Firms of Endearment

About the Author

Rajendra S. Sisodia, professor of marketing at Bentley College, is a distinguished scholar and thought leader in the realm of marketing. He formerly served as the founding director of the Center for Marketing Technology. His profound insights into the evolving landscape of business have earned him international recognition.

David B. Wolfe is renowned for his expertise in consumer behavior and is credited with originating developmental relationship marketing (DRM). His work has significantly influenced how businesses understand and engage with their customers.

Jagdish N. Sheth holds the Charles H. Kellstadt Chair of Marketing in the Goizueta Business School at Emory University. As a leading marketing scholar, his contributions to the field have been pivotal in shaping contemporary marketing theories and practices.

Main Idea

The book Firms of Endearment: How World-Class Companies Profit from Passion and Purpose introduces the concept of Firms of Endearment (FoEs), companies that transcend traditional business models by prioritizing the interests of all their stakeholders—customers, employees, partners, communities, and shareholders. These companies align the interests of all stakeholders, ensuring no single group benefits at the expense of others. This holistic approach results in superior financial performance, outperforming the S&P 500 by significant margins.

Table of Contents

1. Introduction: The Age of Transcendence
2. What is a Firm of Endearment?
3. FoEs vs. Good to Great Companies
4. The Stakeholder Relationship Model (SRM)
5. Employee Engagement and Well-being
6. Customer Loyalty and Trust
7. Leadership and Corporate Culture
8. Long-term Success and Financial Performance
9. The Future of Business: Embracing Humanistic Capitalism

Introduction: The Age of Transcendence

American business has entered what the authors call the Age of Transcendence. This era is characterized by an increasingly older population seeking higher meaning in their lives beyond mere material possessions. According to the authors, "a historic social transformation of capitalism is underway" (Sisodia, Wolfe, and Sheth). This transformation is driven by a societal shift towards valuing emotional, experiential, and social well-being alongside financial success.

What is a Firm of Endearment?

A Firm of Endearment (FoE) is a company that strives to endear itself to all its primary stakeholder groups through its actions and policies. These companies are driven by a blend of subjective morality and a desire to do what is right for society as a whole. The authors describe FoEs as "companies people love doing business with, love partnering with, love working for, and love investing in" (Sisodia, Wolfe, and Sheth).