What Is Conscious Business, and Why Is It Important?
Research confirms it: This sustainable, forward-thinking way of doing business is good for people, the planet — and profits, too.
The Definition of Conscious Business Is Elusive
As the co-founder of Conscious Company Media, one of the most common questions people 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.
It’s Not Just a Company With a CSR Initiative
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 (including but not limited to just shareholders) into account in the business’s operations and strategy, and has a higher purpose beyond profit.”
A conscious business is led by a conscious leader, takes all stakeholders (including but not limited to just shareholders) into account in the business’s operations and strategy, and has a higher purpose beyond profit.
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.”
Conscious Business Creates a Better World
Once I define what conscious business is, the next question I usually get is something along the lines of, “Why should I become one?” Here’s my grandiose answer: Business is the largest aggregator of human potential on the face of the planet. Work is where most adults spend the majority of their waking hours. If more and more companies focused their efforts on doing something good for society, thus using all that human energy to make the world a better place, while creating livelihoods for people at companies where people actually enjoyed working, can you imagine the type of world we can build?! Gah! It makes my head want to explode.
And if you’re not into the grandiose version, beyond the obvious that it’s the “right” thing to do, I can honestly say that being a conscious business makes for a stronger organization. Research has proven that conscious business practices lead to better employee retention, more innovation, better customer loyalty, and increased revenue. So, if you’re not inspired by the whole “Let’s build a better society through business” angle, hopefully I can pique your curiosity with the whole, “It will make you more money” thing. Either way, at this point there’s really no reason not to become a more conscious business.
Interested in learning more about conscious business? My Conscious Business 101 Workshop will cover everything you need to know to get started including creating your three-step Conscious Business Starter Plan.