Capitalism is a good thing. It has lifted more people out of poverty and had a greater positive impact on populations around the world than any other system in human history. No other system has led to more innovation, more interconnectedness, and more value - literally transforming the planet and enriching daily existence for billions of people. But the reason for capitalism’s success is more complex than the mere pursuit of wealth. It’s the end result of the products of capitalism, the “why” behind what truly motivates people to take big risks and accomplish great things - and inspire others to join them - that has caused the free market to be so wildly successful.

Businesses exist to make money, but that’s not the end state. Wealth by itself is worthless. It’s static and not meaningful. It’s what we choose to do with our resources that gives wealth its power. How can we use wealth to increase our comfort level and enrich our lives? How can we share it with others to encourage further innovation and freedom for those around us? How can we invest it in our community to provide basic needs, increase prosperity, and encourage a sense of belonging for everyone in our ecosystem? If you can answer these questions when explaining the “why” of your business’ existence, if you understand the next-level result that your business’ wealth accomplishes, then you understand your true purpose, and financial success will come naturally.

In his book Conscious Capitalism: Liberating the Heroic Spirit of Business, Whole Foods co-founder John Mackey discusses how four tenets - higher purpose, stakeholder integration, conscious leadership, and conscious culture and management - can build strong businesses that foster a better environment for everyone. Mackey uses the analogy of a caterpillar for individuals as well as businesses. We can choose to remain as a caterpillar, consuming all we can and giving back little, or we can transform into beings who help create value for others and make the world more beautiful. If we remain as caterpillars, focused solely on profit for profit’s sake, then sooner or later our resources will run out and our accomplishments will be forgotten. If, however, we focus on how we can use our resources to provide meaning for ourselves and those around us, then we will create long-lasting businesses that deliver real value on multiple levels for everyone they touch. This then creates a virtuous circle, where we create wealth in order to provide value, and the value we provide produces yet greater wealth.

In Magic in The Room Podcast Episode 75: Building Community with Your Business, Chris and Luke explore these concepts with John Stewart, President of Encompass Design, Develop, & Construct LLC, an architectural authority in the gaming and hospitality industry. Encompass has taken the bold step of investing 50% of company profits directly into the communities in which they live and work, directly empowering employees to decide when and how to share this investment. This practice allows Encompass’ employees to personally witness the effects of the value created by Encompass and create a real and tangible understanding of the true “why” of their business. In turn, as community members are directly impacted by the generosity of Encompass, they are more personally invested in the success of the company, creating value on multiple levels for everyone involved.

What is your why? How can you leverage a higher purpose, stakeholder integration, and conscious leadership and culture to make your community a better place while at the same time increasing the success of your business? Luke recommends three simple best practices: 

• Understand your “why”
• Create a cadence that allows routine touch points with all stakeholders
• Empower people to do things that matter. 

Through these intentional actions, we can create a perpetual cycle of increasing multi-level value for ourselves and those around us. For the full discussion on the power of capitalism in the community, check out Magic in The Room Podcast Episode 75: Building Community with Your Business.