New economic paradigm built on four tenets: Its core lays in a stronger orientation on purpose and core values, going beyond shareholder value and reflecting upon reasons why a company exists. This would catalyze creativity and innovation while satisfying stakeholders. The other three tenets build on this purpose orientation. A stakeholder integration would be necessary to create win-win scenarios for businesses in societies to counter trade-offs and negative externalities in business operations. Conscious leadership is a prerequisite to ensure the Smithsonian ideals by orienting the firm’s services primarily on its higher purpose and the stakeholder value. This needs to be reflected in conscious management, which evolves from a company’s commitment to its purpose( built on shared values), and a conscious company culture based on decentralization, empowerment, and collaboration.
Proponents: John Mackey, Rajendra Sisodia
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|Reason for intervention||
dysfunctional free market economy, lack of purpose in economy, overexpansion of government