The purpose of THE COMMONS Business Model™ combines social responsibility, self- management and profit-sharing to create an environment in which independent people are free and highly motivated to excel for the sake of themselves, their colleagues and the company.
The organizational structure brings together the IRS Benefit Corporation (B Corp), Consortium, Socially Responsible Investment (SRI) and the purposes of a Standards Setting Organization (SSO) to create a company structure that benefits all.
Simple as that. Nothing new. Everything better.
The Benefit Corporation
A Benefit corporation is a legal arrangement that aligns the traditional mission of a company to value creation. It preserves the capital mission while leaving room for social purpose. It is a category of IRS rules governing types of organizations.
- Purpose: Benefit corporations commit to creating public benefit and sustainable value in addition to generating profit. This sustainability is an integral part of the corporation’s value proposition.
- Accountability: Benefit corporations are committed to truly considering the company’s impact on society and the environment in order to create long-term sustainable value for all stakeholders.
- Transparency: Benefit corporations are required to report (in most states annually), showing their progress toward achieving social and environmental impact to their shareholders and in most cases a wider public.
Many see this as clearing the hurdle to create long-term value for all stakeholders including the shareholders themselves. Certainly, it offers a way for companies to legitimize their claims of social responsibility and lessen the suspicion of those who believe Corporate Social Responsibility (CSR) is just a marketing gimmick.
A consortium is an “agreement, combination, or group (as in companies) formed to take one or more enterprises beyond the resources of any one member.”
That’s exactly what COWORK Entrepreneurs™ is all about.
Consortium has been an important aspect of industrial society for over a hundred years although today it is most commonly used by not-for-profit entities.
Nevertheless, the use of consortium in the private sector has been growing over the past decade or so.
While consortium has provoked economic and antitrust concerns among academic and regulatory interests, to date there has been no systematic effort to formalize the structuring of a consortium.
Along with the rise in consortia, an unofficial, fast-acting, standard setting and promotional consortia is an even more recent phenomenon.
Pairing it with the Benefit Corporation, avoids a separate set of rules and regulations such as systems of governance and the establishment of intellectual property, policies and procedures.
Consortia are often also Standard Setting Organizations (SSOs). Not to be confused with Single- Sign On which is a tech app.
A Standard Setting Organization means “an entity that is primarily engaged in activities such as developing, coordinating, promulgating, revising, amending, reissuing, interpreting, or otherwise maintaining standards applicable to a wide range of users outside the SSO.”
At first blush, this may all be gobbledygook to you, but the point is these systems are in place and workable in combination.
COWORK Entrepreneurs™ is real.
A company is a company from concept to success. As we develop our company, I hope you will consider developing yours. Either DIY or eventually as a COWORKS franchisee.
If you have all the knowledge and talent it will take to do it DIY, more power to you! One way or the other, my goal is to make the world a better place to live and work. Yours is to make a difference for you and family, your friends and neighbors, your community and your country.
Jerry Ash, the Disruptive Professor