Elevated Economics

About the Author

Richard Steel is an accomplished American entrepreneur, investor, and consultant. With a career spanning private and public companies, Steel has also served on nonprofit boards and advised the White House Business Council. His extensive experience includes being an advisor to large and mid-size companies, governments, startups, and nonprofits. Currently, he is the CEO of a venture firm and chairs a philanthropic fund. An alumnus of Harvard Business School, Richard also serves on its Alumni Board.

Main Idea

In "Elevated Economics: How Conscious Consumers Will Fuel the Future of Business," Richard Steel explores how the evolving consumer landscape is reshaping the business world. The book highlights the shift from traditional consumer behavior focused on product, price, place, and promotion to a new paradigm where consumers' values, identity, and ethical considerations drive their purchasing decisions. Steel argues that businesses must adapt to these changes to thrive in the future, emphasizing the importance of environmental, social, and governance (ESG) factors.

Table of Contents

1. Introduction
2. The Future of Business
3. Up and to the Right
4. Survival of the Physics
5. The New Consumers
6. The Age of Convenience
7. The Fourfold Foundation
8. Diversity and Inclusion
9. Pay Equality
10. Impact
11. Bring the Market
12. ESG
13. Where We Came From
14. Where We Are Now
15. Whom Do You Serve?

The Future of Business

Businesses are traditionally driven by metrics and financial performance. However, Steel posits that the future of business hinges on understanding the changing hearts and minds of consumers. These consumers now prioritize purchases that align with their values and identities, requiring companies to rethink their strategies.

Up and to the Right

Consumers are no longer making buying decisions solely based on product, price, place, and promotion. Instead, they seek to purchase products that reflect their values and aspirations. Steel argues that businesses will succeed not by offering the cheapest or most convenient products but by establishing an identity that resonates with consumers' values.

"Consumers want their purchases to reflect not just their needs and wants, but their hopes, dreams, and aspirations for a better future as well." - Richard Steel

Survival of the Physics

Steel draws an analogy between business strategies and the laws of physics. Just as a speeding car must turn, stop, or crash when approaching a brick wall, businesses must adapt to changing consumer expectations or face dire consequences. He provides an example of ExxonMobil's clash with a major stakeholder over climate risks, illustrating the need for companies to embrace ESG factors or risk losing stakeholder support.

The New Consumers

Steel introduces the concept of identity-driven consumption through the story of Christina, a young professional navigating her new life in New York. Christina's purchasing decisions are influenced by her desire to align with her chosen identity. This shift signifies a broader trend where consumers' values and identities shape their buying behavior.

"Purpose is what powers Christina’s buying decisions. She can spend days researching and selecting the jacket that most closely fits the identity she’s chosen." - Richard Steel

• Christina values sustainability, so she chooses eco-friendly products.
• She aligns with social causes, opting for brands that support charitable initiatives.
• Her purchasing decisions reflect her personal identity and aspirations.

The Age of Convenience

The era of prioritizing convenience is giving way to the Age of Elevated Economics. Consumers now expect businesses to care about the same issues they do, such as sustainability and social justice. Steel emphasizes that businesses must act in the self-interests of their customers, adapting to these new expectations to succeed.

The Fourfold Foundation

Steel outlines four cornerstones that businesses must embrace to thrive in the Elevated Economy: diversity and inclusion, pay equality, impact, and bringing the market. These elements are essential for companies to build a strong identity that resonates with conscious consumers.