Transformers business model 05
The B Corps are a model of companies that meet the highest standards in terms of sustainability, social impact, the environment, transparency and legality. In this way, organizations use their full potential to generate well-being in the community.
B Corps are accelerating a global cultural shift that seeks to redefine business success and build a more inclusive and sustainable economy.
Society’s toughest problems cannot be solved solely through governments and non-profit organizations. The B Corp community works to reduce inequality and poverty, care for the environment, strengthen communities, and create high-quality jobs with dignity and purpose. By harnessing the power of business, B Corps use profits and growth to achieve a greater end: to make a positive impact for their employees, communities and the environment.
The values and aspirations of the B Corp community are embodied in its Declaration of Interdependence.
THE B CORP DECLARATION OF INTERDEPENDENCE
We envision a new sector of the economy that harnesses the power of the private sector to create benefits for people and the environment.
A sector made up of a new type of company – the B Corps – oriented by a common good purpose, which generates benefits for all interested parties and not only for its shareholders.
As members of this emerging sector and as entrepreneurs and investors in B Corps, we uphold:
- That we must be the change we seek in the world;
- That all business should be conducted as if people and the environment matter;
- That, through their products, practices, and profits, businesses should aim to benefit everyone, and not harm or harm.
- Doing this requires that we behave with the understanding that we are all dependent on one another and as a result responsible for ourselves and future generations.
Triple Balance Entities – SANNAS
The Association of Companies for the Triple Balance, SANNAS, was born to unite all the companies that share the vision of the Triple Balance (economic, ecological and social) and transform the traditional business model, contributing to building a more sustainable, fairer and more equitable.
Triple balance, what it is and how to measure it (Source: Triquels)
Economically, we want to build prosperous companies in which profitable projects and businesses are generated that have a positive impact on people and the environment.
Regarding the environment, we want to regenerate by replacing the linear vision of the economy – continuous and unbridled growth – with a circular one that is aware of climate change and the limits of the planet.
And in the social sphere we want to go beyond complying with labor legislation. We aspire to contribute to the personal and professional development of all the people who work in our companies and to that of our customers and suppliers. We wish to build sincere and lasting relationships throughout the value chain.
The strength of SANNAS lies in the values that all member companies share: coherence, diversity, commitment, transparency and creativity. With these hallmarks and helped by our Triple Balance measurement tool, slowly but surely, each one at their own pace and according to their needs, without judging each other and with a large dose of mutual trust, we want to be a relevant actor in the construction of the Fourth Sector, one that wants to contribute to the common good from the private sector, and in the achievement of the Sustainable Development Goals (SDG).
TEAL Organizations – Evolutionary
Based on the analysis and study of organizational models of the past and present, the concept of TEAL or evolutionary Organizations arises. According to a Gallup poll, an American analysis and advisory company, 85% of workers around the world admit that their work does not satisfy them and that they do not feel committed or identified with it.
This organizational model was created by Frederic Laloux, a well-known partner at the McKinsey strategy consultancy. Laloux was unmotivated and tired of his work, and for this reason in 2011 he decided to leave his position to investigate if there was any way to keep employees motivated in his trades.
In it, Laloux presents the conceptual framework of the evolution of organizations, the stages and paradigms that lay their foundations, as well as the limits and progress of each type of company. To define the organizational model of each of them, he used a different color.
Refers to the form of organization of the most primitive communities of about 10,000 years ago. In them, the “law of the strongest” prevails, that is, order is maintained and the power of the leader is demonstrated through the exercise of violence. Therefore, in this model there is an authoritarian leader, and the rest of the team members divide the work and take charge of his function only.
Some current examples would be: street gangs, organized crime groups, the most ancient tribes that live in the Amazon, etc. Also, some start-ups act at this level, exercising the authority to get the job done. It can work in some moments of crisis, but it is not usually a model that prospers in the long term.
This model corresponds to the time when men began to become more sedentary. In this model, access to jobs in which, over time, the salary is higher and the responsibility greater. Therefore, at this stage, seniority is a very important criterion for defining roles.
In this way, organization is possible without the need to resort to violence, which does occur in the case of the red model. This type of organization allowed humanity to create empires like Egypt or Mesopotamia and was very successful for a long period of time. However, it shows difficulties in adapting to changing environments.
Some examples would be: the public sector, the armies and the Security Forces.
This type of organization was born with another great leap for humanity: the arrival of the industrial revolution. In them, the hierarchy continues to be maintained as an organizational structure, but the criteria followed to move up a position is no longer that of seniority. Here the key is in the achievements, since this is the way to face the competition and to ascend.
The three main characteristics of this type of organization are: meritocracy, individual objectives and innovation. The great purpose of this type of company is economic growth, that is, profit at all costs. This leads to the demotivation of the human team for two reasons: having so many responsibilities, no matter how much money they earn, sometimes they are not able to be totally happy or the opposite extreme: they live frustrated because they have not managed to reach the top.
Some examples would be: the banking sector and most multinationals.
In this context, the Agile and Lean movements arose, which are directed towards adaptation in a changing world like the current one. With this organizational model, the focus is mainly on giving employees more strength so that they are motivated in their work and, in this way, are more committed to the objectives of the company. In this case, a lot of importance is attached to the company culture, and salaries tend to be more equitable among employees.
The main problem with this type of organization is that decision-making is done by consensus. A priori it does not seem like a problem, but in larger companies it usually leads to decision-making becoming a very slow process. And nowadays, due to the existing high competition, this can lead to failure. For this reason, many green organizations end up becoming orange in order to make decisions more quickly.
Some examples would be: most NGOs, Starbucks, Southwest Airlines and Ben & Jerry’s.
The Teal paradigm appears in the middle of the 20th century, and has been growing little by little throughout the 21st century. We could define this type of organization as “living systems”, since they arise when companies discover how to work in a self-managed way. The leaders put the focus on the company’s workers so that they themselves are in charge of making decisions.
All these companies are based on three basic pillars: Self-management, Fulfillment and the evolutionary Purpose. Teal organizations are the ones that best adapt to the current social and economic context, since they allow the potential of the entire human team of a company to be developed.
TEAL Organizations are based on 3 basic pillars:
This type of company is characterized by decentralization, that is, it allows all the people involved to participate in decision-making.
Traditional companies are highly centralized and full of rules because they don’t trust their employees. But in Teal organizations they do, and they also pursue the common good.
Therefore, any employee can make a decision —even an economic one— as long as they consult with all the people who may be affected and with experts in the matter in question. Once the rest of the participants have been heard, the decision can be made. Thus, it is much easier for a company to be more agile in a world as changing as the current one.
Workers within these types of organizations feel fully fulfilled, as the company fosters an environment in which employees feel free to express themselves. In this way, the feeling of commitment, energy, creativity at work and passion for what they do grow. Thus, it is possible to get the maximum potential out of workers and make them exploit all their talent.
Companies that apply this human capital management methodology take emotional intelligence into account when dealing with human capital: they seek the well-being of their clients, but above all that of their employees. However, the concept of fulfillment is disruptive in the traditional business environment, since people are often treated as “mere elements of the company” to make it grow.
This concept is also new for traditional companies, since these companies only seek to profit.
However, in Teal organizations the purpose is not only to grow and earn more money, but companies try to define their role in the world.
In addition, they turn all the members of the company towards their objectives, and in this way they manage to become common goals.
And this is what motivates employees to do their job to the best of their ability. In this way they manage to align themselves with the needs of the company and make it prosper much more.