internal and external stakeholders
As described in this week’s reading, businesses have evolved from the traditional managing for profitability approach. Smart businesses truly understand the connection between their internal and external stakeholders. When it comes to effective management and sustainable profits, there are several key components that all businesses must consider. Many businesses are now taking a triple bottom line approach. Triple bottom line or TBL is a philosophy that does not focus solely on profitability. TBL also focuses on the environmental impacts of its business dealings as well as the people in their organization and community (Miranda, n.d.). When I read the articles for this week, the concept of conscious capitalism reminded me of the triple bottom line approach.
Servant leadership is also a component of conscious capitalism in regards to centering people. Being in management and directly responsible for a group of 48 individuals, I have seen the benefits first hand of centering people. At a recent conference I attended and presented at, I discussed the importance of developing programs that are sustainable to the industry that I work in. At the end of my presentation. I was asked about buy-in and how I was able to obtain buy-in to implement the radical programs that my company now follows. I simply tied my experience back to the philosophy of servant leadership and the importance of effective communication, transparency and vision. When employees understand the vision of a company and understand their role in obtaining the objectives and goals of the vision, they tend to be more productive in my experience. Productivity will directly impact profitability. In my case, I work in local government so our focus is not on profits and rather about being an effective public servant.
Companies who have embraced the concept of conscious capitalism are highly sought after in the job market. A company who everyone knows well is Google. Google has created a workplace like no other. Google strives “ to create the happiest, most productive workplace in the world.” (Stewart, 2013). Stewart goes on to describe the play areas where professionals unwind, the cafe’s and coffee lounges that are all available at no cost the the employees and the five star breakfast, lunch and dinners afforded to all employees. Google is one of the most profitable companies in the world and is one of the most highly sought after from job applicants.
Apple Inc. is another successful business who understands how to treat their large workforce. Apple has over 90,000 employees worldwide according to recent numbers (Hattersley, 2016). Although employees are sworn to secrecy for obvious reasons, Apple understands the benefits of team building and in their corporate office, most of the small teams work independently according to Hattersley. When employees are allowed to work freely, their creativity levels increase and Apple Inc. endeavors to be uniquely different from its competitors
Google and Apple are able to leverage sustained profits by increasing higher purpose for their employees. Their profits continue to rise and their products and services continue to get better. As discussed in the article titled ”Conscious Capitalism Is Not an Oxymoron”, conscious capitalism is a new way of thinking that embodies the human experience in way that innately drives profits while enhancing the experience for internal and external stakeholders (Mackey & Sisodia, 2013). This deeper understanding and meaning is a model that all businesses should model.
Hattersley, L. (2016). What is it really like to work for Apple: Surprising tales from inside Cupertino and the Apple Store. Retrieved from http://www.macworld.co.uk/feature/apple/what-is-it-really-like-work-for-apple-3600678/
Mackey, J., & Sisodia, R. (2013). “Conscious Capitalism” is not an oxymoron. Retrieved from http://hbr.org/2013/01/cultivating-a-higher-conscious
Miranda, C. (n.d.). The breakthrough thinking of the triple bottom line. Retrieved from http://www.cultivatingcapital.com/business-sustainability-triple-bottom-line/
Stewart, J. B. (2013). Looking for a lesson in Google’s perks. Retrieved from http://www.nytimes.com/2013/03/16/business/at-google-a-place-to-work-and-play.html