By Rajendra S. Sisodia, David B. Wolfe and Jagdish N. Sheth
How World-Class Companies Profit From Passion and Purpose
FIRMS OF ENDEARMENT
THE SUMMARY IN BRIEF
American business has entered the Age of Transcendence, with an increas- ingly older population searching for the higher meaning in their lives, not just more possessions. According to the authors, a historic social transformation of capitalism is under way. In this book they provide a measure of the scale of change by profiling companies that have broadened their purpose beyond the creation of shareholder wealth to act as agents for the larger good.
They call these companies firms of endearment (FoEs) because they strive through their words and deeds to endear themselves to all their primary stake- holder groups — customers, employees, partners, communities and sharehold- ers — by aligning the interests of all in such a way that no single stakeholder group gains at the expense of other groups. They’re driven as much by what they feel is right (subjectively grounded morality) as by what others might more objectively claim to be right.
FoEs are run by executives who reflect in their managerial philosophies the changes in culture they are talking about and who are champions of a new, humanistic vision of capitalism’s role in society. Firms of endearment are com- panies people love doing business with, love partnering with, love working for, love investing in.
This summary reveals how FoEs are blowing away the S&P 500 averages and increasing “share of heart” by delivering the emotional, experiential and social value stakeholders are demanding.