Conscious Capitalism By Professor Sisodia

Purpose matters

Consumers have made buying decisions based on value for centuries. The first recorded boycott occurred in 1791, when sugar was boycotted because the production process used slave labour. Reportedly, the sales of sugar dropped significantly. Since then, boycotts have impacted a wide variety of industries, including entertainment, animal care, politics, food, news, and financial industries.

Consumers also respond positively when asked to support community-based organizations. Money is provided through offering goods for donations, such as cookies from local Girl Guide/Girl Scout, chocolate bars for community sports team, or various gifts and food supporting school programs.

Now, however, consumers are actively seeking products

“Purpose is certainly not just a marketing issue or positioning of your brand image. Purpose should impact every aspect of the firm,” states Professor Raj Sisodia in the Harvard Business Review Report. Professor Sisodia is the author of Conscious Capitalism. He is also the FW Olin Distinguished Professor of Global Business and Whole Foods Market Research Scholar in Conscious Capitalism at Babson College.

When the entire business is not participating in the purpose, the consequences can be expensive. It’s taken one vehicle company two years to see a return in consumer confidence after a misleading marketing campaign. The company attempted to increase revenue with a strong marketing campaign advertising their environmentally responsible cars. However, reality contradicted the claims. In addition to the damage to consumer confidence, the company spent billions in settlements, lawsuits, criminal fines, and civil penalties. The misleading marketing reduced confidence in the companies and cost the company billions.

“You have to be consistent in terms of what you stand for in your values, beliefs or the common thread of what you’re trying to get across,” Julian Douglas, vice-chairman at creative agency VCCP, told Marketing

Numbers are useful for corporate reporting, in addition to maintaining or earning B-Corporation status. Unilever shares their goals and their accomplishments on their website. While their Sustainable Living Plan began in 2010, their reporting is available from 1995. This level of transparency increases consumer confidence in Unilever’s purpose-led efforts.

Do you have a purpose?

Large companies or companies with physical products may appear to be better able to demonstrate their environmental and societal response. However, every company can improve the lives of their clients. How do you do this? What effect do you have? Do you improve their lives through what they are able to do or how they are better able to care for their families, pets, friends, and loved ones?

The world needs more than support for the environment or social responsibility. You may improve the world in other ways. Discover how, and then share what you do.

Summary

Consumers have based their purchasing decisions on values beyond the worth product for centuries. Defining your purpose and the added significance you bring to your clients opens possibilities for better