They survived the global financial crisis that started in 2008, the oil price crisis of 2014-2016, and the COVID era. They’re alive and well. What are they?
American filmmaker Michael Moore has made several documentaries about the reality in America. He shot his film, “Capitalism: A Love Story,” in 2009. I came across it a few years after its release. In the film, he showcases two social enterprises that are still thriving in the U.S. today. The realization hit me with such force that I just sat there stunned in front of the TV, asking myself: why don’t all businesses operate like this? If they did, hunger and homelessness could be eradicated, and positive changes could be made in the quality and nature of education. All of this would initiate a huge, positive shift at the level of both the individual and society. In short, it would have a positive impact on the intellectual, spiritual, and physical development of all humanity.
Of the two companies featured, the first is Isthmus Engineering & Manufacturing, which designs and builds industrial robots, and the second is Alvarado Street Bakery, a bakery that produces certified organic whole-grain bread and bagels.
The common characteristic of these two companies is that every single employee is an owner, and everyone from the director to the packer receives the same salary. They make all company decisions together through a vote. They also collectively determine their salaries, which are well above the minimum wage. In addition, they donate a large portion of their profits to charitable organizations. Working in a company like this requires more democracy from the individual than democracy itself. It demands rapid and significant character and professional development, which they ensure through their own organized training sessions. This type of business has been operating in the United States for over 100 years. They are also well-known in Western European countries.
Just imagine if all global companies—Coca-Cola, Shell, Gucci, BMW, Unilever, McDonald’s, Egis, etc.—switched to a social enterprise model tomorrow…
The social enterprise model is also known in Europe. In 2016, European Union countries signed an agreement to provide a legal framework for this business model and to support its creation and successful operation with grant opportunities and capital investment.
These businesses prove that humanity is not an obstacle to a high-performing business. In fact, it’s the opposite!
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