Conscious Companies Outperform Competition by 10x
Back in March we put up a blog post about our commitment to Conscious Capitalism and how it’s shaped our business model and culture. Turns out that, on average, conscious companies perform 10x better than standard companies.
This stat comes from a study conducted by Raj Sisodia, business professor and co-author of Conscious Capitalism. Sisodia examined 28 companies he identified as the most conscious based on characteristics such as their mission, commitment to customer service, competitive compensation packages, and overall investment in their communities and the environment. Results showed that the 18 publicly traded companies outperformed the S&P 500 index by a factor of 10.5 over the years 1996-2011.
The belief that they have a bigger responsibility than just the bottom line is, in fact, benefiting the bottom line of these companies. At the end of the day, it just makes sense.
Conscious companies are built on a model of trust, mutual respect and mutual benefit. These companies are committed to developing their human capital and treat all of their stakeholders better. In turn, this culture creates a greater sense of purpose and commitment from team members, and often results in higher employee performance and the ability to attract better talent. Satisfaction and loyalty from stakeholders ultimately drives the success of these conscious companies.
It’s refreshing to see that Capitalism and Consciousness are no longer at opposite ends of the spectrum and that business can be a positive force for good.