The last few years have seen a very real shift in our expectations of companies.  No longer is it sufficient for them to simply try and secure the best return for shareholders.  Now we want them to act in a sustainable way, both for all stakeholders and for the planet.

A new report from the University of York, Cambridge University, the World Fair Trade Organization (WFTO) and Traidcraft Exchange suggests this is very much the direction of travel, and urges organizations to go even further in creating business models that focus specifically on benefiting society and the planet.

The report challenges stakeholders from across business, government and finance to develop and adopt mission-primacy business models to help kick-start the new economy.

In total, the researchers examined 360 distinct business models to try and flesh out the concept of stakeholder capitalism and provide direction for those wishing to adopt a more sustainable approach to business.

“Our research has investigated a global community of enterprises who provide a viable, inspiring alternative to ‘the maximizing profit for shareholders’ approach that has led to negative human and planetary consequences,” the researchers say.  “These are hybrid enterprises who are members of the World Fair Trade Organization (WFTO) trade but with a social and environmental purpose, working with indigenous communities to develop innovative products.”

World Fair Trade

The authors believe that Fair Trade Enterprises have the ability to prioritize social and environmental goals, whether in their investments, practices or impacts.  The report contains a number of examples of these kind of organizations around the world.

For instance, Bangladeshi firm Prokritee upcycles waste fabrics into bags and other items, or Chilean firm Green Glass takes discarded bottles and turns them into usable drinking glasses.

The authors believe that the general direction of the report, together with the ideas and recommendations contained within it, have all received warm support from organizations around the world.

“The new economy is already here. Fair Trade Enterprises are joining forces with the broader social enterprise movement and others to demonstrate that business can truly put people and planet first. We all need to embrace this revolution in business,” they say.