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Firms of Endearment: How World-Class Companies Profit from Passion and Purpose (2nd Edition)
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From the Back Cover
“This new edition of Firms of Endearment continues to break important new ground in understanding the power of capitalism to transform our world for the better. In the first edition, the authors… gave us an introductory quantitative analysis, and a set of rich stories that made the analysis make some sense. Now, they take a giant step forward. They give us a ’proof of possibility,’ grounding a new story of business in solid economic analysis and practical management thinking.” —R. Edward Freeman, University Professor, The Darden School, University of Virginia Today’s greatest companies are fueled by passion and purpose, not cash. They earn large profits by helping all their stakeholders thrive: customers, investors, employees, partners, communities, and society. These rare, authentic firms of endearment act in powerfully positive ways that stakeholders recognize, value, admire, and even love. They make the world better by the way they do business—and the world responds. They have created radically new rules. This extensively updated book will help you master those new rules, learn from their newest experiences, build your great firm of endearment, change the world, and succeed on every level that matters. Build a high-performance business on love (It can be done. We’ll prove it.) Help people find the self-actualization they’re so desperately seeking Join capitalism’s radical social transformation—or fall by the wayside Don’t just talk about creating a happy, productive workplace: do it Honor the unspoken emotional contract you share with your stakeholders Create partner relationships that really are mutually beneficial Build a company that communities welcome enthusiastically Help all your stakeholders win, including your investors “Business has enormous potential to do good in the world. Much of the good is currently being done ‘unconsciously’ simply by creating products and services that people value, providing jobs, and generating profits. However, business can also be done much more consciously, with higher purpose and optimal value creation for all major stakeholders, while creating cultures that optimize human flourishing... Firms of Endearment points the way that all businesses should aspire to emulate and ultimately transcend. I am grateful to the authors for their landmark contribution...” —John Mackey, Co-founder and Co-CEO, Whole Foods Market Contains Dozens of New & Updated Case Studies Chosen through a Rigorous New Selection Process Doing good is great business. In industry after industry, today’s best companies have discovered this—and they’re leaving their short-sighted competitors in the dust. Firms of Endearment, Second Edition reveals how these remarkable companies are generating more of every form of value that matters: emotional, experiential, social, and financial. Not because it’s “politically correct,” but because it’s the only path to long-term competitive advantage. These are companies people love to buy from, work for, and partner with. While others struggle, they are helping all their stakeholders thrive—and the marketplace has consistently recognized and rewarded them for it. This extensively updated book will help you apply the hard-won lessons these companies have learned over years, even decades. You’ll learn how to combine a human-centered vision, resolute management, and an unswerving commitment to do right by everyone you touch—and how to translate these elements into astonishing levels of performance.
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About the Author
Raj Sisodia is the F.W. Olin Distinguished Professor of Global Business and Whole Foods Market Research Scholar in Conscious Capitalism at Babson College in Wellesley, MA. He is also co-founder and co-chairman of Conscious Capitalism, Inc. He has a Ph.D. in marketing from Columbia University. Raj is the co-author of The New York Times bestseller Conscious Capitalism: Liberating the Heroic Spirit of Business (Harvard Business Review Publishing, 2013). In 2003, he was cited as one of “50 Leading Marketing Thinkers” by the Chartered Institute of Marketing. He was named one of “Ten Outstanding Trailblazers of 2010” by Good Business International, and one of the “Top 100 Thought Leaders in Trustworthy Business Behavior” by Trust Across America for 2010 and 2011. Raj has published seven books and more than 100 academic articles. He has consulted with and taught executive programs for numerous companies, including AT&T, Nokia, LG, DPDHL, POSCO, Kraft Foods, Whole Foods Market, Tata, Siemens, Sprint, Volvo, IBM, Walmart, Rabobank, McDonalds, and Southern California Edison. He is on the Board of Directors of The Container Store and Mastek, Ltd., and is a trustee of Conscious Capitalism, Inc. For more details, see www.rajsisodia.com. Jag Sheth is the Charles H. Kellstadt Professor of Marketing in the Gouizeta Business School at Emory University. He has published 26 books, more than 400 articles, and is nationally and internationally known for his scholarly contributions in consumer behavior, relationship marketing, competitive strategy, and geopolitical analysis. His book The Rule of Three (Free Press, 2002), coauthored with Raj Sisodia, has altered current notions on competition in business. This book has been translated into five languages and was the subject of a seven-part television series by CNBC Asia. Jag’s list of consulting clients around the world is long and impressive, including AT&T, GE, Motorola, Whirlpool, and 3M, to name just a few. He is frequently quoted and interviewed by The Wall Street Journal, The New York Times, Fortune, Financial Times, and radio shows and television networks such as CNN, Lou Dobbs, and more. He is also on the Board of Directors of several public companies. In 2004, he was honored with the two highest awards bestowed by the American Marketing Association: the Richard D. Irwin Distinguished Marketing Educator Award and the Charles Coolidge Parlin Award. For more details, see www.jagsheth.net. The late David B. Wolfe was an internationally recognized customer behavior expert in middle-age and older markets. He was the author of Serving the Ageless Market (McGraw-Hill, 1990) and Ageless Marketing: Strategies for Connecting with the Hearts and Minds of the New Customer Majority (Dearborn Publishing, 2003). David’s consulting assignments took him to Asia, Africa, Europe, and throughout North America. He was widely published in publications in the U.S. and abroad. He also consulted to numerous Fortune 100 companies, including American Express, AT&T, Coca-Cola, General Motors, Hartford Insurance, Marriott, MetLife, Prudential Securities, and Textron.
