Conscious capitalism is a socially responsible economic and political philosophy that stresses organizations' need to operate ethically while they strive to make profits. This philosophy implies that organizations should always focus on serving all their stakeholders and providing higher purpose and creating value to the involved communities (Cheretis & Mujtaba, 2014). Social capitalism is anchored four main beliefs, higher purpose, caring culture, conscious leadership, and stakeholder orientation. Many organizations are adopting the philosophy of social capitalism due to its benefits, which include the creation of better relationships between stakeholders and the organizations and more engagement of the community in organizations’ operations (Wang, 2013). This essay will explore how the Department of Defense practices conscious capitalism and how it can further its understanding and implementation of the same.
One way through which the Department of Defense practices conscious capitalism through creating opportunities for the army personnel and other employees in the organizations to advance their careers through promotion. This practice ensures the employees do not have to wait for the seniors to retire or leave the organization to get the promotion. In the Department of Defense, promotion is accorded to employees based on merit and not through favouritism, as it may happen in some organizations. Continuous career advancement through promotion in the Department of Defense keeps the employees, who are the core stakeholders, motivated to work hard in their respective positions. Secondary, another way through which the Department of Defense practices conscious capitalism is through creating value for the army personnel by holding them to higher standards. The department has various programs to support their employees even after they leave the service or after retirement. In addition, in the organization, leaders have embraced conscious leadership. They lead intending to create value for the employees, be inspirational, and positively impact the world. Also, there is a caring culture in the department of defence that promotes personnel integrity, learning, and empowerment. The caring culture of the organization is also advanced to the civilian communities in the areas where the army personnel get to serve.
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The Department of Defense has done incredibly well in implementing and practising conscious capitalism. However, there is a need for further understanding and implementation of social capitalism to advance the practice. The organization must always purpose to understand the guiding principles of conscious capitalism, which are higher purpose, stakeholder orientation, caring culture, and conscious leadership (Wang, 2013). Within the U.S, the Department of Defense has demonstrated a good understanding of conscious capitalism; however, the department needs to advance the same to the countries where the armies serve. For example, in the troops' areas to restore peace, the organization's leadership should uphold with higher purpose both its personnel and the civilian communities they are protecting. In addition, the department should ensure that responsible utilization of taxpayers' money and ensure that only the enemies are harmed during their operations and not the civilians. Finally, the department should implement ways of helping the army personnel who suffer post-war traumas after service.
In conclusion, social capitalism is a philosophy that revolutionized how organizations operate even as they pursue to make profits by stressing the importance of ethical practices. Through creating career development opportunities for its employees, creating value for the personnel by upholding higher purpose, creating a caring culture, and practising conscious leadership, the Department of Defense practices conscious capitalism. While the department has done well in implementing conscious capitalism domestically, there is a need for the organization to implement the practice in the areas where the army personnel are sent to serve in other countries.
References
Cheretis, D. & Mujtaba, B. (2014). Maximizing long-term value and conscious capitalism at Whole Foods: Quarterly Journal. S.A.M. Advanced Management Journal, 79(3), 4-10.
Wang, C. (2013). Conscious capitalism firms: Do they behave as their proponents say? University of California, Berkeley, 55(3), 60-86. DOI: 10.1525/cmr.2013.55.3.60
