Recently, I have heard many discussions about capitalism. Many people seem to have a negative opinion about it.
Businesses don't care! They are always putting profits before people! They are not concerned about the effects of their actions on the environment or society!
Capitalism is bad!
I grew up in Poland when it was a communist country. I know that communism is not an alternative.
So what is the solution?
It's right here, in our brains.
Many people's perception of capitalism is that businesses only focus on maximizing profits, disregarding the well-being of people and the planet. However, this perception is not inherent to capitalism itself but rather a consequence of how individuals interpret and approach the system.
And how they use their brains.
That interpretation is based on engaging only one part of the brain: the base, the Reptilian Brain.
I was teaching a class on the Triune Brain model, pioneered by Dr. Paul MacLean. We were discussing the function and attributes of the Reptilian Brain, as delineated by Dr. MacLean: domination, survival at all cost, expanding and protecting territory, no emotion, prioritizing self and disregarding others.
One of my participants, who was studying for his MBA, said: "But this is what they teach us in the business school!"
What if the business schools taught the values of the next layer of the brain: the limbic system?
The limbic system controls functions that are both opposite and complementary to the reptilian brain.
The limbic system, often referred to as the "emotional brain," plays a crucial role in our emotions, motivations, and social interactions. It is the seat of compassion, empathy and relationships. It has a built-in concern for others.
When individuals, including business leaders, access their limbic system, it transforms how they make decisions. They automatically, from within, take other people's interest into consideration; they value relationships and are concerned about other people's discomfort.
At its core, capitalism is built on the pursuit of self-interest. It thrives on competition, innovation, and the entrepreneurial spirit.
But this doesn't have to exclude compassion and concern for others.
In fact, the most successful businesses balance both of those brains!
Herb Kelleher, the founder of Southwest Airlines, showed that "it is possible to love people (employees and customers alike), have fun and make money simultaneously."
There have been other business leaders who embodied these values but Herb Kelleher has always been my favorite. The best illustration of balancing both the reptilian and the limbic brains is what Forbes said about his company back in 2019,
By embracing the potential of the limbic system and using it to balance the reptilian brain, we can reshape the way capitalism operates and create what we really want: capitalism with the heart!
We know that compassion cannot be legislated. No matter how many rules and regulations are introduced to prevent abuse and exploitation, unscrupulous people will always find a way to do what they want, not concerned whether it hurts others in the process.
White-collar crimes, like Enron, the banking crash of 2008, Bernie Madoff all come to mind when considering past abuse and exploitation.
The change can only come from within.
The good news is that our brains are plastic. There is much evidence that the activities people engage in shape their brains.
Taxi drivers have more cells in the spatial orientation area, visual artists in the visual area, and musicians in the auditory area, and so on.
If people are taught to cultivate limbic activity, their brains can change.
The limbic system can be developed by self-reflection and commitment to personal growth — and most importantly, by learning what emotions are and learning how to work with them effectively.
By tapping into this deep-seated aspect of human nature, business leaders can cultivate a sense of compassion and empathy that goes beyond profit-driven decision-making. While profit is essential for economic growth and progress, it can be balanced by a shift in corporate culture that fosters an inclusive and collaborative environment where diverse perspectives are encouraged and respected.
By embracing empathy and emotional intelligence, leaders can build teams that thrive on trust, cooperation, and shared goals. This collaborative spirit enables organizations to tackle complex challenges more effectively and find innovative solutions that benefit all stakeholders.
Research has shown that when employees feel valued and supported, it creates an environment that fosters motivation, engagement, and creativity, leading to increased productivity and a stronger sense of loyalty. This, in turn, contributes to the overall success and growth of the organization.
There have been calls for increasing emotional intelligence in leadership and in business culture for many years. But this has never been linked to the deep personal activation of the limbic system.
With this new approach, the goal of creating capitalism with the heart becomes more achievable.
When this approach is taught in business schools and professional development programs, we can shape the next generation of leaders who are more attuned to the transformative power of the limbic system.
In conclusion, capitalism with the heart is not an idealistic dream but an achievable reality. By accessing the limbic system, business leaders can transform the way they make decisions, prioritizing compassion and empathy alongside profitability.
Business leaders can create a business landscape that aligns economic growth with social and environmental well-being that will benefit all of us.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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