CONSCIOUS CAPITALISM: The Future of Retailing

1. CONSCIOUS CAPITALISM: The Future of Retailing Raj Sisodia FW Olin Distinguished Professor of Global Business & Whole Foods Market Research Scholar in Conscious Capitalism, Babson College Co-founder & Co-Chairman, Conscious Capitalism Inc.

4. What Capitalism has Enabled Real GDP per Capita (2000 $) 1776: Wealth of Nations/US DoI 1750: Industrial Revolution Begins 2010: $7,278 $6,055 0 500 1000 1500 2000 $2,113 Sources: www.VisualizingEconomics.com; Angus Maddison, University of Groningen; www.prb.org; www.worldbank.org $1,262 $873 $596 $667 $615 $566 $467 $477 $453

5. Capitalism is Ending Poverty on Earth World Population Living on <$1/Day 100% If current trends continue, extreme poverty will be virtually eliminated in the next 50 years. 50% 0% 1950 1980 2003 1800 “My dream is that our grandchildren will have go to museums to see what extreme poverty was like.” Muhammad Yunus Source: World Bank (2003 dollars)

6. Business is good because it creates value ethical because it based on voluntary exchange noble because it can elevate our existence heroic because it lifts people out of poverty

7. Yet, Trust in Big Business has Plummeted % of Americans with a "Great Deal" or "Quite a Lot" of Confidence in Big Business Such cynicism and distrust have very high societal costs Source: Gallup

8. WHY has this happened? THE WORLD has changed PEOPLE have evolved BUSINESSES have not adapted

9. 1989 THE WORLD CHANGES

10. Rising Median Age PCG TODAY 39-49 In 1989, for the first time in U.S. history, the majority of adults were over 40

11. Better Informed Who is this man? What did he do to change the world? Tim Berners-Lee He invented the World Wide Web in 1989

12. More Connected There are now more active phone numbers than there are people Facebook now has over 1 billion members

13. More Intelligent THE FLYNN EFFECT

14. Better Educated

15. More mindful and awake Understand all the consequences of our actions Greater commitment to the truth A finer sense of right and wrong Reject violence More inclusive Live in harmony with nature More CONSCIOUS Peter Senge

16. “The dogmas of the quiet past are inadequate to the stormy present… As our case is new, so we must think anew, and act anew.”

17. What will it take for companies to flourish in the future?

18. A HIGHER PURPOSE DECLARATION OF INTERDEPENDENCE 19:1 SALARY CAP 93% STOCK OPTIONS TO NON-EXECS 100% SALARY TRANSPARENCY 80% LOWER SPEND ON MARKETING 1800% RETURN OVER 10 YEARS THE FLOOD

19. The Tenets of Conscious Capitalism STAKEHOLDER INTEGRATION HIGHER PURPOSE CONSCIOUS LEADERSHIP CONSCIOUS CULTURE & MANAGEMENT

20. Can you build a business on love?

21. Love and work are the cornerstones of our humanness Science Source/PRI/Getty Images

22. Can you build a business on love?

23. Heart attacks are highest on Monday mornings

24. An Epidemic of Apathy The “Shame” of Management?

25. COMPASSION LOVE CARING SOULFUL JOY AUTHENTICITY

27. 10.5-to-1 “FoE” (1646%) S&P 500 (157%) Stock Returns 1996-2011 “Good to Great” (177%)

28. Businesses Create But Can Also Destroy Many Kinds of Wealth financial intellectual social emotional spiritual cultural physical natural

29. Business, Society and the Planet The PLANET The PLANET SOCIETY BUSINESS SOCIETY Traditional View Conscious View BUSINESS

30. “We must be the change we want to see in the world.”

31. Servant Leadership – Integrity – Capacity for Love & Care –

32. Humanity is one spirit Natural resources are finite Our inner resources are infinite Ron Pompei

33. Those of us alive today can choose to lead the most meaningful lives humans have ever led The Opportunity Before Us Adapted from Lynne Twist

34. www.ConsciousCapitalism.org Raj.Sisodia@ConsciousCapitalism.org