The Hard Part of Leading a Conscious Company

You might have heard of conscious companies or of socially conscious investing, and you might even be wondering how to make your own organization more conscious. After all, these terms are gaining traction in many industries. They emphasize a wish on the part of consumers and investors alike to do business with those who improve our world even as they turn a profit.

The concept of being a conscious company has actually become trendy.  Millennials will take less money to work for companies who they believe have purpose beyond profits.  Unfortunately, many companies only serve their communities and/or donate to charitable causes because it helps them attract top talent and enhances their brand.  These companies are putting lipstick on a pig. 

What is a Conscious Company?

If this is the first time you’re hearing it, though, the phrase “conscious capitalism” was first made famous by the CEO of Whole Foods, John Mackey, and his co-author, Raj Sisodia.  Mackey and Sisodia define a conscious company as having:

1. Conscious leadership: Authentic managers who lead by example inspire loyalty. 

2. A stakeholder orientation: Take care of employees, customers, vendors, and your community, and they’ll take care of you.

3. Conscious culture: Develop a culture that is values-based, in which employees live those values every day.

4. A higher purpose: Create an environment in which employees can give to the greater good.

Focusing Inward to Build a Conscious Company

I’ve had the opportunity to build conscious companies and wholeheartedly agree with these four tenets. I’ve also listened to a number of speeches about creating purpose-driven organizations, in which employees can give back to the community and feel a greater depth of meaning in their lives. I’m inspired every time. These speeches make me want to get out there and change the world.  

But having been in the trenches, building companies from zero up to $100M in revenue, I know that there is heavy lifting to be done inside the company first. Before any company can be externally conscious, it first needs to become internally conscious. In the same way that you can’t fix others until you fix yourself, companies need to be aware of what they should care for and treat with respect within their own four walls before they can give back to their communities, much less the entire world.

To lead an internally conscious company, first ask yourself these questions:

• Are the managers at my company empowered and trusted to make key decisions without waiting for permission?      Do they understand the boundaries and guidelines involved in their decision-making?
• Are the processes, policies, and procedures at my company based on trusting good employees, or are they based on protecting the company from those who would take advantage of broad boundaries applied to, say, time and expense programs? If the former, what disciplinary actions are in place to deal with any troublemakers?
• Is my company’s compensation program designed to pay me only for my individual job metrics, or is it also based on my contribution(s) to the greater good of my team and the company overall?
• Have I been engaged in a conversation at work recently regarding our core values, specifically where we have succeeded or failed in living up to them?
• Do I feel that I am surrounded by people who believe in each other and feel connected to their coworkers?
• Are my company’s leaders authentic, self-aware, and transparent?

If the answer to any of these questions is no, then it’s time to zoom out and answer a bigger question: What is my company’s purpose? What is its higher calling? 

The Devil Is In The Details

You see, having purpose isn’t just a box to check off of some chief culture officer’s list. It is not a bolt-on to the benefits plan. Having purpose IS your culture, and it can only exist within an organization committed to weaving it throughout its every process. This heavy lifting is critical to creating the kind of environment and culture that you can be proud to project to the outside world.  

 The devil is in the details. Your purpose needs to be integrated into everything, from your org chart to your office layout, from compensation to HR policies, quality and performance reviews, and you will need everyone to be on board. When your company’s purpose is at the heart of everything you do, it all ties together. In aggregate, these purpose-driven processes and programs create the kind of culture that allows a higher calling to reside within the core mission of your company.

This is where the rubber hits the road. This is the hard stuff.

I'd love to hear your thoughts on this topic.  What are you seeing in the market?  Agree or disagree?  Feel free to share your opinions.