The rise of conscious capitalism
Social and environmental impact is firmly on the corporate agenda, but the proliferation of purpose statements and ESG brochures doesn’t necessarily mean that companies are being run for the greater good: plenty have realised that greenwashing is rather easier than going green.
It’s rarely a case of good guys versus bad guys. Many of the firms accelerating decarbonisation do so partly because it happens to be the financial opportunity they were calibrated to take. Does that mean their executives can’t also care about climate change?
Similarly, the leaders of companies that supply products or services that don’t have an inherent social impact may factor other stakeholders into their decision making, because treating employees and local communities well makes the business stronger over the long term.
It is possible to hold two sometimes competing priorities in mind at the same time. Indeed that’s half the challenge of running a business: profit sometimes competes with growth, and risk with return. The best leaders understand the need to juggle, and that there are different ways to reach the same goal. Applying their ingenuity, they can make a great long-term return while simultaneously pursuing positive impact.
Conscious capitalism is what capitalism in general ought to be – still capitalism, which is the great engine of progress, but directed by founders and executives who haven’t forgotten that they’re also human beings, not apart from the planet or its people.
Here, we showcase a few of the companies that live up to this ideal, and ask how they manage it.
LEADING FOR GOOD GROWTH
Wolf & Badger is a platform for consumers to find independent fashion brands. It’s also a B Corp, which vets brands on their environmental impact. George Graham, CEO and co-founder, says:
“We do not see an issue in pursuing both profitability and purpose, so long as these are looked at in close partnership. Through taking a purpose-led approach, we have grown consistently for 14+ years, as well as having delivered a profitable 2023 despite market headwinds.
“It comes down to tracking and guiding against our core business value of ‘fairness’
which necessitates considering more than just financial performance, but rather thinking about the impact of the decisions we make on a daily basis on a wider group of stakeholders.
“Through our ‘praise’ function on Slack, we are constantly calling out great examples of our values in action, and the whole team knows the importance of consistently balancing business metrics and social and environmental goals, knowing that ultimately achieving one without the other is pointless for us all.”
KEEPING PURPOSE CENTRAL
Another B Corp, AgilityEco specialises in services that improve energy efficiency in domestic properties, such as installing insulation and heating systems. Its mission is to end fuel poverty, deliver better outcomes for low income and vulnerable families and prepare Britain’s homes for Net Zero. Sharon Johnson, managing director, says:
“You can’t make up your personal commitment to a cause (or I can’t, anyway!). I get enormous satisfaction from the fantastic stuff that AgilityEco and its people achieve and that makes it really easy to talk about it with passion, and to be truly appreciative of colleagues’ efforts.
“It’s important to consistently repeat why we are here. Our teams are making a huge impact on people’s energy bills, reducing emissions and ultimately saving money for those who need that help. We remind them of this nearly every day. People can be incredibly innovative and passionate in figuring out the ‘what’ and ‘how’ if they know the ‘why’.”
