The Brain And Soul Of Capitalism Summary

Article 1 The Brain and Soul of Capitalism

Nancy Koehn, author of “The Brain and Soul of Capitalism”, advocates that companies cannot hope to sustain themselves while ignoring external responsibilities. According to the Harvard Business Review article, it is imperative that capitalism has a brain and soul in order to tackle the dynamic and complex issues plaguing the business environment and society as a whole today. The International Organization for Standardization endorses these ideals by claiming social responsibility is ‘a critical factor in [a company's] ability to… operate effectively [in addition to a gauge of] overall performance’ (Investopedia, 2015). The company’s aim should target more than simply maximizing profits. Subsequently,

It is hard to deny that certain organizations have their self-interest cloaked in social impact. Because consumers are ready and willing to shop with companies that give back and stick to ethical business practices, it is important to acknowledge the ulterior motives behind social responsibility. When “the social responsibility of business is to increase its profits” (Jennings, 2009), social responsibility efforts can be used to sway manipulate consumers into a purchase by playing to the consumers’ socially conscious

Businesses that are social conscious, benefit from social drivers that strive for social impact based on consumer expectations. Starbucks and Unilever have learned to “blend capitalism and activism in order to influence change” (Koehn, 2015). Although consumer impact plays a large part in social responsibility, employees can also benefit from the endeavors as well. According to Howard Schultz of Starbucks, ‘health benefits and parent engagement building trust among employees [leading to]… loyalty and productivity’ (Koehn, 2013). (Koehn,