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CONSCIOUS CAPITALISM ROC CONSCIOUS CAPITALISM CONSCIOU SCAPITALISM.ORG CONSCIOU SCAPITALISMROC.WORDPR ESS.COM @CONSCIO USCAPROC

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Conscious Capitalism shows a path to sustained success in business by connecting to a higher purpose and integrating all stakeholders while developing conscious leaders and a conscious culture. The Greater Rochester Chapter of Conscious Capitalism aims to cultivate Firms of Endearment in Upstate New York to increase engagement, serve the community and jumpstart the economy!

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Page 1: Conscious Capitalism ROC

CONSCIOUS CAPITALISM

ROC

CONSCIOUS

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CONSCIOUS CAPITALISM

ROCCONSCIOUS CAPITALISM

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ENGAGEMENT A WORLDWIDE CRISIS

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The "master of business administration" degree

reflects that the educational emphasis is on managing

finances and administrating

processes.

But good management also requires a focus on people, something that

many companies currently lack. In far too many

businesses, employees with the longest tenure

or who have the greatest subject matter expertise

are moved into management, regardless of whether they have an aptitude for managing

people.

ENGAGEMENT A WORLDWIDE CRISIS

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CONSCIOUS CAPITALISM

ROCCONSCIOUS CAPITALISM

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MARKET COMPARISONSDeveloped: US, UK, France, Germany and JapanEmerged: Brazil, Mexico, Russia, India and China

ONLINE SURVEY IN 26 COUNTRIES

• 31,000+ respondents

• 5 years in 20+ markets

• 8 years in 10+ markets

GENERAL POPULATION

• 1000 respondents per country surveyed

• Ages 18+

• 2 years of data

INFORMED PUBLICS

• 500 respondents in U.S. and China & 200 in other countries

• Ages 25-64

• College-educated

• In top 25% of household income per age group in each country

• Report significant media consumption and engagement in business news and public policy

• 13 years of data

EU SELECT COUNTRIES:UK, France, Germany, Italy, Spain, Netherlands, Sweden, Ireland, and Poland

EDELMAN STUDYAN EXPLORATION OF

TRUST

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CONSCIOUS CAPITALISM

ROCCONSCIOUS CAPITALISM

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1. ENGAGEMENT

COMMUNICATES FREQUENTLY & HONESTLY ON THE STATE OF ITS BUSINESS

LISTENS TO CUSTOMER NEEDS AND FEEDBACK

TREATS EMPLOYEES WELL

PLACES CUSTOMERS AHEAD OF PROFITS

2. INTEGRITY

TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS

HAS TRANSPARENT AND OPEN BUSINESS PRACTICES

HAS ETHICAL BUSINESS PRACTICES

4. PURPOSE

5. OPERATIONS

DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS

HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP

RANKS ON A GLOBAL LIST OF TOP COMPANIES3. PRODUCTS & SERVICES

IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS

OFFERS HIGH QUALITY PRODUCTS OR SERVICES

WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT

ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS

CREATES PROGRAMS THAT POSITIVELY IMPACT THELOCAL COMMUNITY

PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIESTO ADDRESS SOCIETAL NEEDS

Edelman Trust Barometer reveals FIVE PERFORMANCE CLUSTERS:

(listed here in rank order of importance)

BUILDING TRUST THE FOUNDATION OF LOYALTY

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DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS

HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP

PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS SOCIETAL ISSUES

RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST COMPANIES TO WORK FOR OR MOST ADMIRED COMPANIES

IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS

CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY IN WHICH THE COMPANY OPERATES

ADDRESSES SOCIETY'S NEEDS IN ITS EVERYDAY BUSINESS

WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT

HAS ETHICAL BUSINESS PRACTICES

TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS

OFFERS HIGH QUALITY PRODUCTS OR SERVICES

COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS

HAS TRANSPARENT AND OPEN BUSINESS PRACTICES

PLACES CUSTOMERS AHEAD OF PROFITS

LISTENS TO CUSTOMER NEEDS AND FEEDBACK

TREATS EMPLOYEES WELL

13%

15%

10%

13%

22%

13%

13%

12%

15%

13%

29%

12%

13%

11%

19%

14%

27%

29%

30%

31%

37%

40%

41%

46%

47%

49%

52%

53%

55%

55%

56%

60%

EDELMAN STUDY TRUST BUILDING

ATTRIBUTES EXPECTATION VS. PERFORMANCE

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26% 20% 19% 18%

BUSINESS LEADERS

LOW TRUST IN ETHICS AND MORALITY OF LEADERSGlobal public trusts business leaders to do the following:

