{"id":115009,"date":"2023-10-08T09:56:00","date_gmt":"2023-10-08T13:56:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=115009"},"modified":"2026-01-22T13:49:10","modified_gmt":"2026-01-22T17:49:10","slug":"people-over-profit","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/people-over-profit\/","title":{"rendered":"Why People Over Profit Boosts a Company&#8217;s Success"},"content":{"rendered":"\n<p>Why should you prioritize people over profit? How has Whole Foods Market thrived off this concept?<\/p>\n\n\n\n<p>Consciously capitalist companies (CCCs) succeed because making money isn&#8217;t the main focus. What&#8217;s most important is satisfying people and transforming the world.<\/p>\n\n\n\n<p>Learn why people over profit always wins, according to <em>Conscious <a href=\"https:\/\/www.shortform.com\/blog\/capitalism-theory\/\">Capitalism<\/a><\/em> by John Mackey and Rajendra Sisodia.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-prioritize-a-good-cause-over-profits\"><strong>Prioritize a Good Cause Over Profits<\/strong><\/h2>\n\n\n\n<p>Mackey and Sisodia argue that <strong>all CCCs exist for a good cause<\/strong>\u2014they prioritize people over profit by <a href=\"https:\/\/www.shortform.com\/blog\/hub\/society-culture\/how-to-make-the-world-a-better-place\/\">making the world a better place<\/a> in a particular way. For example, the authors explain that Whole Foods Market\u2019s good cause is to promote nutritious eating and environmentally friendly agricultural practices. A good cause is especially important for employees: The authors argue that employees who don\u2019t believe in the company\u2019s cause\u2014or who see that there is no cause beyond making money\u2014won\u2019t perform as well at work (which ultimately harms the company) and won\u2019t be happy in their own lives.<\/p>\n\n\n\n<p>The authors say <strong>there are four kinds of good causes<\/strong>\u2014helping others (for example, by providing medical care), <a href=\"https:\/\/www.shortform.com\/blog\/why-more-is-less\/\">maximizing<\/a> knowledge (for example, by performing research), promoting art (for example, by creating stylish clothing), and transforming the world (for example, by building the first AI). Founders usually already know the company\u2019s cause when they establish a company. But if a company\u2019s cause is unclear, Mackey and Sisodia recommend assembling a group of representatives from each interested party, from investors to environmentalists, to discuss and explicitly define the company\u2019s cause.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Good Causes: Don\u2019t Just Talk the Talk\u2014Walk the Walk, Too<\/strong><br><br>In <a href=\"https:\/\/shortform.com\/app\/book\/servant-leadership\/1-page-summary\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Servant Leadership<\/em><\/a><em>, <\/em>businessman Robert Greenleaf argues similarly that <a href=\"https:\/\/shortform.com\/app\/book\/servant-leadership\/1-page-summary#advice-for-businesses\" target=\"_blank\" rel=\"noreferrer noopener\">businesses have a moral duty to contribute to the greater social good<\/a>. According to Greenleaf, the purpose of any institution is to meet the needs of the people it serves. He says that American businesses have largely failed on this front, but <a href=\"https:\/\/shortform.com\/app\/book\/servant-leadership\/1-page-summary#what-is-an-ideal-institution\" target=\"_blank\" rel=\"noreferrer noopener\">they\u2019re uniquely poised to do better because they <em>must <\/em>respond to market demands<\/a> (including demands for ethical business practices) to remain profitable. Many businesses have responded to these demands by taking stances on social issues and promising to <a href=\"https:\/\/hbr.org\/2020\/06\/were-entering-the-age-of-corporate-social-justice\" target=\"_blank\" rel=\"noreferrer noopener\">be accountable for their social impact<\/a>.<br><br>However, some research suggests that there\u2019s often <a href=\"https:\/\/www.researchgate.net\/publication\/257087367_Corporate_social_responsibility_The_disclosure-performance_gap\" target=\"_blank\" rel=\"noreferrer noopener\">a gap between a company\u2019s <em>desire <\/em>to work toward a good cause and its <em>actual performance<\/em><\/a><em> <\/em>with regard to that good cause. This may be the case for Whole Foods Market\u2014its stated good cause is to promote good nutrition and environmentalism, but some evidence suggests it falls short of that goal at times. For example, one nutritional claim Whole Foods makes is that its beef doesn\u2019t contain antibiotics, but <a href=\"https:\/\/www.foodandwine.com\/news\/whole-foods-beef-antibiotics-lawsuit\" target=\"_blank\" rel=\"noreferrer noopener\">a 2022 lawsuit alleges otherwise<\/a>.<br><br>To ensure your business actually follows through with its moral duty to contribute to the greater social good (rather than just aspiring to), Greenleaf recommends that you collect opinions from all interested parties about your company\u2019s social impact and <a href=\"https:\/\/shortform.com\/app\/book\/servant-leadership\/1-page-summary#advice-for-businesses\" target=\"_blank\" rel=\"noreferrer noopener\">implement a plan for improvement<\/a>. Other experts note that <a href=\"https:\/\/sloanreview.mit.edu\/article\/how-to-evaluate-the-impact-of-corporate-purpose\/#:~:text=But%20if%20corporate,is%20not%20actionable.\" target=\"_blank\" rel=\"noreferrer noopener\">this assessment should come from key strategists <em>within <\/em>the company<\/a>, instead of being assigned to outside consultants or underqualified, low-ranking employees.&nbsp;<br><br>In addition to targeting a greater good, research suggests that reducing the gap between your company\u2019s values and its enactment of those values may be key to employee satisfaction\u2014<a href=\"https:\/\/news.gallup.com\/businessjournal\/195491\/few-employees-believe-company-values.aspx#:~:text=Gaps%20Between%20Desired,values%20to%20life.\" target=\"_blank\" rel=\"noreferrer noopener\">employees generally find work more meaningful and, in turn, become more productive<\/a> when the companies they work for practice what they preach.<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Why should you prioritize people over profit? How has Whole Foods Market thrived off this concept? Consciously capitalist companies (CCCs) succeed because making money isn&#8217;t the main focus. What&#8217;s most important is satisfying people and transforming the world. Learn why people over profit always wins, according to Conscious Capitalism by John Mackey and Rajendra Sisodia.<\/p>\n","protected":false},"author":14,"featured_media":12100,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,79,14],"tags":[1288],"class_list":["post-115009","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-entrepreneurship","category-management","tag-conscious-capitalism","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why People Over Profit Boosts a Company&#039;s Success - Shortform Books<\/title>\n<meta name=\"description\" content=\"A reason why Whole Foods is successful is because it prioritizes people over profit. 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