From exploring radically new management theories to Doughnut designs for businesses and future-proofing a business' mission. We're back with our new newsletter format highlighting the latest, most interesting takes and news in the purpose-driven business scene. Ready to jump in? Let's go!
Wait a second....the Financial Times is talking about radically changing management research, fixing capitalism and the endless pursuit of growth?! Wow! When outlets like the FT and theHarvard Business Review are using such sober, direct words, you know things are actually changing in the business world! Here is an excerpt from the FT article:
"To fix a system’s breakdown, we need to fix the system that causes it: capitalism. But our theories are predicated on maintaining that system, searching for ways to make 'the business case' and gain market advantage when addressing climate change. That is as absurd as making the business case to not commit suicide. We prioritise the bottom line when the practices that contribute to it threaten the survival of the planet: the endless pursuit of economic growth, a view of nature as merely a limitless source for materials and sink for wastes, and the mindless consumption that drives it. We are facing an existential crisis, not an exercise in theoretical advancement.
In response, research theories must now treat economic systems as intertwined with the primacy of natural ones. [...] We need to be more fully engaged with the natural world during our studies and more fully engaged with the social world in sharing our findings. [...]
The role of research should be to explore such questions as: the purpose of the firm; the relationship between the market and the government; whether we can address climate change in an economy based on unlimited economic growth and unbridled consumption; and whether we can bring about a just and orderly end to the fossil-fuel sector."
Here is a great way to start taking a more radical rethink within your organization when it comes to sustainability: Instead of asking 'what is the business case for sustainability', ask yourself: 'What is the sustainability case for business?'
You might have already heard of Kate Raworth's concept Doughnut Economics. Well, Erinch Sahan from the Doughnut Economics Action Lab is helping businesses redesign themselves, doughnut style, in order to thrive within a regenerative future. Here is an excerpt from a recent article he wrote:
"Doughnut Economics calls on businesses to demonstrate how they are going to transform so that they will belong in a future that is regenerative and distributive. The answer is a journey into the deep design of business itself — explored through the Purpose, Networks, Governance, Ownership, and Finance of any business.
Through these, we can ask if businesses are designed to deliver on the 20th century question of how much value can we extract through this enterprise or the 21st century question of how many benefits can we generate through this enterprise. Transforming business design to focus on benefits will be central to enabling regenerative and distributive dynamics. [...]
Getting into the Doughnut will require a new set of enterprise designs. This is because businesses need to go beyond the easier wins in sustainability to ambitiously embrace more difficult transformations that can create far greater social and ecological benefits. This means pursuing ecological ideas like circularity and biomimicry, while increasing commitment to address social issues like rising inequalities and respecting human rights."
How can purpose-driven businesses safeguard their missions? Tony's follows the likes of Patagonia and Ecosiaas it recently implemented what it called a Mission Lock that aims to safeguard its purpose and company values. Here is a quick explanation:
"In May, the B Corp introduced “Tony’s Mission Lock”, a new legal structure that aims to future-proof the brand’s purpose. Tony’s claims this structure is a world-first, at the same time as stating it hopes it will be the first of many others, calling it 'a future-proof legal structure for impact companies'. [...]
The chocolate brand’s new governing model gives a legal stake – what it calls a “golden share” – to a new independent entity, a foundation overseen by three “mission guardians”. The mission guardians will have voting rights to prevent any changes to clauses that relate to Tony’s mission in the company’s articles of association, whatever other shareholders want to do. That means Tony’s mission, its sourcing principles as well as its legal obligation to abide by them cannot be removed from the enterprise’s charter. [...]
In addition to their “golden share”, mission guardians will be given a “set of tools” to prevent the company from drifting: the right to publish a page in the company’s annual report, the possibility to publish an article in a newspaper, and the right to refer the company for legal investigation and arbitration at the Enterprise Chamber of the Court of Appeal in Amsterdam, something that is normally reserved to shareholders owning at least 10% of shares. All stakeholders will also be able to directly contact the mission guardians to share any concerns they may have."
That's it for this month's curated highlights!
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The power of psychological safety in the workplace, via Heidi Pickett & Corporate Rebels. How are you ensuring the highest psychological safety in your workplace?
