It sees businesses as responsible for all its stakeholders, not just their shareholders. This form of capitalism contrasts with more recognized theories including Friedman, who reports “The social responsibility of a business is to increase its profits.” (Friedman, 2007). Whole Foods Supermarket remove the emphasis off profit maximisation and address all stakeholders equally. Their leader John Mackey is a conscious manager who understands the importance for leaders “to integrate their hearts with their heads by developing self-awareness and emotional intelligence, while empowering other people to do the same.” (Mackey and Sisoda, 2014) This caring form of leadership from the CEO inspires Whole Foods’ employees as they then “passionately believe in what the company is doing”. This emphasis on the worker will attract the best employees, important for the long term success of the company. (Pirson and Lawrence, 2009) found overwhelming evidence that “people work for respect, acceptance, communion and shared values instead of short-sighted personal utility.” This suggests empowering the employee psychologically is more important than short term “performance related pay” incentives. This could help organisations in the short term as they invest less in financial incentives, more in emotional incentives which in turn will lead to higher productivity in the long term, therefore there is more financial rewards to be distributed …show more content…
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