The Companization
– a functional hybrid between profit and idealism?
Many today believe that there is an imbalance between global economic forces and the rules of politics; there is a risk that capitalism accelerates ahead of us, with major consequences for the environment, human rights, and the fair distribution of resources. There is, therefore, the need for an alternative solution to organizing, owning, and controlling a company.
For many years, I worked on an alternative organizational model called the Companization, which is based on the evident effectiveness of a corporation but is at the same time aimed at creating a balance between economic pursuit and social responsibility.
The Companization is a model for third generation CSR work. The first generation created the guidelines. The second generation accounted for its CSR work by publishing reports. The third generation implements the ethical policy document into the articles of incorporation and by laws. Only then is the organization obliged to comply with them.
The Companization is composed of two separate legal organizations; a profit-driven corporation and a non-profit organization. Both the corporation’s articles of incorporation and the nonprofit’s bylaws contain identical ethical frameworks and economic and social objectives.
By implementing ethical issues into the articles of incorporation, moral questions become part of an otherwise purely economic forum.
By implementing, through the nonprofit’s work, shareholder responsibility and individual participation in the long-term economic growth, economic questions become part of an otherwise purely ideological forum.
The corporation gives 10% of shares to the non-profit organization, which is open to the public.
The nonprofit’s board is given (despite being a minority shareholder) the responsibility of appointing 50% of the members in the corporation’s board of directors. The number of board members is even and the board appoints a chairman from among the board members. The chairman has the decisive vote.
The nonprofit gives out the same amount of Closure Rights as the number of shares in the corporation. A Closure Right gives the holder survivorship right to keep part of the revenue generated from the nonprofit should the corporation be sold.
When the articles of incorporation, bylaws, policy documents and reward system govern activities and responsibilities, leaders and board members from both organizations become personally responsible for carrying out their work within these guidelines and seeking a balance between the commercial and ideological drives. Large legitimacy and productivity gains will thus appear.
And, maybe then, Business as Usual is Over.
Join the world’s first companization!
Plantagon is the first companization in the world and the global innovation leader in the sector urban agriculture.
Plantagon’s resilient food systems minimize the need for land, water, energy and pesticides. The environmental impact is very low, and if the products are delivered directly to consumers in the city, the transportation costs are also minimized.
You can join the Plantagon Companization as a member today and be a part of shaping the future. Read more here!