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Product details
Hardcover: 320 pages
Publisher: Pearson FT Press; 2 edition (February 19, 2014)
Language: English
ISBN-10: 9780133382594
ISBN-13: 978-0133382594
ASIN: 0133382591
Product Dimensions:
6.4 x 1.1 x 9.3 inches
Shipping Weight: 12.8 ounces (View shipping rates and policies)
Average Customer Review:
4.4 out of 5 stars
90 customer reviews
Amazon Best Sellers Rank:
#219,298 in Books (See Top 100 in Books)
If the reason for a company’s existence is just profit, they won’t be very profitable. But if a company isn’t profitable, it won’t exist long enough to serve any other purpose. That’s what we call the purpose-profit paradox.Firms of Endearment: How World Class Companies Profit from Passion and Purpose draws from an extensive research study looking for companies that focused on endearing themselves to their customers, employees, suppliers, communities, and shareholders. These FoEs are driven by “aligning the interests of all in such a way that no stakeholder group gains at the expense of other stakeholder groups; rather, they all prosper together.â€The authors and their research team narrowed their initial list of 60 companies to “28 companies we felt best manifested a high standard of humanistic performance†and did a financial analysis on these from an investor viewpoint. They found “these widely loved companies (those that are publicly traded) outperformed the S& P 500 by huge margins, over ten-, five-, and three-year time horizons.â€They also compared these FoEs to the 11 companies profiled in Jim Collins book, Good to Great. None of the Good to Great companies made their cut. The FoEs outperformed them by ratios as high as 3 to 1.The book dives deep into understanding what sets FoEs apart from their peers. It’s brimming with insightful stories and examples from many of the firms. Here’s a partial list their “distinctive set of core values, policies, and operating attributes:• Subscribe to a purpose for being that is different from and goes beyond making money.• Actively align the interests of all stakeholder groups, not just balance them.• Devote considerably more time than their competitors to employee training.• Their employee turnover is far lower than the industry average.• Consciously humanize the company experience for customers and employees, as well as creating a nurturing work environment.• Project a genuine passion for customers, and emotionally connect with them at a deep level.• Consider their corporate culture to be their greatest asset and primary source of competitive advantage.â€Like Good Company: Business Success in the Worthiness Era, this is a very inspiring read based on a strong research foundation. The authors persuasively argue that we’re now into the “Age of Transcendence…the highest pinnacle that humanity has yet ascended to.†This research is further proof that the future belongs to strong, values-based, moral leaders who use their organizations to enrich everyone involved and make the world a better place.
Most of the book (and its overall premise) is right on target. If you like Conscious Capitalism, you'll enjoy this too. But there are a few places where I disagree with the authors. I don't possibly see how they can say Amazon is a "firm of endearment" when they treat their warehouse workers like dogs and fire them if they ask for time off. Or saying that Google is a good place to work because they serve free gourmet food -- isn't it obvious to everyone that is done only to get their employees to work extra hours? But aside from these glaring examples, there is a lot to like in this book.
We read Conscious Capitalism at work last year, which I enjoyed. Challenging, mind-expanding ideas. Readable. This book was written about a decade before, and did not add much for me beyond Conscious Capitalism, as I had already bought in. Word choices felt a little precious ("concinnity" anyone?) and so, distracting.
This book makes a strong case that the companies that are thriving in this age of change and uncertainty are the companies that focus on core principles, values and a purpose beyond simply making a profit. In this second edition, the authors dive more deeply into what makes these companies so special. Using the multiple stakeholder framework, the book present compelling data and stories to show how exceptional organizations add value to all stakeholder groups. Using the acronym SPICE, this book deeply delves into how new paradigm businesses serve the 5 major stakeholder roles: Society (and the environment), Partners, Investors, Customers & Employees to the synergistic benefit of all.If you want to understand where the new paradigm of business is headed, read this book!
So much good to grown on in this book. It makes a poignant appeal to lead with Spirit, the kind of power no one can take from you. Put the love back in the business - build relationships with your customers and employees to withstand the tests of time. People show up for people who care. We need more inspiration and hope and Firms of Endearment.
Wow! Redundancies galore mask the message and you've got to become an expert page turner/scanner to plow through them. Once you get down to the meat and potatoes and past all of the intellectual mumbo jumbo, it's got a good message and certainly worth a read if you're a serious Blue Chip investor in the stock market. Or, just for your information, though we all intuitively know what they say because they're talking about us!!!
I thought that the book was well written and very true in what a company should have as standards but unfortunately not many do. Profits and Lossmove more decisions than anything else. I hope the companies who were mentioned stay that way and think of their stakeholders!!!
There are relatively few books on the development and maintenance of enterprise-level advocacy (Glen Urban's "Don't Just Relate - Advocate" is another, earlier, one), but "Firms of Endearment" absolutely makes, and supports, the strategic, competitive and financial case for building the organization around passion and purpose. Although written by academics, the book guides readers, in real-world language and excellent case studies, through insights and methods that will help any company build stakeholder loyalty and advocacy through honesty, authenticity, and transparency - and even love and joy. Enterprise advocacy is covered from every aspect: New-age capitalism impact, employees, customers, investors, partners, society, and culture.My personal gauge for how much enjoyment and learning I've gotten from a marketing or management book is the percentage of pages with yellow highlight and the number of pages I've dog-eared for reference. By that standard, this book is outstanding.This is my consistent 'go-to' source for all things customer-centric and value-driven, applicable for any business, of any size and in any industry
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