A succession of global economic crises provoked by a dysfunctional financial sector, national as well as regional co-dependencies of debt and currencies fluctuations have demonstrated that we cannot count on the invisible hand to steer markets. They no longer behave as they should. A call for a new form of capitalism replacing the neo-classic approach has highlighted alternatives such as conscious capitalism.
The underlying question is one of trust. We don’t trust the systems we have built, we know that we cannot create what is best for the world within the existing structures, and we are afraid of stepping outside of the existing boundaries of what is known and established. We don’t trust in our own ability to create. Futurist[1] and systemic thinkers have demonstrated to what degree we are unable to develop solutions while at the same time recognizing all unintended consequences of such solutions. While it is questionable if the current financial system was created without an understanding of the extent of its implications[2], it is safe to assume that in an increasingly complex world, we will be less and less able to foresee the consequences of the actions we will take. We have entered into a mode of experimentation, yet we have not admitted this and continue pretending what we do is responsible action.
What we need is to assume a different state of mind. The French expression “état d’esprit” reflects this better, a state of Spirit rather than a state of (mental) mind. A state in which we are connected with the world, where we are in resonance with the world, so that we can create from within that source of unlimited potential, what is right for the large good. Everything we were taught and told has resulted in a fundamental disconnection from this Source, resulting in a situation where we – the most evolved race on the planet – feel like victims caught in overwhelmingly powerful and complex system within which we at best survive. It is us who have created these systems and it is us who will need to adapt or replace these systems to create something that is adequate for all living members of our planet. There are some major obstacles on this path, power, survival instincts and fear not the least of them, yet unless we – as a human race – overcome these, we will continue co-creating a world that serves only a very small minority, while destroying our habitat and creating suffering for a large majority of our fellow global citizens.
Conscious capitalism is one of many expression of such an elevated state of Spirit. It redefines the role of business beyond serving solely the shareholders as defined in the agency theory and Friedman’s claim that “the business of business is business”. It expands business’ role to serve society and the planet by embracing a more holistic and balanced responsibility towards all stakeholders. Supporting this claim, some demand that organizations become “a human community of belonging”[3].