Conscious Capitalism and Making Money with Good

Category: Business

Published: 01/05/2010 06:49 a.m.

The extremely long John Mackey (CEO of Whole Foods) interview in the New Yorker inspired this piece.

Altruistic companies can be found in almost every vertical. In the clothing world, we have Toms Shoes who give away a pair of shoes for every pair sold. In the automotive industry, there is Tesla Motors who strive to make an all electric car for both the sports car enthusiasts and the everyday commuters. The financial industry is fairly bleak, but startups like Mint.com offer financial insight and easy advice for free. There are likely other examples in other industries, and I am going to make the big assumption that they exist and people like them. These may be tiny players, but they are beginning to blur the line between corporation and non-profit. But there isn't quite the range of duality seen in these as there is in the healthcare industry.

Good for your Health

Doctors sell something good, something people want. They make tons of money, but that's ok, because they give us something worth all of that money: our health and wellbeing. Insurance companies are the bad guys, because they essentially represent the House of the Casino de Life, wagering on our illnesses and risk-managing our lives. This creates an image problem for the industry as a whole, and for doctors who can often get lumped into the mix with adjusters.

Doctors are the easy example. They obviously provide a benefit to humanity. And their role has been seen in other historical cultures and societies as medicine-man and shaman. What if this idea can be carried out to other industries. It would seem that this is what John Mackey seeks to do, and I think this is an amazing and potentially world-changing idea.

Food is closely related to health. How close is debatable, but the overall idea is that what you put into you body can affect you health. Mackey promotes putting good things in your body. I don't think anyone has any qualms about this, but as as small local grocery store expands to a nation-wide chain, the message of good gets mixed up with profit margins and bottom lines. What once was a do-gooder who was helping local growers and local eaters is now a CEO of a publicly traded company. Can't these be the same? Mackey thinks so, at least in the food business. I think it can be taken even further.

Thinking Bigger

What if a company in the automotive industry focused more on the big idea of transportation and less on the idea of goofy yearly redesigns. What if a GPS company used some of their traffic data to figure out which drivers went the same direction at the same time, then proposed that they carpool? Cars exist in part to get us from one place to another. In futuristic movies, you don't really see cars like we have today. With the world population growing and a similar growth in major cities, there is a need for a company to fix our transportation problem at it's core. Let's say Toyota or Chevrolet did this and totally revolutionized our mode of transportation. But they charged much more than cars to do so. Would we see them as money-hoarding corporations, or would we have the vision to see them as innovators and be thankful for the change they brought?

Apple released the iPod in 2001. It was an expensive product, and they have continued to make a killing by selling over 200 million worldwide. Some people complain that Apple charges too much and you can get similar players for much less. But Apple never set out to make a killing on mp3 players. They really set out to change the music industry. And because they helped create a world where music is easier to buy than pirate they should be able to make some money. The same can be true for other industries as well.

There is space in almost every industry for a company to come in and do more to benefit the consumer than just a better product or a lower price. This is what doctors offer, and this is what Whole Foods is trying to offer. These are the types of things we should be encouraging. I understand it is important to have a critical eye over such groups, but encouraging companies like this are even more important.

The Next Corporations

Capitalism has been successful because it offers buyers a choice and it offers sellers a chance to sell almost anything. The next evolution of our economic system will involve companies that provide more than just a product. They will offer positive changes in the way we live. We are already seeing this from the employment side, where companies offer benefits to their employees in many more forms than monetary compensation. Insurance programs and 401Ks and the like give employees a much larger benefit than just a salary and some job security. The next step is seeing this from the consumer side.

Whole Foods may not be the best example of this yet, but I think they are a great place to start. By buying their products, you benefit more than just having a meal; you can have a better, healthier life. This can work in engineering by providing vehicles that do more than just move us around. The energy industry can create energy that does more than power our lives. The housing industry can provide us with more than just a place to live. For all that we hope from government, I think it is time for corporations to step up and do more to promote our wellbeing than just the basic uses of their products.

This is the future of business. A company can provide us with more than products. I am excited by the new companies that will change our lives in the next decades.