Firms of Endearment: How World-Class Companies Profit from Passion and Purpose

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.”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.”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.”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.

In Firms of Endearment, the authors argue that companies must treat all stakeholders well. The idea is simple: in an aging population, older customers increasingly desire companies that seek more than just profit. In turn, companies that respect their stakeholders (called Firms of Endearment, of FoE's) enjoy extraordinary shareholder returns, with FoE's returning over 1000% returns over 15 years compared to the ~150% returned by their more traditional-minded, profit-maximizing peers.My only "negative" was that the book's main premise - that midlife crises translate to the demand for FoE characteristics - isn't built up well. The premise makes some sense, but research and studies backing it up would make the authors' overall argument more convincing.Overall, the book is clear, filled with facts and examples of FoE characteristics, and inspiring.

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.

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!

The authors opened up and fully explored companies that we should all be working with. As well as a plan to help consumers, suppliers and business people transform for the best, the way they conduct business in the 21st Century. A must read for every college student and their parents. Go get this book ...NOW!

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.

Conscious Capitalism is the clearly the best way to move forward into the 21st century. Data & stories that make a compelling case.

required reading for organization behavior class.So far I enjoyed reading it very much!

Addresses an important topic and shift in business but unfortunately the title is as naff as the book is. I'm still trying to find the good nuggets but wading through the saccharine terms littering the book is proving too sickly.

The media could not be loaded.  This book dispels the myth that making all stakeholders (employees, investors, suppliers, customers and society) have a great, supported and profitable experience is too expensive. Firms of Endearment proves that this actually makes a superb and highly profitable company. Love it!

Insightful book on an important topic. Highly recommended for anyone interested in stakeholder capitalism

A fresh insight

5*