how on earth: flourishing in a not-for-profit world · • a new generation of entrepreneurs are...

How on Earth: Flourishing in a Not-for-Profit World Jennifer Hinton jennifer.hinton@su.se Post Growth Institute Stockholm Resilience Centre

BoldHypothesis:

Not-for-profitbusinesshasthepotentialtosystemicallytransformtheeconomy

Whatare‘Not-for-Profit’Businesses?

“businessesthatprioritizepurposeaheadofprofits”

Comparedtofor-profitbusinessstructures,NFPs:•  Haveasocial/environmentalmissionastheirprimary

purpose•  Mustuse100%oftheirprofitsfortheirmission(noprivate

distribution)•  Haveaboardtoholdthemaccountableforpursuingtheir

socialmission

Thismeansthey…•  Seeprofitasameanstoachievingdeepergoals•  Areheldtohigherstandardswithregardtosocial

impact

•  Allowforan‘ethicofenough’

ManytypesofbusinessesareNFP•  Consumercooperativesandcreditunions–e.g.-Coop

•  Mutualinsurancecompanies–e.g.– Folksam

•  Lotsofsocialenterprises(andmostcommunityinterestcompaniesintheUK)

•  Nonprofits/charitiesthatdobusiness

NFPbusinessisanewplayerintheeconomy:

•  Traditionalnonprofitsareincreasinglygeneratingtheirownrevenuethroughtrade

•  Anewgenerationofentrepreneursarestartinguptheir

businessesasNFP•  Allovertheworld,ineverysectoroftheeconomy

Weliveinafor-profitworld.

Products/Services

RevenueOperatingExpenses

Profit

Abilitytobuymoreshares

Dividends

Wealth For-profit business

Commoneconomy

Eliteeconomy

Wealth Extraction Siphon

Whythefor-profiteconomyhastogrow:•  Psychological&socialpressuretomaximizeprofitrequires

growthofbusinesses•  Compensatingforextractedprofitsrequiresgrowthof

businesses

•  Competitionformarketsharepushesbusinessestogrow

•  Aneconomythat’sfullofbusinessestryingtoexpandtomaximizeprofitsmustgrow

Howthefor-profiteconomyleadstoinequality:

•  Goal:toaccumulateprivatewealth

•  Privatizationofprofit(extractionfromtherealeconomy)

•  Privateownershipofbusinessesandtheirassets,whichallowsownerstoaccumulateevenmore

•  Leadstospeculativeactivitiestoaccumulateevenmore

Howthefor-profiteconomyleadstoecologicalcrises:

•  Maximizeprofitatallcosts(Dominatormodel/utilitarian

approach/InvisibleHand)

•  Requiresconstantexpansion–  Convertingnatureintogoods,andrelationshipsintoservices–  Promotesconsumerism–  Inequalityfuelsconspicuousconsumptionaspartofstatuscompetition

Products/Services

RevenueOperatingExpenses

Profit

NFP business

TheBusinessSpectrum

TheExtractivevsGenerativeSpectrum

NFPBusiness

MultinationalCorporations

Social

Enterprises

Cooperatives

Ethical/Green

Businesses

Local

Businesses

• More equality • Real value creation (purpose-oriented economy) • Less consumerism

– more wellbeing and less ecological destruction

AnentirelyNFPmarketeconomywouldallowfor:

NFP advantages

• Leaner • Tax exemptions, donations and volunteers

• Rise of ethical consumption and concern about social and environmental issues

• Work force increasingly motivated by purpose

Whatifthefutureoftheeconomyisnotfor-profit?

Practicalactions•  Citizens,activists,consumers

•  Entrepreneursandbusinessleaders•  Nonprofitemployeesandmanagers•  Civilservantsandgovernments•  Researchersandeducators

•  Panacea•  Utopia•  Silverbullet

•  Itisarealisticbridgefromwhatwehavenowtosomethingmoresustainableandenjoyable

TheNFPWorldisnota:

JenniferHintonPostGrowthInstitute

jen@postgrowth.orgwww.howonearth.us

Leveragepoints(DonellaMeadows)

Ref:Göpel,M.(2016)TheGreatMindshift(p.47).