A Vision Beyond Profit
The terms “conscious” and “capitalism” are seemingly two unrelated words. But as society changes, businesses across the globe have learned the significance of merging the two.
“Conscious capitalism” is a form of business that creates value for all members of society including customers, employees, and the communities in which these organizations operate.
Dr. Linda Alkire, assistant professor in the McCoy College of Business at Texas State University, studies corporate social responsibility (CSR) and corporate hypocrisy through the lens of conscious capitalism. She explains that corporate hypocrisy is the discrepancy between the stated CSR principles of a business and their actual intentions or behaviors. In her research, Alkire has found that today’s customers are becoming increasingly skeptical about the CSR initiatives of many organizations, even when they are coming from a genuine place.
220 Global companies have set 100% renewable energy targets
64% of consumers choose, switch, avoid or boycott a brand based on its stand on societal issues
72% of Americans say they feel it is more important than ever that companies they buy from reflect their values
Source: (2018 Shelton Group’s ‘Brands & Stands: Social Purpose is the New Black’, 2019 Conscious Consumer Spending Index)
To help curtail this misplaced impression, Alkire has synthesized her service marketing insights, understanding of globalization, and interdisciplinary research to create practices that she believes will make for better businesses.
For instance, her research has shown that in the banking sector, improvements in information transparency aimed at enhancing customers’ knowledge creates better-informed patrons. This allows customers to make improved decisions about their finances, which, in turn, helps banks mitigate the judgment of being seen as involved in hypocritical CSR activities.
Alkire is devoted to teaching students that corporations must have an impact beyond profitability.
Her reasoning for this approach is simple, yet powerful.
“We only have one planet to live on.”
Accurate as of July 2020