No enterprise can exist for itself alone. It ministers to some great need, it performs some great service... - Calvin Coolidge

Conscious Capitalism

We believe that a mindset of sustainability, or conscious capitalism, is a foundational component of a thriving business and a force-multiplier on value creation.

Sustainable companies operate with a long-term perspective, have a strong sense of mission and purpose, and are willing to make short-term sacrifices for the long-term success of the company and its ecosystem of stakeholders. Companies with sustainable business practices are better managed, more innovative, less risky, and better positioned to create more enduring value over the long-term.

We believe the status quo in business today is focused on short-term results. We believe that companies that take this approach and focus on profit first and at the expense of all else are unsustainable over the long-term. We believe that there’s a better way to do business focused on creating value for all stakeholders, not just shareholders.

We believe in the power of conscious capitalism as a method of creating superior and sustainable long-term value. At Satori, the tenets of conscious capitalism are central to our thinking throughout all phases of our investment process; these tenets inform us during investment sourcing and due diligence, and they guide us as we work with our portfolio companies to help them achieve their vision.

Sustainability Model

At the core of conscious capitalism is an emphasis on a company’s mission and purpose, a stakeholder-centric approach to doing business, and a long-term perspective.

  • Every great business has a strong, motivating sense of mission and purpose. Businesses that recognize and embrace their purpose and don’t lose sight of it over time, provide a reason for all stakeholders to care deeply about the success of the enterprise.
  • Engaged employees are more loyal and productive. They create lasting and profitable relationships with customers, vendors, and suppliers.
  • Happy customers are more loyal and profitable.
  • Treating vendors and suppliers as essential long-term partners leads to higher quality products and services, leading to happier customers and larger profits.
  • Businesses that actively support the community and environment in which they operate receive strong support in return. Further, strong corporate citizenship is motivating to all stakeholders.
  • Long-term investors reap tremendous financial rewards when businesses are managed for the benefit of all stakeholders.

Firms Of Endearment:

There is a great deal of support, both in theory and in practice, for the integration of sustainability factors into investment analysis and decision-making. Recently, Goldman Sachs, through its GS Sustain effort, began integrating a sustainability framework within its equity research. Additionally, “Firms of Endearment,” defined as those companies that explicitly take a stakeholder-centric approach, returned 1,025 percent over a 10-year period, compared to 122 percent for the S&P 500 during the same period.

Firms of Endearment Graph

Firms of Endearment Quote