the new realities for boards in the age of conscious capitalism · 2012-12-11 · the new realities...
TRANSCRIPT
The New Realities for Boards in the Age of
CONSCIOUS CAPITALISM
Raj Sisodia Director, Mastek Ltd. Professor of Marketing, Bentley University Chairman, Conscious Capitalism Institute
What Capitalism has Enabled
$467 $453 $566
$596
$615 $667
$873
$1,262
$2,113
$6,055
2010: $7,278 Real GDP per Capita (2000 $)
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: In
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al R
evo
luti
on
Beg
ins
Sources: www.VisualizingEconomics.com; Angus Maddison, University of Groningen; www.prb.org; www.worldbank.org
0 2000 500 1000 1500
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f N
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Capitalism is Ending Poverty on Earth
World Population Living on <$1/Day
0%
50%
100%
1800 1950 1980 2003
Source: World Bank (2003 dollars)
If current trends continue, extreme poverty will be virtually eliminated in the next 50 years.
“One day our grandchildren will go to museums to see what poverty was like.”
Muhammad Yunus
good because it creates value ethical because it based on voluntary exchange noble because it can elevate our existence heroic because it lifts people out of poverty Business is
0%
5%
10%
15%
20%
25%
30%
35%
40%
Yet, Trust in Big Business has Plummeted % of Americans with a "Great Deal" or "Quite a Lot" of Confidence in Big Business
Such cynicism and distrust have very high societal costs
Source: Gallup
An Epidemic of Apathy
The Shame of “Management”?
WHY has this happened?
THE WORLD has changed
PEOPLE have evolved
BUSINESSES have not adapted
1989 THE WORLD CHANGES
In 1989, for the first time in U.S. history,
the majority of adults were over 40
PCG TODAY 39-49
Who is this man?
What did he do to change the world?
Tim Berners-Lee
He invented the World Wide Web in 1989
There are now more active phone numbers than people
Facebook has over 1 billion members
THE FLYNN EFFECT
Peter Senge
Live in harmony with nature
Fully mindful and awake
Understand all the consequences of our actions
Reject violence
Greater commitment to the truth
A finer sense of right and wrong
“The dogmas of the quiet past are inadequate to the
stormy present.”
They must be aligned with the new realities of our world and they must
embody a more conscious way of being
What will it take for companies to flourish in the future?
100% SALARY TRANSPARENCY
80% LOWER SPEND ON MARKETING
1800% RETURN OVER 10 YEARS
THE FLOOD
A HIGHER PURPOSE
93% STOCK OPTIONS TO NON-EXECS
19:1 SALARY CAP
DECLARATION OF INTERDEPENDENCE
A BUSINESS BUILT ON LOVE, NOT FEAR
The Tenets of Conscious Capitalism
HIGHER PURPOSE
STAKEHOLDER INTEGRATION
CONSCIOUS LEADERSHIP
CONSCIOUS CULTURE &
MANAGEMENT
LOVE
JOY AUTHENTICITY
CARING
COMPASSION
SOULFUL
10.5-to-1
performance
“FoE”
(1646%)
Stock Returns over a
15 Year Period (’96-’11)
S&P 500
(157%)
15 Year 10 Year 5 Year 3 Year
Cumulative Annualized Cumulative Annualized Cumulative Annualized Cumulative Annualized
FoE Return 1646.1% 21% 254.4% 13.5% 56.4% 9.4% 77.4% 21.1%
GTG Return 177.5% 7% 14.0% 1.3% -35.6% -8.4% -23.2% -8.4%
S&P 500 Return 157% 6.5% 30.7% 2.7% 15.6% 2.9% 10.3% 3.3%
FoE Compared to Good to Great
Businesses Create But Can Also Destroy Many Kinds of Wealth
intellectual financial social emotional
spiritual cultural physical natural
25
We are all in the same boat
Our Opportunity
Those of us alive today can choose to lead the most meaningful lives humans have ever led
Our challenges are greater than ever, but so is our consciousness of those challenges and our ability to change things
We just need to unleash human ingenuity on our challenges in a holistic, caring and conscious way
Adapted from Lynne Twist
Books for Conscious Capitalists
