Emerging Alternatives to the Shareholder-centric Model

* Article: Not Just For Profit: Emerging alternatives to the shareholder-centric model could help companies avoid ethical mishaps and contribute more to the world at large/ Marjorie Kelly

URL = http://www.corporation2020.org/corporation2020/documents/Papers/2nd-Summit-Paper-Series.pdf [1]

Description

"Explores three new-style corporate designs: 1. stakeholder-owned companies; 2. mission-controlled companies; and 3. public-private hybrids.

Ms. Kelly is exploring ways in which corporations can move beyond the dubious effort to develop “socially responsible practices” to a situation where the very structure of a new style corporation addresses social concerns." (http://jasecon.wik.is/Analysis/Not_Just_for_Profit)

Abstract

"We introduce the concept of For-Benefit design, a new organizational archetype that is a hybrid that combines the traditional for-profit archetype, which has profit at its nucleus, and the non-profit archetype, which has social mission at its nucleus. For-Benefit designs have a blended purpose at their core: serving a living mission and making a profit in the process. These emerging designs represent an alternative to the shareholder-centric model that could help companies avoid ethical mishaps and elevate their contribution to meeting societal needs and expectations. The paper discusses various examples of such companies within a three-part typology: Stakeholder-Owned Companies, Mission-Controlled Companies, and Public-Private Hybrids." (http://www.corporation2020.org/corporation2020/documents/Papers/2nd-Summit-Paper-Series.pdf)

More Information

Critique by Bernard Marszalek at http://jasecon.wik.is/Analysis/Not_Just_for_Profit