly Mills)

• Founder - Higher Purpose Movement
• Founder - The Marketing Powerhouse
• Founder - Toroidal One Consciousness Expansion Clinic

Kristina is passionate about helping founders build enlightened enterprises that are the ultimate expression of their highest purpose and genius in this lifetime. Kristina has a rich and unusual mix of skills including three decades as a veteran direct response marketer and copywriter, human behavior and neuroscience expert, executive advisor, business advisor, combined with her esoteric skills as an intuitive, multi-dimensional healer, and shaman.

Services Offered:

• Divine Blueprint and Supernatural Genius Mapping - beyond Ikagai, Golden Circle, Astrology, Gene Keys, or Human Design.
• Holographic Personal Branding - terrestrial and other dimensional.
• Purpose-Driven Business Coaching and Private Consulting
• USP Differentiation Intensive
• Marketing Automation and Strategy Development
• Executive and Business Intuition Coaching
• Spiritual Mentoring for Founders

These services are designed to empower entrepreneurs to create a meaningful impact while achieving exponential growth aligned with their soul's purpose.

For more information visit me at KristinaElphinstone.com

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