What is conscious business? Ethics in entrepreneurship
Introduction
Let's first start by listing out some synonyms—as you'll see, conscious business has loads of twins with the same or similar meaning, so before we get super confusing, here are some terms that we'll use throughout because of the way they connect to similar concepts in business:
Ethical business
Heart-centered business
Sustainable business
We'll use these interchangeably and throw them around freely, but—by definition and practice, they connect to the same concept—business ethics.
The term conscious business is one of those super popular phrases which are sometimes used without full understanding of its meaning. It gets thrown around a lot by a lot of different people—including us. And it is used to mean lots of different things.
We wanted to offer our definition so that, when you see it throughout our website and materials, you know what we mean when we say it. And we want to offer this definition as a starting point of conversation for our community. Because what are words without the actions to back them up, right?
Let's get into it!
What is conscious business?
Definition of conscious business
You'll hopefully excuse our slightly drier tone throughout this one—we feel it's only right, given the seriousness of this topic and its potential impact on businesses.
So, what do we mean when we say that we are a heart-centered business and that we support others like us?
A heart-centered business, in the simplest of ways, is both sustainable and beneficial for the business owner, its customers, its employees, society, and the Earth.
Core principles of conscious business
At the heart of a conscious business lie four core principles:
Fairness
Integrity
Transparency
Respect
These principles guide the business in creating ethical business practices that foster trust and collaboration among all stakeholders.
Fairness ensures that all parties are treated equitably, integrity upholds the business's commitment to honesty, transparency results in open communication, and respect ensures that every individual and the environment are valued and protected.
How do we envision a conscious business?
We imagine these components as concentric circles because this lays out a roadmap for growth, but also for the right changes when ethical dilemmas happen and pivots are needed.
We believe that being heart-centered begins with ourselves as business owners. From there, it expands to the people we touch directly with our work, then the people we bring into our teams, then to the broader aspect of our community, and finally the Earth.
This is an aspirational definition for organizational greatness.
We know that not all businesses (ours included!) meet all aspects of this definition all the time.
Sometimes, the code of ethics is not fully established within a company, leading to incomplete ethical frameworks. Other times, we simply don't see what's right in front of us.
For example, we’ve hit bumps where we realize the way we are working isn’t sustainable for ourselves because we’re burning out. What’s useful isn’t to feel bad or shame ourselves for the places we fall short of this definition, but to use this definition as a North Star, guiding us back onto the path we’re committed to walking when we realize we’ve strayed. Moments like these lead to the creation and strengthening of an ethical culture, fostering social responsibility and ethical standards which, long down the road, stand out as the building blocks of an amazing organization or business.
Principles of business ethics don't have equal weight for everyone. As businesses are starting out, they may not have that many employees or that much impact on society or the Earth. This is okay. We aspire to be beneficial across all circles, but when that’s not possible, our goal is to be sustainable and beneficial for at least the first three circles (ourselves, the people we work with, and our customers) and to be both sustainable and non-harmful to society and the Earth. Ethical behavior and personal ethics are major stepping stones on this path.
It’s important to note the great amount of grey area within this definition.
What does beneficial actually mean? How do we measure sustainability?
These are complex concepts that encompass environmentalism, social justice, self and community care, financial sustainability, trauma sensitivity, embodied decision making, and so, so much more.
This is a good thing. Being a heart-centered business owner isn’t (and shouldn’t be) a set it and forget it thing.
Being heart-centered in our business is an ongoing, always aspirational, constantly deepening, and imperfect framework for how we can do commerce in a way that is anti-capitalist and pro-love. And as long as the intention is right, the positive impact is sure to follow.
Let’s take a closer look at why each element of the concentric circle model above is so important and what can go wrong when an element is ignored.
Who is impacted by a conscious business
1. Business Owner
2. Customers
3. Employees
4. Society
5. Earth
Business Owner
In order for a business to be sustainable and beneficial for a business owner, it must meet a few criteria:
Financial sustainability and benefit: A business must be financially sustainable for the business owner. This means that the time, energy, and expense is worth the profit coming in.
What’s worth it will depend on many factors, including outside funding, the stage of your business, what tasks are required to keep the business going, your time, and your values.
If your business is a side hustle, it may not need to cover all your expenses in order to be able to sustain itself and bring you the benefit of extra income and a creative outlet.
