When an organization practices conscious capitalism by implementingits principles in conducting its operations, it ensures that themanagement goes beyond focusing on self-interests to considering theinterests of other stakeholders. When the main principles ofconscious capitalism are implemented, the organization ends up havinga team of top management that is inspirational, a culture that isconsiderate of all stakeholders, operations that account for allstakeholders and it does more than just making money. Basic ethicsplay a major role in conscious capitalism, and the ethics ofconscious capitalism has a major impact on the management tacticswithin an organization.
One of the main roles played by ethics in conscious capitalism isforming its framework. Ideally, conscious capitalism is a frameworkof capitalistic ethics. At this juncture, it is important to pointout that ethics refers to the principles of rights and wrong behaviorthat guide a particular group of people. The principles of consciouscapitalism are, therefore, formed within this framework so that theycan guide top management as well as other members of the organizationon how stakeholders should be dealt with (Mackey & Sisodia,2014). Moreover, ethics guide the principles of conscious capitalismto be adopted by an organization. For an organization to adoptcertain principles of conscious capitalism, they must be wellconsistent with general ethics as well as organizational codes ofethics. They should not contradict each other. In other words,whatever is considered right in conscious capitalism must, primarily,be considered right in basic ethics and organizational codes ofethics. Finally, conscious capitalism that is based on leadershipethics, employee ethics, and an ethical organizational cultureimproves employee morale hence their productivity. On the contrary,conscious capitalism that is not based on ethics works to demoralizethem.
Conscious capitalism has four main impacts on management tacticswithin an organization. First of all, management tactics are based onconscious leadership. This is the kind of leadership whereby theindividual’s at the top are their subordinate’s role models andsource of inspiration. In other words, the management ensures thatall members of the top management are conscious leaders (Fyke &Buzzanell, 2013). Secondly, the management tactics are geared towardsstakeholder orientation. This ensures that the conscious leadersconsider all stakeholders in decision making. The top managementappreciates that a premium organizational brand will never beattained by, merely, focusing on the stakeholders. Third, theorganization’s management tactics are conscious culture-oriented.This ensures that the organization is managed in such a manner thatall the stakeholder’s operations, activities and efforts are movingtowards the same direction. This is very important for any developingorganization. Fourth, the final one, ethics of conscious capitalismimpacts on management tactics within an organization by ensuring thatsuch tactics are beyond making money (Wang, 2013). It ensures thatthe goal of top management when setting up certain tactics is notonly to make money but also provide the true value.
To sum up, the role of ethics in conscious capitalism, as well as theimpact of ethics of conscious capitalism on management tactics withinan organization, cannot be underestimated. Ideally, basic ethicsprovide the framework within which the ethics of conscious capitalismare developed. It is the basic ethics as well as the organization’scodes of ethics that guide the ethics of conscious capitalism. Themain impacts of conscious capitalism on management tactics includeconscious leadership, ensuring that the tactics are geared towardsstakeholder orientation, conscious culture-oriented tactics, andtactics that are beyond mere making of money.
Fyke, J. P., & Buzzanell, P. M. (2013). The ethics of consciouscapitalism: Wicked problems in leading change and changing leaders.human relations, 0018726713485306.
Mackey, J., & Sisodia, R. (2014). Conscious capitalism, with anew preface by the authors: Liberating the heroic spirit of business.Harvard Business Review Press.
Wang, C. (2013). Firms. California ManagementReview, 55(3), 60-86.