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How to Build Company Culture According to Social Capitalism

Updated: Feb 7



Social Capitalism

Social capitalism is a philosophy that advocates for businesses to pursue a higher purpose than just profit, and to serve the interests of all stakeholders, including employees, customers, suppliers, communities and the environment. It is based on the idea that businesses can be a force for good in the world, and that by aligning their goals, strategies and actions with their purpose and values, they can achieve both financial success and social impact.
But how can businesses adopt social capitalism and build a company culture that reflects it? In this article, we will explore some of the benefits of social capitalism, some examples of companies that practice it, and some practical steps to build a company culture according to it.

Unveiling the Power of Social Capitalism


Social capitalism offers many benefits for businesses, such as:


  • Enhanced brand reputation: By being socially and environmentally responsible, and supporting causes that align with their purpose and values, businesses can build trust and loyalty among their customers, and differentiate themselves from their competitors.

  • Fostered employee satisfaction: By engaging and empowering employees to contribute to the company’s purpose and values, and to their own personal growth and development, businesses can increase employee motivation, retention and productivity.

  • Attracted socially conscious consumers: By offering products and services that meet the needs and preferences of socially conscious consumers, who are willing to pay more for ethical and sustainable choices, businesses can tap into a growing and lucrative market.

  • Long-term economic advantages: By investing in education, healthcare, and other social goods, businesses can create a positive feedback loop that enhances their own performance and sustainability, as well as the well-being of society.

  • Addressed pressing issues: By being part of the solution to some of the most pressing issues facing the world today, such as income inequality, environmental degradation, and access to basic services, businesses can make a meaningful difference and create a lasting legacy.




Pioneers of Social Capitalism: Case Studies


There are many examples of companies that practice social capitalism, across different industries and sectors. Here are some of them:


  • Whole Foods Market: The leading natural and organic food retailer in the US, Whole Foods Market has a mission to nourish people and the planet. It operates according to four core values: selling the highest quality natural and organic products available, satisfying and delighting customers, supporting team member happiness and excellence, and caring about communities and the environment. It also follows a stakeholder-oriented model, where it balances the interests of all its stakeholders, including shareholders, team members, customers, suppliers, communities and the environment.


  • Patagonia: The outdoor clothing and gear company, Patagonia has a mission to build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis. It operates according to five core values: quality, integrity, environmentalism, not bound by convention, and style. It also follows a triple bottom line approach, where it measures its success by its environmental, social and financial performance. It is also a certified B Corporation, which means it meets the highest standards of social and environmental responsibility, transparency and accountability.


  • The Container Store: The leading retailer of storage and organization products in the US, The Container Store has a purpose to help people get organized, so they can live a happier, more productive and more fulfilling life. It operates according to seven foundation principles: 1) great person = 3 good people, 2) communication is leadership, 3) fill the other guy’s basket to the brim, making money then becomes an easy proposition, 4) the best selection, service and price, 5) intuition does not come to an unprepared mind, you need to train before it happens, 6) man in the desert selling, and 7) air of excitement. It also follows a conscious culture model, where it creates a win-win-win for all its stakeholders, including employees, customers, vendors, shareholders and the community.


  • Southwest Airlines: The largest domestic airline in the US, Southwest Airlines has a vision to become the world’s most loved, most flown, and most profitable airline. It operates according to three core values: a warrior spirit, a servant’s heart, and a fun-loving attitude. It also follows a people-centric culture, where it treats its employees as its first and most important customers, and empowers them to deliver excellent service to its external customers.


  • Starbucks: The largest coffeehouse chain in the world, Starbucks has a mission to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. It operates according to six guiding principles: 1) provide a great work environment and treat each other with respect and dignity, 2) embrace diversity as an essential component in the way we do business, 3) apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee, 4) develop enthusiastically satisfied customers all of the time, 5) contribute positively to our communities and our environment, and 6) recognize that profitability is essential to our future success. It also follows a social responsibility strategy, where it focuses on three areas: ethical sourcing, environmental stewardship, and community involvement.


How to Build Company Culture According to Social Capitalism


Building a company culture according to social capitalism is not a one-time event, but a continuous process that requires commitment, alignment and action. Here are some practical steps to get started:


  • Define your purpose and values: The first step is to define your purpose and values, which are the foundation of your company culture. Your purpose is your reason for being, your why, your higher calling. Your values are your guiding principles, your how, your core beliefs. Your purpose and values should be clear, inspiring and authentic, and reflect what you stand for and what you aspire to.


  • Communicate your purpose and values: The next step is to communicate your purpose and values, both internally and externally. You need to make sure that your purpose and values are understood, shared and embraced by all your stakeholders, especially your employees. You can use various channels and methods, such as your website, social media, newsletters, meetings, events, trainings, etc., to communicate your purpose and values, and to showcase how they are reflected in your goals, strategies and actions.


  • Align your goals, strategies and actions with your purpose and values: The third step is to align your goals, strategies and actions with your purpose and values, and to measure and monitor your progress and performance. You need to make sure that your purpose and values are not just words on a wall, but are translated into tangible and meaningful outcomes. You can use various tools and frameworks, such as the balanced scorecard, the OKR (objectives and key results), the B Impact Assessment, etc., to set, track and evaluate your goals, strategies and actions, and to ensure that they are aligned with your purpose and values, and that they create value for all your stakeholders.


  • Engage and empower your employees to contribute to your purpose and values: The fourth step is to engage and empower your employees to contribute to your purpose and values, and to their own personal growth and development. You need to make sure that your employees are not just workers, but partners, who share your vision and passion, and who have the autonomy, skills and resources to deliver excellent results. You can use various practices and policies, such as hiring for fit, providing feedback and recognition, offering learning and development opportunities, encouraging innovation and creativity, fostering collaboration and diversity, etc., to engage and empower your employees, and to create a culture of trust, respect and excellence.


  • Be socially and environmentally responsible, and support causes that align with your purpose and values: The fifth step is to be socially and environmentally responsible, and to support causes that align with your purpose and values. You need to make sure that your business is not only doing well, but also doing good, and that you are making a positive difference in the world. You can use various initiatives and programs, such as donating to charities, volunteering in the community, reducing your environmental footprint, advocating for social change, etc., to be socially and environmentally responsible, and to support causes that align with your purpose and values, and that resonate with your stakeholders.


Join the Eud Foundation: A Community Championing Social Capitalism


Eud Foundation


Embracing Social Capitalism is a journey of continuous learning and adaptation. Here, the Eud Foundation - EUD INTERNATIONAL FOUNDATION C.I.C. emerges as a pioneering community. By joining the Eud Foundation, businesses gain access to a network of like-minded professionals and organizations, all dedicated to practicing and promoting Social Capitalism.


The Eud Foundation offers a platform for collaboration, innovation, and shared learning, helping members integrate Social Capitalism into their business DNA. It's more than a community; it's a movement towards a more equitable and sustainable business world.


Transform your organization with Social Capitalism and join a community of changemakers. Visit Eud Foundation to start your journey towards impactful business practices.



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