{"id":12498,"date":"2019-09-12T16:25:47","date_gmt":"2019-09-12T14:25:47","guid":{"rendered":"https:\/\/www.munich-business-school.de\/insights\/?p=12498"},"modified":"2019-09-12T16:35:01","modified_gmt":"2019-09-12T14:35:01","slug":"5-reasons-why-conscious-business-beats-csr","status":"publish","type":"post","link":"https:\/\/www.munich-business-school.de\/insights\/en\/2019\/5-reasons-why-conscious-business-beats-csr\/","title":{"rendered":"5 Reasons Why Conscious Business Beats CSR"},"content":{"rendered":"

When companies plan to contribute to the greater good, they like to refer to their Corporate Social Responsibility (CSR). When… They then point out that for them doing business is not just about increasing financial Key Performace Indicators (KPI) such as sales, profits, and returns, but also taking care of society and the environment \u2013 often times, however, they forget to mention that first the financial KPIs have to „allow it“. Because only then CSR can be afforded, and in general, CSR must financially be worth it.<\/p>\n

The idea of modern Corporate Social Responsibility dates back to the last century: After the years of economic miracles, the first initiatives emerged in the 1970s, which called for consideration of the costs of economic action for the environment and society. By the 1990s at the latest, the CSR movement was gaining momentum, and companies began to publish a CSR report every year in addition to a financial report. Today, no respectable company can afford to be unconcerned about its continued responsibility towards people and the environment and to making a positive contribution to the development of the world. But can that really work with a CSR way of thinking?<\/p>\n

Representatives of the Conscious Capitalism movement, for example, see CSR as critical. Managers and employees in a Conscious Business have to think and act differently: They place the environment, fellow human beings and all<\/em> stakeholders at the center of all<\/em> their actions and decisions. Only in this way is it possible to truly derive one’s actions from a responsibility to act, and not just an increase in financial KPIs. What does this mean for a company? Here are 5 key differences between a CSR oriented thinking and acting and the general thinking and acting in a Conscious Business:<\/p>\n

    \n
  1. While from a CSR perspective, shareholders have to make a sacrifice for society, a Conscious Business involves naturally all stakeholders.<\/li>\n
  2. While CSR is often seen as a burden, it goes without saying that a Conscious Business involves all potential synergies of doing business in ways that improve living conditions and at the same time contribute to the financial success of the company.<\/li>\n
  3. While CSR is often added to a traditional business model (literally in its own department or as part of Public Relations), the core elements of a Conscious Business such as Higher Purpose and Stakeholder Integration are at the center of all action and an integral part of any department and position.<\/li>\n
  4. While CSR can be independent of the purpose of the business as well as the corporate culture, a Conscious Business also requires a corresponding caring culture as well as a conscious form of leadership.<\/li>\n
  5. While CSR can be used for the purpose of „green washing“, a Conscious Business requires an authentic commitment to its goals such as stakeholder integration, conscious culture, management and leadership as well as the pursuit of a higher purpose.<\/li>\n<\/ol>\n

    The Conscious Capitalism movement was inspired by the book of the same title by John Mackey (founder of Whole Foods Markets) and Raj Sisodia (professor at Babson College). It strictly puts humans into the center of doing business and calls for a consistent rethinking and acting in the sense of a future-oriented economy: Sustainable in the sense of protecting planet earth as well as future-proof in the financial sense for the enterprise. Ultimately, companies can provide the spaces and tools that allow each individual to make their positive contribution to the world. The Earth itself does not care how people behave on it \u2013 it already existed billions of years before humans and will continue to do so for an endless number of years to come. But humans can no longer care less about their actions. In this sense, Conscious Business is a logical next step after CSR to enable peaceful and healthy survival on our planet for many future generations to come.<\/p>\n

    P.S.: On Sept. 23rd<\/sup> 2019 the \u201c2. Conscious Capitalism European Conference<\/a>\u201d is going to take place in Berlin<\/strong>. Among others John Mackey und Raj Sisodia will be present.<\/p>\n

    P.P.S.: All Master International Business<\/a> Students at MBS visit a compulsory course in Conscious Business where we talk about the background, framework as well as many best practices in a future oriented conscious way of doing business.<\/p>\n

    Source:<\/p>\n

    Mackey, John and Raj Sisodia (2014): Conscious Capitalism \u2013 Liberating the Heroic Spirit of Business, Boston<\/p>\n","protected":false},"excerpt":{"rendered":"

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Dr. Christian Schmidkonz ist Studiengangsleiter des Programms \"Master International Business\" an der Munich Business School. Seine Lehr- und Forschungsschwerpunkte liegen in den Bereichen Conscious Business, Happiness at Work sowie Wirtschaft in China und Taiwan. Christian Schmidkonz h\u00e4lt ein Diplom in Volkswirtschaftslehre von der Ludwig-Maximilians-Universit\u00e4t in M\u00fcnchen. Er studierte Chinesisch an der Fu Jen Universit\u00e4t in Taiwan und ist Alumnus des Deutschen Akademischen Austauschdienstes (DAAD). Nach Stationen am ifo Institut f\u00fcr Wirtschaftsforschung und bei der internationalen Unternehmensberatung Capgemini gewann er als Entrepreneur 2008 den vom Bundesministerium f\u00fcr Wirtschaft und Technologie ausgeschriebenen Gr\u00fcndungswettbewerb \u201eMultimedia\u201c. Christian Schmidkonz wurde 2020 mit dem erstmalig vergebenen \u201eMBS Teaching Award\" ausgezeichnet.","url":"https:\/\/www.munich-business-school.de\/insights\/author\/cschmidkonz\/"}]}},"_links":{"self":[{"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/posts\/12498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/comments?post=12498"}],"version-history":[{"count":5,"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/posts\/12498\/revisions"}],"predecessor-version":[{"id":12517,"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/posts\/12498\/revisions\/12517"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/media\/12515"}],"wp:attachment":[{"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/media?parent=12498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/categories?post=12498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/tags?post=12498"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.munich-business-school.de\/insights\/wp-json\/wp\/v2\/coauthors?post=12498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}