A company may hold certifications and speak of purpose while its employees still feel afraid to point out something that is not working. This gap between what is declared and what is experienced runs through the reflections of
David Pérez Castillo, research professor at the Business School and research director at the Center for Conscious Enterprise at Tecnológico de Monterrey, proposes in this article examining four core dimensions of business consciousness to understand how it manifests in everyday decisions.
The 4 core dimensions of business consciousness: An applied framework
According to the model proposed by Raj Sisodia (Mackey and Sisodia, 2014), a conscious business is one guided by a higher purpose that goes beyond merely generating financial returns, deeply engaging all its stakeholders, promoting an organizational culture grounded in ethical values and responsibility, and fostering authentic, transformative leadership.
Examples of these companies include Tierra de Monte (chemical-free soil biotechnology) and Rayito de Luna (returnable packaging and a circular economy) in Mexico, or Dr. Bronner's (organic soaps, limits on the executive pay gap, and profit donations) and Patagonia (technical outdoor apparel, with governance safeguards established by transferring its shares to climate trusts) globally. All prioritize ethics and social and environmental regeneration over financial gain.
However, in everyday operations, it is difficult to determine when a company is truly conscious and when it is not. For example:
- Is a company that complies with the law already a conscious business?
- Does a company with “certified green” products automatically become a conscious business?
- If a company's product contributes to obesity, but the company holds a Best Place to Work certification, can it be considered conscious?
Microenterprises also come to mind: those with fewer than 10 employees, many of which struggle to make ends meet and cannot obtain external certifications. At what point can we say they are conscious businesses?
Likewise, we cannot overlook greenwashing: companies that describe themselves as sustainable, green, or even regenerative, yet whose operations are highly polluting or produce negative social impacts shaped by predatory capitalism.
This brings us to the central questions: Where does a company's consciousness reside? When can we recognize a conscious business?
Where does consciousness reside in a company?
It may even seem incorrect to say that a company has consciousness, since this is a biological, cognitive, and subjective property attributed to living beings (and, in its fullest expression, to people). Therefore, attributing "consciousness" to an organization is technically a metaphor or a form of legal personification.
However, within the framework of organizational theory (March and Simon, 1958), we could accept the concept and use it to identify 3 ways of observing a company's consciousness:
- The company as a nexus of consciousness: An organization is not an isolated abstract entity; it is a human community whose members, especially its leaders, operate with a certain degree of self-awareness, empathy, and responsibility. The organization "reflects" the collective consciousness of its members and shareholders.
- Organizational systems, policies, and structures: When a company drafts bylaws that protect the environment or adopts transparent governance structures, the "consciousness" of its founders becomes an emergent property of the system. The system operates and adapts in ways that regulate an employee's behavior.
- Legal and moral responsibility: Legally, companies are "legal persons" with rights and obligations. If they are recognized as having the legal capacity to sign contracts, generate wealth, or commit crimes (environmental damage, fraud), it is conceptually consistent to require a degree of moral and reflective responsiveness to their impacts, which amounts to acting consciously.
Considering the above, we could summarize that a company's consciousness resides in 4 core dimensions:
- Its leaders' worldview
- Its employees' active commitment
- The coherence of its organizational system
- The legal responsibilities it has assumed
We cannot speak of a conscious leader if their profit-driven outlook prevents them from investing a single cent without demanding immediate financial gratification. Likewise, it is impossible to expect active commitment from employees when they are kept in a culture of fear of losing their jobs, or when internal policies punish collaboration in favor of individualism. Finally, the legal responsibilities assumed lose all ethical value when reduced to mere legal loopholes for evading obligations.
How can we recognize a conscious business?
Considering the above, I believe we can identify certain elements that help us determine when a company is conscious and when it is not.
- Do leaders question how they understand the world and what their economic motivations are?
- Do employees understand the organization's deeper purpose, and does the organizational culture allow them to correct course?
- Does the company review and question its rules, standards, and practices, envisioning not only improvements in production but also improvements in its impact on the planet and society as an organization?
- Has the company undertaken legal commitments that hold it accountable for the impact of its operations?
With these questions in mind, I believe a company does not necessarily need to have a net positive impact to be considered a conscious business; however, it must envision that outcome and make genuine efforts to move in that direction.
Moreover, in practice, it is difficult to discern a company's level of consciousness, since even certifications (such as B Corp or ISO) assess processes and standards, whereas evaluating operational "consciousness" should focus on reflective capacity and adaptive governance in the face of ethical dilemmas and social and planetary boundaries.
In small and medium-sized enterprises, consciousness is not usually evident in ESG reports or certifications but rather in close community ties, ethical treatment in direct relationships, and the absence of deliberate externalities. I believe it is worth emphasizing that operational consciousness is an ethical stance and a strategic orientation with a broad yet sensitive outlook, not merely a “premium” product.
I have proposed 4 core dimensions of business consciousness, although observing them in practice may not be so common. Nevertheless, I can recognize a company's consciousness when:
- Its leaders demonstrate and seek consistency between their actions and thinking, at least among their stakeholders.
- It allows its employees and the community where it operates to evaluate it without fear of retaliation.
- It periodically issues a document outlining its positive and negative impacts on the planet and society and seeks to adjust its structures. It does not fabricate, manipulate, or embellish its data for either investors or consumers.
- It signs agreements and contracts with government and civil society organizations that commit it to acting in accordance with its principles. These commitments do not remain mere good intentions.
Patagonia exemplifies these elements through its leaders' consistency. Yvon Chouinard worked in a modest office made of reclaimed wood and encouraged workplace flexibility under the philosophy of "Let my people go surfing". Patagonia fosters a culture of radical psychological safety by disclosing and addressing abuses in its partner factories in Asia, while publishing its environmental shortcomings without filters in The Footprint Chronicles. Finally, the company established legal safeguards as a Benefit Corporation, contractually committing itself to prioritizing planetary well-being over profits.
In summary, we can say that a company does not become conscious by having no negative impacts within an imperfect economic system, but through its structural capacity for self-criticism: acknowledging those impacts, disclosing them, and actively transforming its business models to remedy them.
Redefining consciousness through its 4 operational dimensions (consistent leaders, cultures without fear, transparency without embellishment, and binding legal provisions) allows us to move the concept beyond theoretical abstraction and offer practical guidance.
Only then can we distinguish organizations that are truly leading the transition toward a regenerative economic model from those that have merely learned to speak the language of sustainability.
In your company, can you see actions across the 4 core dimensions of business consciousness?
References
Mackey, J., and Sisodia, R. (2014). Capitalismo consciente: Liberando el espíritu heroico de los negocios. Empresa Activa.
March, J. G., and Simon, H. A. (1958). Organizations. John Wiley & Sons.