Some key takeaways:
- Understanding cultural influences means knowing the environment in which we live and work, including the beliefs, behavioral rules, traditions, and rituals that bind us together.
- Profit Paradox: Companies that focus on profit make less profit; companies that focus on culture make more profit.
- Classic Capitalism vs. Social Capitalism = shareholders vs. stakeholders. Examples include (CC) Phillip Morris, Walgreens, Fannie Mae, Proctor & Gamble, Well Fargo vs. (SC) Amazon, Google, CarMax, Southwest Airlines, UPS, IKEA, L.L. Bean, Trader Joe's, Whole Foods.
- Over the past 10 years, Social Capitalism companies did better profit-wise than Classic Capitalism companies, even during the Great Recession and especially as recently as 2014.
- Social Behavior Norms (group interest, collaboration, self-sacrifice, discretionary effort) offset traditional Business Behavior Norms.
- Cultivating social norms often produces more desirable outcomes. Pay employees fairly and competitively; people work harder for a cause than for cash; corporate loyalty doesn’t have to be an oxymoron if the company cultivates a culture that values social norms.
- Two primary Culture Factors of the Social Capitalism company: Connectness and Trust.
- Connectedness is driven by relationships and a feeling of belonging to a cause. Identify your company’s cause. How does what you do change the world?
- Developing Trust = Experience of your employees and customers (reliability, openness, competence, concern) divided by what risks they take in working for or buying from you.