Redefining ownership for purposeful business | Achim & Adrian Hensen, Purpose Foundation
#PurposeAtWork — Humans Of New Work
Adrian and Achim Hensen are co-founders of Purpose Foundation, a non-profit that redefines ownership as the motor in a changing economy. When talking about new work topics, process design and methods often dominate the discussion while the question of ownership remains unanswered. With their work within the purpose network, the twin brothers stand for an economy for the people and society. They’re driving the paradigm shift from ‘profit maximization and speculative ownership’ to ‘purpose maximization and speculative ownership’. They believe: New work only also needs new ownership!
For Achim, collaboration and ownership are like two doors in the same room. For purpose-driven organizations that put the human and self-responsibility at the core, he sees a great opportunity, if its DNA — the ownership — matches this fundamental idea.
Motivated by their personal desire to provide more space for purpose-driven business, the brothers connected with like-minded lawyers, bankers, entrepreneurs, politicians, psychologists, and philosophers.
“We all felt it was necessary to change the understanding of the economy. We worked on the question of how to design companies that are at their core already responsible. How can you ensure that businesses not only serve a few and are bought and sold like a pair of shoes? How can you ensure that companies are no speculative commodity but people working for a purpose? We wanted to find an interdisciplinary, adaptable solution that doesn’t put organizations before the choice between profit or non-profit. A third option that puts purpose and responsibility at the core of the company and allows entrepreneurial freedom. Ownership, being the DNA, enables exactly this option.”
For Achim and Adrian and the interdisciplinary network, the Purpose network, two principles are at the core of steward-ownership: Independency/Self-determination and purpose as means to an end and not an end in itself. The network supports businesses in finding a legally binding ownership structure that always keeps the decision-making power, thus the responsibility within the organization. So that the responsibility always lies with the people who are actively part of the business and feel connected to it. Thereby they’re following the guiding principles of self-determination: Responsibility comes with the proximity of decision-making, execution, and consequences — autonomy instead of heteronomy. The second principle ensures that the profit always serves the business. Profits are either reinvested or donated, thus serve the company’s purpose instead of the personal profit maximization. That’s how the brothers help rethink ownership within the purpose network.
“A legally binding pledge of both of these principles sends a strong message: The business first and foremost serves the employees, the clients — and ultimately, the society. The owners and entrepreneurs who are approaching us are looking for a corresponding legal form. There are many different possibilities, but unfortunately, no suitable solution is being offered by the legislation yet. That’s where we help. Often it’s about opening thinking spaces, allowing oneself to rethink ownership, and adapting it to one’s needs — like you can with organisation and collaboration. Where we often see the most potential is when these two topics are combined.”
After a year it has become clear that many different companies are looking for suitable ownership structures. Besides startups like Jolocom or CoGalleries, t
he sustainable mail order company Waschbär is implementing steward-ownership.
In this way, the Purpose Foundation offers an easy way to put the steward ownership into practice. In addition to accompanying the process of finding a suitable legal form, researching and advocating for the effects of purpose-driven ownership, the Purpose Foundation supports the design of a draft law in order to drive forward solutions on the political level. It’s particularly designing ‘new work’ in combination with ‘new ownership’ what excites Achim and Adrian.
Another thing that occupies their mind is the ‘madness’ in which startups find themselves nowadays. Most of the times, EXIT or IPO seems to become the purpose of businesses. In order to counteract this circumstance, they’ve set up a fund, Purpose Ventures, to support startups that are interested in joining the idea of steward ownership from the beginning on. The fund also supports successful businesses in freeing themselves from speculation ownership.
For some, it seems a mad or naive idea, but Achim and Adrian recognize again and again, that their specifically developed solutions are demanded enormously and suit the needs of many founders, investors or owners. This understanding of ownership may shape the future of entrepreneurship. And that, they both say, stirs hope.
“The ‘vacuum of responsibility’ and ‘madness of speculation’ are a global problem. At the same time, we see many companies that act as a positive force of our society. They take on responsibility and deliver a clear promise. We’re amazed by the magic of collaboration when companies and people realize their full potential. This thought seems to be shared by a lot of founders and owners. This is encouraging!”
Originally published at www.humansofnewwork.com.
