Whole Foods CEO says purpose-driven companies thrive

The companies that will flourish in the face of rapid change and tough competition are those driven by a higher sense of purpose and that practice what’s best for their employees, suppliers, customers and other stakeholders, said John Mackey, co-founder and CEO of Whole Foods Market, at Tuesday’s keynote address.

“Great companies have a great purpose,” said Mackey, in the explanation of his concept of “conscious capitalism.” For Whole Foods, the driving purpose is improving the health of people, food and the planet, he said, while Google is great at unlocking information, Apple excels at creating beautiful devices, and Southwest Airlines has thrived by making airline travel more accessible to the masses. Success for these companies springs from following these types of core purposes, Mackey explained.

He also advised that company leaders should think in terms of managing a system of stakeholders that spans employees, customers, communities and suppliers. Happy employees leads to happy customers, better word of mouth, more business, and ultimately, a stronger company. “It’s all interdependent … it’s all one big system,” he said.

Mackey rejects the notion that only hard-edged, profit-driven companies win out. He pointed to a ranking of “firms of endearment,” which are deeply admired by their stakeholders, and he noted that these companies have far outperformed against stock indexes. “There’s not this tradeoff,” he said, “when you are good to your employees and customers that leads to better customer satisfaction and financial performance.”

ProMat 2015 is scheduled to be held March 23-26, 2014 at Chicago’s McCormick Place. The tradeshow will showcase the latest manufacturing, distribution and supply chain solutions in the material handling and logistics industry. Modern’s complete ProMat 2015 coverage.