The World Demands a New Business Model. It’s Possible Right Now.

As our world “re-opens,” it is time to think about how we can do things differently.

It’s time to rethink our business models.

We are students of leadership and business evolution and we follow business literature. It provokes and inspires us. We are delighted and applaud the emergence and growth of the Benefit Corporation which at its heart embraces the Triple Bottom Line of “people, planet, profit.” 

These companies are committed to the “common good” in addition to profit. They strive to create healthy communities and we feel honored to certify many of them as “Benefit Corporations for Good.”  

Yet, at times we ponder and observe that there is something still missing particularly as we read about Conscientious Organizations. It is not just the intent and promise of doing good as a business. But it’s also how to execute that philosophy effectively. In the spirit of adding to this conversation, we offer to readers a new model that facilitates the purpose of Benefit Corporations and cause-driven organizations that have taken businesses to a loftier place. We call the model the “Social Sharing Economy.”

Blurred Lines Spark Powerful Change

At its core, we see the lines blurring between nonprofits, corporations, state and local government, academia and benefit corporations. Although each one is based on a different legal structure, the values of conscientious leadership are looking more and more similar among all models. 

This is being driven by social media, changing demographics and the recognition that leveraging collaboration (sharing) vs competition delivers a win-win scenario for all. It’s an economic model that delivers revenues and manages expenses through the synergy of working with others. And it works because it is what consumers want and expect.

A lower price-point and a better widget just doesn’t cut it anymore. It does not reflect a lens of equity that fosters an economy that benefits ALL.

We live in a connected world and experiences get shared.  Word-of-mouth reviews from real people versus descriptive website statements are more authentic. Values of transparency, humility, and compassion lead to superior service and get people talking about and sharing via YouTube, Instagram, Twitter or any of the new sharing platforms.  

People believe what others say about a company more than they trust the company’s marketing prose. Mark Schaefer, author of several bestselling digital marketing books, writes “According to research by Boston Consulting Group, one ultra-loyal customer who shares content can generate eight times his or her own consumption through advocacy.”

Case in Point: Healthcare

Let’s use the “Social Sharing Model” within the Healthcare industry. All stakeholders listed in the model  are waking up to the reality that health is not just about health insurance companies, the medical profession and healthy behaviors. Digging deeper, it is more about the social determinants of health – that means housing, job security, income, racism, education, food deserts, isolation, toxic and polluted environments, and other external factors that impact health at the core.

This is the reality we face with the Coronavirus. And to address any of these factors requires a systemic, multi-disciplinary, cross sectorial approach of corporate businesses, nonprofits, government, academic institutions and our Benefit Corporations whose promise is to earn profit while serving others. Critical is the involvement of the communities themselves, often represented in faith communities. They work together in a Social Shared Economy! 

The question is how do each of these stakeholders contribute?  The key is to build on their inherent core competencies and then SHARE these with other parties.  This is the challenge as traditional business models perpetuate the idea of “what is mine is mine” with motivation driven by individual corporate goals and profitability.

In the Social Sharing Economy everyone brings to the table specific skills, expertise, and often a different social justice lens that reflects the needs of ALL people. Then these different entities “let go” psychologically and literally around the proprietorship and rights of these intellectual assets.  

It is a shared and collaborative ownership!

It is through honest and sincere collaboration and the integration of all these proficiencies from diverse sectors that creates the synergy to create an economy that delivers healthy and vibrant communities.  

Here’s to the new economy: the Social Sharing Economy!

~benefitcorporationsforgood.com~