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. By Marjorie Kelly
This paper “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.”
(Via Bernard Marszalek who also offers a critique)
Here are details on Marjorie Kelly’s current project, Corporation 20/20:
What would a corporation look like that was designed to seamlessly integrate both social and financial purpose? Corporation 20/20 is a new multi-stakeholder initiative that seeks to answer this question. Its goal is to develop and disseminate corporate designs where social purpose moves from the periphery.
She proposes the following “New Principles for Corporate Design’:
1. The purpose of the corporation is to harness private interests to serve the public interest.
2. Corporations shall accrue fair returns for shareholders, but not at the expense of the legitimate interests of other stakeholders.
3. Corporations shall operate sustainably, meeting the needs of the present generation without compromising the ability of future generations to meet their needs.
4. Corporations shall distribute their wealth equitably among those who contribute to its creation.
5. Corporations shall be governed in a manner that is participatory, transparent, ethical, and accountable.
6. Corporations shall not infringe on the right of natural persons to govern themselves, nor infringe on other universal human rights.”