EDELMAN STUDY A CRISIS IN

LEADERSHIP

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WHAT DO YOU THINK IS THE BIGGEST CAUSE OF THESE SCANDALS? – GLOBAL (ASKED OF RESPONDENTS WHO ARE FAMILIAR WITH BANKING/FINANCIAL SERVICES SCANDALS OVER PAST YEAR – 56% GLOBALLY)

23%

25%

11%

6%

13%

20%

59% of causes of scandals are

internal and within business’ control

CORPORATE CULTURE DRIVEN BY COMPENSATION/BONUSES

CORPORATE CORRUPTION

CONFLICTS OF INTEREST

CHANGES IN THE ECONOMY

BANKS ARE TOO LARGE

LACK OF REGULATION

EDELMAN STUDYTRUST DEFICIT

IN BANKS LINKED TO CULTURE

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HOW D

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MACROTRENDS

92% of millennials believe that business should be measured by more than just profit and should focus on a societal

purpose*Deloitte 2011 Millennials Survey

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MACROTRENDS

“Darwin talked about ‘survival of the fittest,’ not ‘survival of the winner.’

Among human beings, the “fittest are not necessarily those who subdue,

conquer and control others. In the long run, the fittest tend to be those who

know how to cooperate.”

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SHORT-TERMFOCUS

More than 80 percent of the executives responding said they would cut

expenditures on R&D and marketing to ensure that they met their quarterly

earnings targets—even if they believed that the cuts were destroying long-term

value.

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1347 – The first corporation was created as a not-for profit entity1600 – Queen Elizabeth creates the East India Company

–Corporations are chartered by the state for public purposes (building hospitals, bridges, roads, universities)

–Charters could be revoked if corporations failed to fulfill

their public purpose1844 – The modern form of corporations traces its origins to an 1844 act in Britain that allowed them to define their own purpose rather than serve a societal purpose1870 – Large companies commonly operate company townsEVOLUTION OF

CORPORATIONS

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Intellectual Capital

Cultural Capital

Quality of Product

Manpower

Agricultural Age

Industrial Age

Information / Knowledge Age

Consciousness Age

200019001800

Cultural capital is the new frontier of competitive advantage. Richard Barrett

MACROTRENDS

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CONSCIOUS CAPITALISM

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FOUR PILLARS CONSCIOUS CAPITALISM

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FIRMS OF

ENDEARMENT

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http://

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VALUE

CREATOR

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HIGHER PURPOSE

“We need red blood cells to live, but the purpose of life is more than to make red blood

cells.”

-Ed Freeman

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Make and serve the freshest, most delicious coffee and donuts quickly and courteously in

modern, well merchandised stores.

To inspire and nurture the human spirit – one person, one cup and one

neighborhood at a time.

vs.

HIGHER PURPOSE

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“When you tug at a single thing in nature, you find it attached to the rest of the

world.” –John Muir

C.A.F.E. Practices(Coffee and Farmer

Equity)$.10/lb of sales

Four-step process for suppliers to

sustainably obtain wood.

Responsible for full lifetime of products.

STAKEHOLDER ORIENTATION FINDING THE WIN-

WIN-WIN

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“Leaders have to grow for the business to grow”

-John Mackey, CEO, Whole Foods

-Servant leaders-Focus on “we” rather than “me”-Cultivate a values-driven culture-Embody the higher purpose

CONSCIOUS LEADERSHIP

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“Cultural Capital is the new frontier of competitive advantage.”

–Richard Barrett

CONSCIOUS CULTURE

Pays employees 40% more than Sam’s Club, but maintains higher

profit per employee

“Culture eats strategy for lunch.”

-Peter Drucker

Culture Committee – “doing whatever it takes to create,

enhance, and enrich the special Southwest sprit and

culture that has made it such a wonderful family.”

10% Time

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Retail Average Training Time?7 hours

Container Store Training Time?Year 1: 235 hoursEvery year after: 160 hours

Product Knowledge: Assembly, Operation, Recommendations

Payoff:-Turnover below 10%(Retail average 40-70%)-Increased sales/employee-Increased productivity

TRAINING AND DEVELOPMENT

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CONSCIOUS CAPITALISM

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HOW C

AN WE

GET

STARTED?

