Book SummaryConscious Capitalism, by John Mackey and Rajendra Sisodia

1-Page Summary1-Page Book Summary of Conscious Capitalism

In their 2013 book Conscious Capitalism, co-founder and former CEO of Whole Foods Market John Mackey teams up with businessman Raj Sisodia to introduce a new form of capitalism. Mackey and Sisodia argue that capitalism is inherently good for people, but conscious capitalism is even better because it benefits all interested parties—including the environment and society at large. According to the authors, conscious capitalism has the potential to unleash unprecedented human ingenuity and solve most,...

Conscious Capitalism Summary Part 1: The Need for Conscious Capitalism

To understand the need for conscious capitalism, you first need to understand the benefits and pitfalls of traditional capitalism. In this section, we’ll explain why the authors believe free-market capitalism benefits people, despite common critiques of the system. Then, we’ll explain how conscious capitalism improves on traditional capitalism, addressing those critiques.

Free-Market Capitalism Is Good for You

According to Mackey and Sisodia, free-market capitalism is the ideal economic system. They believe it’s had a more positive influence on humanity than any other human invention because it enables entrepreneurs to come up with innovative solutions to the world’s problems. Thus, the authors attribute gains in quality of life over the last 200 years—including technology advances, greater global connectivity, and improved human health, literacy, and democratic equality—to free-market capitalism. They also explain that free-market capitalism has proven itself to be better than socialist alternatives, as evidenced by socialism’s inability to gain and keep a foothold anywhere in the world. (Shortform note: Five countries currently [identify as...

Conscious Capitalism Summary Part 2_: Everyone _Benefits From Conscious Capitalism

We’ve explained that conscious capitalism benefits all interested parties—now, we’ll dig deeper into that idea. First, we’ll discuss the necessity of an everyone-wins approach and explain why it’s possible. Then, we’ll discuss each interested party individually, explaining why they’re important to your business and how exactly they can benefit from conscious capitalism.

Why Everyone Must Win

Mackey and Sisodia argue that the everyone-wins approach inherent in conscious capitalism is necessary because every interested party is vital to a business’s success—you can’t run a business without customers or employees, for example—which means that satisfying them all makes businesses more sustainable and more profitable.

The authors explain that often, businesses value satisfying one interested party over all others—for example, they might unfairly mark up product prices because they prioritize investors’ profits over customer satisfaction. When that happens, other interested parties suffer and, in the long run, become unhappy with the business. If one interested party pulls out because they’re unhappy, the business will suffer or even fail. On the other hand, if all...

Conscious Capitalism Summary Part 3: Becoming a Consciously Capitalist Company

Now that you understand why and how everyone can win under conscious capitalism, we’ll explain how you can build a consciously capitalist company (CCC) by incorporating two key elements: prioritizing a good cause over profits and practicing enlightened leadership and management.

Prioritize a Good Cause Over Profits

Mackey and Sisodia argue that all CCCs exist for a good cause—instead of prioritizing profits, they prioritize making the world a better place in a particular way. For example, the authors explain that Whole Foods Market’s good cause is to promote nutritious eating and environmentally friendly agricultural practices. A good cause is especially important for employees: The authors argue that employees who don’t believe in the company’s cause—or who see that there is no cause beyond making money—won’t perform as well at work (which ultimately harms the company) and won’t be happy in their own lives.

The authors say there are four kinds of good causes—helping others (for example, by providing medical care), maximizing knowledge (for example, by performing research), promoting art (for example, by creating stylish clothing), and transforming the world...

Shortform Exercise: Conscious Capitalism in Your Workplace

Reflect on what you’ve learned about conscious capitalism and how you can put it into practice.

Think about the business where you’re employed. Would you rate it as consciously capitalist? Why or why not?