Conscious Capitalism

David A. Schwerin

• Publisher: Routledge
• Year: 2012
• eBook ISBN: 9781136014413
• Topic: Business
• Subtopic: Business General
• Index: Business

Conscious Capitalism shows how the principles of ancient wisdon are directly relevant to modern day business. Drawing on thirty years of financial and executive experience, Schwerin addresses contemporary issues faced regularly by people worldwide. Personal experiences, corporate field trip, and interviews with top executives bring both the anguish and the triumph of our business world to life. Conscious Capitalism's most significant contribution is its practical integration of formerly enshrouded principles with todays's frenetic world of investing and commerce.

1

Self-Discovery at Work

Today we find ourselves in a paradoxical situation. We enjoy all the achievements of modern civilization that have made our physical existence on this earth easier in so many important ways. Yet we do not know exactly what to do with ourselves, where to turn. . . . There appear to be no integrating forces, no unified meaning, no true inner understanding of phenomena in our experience of the world. . . . The abyss between the rational and the spiritual, the external and the internal, the objective and the subjective, the technical and the moral, the universal and the unique constantly grows deeper.

. . . VACLAV HAVEL, President of Czech Republic¹

I have been fairly successful in my career, my three children are “launched” and have begun their lives, and my marriage is satisfying. Nevertheless, I'm unhappy and it feels like something is missing. To be honest, I'm embarrassed to admit having these feelings because I don't feel I should have them.

. . . Anonymous fifty-five-year-old man²

Over the past decade, while many businesses have pursued what I call business as usual, I have been part of a different, smaller business movement—one that has tried to put idealism back on the agenda. . . . The New Corporate Responsibility is as complex as changing our basic notions of what motivates us as business people, of what our basic corporate goals should be. This shocks many people: they think it is a radical idea to consider anything other than financial profit. . . . We, as business leaders, can and must change our views and our values.

. . . ANITA RODDICK, President, The Body Shop International plc³

These three quotes—from a philosopher/statesman, an introspective United States citizen and a trendsetting British businesswoman—represent the thoughts and feelings of a vast cross section of humanity. The authors hail from three different countries and have all reached a point in their lives where they should be able to analyze their experiences with a good measure of insight and objectivity. Their sentiments are reflective of two seemingly unrelated, broad-based movements that have been proceeding on a parallel course. Each appears destined to make an indelible mark on society at large. The first movement encompasses those individuals who are earnestly searching for greater meaning in their lives. There are clear indications that this includes an ever-increasing part of the population. According to an article written by pollster George Gallup: “There is a great deal of evidence that Americans are beginning to break their secular chains, that we are, indeed, in a period of spiritual renewal.”⁴ The second transformation is taking place in the business world, in particular among those companies which are undertaking a thorough examination of their priorities, mission and values. On the surface these movements appear unconnected. As will be shown in subsequent chapters, these trends are very much interrelated and tend to reinforce one another.

The urge to find greater meaning is evident throughout the popular culture. A look at the nonfiction best-seller list reveals a growing interest in books on spirituality and related material. From “everything you ever wanted to know about angels,” to an ever-expanding variety of books on “new age” thinking, most bookstores are devoting increasing space to these subjects. Barnes & Noble and Borders, the two largest bookstore chains in the United States, now offer yoga demonstrations, tarot card readings, lectures on massage techniques, all-day sessions on holistic synergy and reflexology and visits by hypnotherapists.⁵ Motion pictures frequently deal with topics such as past lives and near-death experiences. America's Public Broadcasting Service (PBS) has found that guests such as John Bradshaw (humanistic psychology), Huston Smith (world's religions) and Joseph Campbell (mythology) have attracted enthusiastic audiences. A number of Bill Moyers’ PBS programs have covered arcane topics that were not part of the vernacular until quite recently. Based upon a recent poll, 48 percent of Americans say astrology is probably or certainly valid. The number of professional astrologers in the United States is estimated to be around 5,000 versus 1,000 just 20 years ago and the annual market for astrology books has increased fourfold during the past three decades.⁶ From this short survey of popular culture, it appears that many people are willing and, in fact, eager to explore new ways of looking at the world and their place in it. They are, in essence, hungering for self-knowledge so that they can understand the age old mysteries of “Who am I?”, “Where have I been?” and “Where am I going?” In other words, “What is life all about?”