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In a physical system, entropy provides a measure of the amount of energy that cannot be used to do work.Richard Barrett, a thought leader in measuring and developing corporate values, has adopted the term entropy to name the relative amount of “energy” that is not being used to achieved company goals.

Thus entropy is an indicator of an organization‘s ability to perform.

“IF YOU CAN MEASURE IT, YOUCAN MANAGE IT!”

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Cultural Entropy

Staff Engagement

Tier 1 (Best) 5 % 89 %

Tier 2 8 % 76 %

Tier 3 15 % 55 %

Tier 4 (Worst) 21 % 40 %

This research of 163 organisations in Australia was carried out by Hewitt Associates and Barrett Values Centre in 2008.

CULTURAL ENTROPYA “LEAD

MEASURE” FOR

ENGAGEMENT

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Entropy Level 3 Year Revenue Growth %

<10 % 32.87%

10 % – 19 % 24.90%

20 % – 29 % 11.39%

>29 % 11.07%

CULTURAL ENTROPY A “LEAD MEASURE” FOR

REVENUE GROWTH

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Makes it possible to translate qualitative data into quantitative data

Provides a baseline measurement instrument for monitoring changes in the organisational culture

Provides a method for measuring cultural capital

MEASURINGCULTURE

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“CROWDSOURCE”YOUR VALUES

"Which values best describe who you actually are / not who you would like to be?“

"Which values best describe the current culture of your organization?“

"Which values would you like to represent your organization's future culture?"

Personal Values

Current Culture Values

Desired Culture Values

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C o n s c i o u s n e s s

Richard Barrett

Know and Understand

Physiological, basic needs

Safety

Love, Belonging

EsteemAbraham Maslow

Knowing / Understanding

N e e d s

Self-actualization

BARRETT MODEL

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Self-esteem

Service

Making a Difference

Internal Cohesion

Transformation

Relationship

Survival Physical

Emotional

Mental

Spiritual

BARRETT MODEL

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QUESTIONS?

ANDREW B

RADY

atbra

dy@th

exlr8

team.co

m

585-269-4948

WWW.CONSCIOUSCAPITALISM.ORGWWW.CONSCIOUSCAPITALISMROC.WORDPRESS

.COM@CONSCIOUSCAPROC

JOIN THE MOVEMENT!

CONSCIOUS CAPITALISM

ROC

Page 34: Conscious Capitalism ROC

CONSCIOUS CAPITALISM

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Personal

Organizational

Health

Financial Stability

Security

Profit

Shareholder value

Employee health/safety

Job security

Control…Exploitation

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

SURVIVAL CONSCIOUSNESS

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Personal

Organizational

Family

Friendship

Listening

Customer satisfaction

Open communication

Respect

Conflict resolution

Employee recognition

Blame…Manipulation

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

RELATIONSHIP CONSCIOUSNESS

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Personal

Organizational

Self-confidence

Success

Ambition

Efficiency

Productivity

Quality

Best practices

Results orientation

Bureaucracy…Complacency

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

ESTEEM AND EFFICIENCY

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Personal

Organizational

Courage

Personal growth

Adventure

Innovation

Diversity

Teamwork

Accountability

Risk-taking

Employee participation

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

TRANSFORMATION

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Personal

Organizational

Trust

Enthusiasm

Honesty

Optimism

Integrity

Co-operation

Shared vision

Commitment

Creativity

Transparency

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

INTERNAL COHESION

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Personal

Organizational

Mentoring

Volunteer work

Empathy

Employee fulfilment

Leadership development

Customer collaboration

Strategic alliances

Community involvement

Environmental awareness

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

COLLABORATION

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Personal

Organizational

Wisdom

Humility

Forgiveness

Ethics

Future Generations

Long-Term Perspective

Vision

Sustainability

Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

SELFLESSSERVICE

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Service

Making a Difference

Internal Cohesion

Transformation

Self-Esteem

Relationship

Survival

Long-term Viability

Collaboration

Shared Vision

Continuous Improvement

Best Practices

Customer Satisfaction

Financial Stability

FULL-SPECTRUMCONSCIOUSNESS