On the other hand, if you discover that the business requires 50% of your time to keep going, while also involving work you loathe, the amount of money might need to be substantially more in order for the work to be worth it.
Regardless of these factors, profitability is non-negotiable; a sustainable business model ensures the business does not run at a loss, as this would mean it is not a business but rather a non-profit at best.
Psycho-social sustainability: The second aspect of a business being sustainable and beneficial to the business owner is that they can thrive as a human in running it. This means that running the business doesn’t harm, and in fact helps contribute to the business owner’s physical, mental, and emotional health, uplifts their creative and spiritual sides, and affirms and deepens the relationships the business owner has with their loved ones, while also supporting their moral values.
It’s often easier to see this one when it’s not working. How many of us have seen (and been) the burned-out entrepreneur, putting in 80-hour weeks to try to hustle our way to success. Unfortunately, though, grind culture is toxic and addictive. Sustainable businesses support a growth practice and maintain healthy internal communication, rather than hindering or, even worse, directly or indirectly promoting the opposite.
If your business will fall apart if you stop working 16-hour days with exceptional performance, it’s not sustainable.
If your business requires that you indulge in unethical behavior, it's not sustainable.
If your business requires you to ignore your creative side, sacrifice your relationships, or doesn't give any personal fulfillment, it’s not beneficial to you.
In some cases, it might be so intense that it’s worth walking away from the entire operation. But in most cases, these issues can be healed, and this healing and shifting can (and should) deepen over time.
Be careful of the pitfall of being too perfectionistic with yourself around these issues! As entrepreneurs and conscious leaders, our goal is to have a business that supports our ongoing individual growth, rather than making us feel bad for being flawed or for not being perfectly enlightened humans.
Customers
It’s pretty intuitive to want our business to be beneficial to our customers. If a business doesn’t benefit its customers, it’s either a hobby with no customers to actually benefit, or it’s deceptive in some way.
It’s easy to see the ways that a business can be harmful to its customers. Some unethical businesses may sell people things they don’t need, deliver a product or service that’s useless, or actually make a problem worse while claiming to make it better.
It can be a bit trickier to figure out whether something is actually beneficial. We believe that if you are acting in good faith and based on ethical principles, and both you and your customers truly believe that what you offer is beneficial, you’re likely good to go.
So, what creates business sustainability towards its customers?
They must get enough benefit from what you offer to be able to stop being customers. This may sound backwards, but let’s look at an example that's the opposite of this:
Multi-level marketing
In MLM business environments, it’s almost impossible to make money. Their reps (who are the real customers) are constantly encouraged to buy more products and pay to attend more training in order to succeed. But while success is always just around the corner, that corner always costs a little more.
Businesses that promise that the real benefits will come after you spend more money, always exhausting their customers’ budgets before the results actually arrive—this is an unsustainable model for customers and an unethical business practice by the supplier of the product.
Customers need to be able to buy your services or products, get the real value, and leave. This doesn’t mean every person needs to be able to afford what you offer, or that we don’t love our repeat clients. But they know that after each project, they can end their time with us and leave having gotten real tangible value.
Employees
For work to be beneficial for employees (same goes for contractors, vendors, etc.), it must be financially and psycho-socially beneficial just like for the business owner. This means you pay people a living wage for their work and that you create a positive, healthy, and supportive work environment.
For work to be sustainable, your team must have healthy working hours with regular downtime, as well as work that can be done over the long term with no adverse side effects. When these principles are adhered to, a culture of ethics is easy to implement, as you'll have happy employees who share feedback that pushes all of you forward, allowing for compliance programs that lead to long-term improvements in forms of communication and better daily lives—at work and outside of it.
The key here is that you don’t get to decide if working for you is both beneficial and sustainable.
Of course, you can and should do your own research and come up with the values for your conscious company’s culture. But, it’s up to you to be responsive to the feedback, requests, and complaints of the people you work with and adapt accordingly, taking into consideration employee morale and core ethics standards.
Since you, as the conscious business leader, are in a position of power, you’re also in a position of responsibility.
When work is not beneficial or sustainable for employees, you end up with burnout, high turnover, compromised personal lives, and will likely struggle to find qualified people to work with. Loyal employees are the best sign you're doing it right!
