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Firms of Endearment: How World-Class Companies Profit from Passion and Purpose 2nd Edition
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Today’s best companies get it. From retail to finance and industries in between, the organizations who recognize that doing good is good business are becoming the ultimate value creators. They’re changing their culture and generating every form of value that matters: emotional, experiential, social, and financial. And they’re doing it for all their stakeholders. Not because it’s simply politically correct, because it’s the only path to long-term competitive advantage.
These are the firms of endearment. Companies people love doing business with, working for and collaborating with as partners. Since the publication of the First Edition, the concept of corporate social responsibility has become embraced as a valid, important, and profitable business model. It is a trend that has transformed the workplace and corporate world. This Second Edition updates the examples, cases, and applications from the original edition, giving readers insight into how this hallmark of the modern organization is practiced today.
- ISBN-109780133382594
- ISBN-13978-0133382594
- Edition2nd
- PublisherPearson FT Press
- Publication dateFebruary 9, 2014
- LanguageEnglish
- Dimensions6.35 x 1.2 x 9.35 inches
- Print length320 pages
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Editorial Reviews
From the Back Cover
“This new edition of Firms of Endearment continues to break important new ground in understanding the power of capitalism to transform our world for the better. In the first edition, the authors… gave us an introductory quantitative analysis, and a set of rich stories that made the analysis make some sense. Now, they take a giant step forward. They give us a ’proof of possibility,’ grounding a new story of business in solid economic analysis and practical management thinking.”
―R. Edward Freeman, University Professor, The Darden School, University of Virginia
Today’s greatest companies are fueled by passion and purpose, not cash. They earn large profits by helping all their stakeholders thrive: customers, investors, employees, partners, communities, and society.
These rare, authentic firms of endearment act in powerfully positive ways that stakeholders recognize, value, admire, and even love. They make the world better by the way they do business―and the world responds.
They have created radically new rules. This extensively updated book will help you master those new rules, learn from their newest experiences, build your great firm of endearment, change the world, and succeed on every level that matters.
- Build a high-performance business on love (It can be done. We’ll prove it.)
- Help people find the self-actualization they’re so desperately seeking
- Join capitalism’s radical social transformation―or fall by the wayside
- Don’t just talk about creating a happy, productive workplace: do it
- Honor the unspoken emotional contract you share with your stakeholders
- Create partner relationships that really are mutually beneficial
- Build a company that communities welcome enthusiastically
- Help all your stakeholders win, including your investors
“Business has enormous potential to do good in the world. Much of the good is currently being done ‘unconsciously’ simply by creating products and services that people value, providing jobs, and generating profits. However, business can also be done much more consciously, with higher purpose and optimal value creation for all major stakeholders, while creating cultures that optimize human flourishing... Firms of Endearment points the way that all businesses should aspire to emulate and ultimately transcend. I am grateful to the authors for their landmark contribution...”
―John Mackey, Co-founder and Co-CEO, Whole Foods Market
Contains Dozens of New & Updated Case Studies Chosen through a Rigorous New Selection Process
Doing good is great business. In industry after industry, today’s best companies have discovered this―and they’re leaving their short-sighted competitors in the dust.
Firms of Endearment, Second Edition reveals how these remarkable companies are generating more of every form of value that matters: emotional, experiential, social, and financial. Not because it’s “politically correct,” but because it’s the only path to long-term competitive advantage.
These are companies people love to buy from, work for, and partner wi
About the Author
Raj Sisodia is the F.W. Olin Distinguished Professor of Global Business and Whole Foods Market Research Scholar in Conscious Capitalism at Babson College in Wellesley, MA. He is also co-founder and co-chairman of Conscious Capitalism, Inc. He has a Ph.D. in marketing from Columbia University. Raj is the co-author of The New York Times bestseller Conscious Capitalism: Liberating the Heroic Spirit of Business (Harvard Business Review Publishing, 2013). In 2003, he was cited as one of “50 Leading Marketing Thinkers” by the Chartered Institute of Marketing. He was named one of “Ten Outstanding Trailblazers of 2010” by Good Business International, and one of the “Top 100 Thought Leaders in Trustworthy Business Behavior” by Trust Across America for 2010 and 2011. Raj has published seven books and more than 100 academic articles. He has consulted with and taught executive programs for numerous companies, including AT&T, Nokia, LG, DPDHL, POSCO, Kraft Foods, Whole Foods Market, Tata, Siemens, Sprint, Volvo, IBM, Walmart, Rabobank, McDonalds, and Southern California Edison. He is on the Board of Directors of The Container Store and Mastek, Ltd., and is a trustee of Conscious Capitalism, Inc. For more details, see www.rajsisodia.com.
