Conscious capitalism: Why businesses must do more than just make profit

In days gone by, the chase for profit was the north star for most businesses. But in today’s ever-evolving business landscape, there is more to the equation, with conscious capitalism emerging as a guiding philosophy for many forward-thinking businesses.

But what exactly is conscious capitalism and why is it important?

Conscious capitalism is the idea that businesses can make money while also doing good. It’s about choosing to earn a profit in ways that give back, creating a system where purpose and profit work together instead of against each other.

“For me, conscious capitalism is about recognising that business isn’t just a machine to generate profit – it’s also a vehicle for impact,” says Shannon Smuts, founder of Pure Good, a health-focused contract catering company. “It means making money in a way that uplifts people, communities and the planet. Profit is still important, but how we earn that profit matters just as much as what we do with it.”

She adds that a big misconception about being purpose-driven is that it immediately makes a business less profitable. The belief that a focus on social good automatically means you are running a charity is hugely misguided. In reality, purpose and profit actually complement each other: When people believe in your mission, they buy into your business more deeply, stay loyal and help you grow.

Gaining traction

As we’ve all come to know, traditional business models have left a long line of consequences. The relentless pursuit of profit has often come at the expense of long-term sustainability, seeing the stripping of natural resources and the widening of social inequalities which has in turn eroded the trust in countless businesses. Today, people are no longer willing to stand by as businesses leave communities vulnerable, push ecosystems to breaking points and watch as supply chains are weakened; they are voting with their wallets, choosing to support companies that act responsibly and are turning away from those that cause harm.

“The modern consumer, particularly those in the younger generations, are looking for businesses to align with their values,” says Smuts. “And in the same breath, employees today want to build their careers with businesses that stand for more than profit; they are looking for meaning, trust and accountability, all elements that are synonymous with conscious capitalism.”

Putting it into practice

Conscious capitalism can manifest in many ways, and Smuts describes how her own business, Pure Good, brings these principles to life. At its core, the company is built on a people-first approach, committed to fair wages, reasonable working hours and a culture rooted in compassion and empathy. Many of the team members joined without any kitchen experience and are now building real careers through empowerment-driven hiring.

“Ethical sourcing is another cornerstone of Pure Good,” says Smuts. “We partner with local, small-scale regenerative and organic farmers, ensuring our purchasing power directly sustains livelihoods. At one point, just one of our cafeterias accounted for more than 40% of one farming community’s salaries.”

Sustainability is woven into Pure Good’s daily practice, from designing menus around what farmers need to move, to reimagining juice pulp as falafels. Pure Good also refuses to treat healthy food as a luxury, keeping margins lean to make nutritious meals accessible to a wider audience.

“There have been many moments where we’ve had to choose the harder road because it aligned with our values,” adds Smuts. “Working with responsible suppliers, investing in a zero-waste café and walking away from profitable contracts where values no longer lined up.”

Takeaway for budding entrepreneurs

Conscious capitalism isn’t a trend – it’s a responsibility. In a world increasingly focused on ethical consumption, social responsibility and sustainability, conscious capitalism is more than good ethics, it’s good business. Companies that embrace it are not only building stronger brands and loyal communities, but they are also contributing to a more equitable and resilient global economy.

“Lead with your why – let profit be the fuel, not the destination. Understand that empathy is not always comfortable, but it’s necessary. Be clear on the impact you want to create and weave it into every decision. Build partnerships instead of extracting value and make sure every rand earned strengthens communities, rather than weakens them,” concludes Smuts.