Across three continents and dozens of organizations like PMB, our recently published research reveals a powerful insight: when companies show what we call “unconditional” care – that is, care that is not contingent on short-term returns or contractual reciprocity – for customers, suppliers and local communities, they consistently outperform their competitors financially. Strong profit is not their objective, but it becomes the outcome. This represents a significant shift from traditional CSR (corporate social responsibility) and even newer B Corp or stakeholder capitalism approaches, which attempt to balance competing priorities, whereas in the companies we studied, strong financial performance emerges as an outcome of care-based decisions, not as their primary goal.

One clear example: Handelsbanken, a leading Swedish bank, revamped its organization to give branch managers full autonomy to care for customers, even during crisis. At the height of COVID, while most British banks withdrew lending to small and medium-sized enterprises (SMEs) made fragile by the pandemic, Handelsbanken leaned in. Despite holding just 1% of the U.K. banking market, it issued nearly 50% of all SME loans. As former CEO Anders Bouvin put it, “We don’t want to be a burden to society. We want to be an asset.” The outcome of this care-first approach? Handelsbanken has outperformed its competitors for 50 consecutive years and counting.

Similarly, Traditional Medicinals, a U.S.-based producer of herbal medicinal teas, found its supply chain misaligned with its values when its founders discovered child labour during a visit to a supplier in Guatemala. But rather than simply leave the company, so contrary to its values was the discovery, the CEO Drake Sadler committed to rebuilding the entire supply network, affecting it “village by village.” Today, across 35 countries and 160 suppliers, the company has invested in organic farming transitions, local education and water collection wells – not out of compliance, but out of an unconditional care for supplier welfare. The result? In the case of organic transitions, the higher potency of active ingredients has actually reduced total input costs.

An urgent shift

These are not isolated stories. They reflect a systemic insight: when businesses move from transactional thinking to care-based relationships, they unlock a different kind of value – loyal customers, dedicated suppliers and supportive communities. Together, these become critical drivers of strong performance.

And this shift couldn’t be more urgent. Traditional models of capitalism, rooted in self-interest, continue to be rightly challenged for privatizing profits while socializing risks. Yet, as we detail in our book, behavioural science tells us something different: humans are wired for care, especially when those affected are visible and proximate. Care is not an abstraction. It is built face-to-face, through daily interactions, and it has proven to be a reliable foundation for sustainable business performance.

PMB embodies this principle fully. It has no formal strategic plan. It declines transactional requests for proposals. And yet, it has become a preferred supplier, won three Grand Lévis Chamber of Commerce awards – the first company ever to do so – and tripled its profits since placing care at the heart of its operations.

What these companies demonstrate is not simply a better way of doing business: it’s a blueprint for rethinking capitalism. And Canada is uniquely positioned to lead this transformation. With a robust social foundation, growing climate urgency and a rising generation of values-driven entrepreneurs, the conditions are in place.

Companies like PMB are lighting the way. It’s time more Canadian businesses step into this leadership role. Unconditional caring is the right thing to do, and it also leads to stronger, more sustainable outcomes.

Isaac Getz is an author, speaker and professor at ESCP Business School, and Laurent Marbacher is a senior adviser and leadership development expert. They are the authors of The Caring Company: How to Shift Business and the Economy for Good (Wiley, 2025).

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