The same gnawing dissatisfaction, frustration and, in many cases, insecurity that has led people to search for deeper answers in their personal lives has encouraged business leaders to look for more productive and fulfilling ways to structure their organizations. In some cases survival itself has been the motivation; in other instances, progressive business leaders understand that meaningful changes are necessary if both their enterprises and the communities upon which they are dependent are to prosper. With the mind-boggling pace of technological change and the intense competition generated by the globalization of markets, businesses feel pressured to downsize, outsource and generally rethink the optimization of their resources and relationships. A complex regulatory environment, a more diverse and family sensitive work force and an ecologically vigilant consumer add to the pressure to re-examine all business practices. Under close scrutiny many of the old ways of thinking and behaving are ineffective in solving today's problems. A broader vision and new style of leadership is required. The former requires a much longer-term perspective, while the latter needs to be based more on a leader's heart and soul than on behavior or authority. Primary emphasis is shifting to the human element from the previous focus on monetary and physical assets. In our fast-paced world, the success of a business enterprise now depends on the active collaboration and contribution of creative, well-trained, motivated and dedicated employees.

A significant amount of research points to pervasive feelings of confusion and discontent throughout society, both at home and in the workplace. There is simply an insufficient connection between our daily activities and our purpose for being. While not a new phenomenon, constant feelings of consternation and dissatisfaction are becoming intolerable to a growing number of people. According to a Business Week article subtitled “Can spirituality enlighten the bottom line?” those employees who have survived downsizing and re-engineering are asking themselves, “What is going on?” and “Why do I feel so unfulfilled?” The article responds: “A growing number of companies are setting off on spiritual journeys . . . the spirituality movement in the corporation is an attempt to create a sense of meaning and purpose at work and a connection between the company and its people.” The authors discuss the fact that AT&T has referred hundreds of middle managers to Transpective Business Consulting where, at a grueling three-day course, participants are helped to be more effective leaders by turning inward. Aerospace giant Boeing hired poet David Whyte to speak to five hundred top managers three days a month to help bring to life the experience and emotion of change. Says Whyte: “All the companies that are alive are realizing that they need more creative, vital and adaptable workers. All that creativity and vitality and adaptability resides in the soul.” One senior executive, who was initially skeptical, now concedes that Whyte: “Helped us to think differently than we ever had before. We had to look inside ourselves.”⁷

Some critics believe that blending spiritual and business interests is like combining oil and water; they do not mix. One is concerned with pragmatic affairs and the other with ephemeral matters. Internationally recognized investment pioneer, Sir John Templeton, emphatically refutes this notion: “I think all careers are more successful and satisfying if you use spiritual principles. I can't think of a single exception.”⁸ Mahatma Gandhi, one of the most inspirational and effective leaders of the twentieth century, concurs with Templeton's assessment:

If any action of mine claimed to be spiritual is proved to be unpracticable it must be pronounced to be a failure. I do believe that the most spiritual act is the most practical in the true sense of the term.⁹

It is the contention of this book that a complete reversal of many long held values and beliefs is a prerequisite for attaining the peace and contentment that is earnestly sought by citizens throughout the world. Preconditions for such a reversal are already in place. In fact, the fundamental building blocks upon which to base a “new” world view have always been with us; they are an integral part of “ageless wisdom.” Ageless wisdom is one of several designations given to a certain body of knowledge that is neither affected by the passage of time nor is the product of human thought. This same knowledge—rooted in the unchanging depths of the universe—has been termed “forgotten truth” by Huston Smith¹⁰ and was referred to as the “perennial philosophy” by Aldous Huxley. According to Huxley, this wisdom can be found among the traditional lore of aboriginal peoples in all regions of the world and, in its more developed form, has a place in the teachings of most sacred traditions.¹¹ Author John White seconds this view:

The perennial wisdom is unchanging; truth is one. That is agreed upon by the sages of all major religions and sacred traditions, all hermetic philosophies, genuine mystery schools and higher occult paths.¹²

One of the most ancient codifications of ageless wisdom is attributed to the widely revered Hermes. While details of his life are lost to history, it is said he lived in Egypt and was a contemporary of Abraham. He was deified under the name Thoth in Egypt, and appeared in the Greek pantheon as Hermes and later, in the Roman tradition, as Mercury. Hermes stature was such that he was considered a messenger of the gods. Among men he became the patron of merchants, and the god of eloquence, good fortune and prudence.¹³ Given these attributes, Hermes would surely be an extraordinarily valuable advisor to any company's board of directors.

Ageless wisdom, in all its variations, is a distillation of the experience of many inner explorers over thousands of years. What they discovered is that God is one, whole and undivided, encompassing and interpenetrating everything that is. A central tenet of the perennial philosophy is that all of humanity can become consciously aware of this infinite and eternal wholeness. Indeed, the wise tell us that it is man's single highest need and desire.¹⁴ As emphatically declared in Hermes’ famous Emerald Tablet: “That which is above is as that which is below, and that which is below is as that which is above.” The familiar, six-pointed Star of David, composed of two overlapping equilateral triangles, one pointed up and the other pointed down, is said to symbolize this profound statement. Put another way, everything is of the same essence; it is the task of human beings to remember their divine origins and reorganize their lives so that what is below once again mirrors what is above.

KNOW ONE, KNOW ALL

This seemingly Herculean feat is facilitated by becoming more conscious of who we are as we go about our daily activities both at home and at work. Knowing ourselves better leads to a fundamental change in the way we think about our personal and social relationships, how we interact with the environment and, ultimately, how intimate a connection we establish with God. A traditional Islamic saying makes this point very succinctly: “Learn to know thyself. Who knows himself, knows the Lord.”¹⁵ The Tao Te Ching, which was written by Lao Tzu and has been translated more than any other book except than the Bible says:

Knowing others is intelligence; knowing yourself is true wisdom. Mastering others is strength; mastering yourself is true power.¹⁶

And using somewhat different terminology, Jesus said:

When you know yourselves, then you will be known, and will understand that you are children of the living Father. But if you do not know yourselves, then you live in poverty, and embody poverty.¹⁷

There is no better environment for learning about ourselves than the one in which we earn our living; it provides continual opportunities to observe what motivates us, frightens us, angers us and enlivens us. I have been fortunate to have been professionally involved in the business of managing other people's money for a period spanning four decades. While not all experiences have been pleasant or fruitful, they have been enormously helpful in clarifying a number of important issues about life's most fundamental questions. The securities markets represent the hopes and fears, loves and hates of a vast cross-section of humanity; they evoke the full gamut of psychological reactions. Through the pursuit of worldly goals—with money as a prime facilitator—we experience emotions that range from exhilaration to depression. In fact, everything we think or do swings us to and fro around a central tendency or core. In this sense, the securities markets are a metaphor for life as prices continually move from over-valued to under-valued and levels of optimism and pessimism rise and fall.

One of the best ways to achieve insightful breakthroughs is to follow a rigorous program of thorough self-observation. This simply means paying close attention to everything; being open-minded, curious and detached. In other words, making a commitment to observe and remember everything that occurs regardless of personal beliefs, preferences or fears. This is hard to do and takes a great deal of practice. Because the investment business provides instant feedback on the judgments that must be constant...

Table of contents

• Front Cover
• Half Title
• Title Page
• Copyright
• Dedication
• Contents
• Preface
• Acknowledgments
• 1 Self-Discovery at Work
• 2 Old Wisdom—New Understanding
• 3 The Origin of Competition
• 4 The Road to Cooperation
• 5 The Dawn of Cocreation
• 6 Top Line, Bottom Line, “Inner Line”
• 7 Profiting from Inclusion
• 8 Equilibrium in the New Millennium
• 9 Tying It All Together—A Tale of Two Companies
• Bibliography
• Index
• About the Author