Society
For a business to be beneficial to society it must be beneficial to the people that interact with the business on the fringes.
Imagine a hometown grocery store sponsors a little league team by paying for new uniforms and snacks at practice. Or a restaurant donates unsold food to a food bank. The people who benefit may or may not ever be customers, but we all move forward with those businesses’ resources and gifts.
This can be a tricky area, however, because many businesses (especially large corporations, let’s be honest) have a bad habit of doing small things that are beneficial on the surface, while refusing to address the bigger, often-unnecessary harms they cause. Writing a small check to a non-profit doesn’t make up for squeezing out the locally owned mom and pop shops in the neighborhood.
Which brings us to sustainability. For a business to be sustainable for a society, it can’t be a monopoly or a bully. When a large organization moves into a small town and claims they are bringing jobs to the community, but they simultaneously close down small businesses that can’t compete, this is not sustainable for society.
If a business requires that the city undergo major construction that causes delays and reduces foot traffic for other businesses, this is not sustainable for society. And if a company privatizes a public utility, this is not sustainable for society. Moral principles and ethical conduct are paramount for the sustainability of a business in relation to society. Ethical companies will find a way to combine both while still achieving their business goals.
As we mentioned in the beginning of this article, it’s okay if your business is sustainable and non-harmful to society. You may not be in a position to donate to your community, but you can make sure that your business doesn’t actively cause harm to people and is sustainable to the community.
An important component of being beneficial (or at least non-harmful) and sustainable for communities is to take stands on important social issues and questions of human rights. It is beneficial for social movements to have businesses willing to risk losing customers for what’s right. #VoteKamala #TransLivesMatter #DownWithCapitalism #LandBack
When businesses are silent it can be both harmful to your customers and harmful for society, because your silence says that money is more important than people. So even if you aren’t in a monetary position to support society around you, you can use the platform of your business to take an unequivocal stand.
It’s also important that you back this stand up with the kind of ongoing internal work required to genuinely be an ally to social movements. We aren’t experts in that process, so we encourage you to seek out and pay people who are—especially women of color—to support you in your anti-oppression work.
Earth
Determining whether a business is harmful or unsustainable to the Earth is decently straightforward. If you are polluting, using tons of natural resources, or harming wildlife, it’s easy to see.
It can be harder to determine if you’re beneficial and have a profound impact on the Earth—how much energy does it take to write this blog post, for example? Again, aiming for sustainability and non-harm is a great place to start, especially if your business isn’t primarily focused on environmental issues.
Your environmental responsibility depends on the size of your business.
This may mean things like choosing glass containers and organic ingredients for your products, asking people to bring their own cups to an outdoor event you’re hosting so you don’t have to get disposable cups, or hosting an employee clean-up of a local creek.
Not all options will be available for you, and environmental sustainability is a lifetime practice, so it’s a good time to remember that this definition is aspirational.
It’s more important to be constantly curious about ways you can improve your business’ relationship with Earth than it is to try to get everything perfect right off the bat.
We've covered the five elements of the concentric circle—but let's take just a bit more time to look at what ethical behavior in business can do for you, specifically!
The importance of implementing conscious practices in your own business
Benefits to the business itself
Implementing ethical business practices can have profound benefits for business success. These practices build customer loyalty—you as a customer yourself likely appreciate an ethical consideration behind any purchase you make.
Employees are more likely to be satisfied and stay with ethical companies that value their wellbeing. Additionally, being a conscious business provides a competitive advantage in an increasingly ethical marketplace—and while this may not be the most ideal motivator, it's a step in the right direction nonetheless.
Contributions to a better society and environment
As we noted, a conscious business also contributes to a better society and environment. Ethical practices and a strong stance on social issues can make a meaningful impact beyond profit.
These contributions not only benefit the broader community but also align the business with the growing consumer demand for ethical and sustainable choices. In an ideal world, all layers of the concentric circle will consider it a corporate responsibility to be ethical and move the world forward as much as possible.
But what are some potential steps to getting on the road of business and business ethics?
How do you implement conscious practices in your business?
Training and education
One of the most effective ways to implement sustainable business practices and produce strong ethics is through training and education. This involves educating yourself and your team on the importance of ethical business behavior, sustainability, and social responsibility.
