While businesses have created value and lifted people out of poverty, something that even governments have failed to do, the level of trust among stakeholders in big businesses has plummeted, Raj Sisodia, professor Babson College and founder of the Conscious Capitalism movement said at the Hindustan Times Leadership Summit.
Speaking at a session, Conscious Capitalism-Beyond Making Business, Sisodia said businesses must chalk out a higher purpose for all stakeholders and create a conscious culture.
Conscious capitalism movement underlines the need for businesses to move beyond profits and create real value for all stakeholders including the civil society and government.
Sisodia pointed out that the world is fundamentally changing as people are becoming more mindful with a greater commitment to truth. “Businesses need to re-align themselves accordingly… value creation starts from employees,” he added.
“Business is not a machine, business is not a math problem, it is about real lives,” he said.
Walter Robb, co-CEO, Whole Foods Market added conscious capitalism was “a new way of thinking”. “Businesses need to have a reason, it needs to excite people,” Robb said, adding that capital market was essentially a short-term focus.
Sisodia, who is a professor of global business and Whole Foods Market Research Scholar in Conscious Capitalism at Babson College, added that leaders would play a significant role in driving companies. Conscious leadership and conscious culture would be pillars in creating a win-win situation,” he said.