Social enterprise

Economy should not only bring profits. She should also do that Common good serve. "Property obliges. Its use should also serve the common good ”, says Article 14 of the German Basic Law. 

Most listed companies, however, feel above all an obligation to their shareholders. Managers receive bonuses for profits made in that particular year or quarter. They are therefore less interested or not at all interested in what will become of the company and its employees in the long term. What counts is the shareholder value, i.e. the added value for the shareholders - often at the expense of suppliers, the climate and the environment. The consequences of their economic activity on our natural foundations of life, the climate and future generations hardly play a role. Follow-up costs such as the damage to health, infrastructure, biodiversity etc. caused by the climate crisis are not included in the prices of the products. They are externalized, i.e. left to others, mostly the general public, the taxpayers and future generations.

Social enterprises take a different route

Social entrepreneurs are trying to take a different path: They too want to generate profits, but they also pay attention to the social and ecological consequences of their economic activity - in this country and in the countries from which they obtain their raw materials. Many of them have joined the Social Entrepreneurship Network Germany SEND eV together.

Companies that belong to themselves

Others go a step further and ensure that the company cannot be sold to investors to maximize profits for individuals. The company belongs to itself. Employees and / or a foundation have the final say on the company's future. Once salaries and other costs have been paid, the remaining profit stays with the company. The idea is not new. Bosch belongs to a foundation. The majority in the Bertelsmann media group also holds the (controversial because of its economically liberal orientation) Bertelsmann Foundation. 

Meanwhile, numerous successful startups belong to themselves and / or a foundation like the Purpose Foundation, for example unicorn, Manufacturer of sustainable, environmentally friendly condoms, the search engine echosiawho plant trees of their winning or the crowdfunding platform startnext. You can find more on this topic on the website of Responsible Ownership Foundation.

And what does it do to us now? We decide who to buy which products from and to whom to apply for a job. 

Podcast featuring a social entrepreneur every week: cool monday

Read:

Waldemar Zeiler (co-founder of einhorn): “Unfuck the economy”

Maja Göpel: “Rethinking our world”

Robert B Fishman