Look, we know that this is difficult work—it can mean a lot of extra time on the side, and it can mean even more concessions. But the benefits far outweigh the effort it takes to get there.
Continuous learning helps ensure that your business stays aligned with its core values and adapts to new ethical challenges, implementing new ethical practices along the way and making sure that once you're on the front foot with conscious acting, you'll never have to look back, always having strong business integrity.
Providing the right tools for conscious decision-making
Providing the right tools for conscious decision-making is essential for embedding these practices into the fabric of your business.
This could include decision-making frameworks that prioritize ethics and sustainability, or investing in technology that reduces environmental impact. Empowering your team with the tools they need to make conscious choices and show ethical behavior ensures that the business remains true to its principles at every level.
Conclusion
Ultimately, being heart-centered is an ongoing practice, not a set of boxes you can check and forget about. It's an ever-evolving commitment to excellence.
We are always finding new edges to this definition and new areas to explore—what does it mean to be sustainable in our business partnership? How do we approach global challenges with a heart-centered lens? What's needed to implement and maintain ethical performance, day in and day out? What can we do within our community to better the lives of all those we interact with on a daily basis?
We would love to know what you think of this definition. Did we miss something? Do you have a better or clearer definition of heart-centered business? Let us know! We want to build on and improve our understanding of this definition together as a community. Without people like you, this would be a fruitless endeavor!
FAQ
What is the difference between conscious business and traditional business models?
Conscious business models prioritize ethical practices, sustainability, and the well-being of all stakeholders, including the community and the environment. Unlike traditional business models, which often focus primarily on profit maximization, conscious businesses aim to create a positive impact across all aspects of the business, from employee welfare to environmental stewardship. This holistic approach not only enhances long-term profitability but also aligns the business with evolving consumer expectations for ethical behavior.
How can a small business implement conscious practices without significant resources?
Small businesses can start by making incremental changes that align with their values and capabilities. This might include sourcing materials locally to reduce carbon footprints, adopting transparent communication practices, or ensuring fair wages for employees. Small steps, like reducing waste or supporting community initiatives, can collectively contribute to a more sustainable and ethical business model. As the business grows, these practices can expand in scope and impact, fostering a culture of continuous improvement.
Why is it important for businesses to take a stand on social issues?
Taking a stand on social issues demonstrates a business's commitment to values beyond profit, building trust and loyalty among customers who share those values. It also contributes to positive societal change by leveraging the business's platform to raise awareness and support for important causes. Silence, on the other hand, can be perceived as complicity, potentially harming the business's reputation and its relationship with ethically conscious consumers.
How does a sustainable business benefit its employees compared to a traditional business?
Business and sustainability means that the well-being of employees is prioritized by ensuring fair wages, providing a supportive and healthy work environment, and fostering a culture of respect and growth. This approach not only helps in retaining talent but also enhances employee satisfaction and productivity. Unlike traditional businesses, where the focus might be on output and efficiency at the expense of employee welfare, conscious businesses view their workforce as integral to their success and treat them accordingly.
Can a business be considered conscious if it is only partially sustainable?
Yes, being a conscious business is a journey rather than a destination. Many businesses start with a focus on specific areas where they can make the most impact and gradually expand their sustainability efforts as they grow. The key is to maintain an ongoing commitment to improvement, recognizing that complete sustainability may not be immediately achievable but striving towards it remains a core objective. The intention and efforts to consistently align business practices with ethical and sustainable principles are what define a conscious business.
How do conscious business practices influence consumer loyalty?
Consumers are increasingly drawn to businesses that align with their personal values, particularly when it comes to ethics, sustainability, and social responsibility. Conscious business practices, such as transparency, fair trade, and eco-friendly initiatives, resonate with this growing consumer base, fostering deeper loyalty. Customers are more likely to support and advocate for businesses that they perceive as making a positive difference in the world, leading to stronger brand loyalty and long-term customer relationships.
What role does continuous learning play in maintaining a conscious business?
Continuous learning is vital for a conscious business as it allows the organization to stay aligned with its ethical principles in a constantly changing world. This includes educating employees on new sustainability practices, staying informed about social issues, and adapting to evolving consumer expectations. By fostering a culture of learning, a business can remain agile and responsive, ensuring that its practices continue to reflect its core values and contribute positively to society.
