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Whole Foods Co-CEO John Mackey on why business has a higher purpose beyond just making money.
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-- very much.
It started I want to wrap your mind around this it started as a business that began in an old house in Texas thirty years ago -- -- -- -- -- house today the company has expanded to more than 340.
Locations with more than 70000.
Employees.
Despite the tremendous growth and success of whole foods co-founder and co CEO John -- remains focused on the original core values.
Can you really make money by doing that he proves you can he put it into his new book conscious capitalism joining me now from Washington.
John -- -- business exclusives and and welcome John -- wanted to bring you want because say.
You're great business leader but also you know asking you can -- -- capitalist ideas that are.
Infused with conscious capitalism really work for everybody's companies so.
We begin with your version.
-- capitalism which is completely different from Milton Friedman's which is everything you do it goes back to just making the almighty dollar how -- you different.
We think that course business has to be profitable but we think that.
It starts with business having a higher purpose beyond just making money.
Doctors have a higher purpose they heal people teachers educate architects design buildings businesses the greatest value creator in the world.
And that's entire purpose to create value for customers.
Create value for all of its stakeholders its employees its suppliers.
To its investors and larger communities that there that were part of.
You know as as a very strong business.
You start with what some people might think it would be a very softly heart and -- in your book I think one of the things that jumped out -- me with your version of imagine.
And we pulled out some of these and when you talk about your version of imagine you're talking about.
Imagine a company.
That for example is a business born out of a simple turn we'll talk about your dream and a set of business that cares about customers well being a business that hires with great care.
What what was the original -- here for you.
The original dream was basically to sell healthy food to people in and help them live a healthier lifestyle.
No earn a living and I have some fun of course our purpose has evolved over time and now -- Actually trying to embrace trying to heal America -- mean 69% of Americans -- overweight 36% as obese.
The diseases that kill us like heart disease cancer diabetes these are mostly dietary and lifestyle diseases.
And you held on to that all the way through -- and that's where you were able to come through with your four tenets of conscious capitalism we made the pyramid.
So that people could really understand that and I'm pushing here as we look at some of these which include everything from.
Shareholder integration and and all kinds of other ideas where you're talking about conscious leadership.
Culture management be great to your employees.
But I I -- -- some businesses John today in the stand major just focus amounts are finding them reacting to marketplace changes.
That they can't put their purpose to the side.
What we think that's mistake one of the things that we discovered in our research in the book is that.
Businesses that have a higher purpose and businesses that care about their stakeholders.
Outperform in the marketplace not by a little bit but by a lot we showed.
Public companies that we -- -- -- more conscious in the following the tenets of conscious capitalism how about performing indices by.
The S&P 500 by.
More than ten acts can -- name is also its ownership structure to enhance -- Google.
-- strums Panera Bread Starbucks.
Southwest Airlines.
Hold.
Foods.
The Container Store couple foreign countries -- go to tough talk group in India.
There's a number that we -- find the book.
I look at.
These and I think.
This is how I would think but I'm very sort of California.
-- get that whole thing and you you -- Texas when you found that this.
And you want what looking talk about in the book how you went with the counter culture in the early years and looking at at a cooperative.
But -- kind of found capitalist religion in that you realize.
It's great to make money it's great to grow business and now not only area with 340 stores -- Pretty much telegraphed to the market you want -- triple that almost two about a thousand stores are you worried at all that you might lose that conscious capitalist theory.
In growing as quickly as you want to grow.
I don't.
Think so and a lot -- -- growing slower than we've ever grown before as a percentage and Whole Foods Market now has a very.
Dynamic culture that's well.
-- rated in the conscious capitalism Tenet's so I'm not worried about that.
In addition I've just written a book that.
Getting even a stronger in this regard.
When you hear from big corporations.
Who say.
That's all very touchy feeling -- nice but it's not gonna work here we care about how analysts feel we care about our biggest shareholders are hot money shareholders.
What would be your response to a leader who -- that.
-- I do think we have to care about our investors the investors are one of the important stakeholders we need to create value for investors I would tell them this is the best strategy.
To increase shareholder value and increase.
Profits and it.
That creating a -- having a higher purpose in creating value for all your stakeholders.
Will result in greater value creation for investors if you put the investors first.
Paradoxically -- probably sub optimize you will not get the same kind of commitment from customers.
And from your employees and from your supplier group as you would if you're following a higher purpose.
That is the key I'm I'm glad you ended on that because to me.
You get a lot of people saying yeah but I -- on cutting costs of doing this some doing that in even in your forward.
You have -- short of mr.
George of Medtronic saying in essence that.
You know the -- -- -- -- at IBM really work with the Mark Hurd way over Hewlett-Packard did not work so.
It's an interesting point that you make thank you very much John it's good to see I'm holding up the book right now I recommend people really read this especially if you feel that.
You don't -- -- the dream and he will make money and your company will grow one small house to 340 stores thank you so much.
Thank you this John MacKey is Whole Foods Market co-founder and co CEO and by the way he lost his entire one -- once in flood.
Thirty years ago Kate back quite closely.
