Conscious Capitalists neither discovered the business benefits of corporate
virtue, nor were they the first to practice enlightened business behavior. The
singular fresh contribution of Conscious Capitalism is its philosophical squaring
of free-market principles with progressive business practices by stressing the
profit-making potential of responsible, ethical, and sustainable corporate behavior.
Since no corporate managers want to be accused of taking advantage of
shareholders, this re-branding is significant because it legitimates a wide range of
more responsible corporate practices. The creation of a common ground for progressives
and libertarians is no mean feat (although it is easier to do at the micro,
firm level, than the macro, national level). Indeed, we believe this creative
squaring of the circle is why the movement is increasingly seen as so attractive.
Yet, at the same time we need to recognize that because markets have
limits, various kinds of government intervention, along with the activities of
non-profit organizations, remain essential to address many world problems.
Clearly, Conscious Capitalism can inspire the improvement of many corporate
practices, which is an objective we applaud and wish to encourage. However, its
adherents need to develop a more realistic understanding of what even the most
socially conscious capitalists can and cannot accomplish. By promising more
than it can deliver, the Conscious Capitalism movement is in danger of impeding
rather than promoting the kinds of social and environmental goals it seeks
to achieve, most notably by ignoring the necessary role for government.