“Not just for profit” start-ups Monday, Nov 1 2010
4:19 pm
Some startup companies around the world are embracing a new mentality, known as “not just for profit,” or NJFP. In contrast to the traditional for-profit/non-profit dichotomy, NJFP businesses base their values not just on generating profits, but also on delivering benefits to individuals and/or the world. In this sense, NJFP hearkens back to the earlier theory of the triple bottom line (TBL/3BL). Author John Elkington articulated this term in his 1998 book Cannibals with Forks: The Triple Bottom line of 21st Century Business. It refers to a three-criterion system for measuring success: economic, ecological, and social.Alternatively, NJFP is a term that originated after the turn of the millennium. One early instance is Harriet Ridolfo and Christine Shiel in their 2002 Business Simulation Week analyses of Barclays Bank. In 2007, the East Midlands Development Agency (an agency set up by the UK government) hosted “Not Just for Profit: Business Solutions to Reap Social Reward.”In the NJFP mindset, profit is the most critical element for sustainability, but the purpose of profit is to continue conscientious uses of human and natural capital. The Global Reporting Initiative (GRI), founded in 1997, offers guidelines for reporting on a business’s social impact. When reporting on environmental impact, businesses can look to the guidelines of the GRI, CERES Community Environment Park, the Institute 4 Sustainably, or another respected institute.NJFP businesses often partake in socially responsible investing (SRI). This rapidly-growing movement combines financial concerns and social, environmental, and ethical (SEE) issues into a unified business strategy. This often involves promoting human rights and diversity, often avoiding businesses associated with gambling, weapons, or drugs. At the risk of overwhelming you with acronyms, I’ll also mention that many socially-responsible investors also refer to environmental, social, and government (ESG) issues.Notjustforprofit.org articulates the five branches of a “Not-Just-For-Profit Company” (original emphasis). These are profit-making, community, ethics, individuals, and environment. Notjustforprofit.org is run by the Not-Just-For-Profit Group, and is currently accepting applications from companies who meet two or more of the goals outlined on the site. The Group offers free consulting to companies interested in getting involved and supports a wide community of companies and groups committed to the NJFP concept. For more information, visit the website. You may find that your company is a perfect fit for the group. If you’re not currently applicable, but would like to learn more about NJFP, well, that’s A-OK, too.
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