Our current corporate structures are rooted in and direct consequence of our societal development. Despite our best effort to break through the ice, inventing new structures meet ingrained limitations of our understanding of how to operate differently. Needless to say, corporate structures are in desperate need of change. We see new seeds of hope in such new models as B Corp and Teal organisation, that are proved to be effective in breaking the ice and take this invaluable experience to a new level. For-value is working with these dynamics and limitations, introducing new corporate structure that addresses need for change, yet sustaining and enhancing current bottom-line Modus Operandi.
Currently we have only two major organisational structures, that both have major limits to making a social impact. For-profit are limited to support its bottom line to address the needs of its shareholders, nonprofits cope with low inconsistent budgets, inability to hire talent and top management without being rewarded. What we see is two broken structures, that despite best effort, are unable to create significant value to society. Based on our observations of these systems, wide experience in both profit and nonprofit and dynamics of the systems equip us with a broad view on possible collaboration with change.
For-value is a groundbreaking organisation that blends nonprofit and for-profit models, creating a new model that is superior to both. For-value instructs itself not to share any profits to shareholders as the foundational principle of its operations, while providing founders and board of directors a decent pay to support itself and fully focus on the value creation. The foundational principle of this organisational design is understanding and creation of value, in contrast to the profit for corporations or impact for nonprofits.
As a framework it clearly defines core principles of organisation and development: Openness, identification of value, creating value, sharing value and scaling value. Value from the point of this system is anything that supports either organisation itself or the stakeholders and community around it. Internal value could be investing in the well-being of employees, improving processes, aligning operations with ESG goals, improving long-term customer experience, innovating not with a sole pursuit of profit and growth, but supplying ultimately more qualitative and beautiful products and services. External values are observations of how to untap the potential of supporting communities and stakeholders that are relying on products or services of the company with a goal to increase value for itself and others. We are seeing that It’s a hidden source of increasing organisations growth and prosperity in financial terms, despite its humanitarian look.
Most importantly, it's a holistic view on a company as a part of the whole and the only way to become truly valuable to society.
Expecting shareholders' resistance to this change, For-value supports transition with well-defined prospects of how the company they have invested in will grow faster and become more efficient and resilient. As focus shifts from itself to the world, companies are finding hidden potential in collective intelligence and seek collaborations, thet create synergies that drive growth on unimaginable scale. By creating more value, companies become more valuable, that’s the universal law, offering investors far more than profits, an asset that grows in value. As it opens new horizons of value, inviting cooperation, observing the world's needs, It becomes more efficient, more stable due to less turnover, and more innovative. As a result it offers not only a stable growing asset, but also exit opportunities far beyond expected metrics. The message for new investors is that by choosing to invest in a for-value corporation, individuals and organizations are not only securing a financial return, but also contributing to creating a better world for future generations.
For value is a holistic framework and a service that includes pathways of transition from for-profit or nonprofit, supporting organisations in understanding and creating its unique value, and a tech-platforms that connects For-value certified companies, opening new horizons for effective collaborations and innovative ways on creating value.
We are not going to be able to operate our Spaceship Earth successfully, nor for much longer, unless we see it as a whole spaceship and our fate as common. It has to be everybody or nobody
- Buckminster Fuller