The seven principles of the Companization — worth discussing?
Well, talking about third generation of Corporate Citizenship (being an old-timer, I don’t like the term Corporate Social Responsibility, CSR, as it narrows the perspective on what we really need; to discuss the corporate total role in society)…
In order to facilitate the work for those who want to use the hybrid model companization… back in 2002 I wrote seven principles that I believe you must adopt for this business-model to be of any service to you.
Maybe they can inspire to thought or discussion even today..?
1. YOU MUST BE WILLING TO SHARE
Power resides in the hands of entrepreneurs and owners. These people decide the company’s mission, vision, and values. You might aspire to become “the next Enron, Shell, or Microsoft”, or you might aspire to become “The Body Shop, IKEA, or Ben&Jerry’s”. There is no reason to not make that choice from the get-go. Aside from one: If you believe that you’ll make less money from sharing, or if less money means less personal satisfaction for you.
2. YOU MUST UNDERSTAND HOW HARD IT IS TO DO BUSINESS
The companization model is designed to work more efficiently than other business models already in use. There would be no reason for me to present it if I didn’t believe it could be as profitable as the other models. A market has its borders, and trying to enter it is reminiscent of going into battle. Competition is always tough and only the strong survive, no matter the number of good reasons one has for being less sharp, for devoting time to the survival of humanity, or for contributing toward a better world. Those who don’t understand business, who don’t understand what it takes to win, perish. From this point of view, companization is purely a way to win.
3. YOU MUST MAKE MONEY
A companization is a company after all, even if it represents a new generation of companies. Until the day comes when the rules of capitalism and the market economy are changed, companization needs to make money, and as much as possible. The difference is that in the companization model, money cannot be made in every which way.
4. YOU MUST TAKE A STAND
For you to be able to formulate your mission and understand the possibilities and risks that arise from the consequences of building up a brand with a clear message, which all companizations do, you must be willing to face the critique and negative publicity that could emerge. On the other hand, a clear message is the strongest tool for creating a strong brand. How much has The Red Cross spent on advertising its brand? Greenpeace? Shell? Coca-Cola? The Body Shop? This is not something you can cheat your way to, there are no shortcuts. You must promise to keep to the Articles of Incorporation, deciding for yourself how you’ll manage it in the best possible way and then giving it your all to deliver on your promise. You will be forced to be very transparent. But if you can demonstrate good content, a good ethos, in what you do, then you’ll be very successful. That is, if you have not already forgotten about Principle No. 2.
5. YOU NEED TO UNDERSTAND THE CONSEQUENCES OF A PROMISE
If you handle this in the right manner, so will all of your employees, customers, suppliers, and shareholders, and they will all become your allies. Productivity will be measured in high volumes, and you’ll find assistance and support even in the toughest of times. If you handle this in the wrong manner, if you abuse the trust that has been given to you, then the world will suddenly seem filled with enemies… Don’t make promises you can’t handle, don’t talk about the things you truly do not intend to achieve, and don’t try to reduce transparency in an effort to avoid making a promise.
6. YOU MUST (EVEN) WANT POWER
Companization is designed for people who do not see any reason for choosing between money and morals. It is also designed to compete with its competitors and win. If you succeed, you will get power: the power of money, power that lies in you representing all your stakeholders, power that enables you to influence the opinion-forming process. A companization is made up of shareholders, board of directors, executive management, organization board, organization members, company employees, organization coworkers — the social network in the society in which you operate in will be extensive. You will manage a large amount of influence and must therefore understand the responsibility that it entails. You will need help in order to continue doing good and in order to maintain your personal balance once the very thing that corrupts most of all is placed in your hands — power. Nevertheless, you will need it.
7. YOU CANNOT LOVE MONEY
It is impossible to combine greed with the will to share. All of your decisions must be made in accordance with your strategy, which is based on the Articles of Incorporation, mission, vision, and values. None of these documents can support greed and the love for money. You can enjoy money, you can love how it empowers you to do good in the world, but you cannot love money itself.
