What Is Conscious Business? Definition, Benefits & Why It Matters

Research confirms it: This sustainable, forward-thinking way of doing business is good for people, the planet — and profits, too.

What Is Conscious Business?

As the co-founder and former CEO of Conscious Company Media, one of the most common questions people still ask me is, “What even is conscious business?” And my answer always starts out fairly disappointing with, “Nobody really knows!” Then I go on to explain that the reason there is so much confusion around conscious business is because there is no agreed-upon definition in the conscious business industry. 

That said, after studying all of this for the better part of a decade and interviewing over a thousand conscious business leaders, I have my own take on what conscious business is and isn’t.

The Definition of Conscious Business

In general, a conscious business is a company that does no harm, has a holistic awareness of the impact of its actions, continually strives to do better, and addresses at least one social or environmental problem through its business model or operations. Taking all of this into account, my personal definition of conscious business is an organization that:
✔️ Is led by a conscious leader
✔️ Takes all stakeholders into account (not just shareholders)
✔️ Has a higher purpose beyond profit

It’s Not Just a Company With a CSR Initiative

I can also clearly say that a conscious business is not a company that has a Corporate Social Responsibility (CSR) or sustainability department that has been tacked on to do special projects. For example, Halliburton has a sustainability department. This does not make it a conscious business.

True conscious business is an ethos that permeates the entire organization, not a singular department. Patagonia is the poster child for what I am talking about here — the company’s flippin’ purpose is to: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”

This is what true conscious business looks like—where purpose, impact, and ethical decision-making are woven into the company’s DNA.

Why Conscious Business Matters: The Impact on People, Planet, and Profits

After defining conscious business, the next question I often hear is:

"Why should my business adopt conscious practices?"

The answer? Conscious businesses create a better world—while driving financial success.

1. Conscious Business Creates a Better Society

Currently, business is the largest aggregator of human potential on the planet.

✅ Work is where most adults spend the majority of their waking hours.
✅ If more businesses focused on solving social and environmental problems, we could drive massive, systemic change.
✅ Conscious companies don’t just provide jobs—they create meaningful work that improves well-being.

Imagine a world where businesses actively contribute to solving society’s biggest challenges. This isn’t just idealism—it’s an increasingly necessary approach to sustainable business growth.

3. Conscious Business Strengthens Companies

Still not convinced? Let’s talk business results.

📊 Research shows that conscious business practices lead to:
✔️ Higher employee retention (people want to work for companies that align with their values)
✔️ More innovation (purpose-driven companies attract top talent and creative solutions)
✔️ Better customer loyalty (consumers prefer ethical brands)
✔️ Increased revenue (mission-driven businesses often outperform competitors)

💡 Example: Studies have shown that purpose-driven brands grow at twice the rate of competitors.

If you’re not inspired by building a better world, maybe the fact that conscious businesses perform better financially will convince you.

At this point, there’s no reason NOT to become a more conscious business.

How to Build a Conscious Business

If you’re ready to shift toward conscious business practices, here are three key steps to get started:

1. Adopt Conscious Leadership

✅ Lead with integrity and transparency.
✅ Focus on long-term impact, not just short-term profits.
✅ Prioritize ethical decision-making at every level of your business.

2. Prioritize Stakeholder Well-Being

✅ Consider the impact of your business on employees, customers, suppliers, communities, and the planet.
✅ Move beyond a profit-only mindset to one that creates shared value.

3. Define Your Higher Purpose

✅ Identify why your company exists beyond making money.
✅ Align your mission, operations, and strategy with this purpose.
✅ Communicate your purpose authentically—not just as a marketing ploy.

Final Thoughts: The Future of Business Is Conscious

Whether your motivation is building a better society or driving long-term profitability, adopting conscious business practices is the way forward.

Are you ready to make your business more conscious? Start by:
✔️ Reassessing your company’s mission and impact
✔️ Identifying areas where you can prioritize stakeholder well-being
✔️ Making conscious choices in leadership, strategy, and operations