John Mackey, the visionary co-founder of Whole Foods Market, masterfully grew a modest Austin grocery into a nationwide organic-food powerhouse, ultimately leading to its landmark $13.7 billion acquisition by Amazon. Now in retirement—with a reported net worth around $75 million as of 2017—Mackey is speaking thoughtfully about the essential place of business in society, and how its leaders are often misjudged and subjected to undue public criticism.
The Misunderstood Role of Business in Society
Speaking at the NEXT 2023 conference hosted by Intralox in New Orleans, Mackey delivered a candid critique of public perception around the business world. “I always felt that business is misunderstood by society,” he said, pointing to what he sees as hostility from intellectual circles. In his view, business leaders are not only unfairly judged but often attacked, despite playing a crucial role in driving progress.
Mackey boldly states, “We are the real value creators in the world. We are the ones that are creating the prosperity that lifts everyone up.” Despite this crucial contribution, he observes that entrepreneurs and executives are often viewed with suspicion and a lack of appreciation, rather than gratitude for their efforts.
The Philosophy of Conscious Capitalism
Mackey’s remarks align closely with his long-held philosophy of Conscious Capitalism, outlined in the book of the same name, co-authored with Raj Sisodia, a marketing professor at Babson College. The core idea is that businesses can pursue profits while acting ethically and improving society.
The framework includes four guiding principles: higher purpose, stakeholder orientation, conscious leadership, and conscious culture. For Mackey, the concept of “conscious” means more than corporate responsibility; it means creating a workplace that supports employees and a mission that benefits the greater good.
Using Whole Foods as an example, Mackey said the company was built with a mission to “nourish people with healthy food,” calling it an “inherently aspirational business model.” He stressed that higher purpose matters: “It’s very hard to sell people on, ‘Hey, your job at Whole Foods is to make as much money for the shareholders as possible.’ That’s not aspirational.”
He argued that all businesses have the potential for a higher purpose, rooted in value creation. “Ultimately, the purpose of business is to create value for customers—goods and services that other people want to buy. That’s the essence of business.”
ESG vs. Conscious Capitalism
Mackey drew a sharp line between Conscious Capitalism and the rising popularity of Environmental, Social, and Governance (ESG) practices. While both movements claim to prioritize purpose beyond profit, Mackey criticized ESG for being driven by mandates rather than voluntary ethics.
He cited examples such as mandated green energy initiatives and diversity requirements on corporate boards. In his view, these can conflict with a company’s mission if they do not serve customers or enhance the business’s core purpose.
“ESG is basically not a management philosophy,” Mackey said. “They’re trying to force certain political values down the throats of all businesses.” He believes ESG is more about power than progress and fears it removes control from investors and business owners.
Mackey expressed regret if his Conscious Capitalism philosophy inadvertently contributed to this negative perception, emphasizing, “I think the owners control businesses—not intellectuals, not government bureaucrats, but people who understand the business and can consciously run those businesses in ways that will create more value.” He believes true leadership lies with those who deeply understand and can effectively steer a business.
Support from Allies and Ongoing Debate
Mackey’s critiques have found support from organizations like Strive Asset Management, Amberwave Partners, and the State Financial Officers Foundation (SFOF), which represents state treasurers managing public funds. SFOF President Derek Kreifels echoed Mackey’s concerns about ESG mandates and emphasized the need to focus on long-term returns for retirees over political agendas.
Kreifels noted that “SFOF takes Mackey’s advice to heart. We’ll tenaciously work to ensure free markets deliver optimal returns for vulnerable retirees,” highlighting how his message resonates with those focused on financial stewardship.
Navigating the Paradoxes of Leadership
Mackey’s vision of the business leader as a value creator is shaped by decades of navigating the tensions inherent in organizational life. Successful leadership, he believes, means managing paradoxes.
One such paradox is performance versus health. While it’s tempting to focus only on short-term financial metrics, Mackey argued that long-term success depends on intangible assets such as leadership quality, purpose, and employee motivation. As he once noted, “We have not achieved our tremendous increase in shareholder value… by making shareholder value the only purpose of our business.”
Organizations face a fascinating paradox of change and stability; they must constantly evolve to stay relevant, yet continuous disruption can lead to widespread anxiety and a sense of inertia, making it essential to ground transformation within stable frameworks to ensure it feels manageable.
The delicate balance between control and empowerment presents another significant challenge, as while robust systems and clear standards are undeniably crucial for operational efficiency, an overemphasis on stringent control can inadvertently stifle the very innovation that drives progress, requiring leaders to discern when to implement structure and when to foster autonomy.
A third paradox lies in the interplay of consistency and variability; while high-performing organizations depend on consistent processes to guarantee high-quality outcomes, excessive uniformity can unfortunately suppress the creativity needed for groundbreaking advancements, with breakthroughs often arising from thoughtful risk-taking and even the occasional failure, as seen when a major pharmaceutical company revitalized its product pipeline by encouraging experimentation and fostering a more collaborative and adaptive internal culture.
The Next Chapter
Despite retiring from Whole Foods, Mackey is far from finished. He’s preparing to launch a new venture: a chain of health-focused restaurants in Southern California called Love.Life! The project is consistent with his lifelong mission to improve lives through food and wellness.
Throughout his distinguished career, Mackey has masterfully blended idealism with pragmatism, starting his journey in a vegetarian commune and running an early health food store that ultimately failed due to his refusal to compromise on his principles, while the founding of Whole Foods necessitated strategic concessions that some former colleagues perceived as a betrayal, even leading a few to dub him “Darth Vader” in 2017.
He has also sparked controversy, calling the Affordable Care Act “socialism” and “fascism,” and warning that “socialists are taking over” key institutions. He has praised business giants like Elon Musk, Jeff Bezos, John D. Rockefeller, and Andrew Carnegie as “some of the greatest people who ever lived.”
Yet even Mackey has shown a willingness to reflect. On the Freakonomics podcast in 2020, he expressed regret for once comparing unions to herpes, acknowledging, “That was a mistake. I regret that. I wish I could un-say that.”
John Mackey’s remarkable journey is a testament to unwavering convictions, entrepreneurial tenacity, and profound philosophical insight. He firmly believes that business serves as the indispensable engine for societal advancement and argues that those who dedicate themselves to building and leading companies are frequently misunderstood, subjected to unfair criticism, and generally underappreciated for their contributions.
As he begins this new phase, Mackey remains a passionate advocate for a more conscious capitalism—one that is ethically anchored and purpose-led, built on creating authentic value, championing individual freedom, and pursuing meaningful impact. His perspective stands as a compelling reminder that true leadership lies not in avoiding contradictions, but in navigating them wisely while working toward shared flourishing.
