Tracking a trend toward a more holistic approach to business

By Chuck Leddy  |  July 7, 2007

Firms of Endearment: How World-Class Companies Profit From Passion and Purpose
By Raj Sisodia, David B. Wolfe, and Jag Sheth
Wharton School, 320 pp., $27.95

Reading books about business is sometimes like watching a sci-fi movie: a certain suspension of disbelief comes with the territory. If you're willing to buy into the existence of Ewoks and Wookies, then the rest goes down pretty easy. But if you're too busy asking questions, the ride can be bumpy. The premise of "Firms of Endearment," a book about companies that love (and are loved by) their customers, employees, investors, and communities, is something either you'll accept, joining the authors in the wide-eyed corporate journey to come, or not: The book "is a paean to leaders driven by a strong sense of connectivity to their fellow beings. It celebrates leaders who leverage their humanness by inspiring others to join them in making the world a better place."

Authors Raj Sisodia, David B. Wolfe, and Jag Sheth see a trend led by aging baby boomers toward a more holistic approach to consumption and business that stresses "self-actualization" over materialism. They cite the example of Whole Foods, where shoppers gladly "pay substantially more" for eggs from free-range hens. They also discuss how Trader Joe's allows its employees to wear Hawaiian shirts. Citing pop psychology gleaned from Eric Fromm and Abraham Maslow , the authors believe "mainstream culture increasingly reflects the being focus that emerges at upper levels of psychological maturity as the thrills of 'things' ebb." Increasingly, it seems, customers want meaning with their fries.

It's not just graying baby boomers who are seeking "self-actualization," but capitalism, too . The authors describe the present era as an "Age of Transcendence" in corporate America where, "like a velvety fog rolling in over the cold earth of a dying winter to signal the emerging warmth of a new spring, a culture of love and healing is spreading throughout the business landscape." Some of us apparently didn't get that memo.

The companies the authors highlight to support their belief in a global corporate landscape fueled more by love and less by money are great companies. They include New Balance, Jordan's Furniture, IKEA, Costco, Southwest Airlines, Google, and Starbucks. Shockingly, these companies even pay their fair share of taxes and follow "not just the letter, but also the spirit of the law." Moreover, their CEOs typically earn far less than the $11.75 million earned by the average S&P 500 CEO . Costco CEO Jim Sinegal earned a paltry $550,000 in 2005.

The authors cite authorities such as Albert Einstein, Carl Jung, Gloria Steinem, and René Descartes to support their premise that caring about the whole world is a good way to do business. If there's a villain in this story, it's Wal-Mart, which the authors castigate for its "zero-sum thinking" in believing that offering low wages and scant benefits to employees will help the bottom line. The fact that Wal-Mart is by far the largest retailer in the world is barely mentioned.

The authors show how firms of endearment (FoEs) treat their employees as interdependent partners, investing in them and sharing both the good and the bad. These FoEs also love their customers, the environment, and the world. "We have entered a new era," write the authors, "in which sound business management will increasingly depend on a socially responsible mindset." These breathless sentiments may be far too Pollyanna - ish for readers who don't expect a hug when they hand over their credit cards. If the Beatles' "All You Need Is Love" becomes the new theme song across corporate America, it'll be a surprising development, almost like finding a Wookie in your closet.

Chuck Leddy is a freelance writer who lives in Dorchester.