Jag Sheth is the Charles H. Kellstadt Professor of Marketing in the Gouizeta Business School at Emory University. He has published 26 books, more than 400 articles, and is nationally and internationally known for his scholarly contributions in consumer behavior, relationship marketing, competitive strategy, and geopolitical analysis. His book The Rule of Three (Free Press, 2002), coauthored with Raj Sisodia, has altered current notions on competition in business. This book has been translated into five languages and was the subject of a seven-part television series by CNBC Asia. Jag’s list of consulting clients around the world is long and impressive, including AT&T, GE, Motorola, Whirlpool, and 3M, to name just a few. He is frequently quoted and interviewed by The Wall Street Journal, The New York Times, Fortune, Financial Times, and radio shows and television networks such as CNN, Lou Dobbs, and more. He is also on the Board of Directors of several public companies. In 2004, he was honored with the two highest awards bestowed by the American Marketing Association: the Richard D. Irwin Distinguished Marketing Educator Award and the Charles Coolidge Parlin Award. For more details, see www.jagsheth.net.
The late David B. Wolfe was an internationally recognized customer behavior expert in middle-age and older markets. He was the author of Serving the Ageless Market (McGraw-Hill, 1990) and Ageless Marketing: Strategies for Connecting with the Hearts and Minds of the New Customer Majority (Dearborn Publishing, 2003). David’s consulting assignments took him to Asia, Africa, Europe, and throughout North America. He was widely published in publications in the U.S. and abroad. He also consulted to numerous Fortune 100 companies, including American Express, AT&T, Coca-Cola, General Motors, Hartford Insurance, Marriott, MetLife, Prudential Securities, and Textron.
Product details
- ASIN : 0133382591
- Publisher : Pearson FT Press; 2nd edition (February 9, 2014)
- Language : English
- Hardcover : 320 pages
- ISBN-10 : 9780133382594
- ISBN-13 : 978-0133382594
- Item Weight : 1.32 pounds
- Dimensions : 6.35 x 1.2 x 9.35 inches
- Best Sellers Rank: #665,089 in Books (See Top 100 in Books)
- #1,494 in Systems & Planning
- #5,868 in Business Management (Books)
- #7,414 in Leadership & Motivation
- Customer Reviews:
About the authors

Raj Sisodia is FEMSA Distinguished University Professor of Conscious Enterprise and Chairman of the Conscious Enterprise Center at Tecnologico de Monterrey in Mexico. He is Co-Founder and Chairman Emeritus of Conscious Capitalism Inc. He has a Ph. D. in Business from Columbia University. Raj is co-author of the New York Times bestseller Conscious Capitalism: Liberating the Heroic Spirit of Business (2013) and Wall Street Journal bestseller Everybody Matters (2015). He was named one of “Ten Outstanding Trailblazers of 2010” by Good Business International, and one of the “Top 100 Thought Leaders in Trustworthy Business Behavior” by Trust Across America for 2010 and 2011. Raj received an honorary doctorate from Johnson & Wales University in 2016 and the Business Luminary Award from Halcyon in 2021. He has served on the boards of Mastek and The Container Store.
Raj has published sixteen books, including Firms of Endearment: How World Class Companies Profit from Passion and Purpose, which was named a top business book of 2007 by Amazon.com. His most recent books are Awaken: The Journey to Purpose, Inner Peace & Healing; The Healing Organization: Awakening the Conscience of Business to Help Save the World; and The Global Rule of Three: Competing with Conscious Strategy. Raj has consulted with and taught at numerous companies, including AT&T, Verizon, LG, DPDHL, POSCO, Kraft Foods, Whole Foods Market, Tata, Tesoro, Siemens, Sprint, Volvo, IBM, Walmart, McDonalds and Southern California Edison.

Jagdish N. Sheth is the Charles H. Kellstadt Professor of Marketing in the Goizueta Business School at Emory University, USA. Earlier, he has worked at the University of Southern California, the University of Illinois, Columbia University and Massachusetts Institute of Technology. He is well-known for his scholarly contributions in the study of consumer behaviour, relationship marketing, competitive strategy, and geopolitical analysis.
Professor Sheth has worked for numerous industries and companies in the US, Europe and Asia, both as an Advisor and as a Seminar Leader. In 2004, he was awarded both the Richard D. Irwin Distinguished Marketing Educator Award and the Charles Coolidge Parlin Award, the two highest awards given by the American Marketing Association. Among the other awards that he has received are the Outstanding Marketing Educator award (1989) by the Academy of Marketing Science, the Outstanding Educator Award (1991, 1999) by the Sales and Marketing Executives International (SMEI), the P. D. Converse Award (1992) by the American Marketing Association, and the RHR International Award (2006) for Outstanding Consultant by the American Psychological Association (APA) Division 13 (Consulting Psychology). In 2007, he was conferred an Honorary Doctorate by Thiel College in Pennsylvania, USA. A prolific author, in 2000, Professor Sheth, along with Andrew Sobel, published Clients for Life, a bestseller. His book, The Rule of Three (2002), co-authored with Rajendra S. Sisodia, altered the current notions on competition in business. His book Firms of Endearment was selected as one of the top ten business books on Leadership in 2007.
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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.
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.
If you want to understand where the new paradigm of business is headed, read this book!
So far I enjoyed reading it very much!





