• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
CommentaryBusiness Strategy

Conscious Capitalism Is Far From Dead

By
Alexander McCobin
Alexander McCobin
and
Ron Shaich
Ron Shaich
Down Arrow Button Icon
By
Alexander McCobin
Alexander McCobin
and
Ron Shaich
Ron Shaich
Down Arrow Button Icon
September 24, 2018, 9:00 AM ET
Panera Bread store in Teterboro, N.J.
TETERBORO, NJ, UNITED STATES - 2018/08/05: Panera Bread store in Teterboro, New Jersey. (Photo by Michael Brochstein/SOPA Images/LightRocket via Getty Images)Michael Brochstein—SOPA Images/LightRocket via Getty Images

Does a change in strategy signify failure?

Of course not.

Usually, it means the equation for success has shifted; that the competitive landscape has evolved; that new skill sets and a new direction are needed.

Good business leaders constantly evaluate what is happening around them and adjust accordingly. The same is true of conscious capitalists. The goal of elevating humanity through business is ever-present, but the means of achieving that goal must change over time as the capitalist marketplace evolves.

That’s why those who point to Whole Foods’ decreasing profits or the flattening in Starbucks’ stock price as evidence that conscious capitalism can’t hold its own against market forces are plain wrong.

No one can deny that Whole Foods’ decades-long success reinvented the grocery business while raising awareness of environmental and food issues. And Starbucks, in a tradition begun by former CEO Howard Schultz, remains a leader in the coffee category despite repeatedly putting a stake in the ground on social issues ranging from gun control to race relations. The willingness of businesses to address the broader needs of their customers and society is crucial if we, as human beings, want to realize a better world for us all.

So what exactly is conscious capitalism? It’s a way of thinking about capitalism and business that reflects where we are in the human journey. It considers the state of our world today and recognizes the innate potential of business—with its ability to harness intellectual, financial, and human resources—to make a positive impact on the world.

Conscious capitalists run their businesses with a higher purpose in mind. They recognize that in seeking winning solutions for all stakeholders—customers, employees, suppliers, and the communities where they operate—they are also more likely to benefit shareholders.

That has certainly been the case at the company I founded, Panera. In nearly three decades, Panera has grown to nearly 2,300 bakery-cafes, 120,000 associates, and sales of $6 billion. Panera’s success came from a long-term commitment to building a company of value with values. The goal has always been to create a company of integrity, one associates were proud to be part of and one that made a difference in the lives of its guests and team members. We’ve always recognized that the more we give of ourselves in taking care of the world around us, the more we give to ourselves in terms of business success.

But while Panera’s goal of making a difference has remained steadfast, the ways we’ve accomplished this have changed through the years. We’ve had to make conscious decisions about where to direct our energy and resources. Sometimes our fundraisers benefit schools and local groups, other times breast cancer research. Meanwhile, we are always focused on food insecurity and give $100 million in food donations annually to more than 3,500 nonprofits and homeless shelters.

In fueling our collective purpose, we increase our appeal to customers and potential associates. But make no mistake, these actions are carefully weighed before they are taken—especially when they are controversial.

We’re happy to see that more companies are following a similar path, waving the conscious capitalist flag in addressing weighty social issues. And they’re evolving their approach as they see ways they can do better. After an incident in which two black men were arrested at a Philadelphia store, Starbucks paused its business operations and had all of its employees go through racial bias training. Was the training perfect? No. Was it the end to all racial problems in society? No. But was it a step in the right direction? Yes.

More businesses should be similarly self-reflective and take a leadership role in tackling tough issues. Dick’s Sporting Goods and Walmart’s recent stances on gun control and CVS’s decision a few years back to forgo selling all tobacco products are notable evolutions of conscious capitalism.

Businesses should be applauded for attempting to tackle thorny social issues no one else will. They should also be applauded for evolving their strategies as times and issues change. That’s not failure; it’s conscious capitalism—good business sense with a higher purpose in mind.

Alexander McCobin is the chief executive of Conscious Capitalism. Ron Shaich is the founder and chairman of Panera Bread and managing partner of Act III Holdings.

About the Authors
By Alexander McCobin
See full bioRight Arrow Button Icon
By Ron Shaich
See full bioRight Arrow Button Icon

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

tim
CommentaryAirline industry
Merlin CTO: autonomy can rebuild the foundation of aviation — and national security
By Tim BurnsJune 9, 2026
1 day ago
dewar
CommentaryLeadership
I founded McKinsey’s CEO practice: Here’s why operational excellence is a liability right now
By Carolyn DewarJune 9, 2026
1 day ago
250
Commentary250 Years of Innovation
America turns 250. Its greatest innovation was never a product — it was a system that let anyone build one
By Keith KrachJune 7, 2026
3 days ago
sabes
CommentaryRetirement
Retiring at 62 costs the average American $250,000. Here’s the math (and the neuroscience) that explain why
By Jon SabesJune 7, 2026
3 days ago
da
CommentaryIPOs
The short seller’s argument nobody on the coming mega IPO roadshow wants you to make
By Bhaskar ChakravortiJune 7, 2026
3 days ago
bs
CommentaryCalifornia
I’ve sold property on California’s Central Coast for decades. The buyers chasing ranch and winery estates are after more than a lifestyle
By Lindsey HarnJune 6, 2026
4 days ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
2 days ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
1 day ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
Investing
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
22 hours ago
Current price of silver as of Tuesday, June 9, 2026
Personal Finance
Current price of silver as of Tuesday, June 9, 2026
By Joseph HostetlerJune 9, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.