THE COMPANIZATION®
THE COMPANIZATION® IS AN INTERNATIONALLY AWARDED
CORPORATE GOVERNANCE MODEL AIMED AT STIMULATING A SHIFT IN BUSINESS VALUES
TOWARD A LONG-TERM, RESPONSIBLE, AND DEMOCRATIC PERSPECTIVE - FOR A SUSTAINABLE FUTURE.
THE COMPANIZATION® IN BRIEF
There is an imbalance between the global economy and political forces. This imbalance provides a fertile ground for capitalism to assert its dominance, thereby exerting a significant influence on our environment, human rights, and resource allocation. Consequently, there's an increasingly urgent demand for the exploration of alternative, more inclusive and democratic approaches to corporate organization, ownership structures, and governance mechanisms.
The Companization represents an unconventional paradigm for structuring ownership, and governance within a corporation, aiming to establish balance between economic imperatives and social responsibility.
Already in 2002, this innovative organizational model emerged, advocating the simultaneous optimization of company effectiveness while fostering a synergy between economic imperatives and social responsibility.
​
The Companization serves as a blueprint for third-generation CSR, and sustainable, responsible, transparent business initiatives. While the first generation established mere guidelines, and the second generation held themselves accountable to these directives, the third generation transcends by incorporating its purpose, and ethical principles directly into the Articles of Association and Bylaws, thereby compelling the organization to steadfastly adhere to them.
The founder establishes two separate legal entities – one for-profit Company and one non-profit Association.
By incorporating an ethical framework into the Company's Articles of Association, moral considerations are introduced into an otherwise purely economic forum.
By incorporating shareholder responsibility and individual participation in sustainable economic growth into the Bylaws of the non-profit Association, economic considerations are introduced into an otherwise primarily ideological forum.
The Company's Articles of Association and the Association's Bylaws adhere to the same ethical framework and share common economic and social objectives.
The Company is legally mandated to allocate 10% of its shares to the non-profit Association. Membership in the Association is open to anyone.
The Association's members select the Association Board, which, in turn, appoints the Association's management.
The Board of the non-profit Association, despite holding a minority share, bears the responsibility of appointing 50% of the Company's Board Members.
Each Board comprises an even number of members who select a chairman from among the Board Members. The Chairman possesses the casting vote, and it is prohibited for a Board Member to simultaneously serve on both boards.
When the Articles of Association, Bylaws, steering documents, and reward systems are meticulously designed to regulate and guide the activities and responsibilities within both organizations, a significant transformation occurs. In this structured environment, the management and Board Members of both entities take on a profound level of personal responsibility.
1. Guiding Principles:
-
Managers and directors are compelled to execute their roles and decisions in strict alignment with these governing documents, which are not only legally binding but also reflective of the shared values and mission of the organizations. This means that every action they take must adhere to the established ethical, operational, and strategic guidelines.
2. Balancing Objectives:
-
This heightened sense of responsibility pushes both the management and Board Members to carefully navigate the delicate balance between commercial objectives and ideological principles. They must ensure that their decisions are not only financially sound but also aligned with the broader social and ethical goals of the organizations.
3. Benefits:
-
As a result of this rigorous commitment to governance and ethics, the organizations experience several benefits.
4. Enhanced Legitimacy and Trust:
-
Firstly, their actions and decisions gain increased legitimacy in the eyes of stakeholders, including shareholders, employees, customers, and the broader community. This enhanced credibility fosters trust and strengthens relationships.
5. Productivity Through Alignment:
-
Secondly, the organizations become more productive as the alignment of individual and collective efforts with the established guidelines ensures a cohesive and efficient operation. This productivity boost is not solely driven by economic considerations but is also rooted in the organizations' commitment to their broader social and ideological missions.
6. Viability and Responsibility:
-
In essence, when governance documents and systems are robustly designed to regulate and align the activities and responsibilities of both management and Board Members, the organizations achieve a harmonious blend of economic viability and ethical responsibility, resulting in increased legitimacy and heightened productivity.
THE BOOK
"We need to see corporations built from a deep sense of responsibility for the common good. This means a core business that is good for society, as well as a democratic and transparent governance model that is able to balance commercial success with idealistic principles." The world's first organization that implemented the Companization was Plantagon International.
A REVIEW
"This is a very low profile, and short, book that also is very radical. It is the kind of book where you know that history could turn this either into a classic, or an almost irrelevant footnote. I hope it will be a classic as it explores new innovative ways forward for entrepreneurs who see beyond tools and focus on results. Exactly the kind of innovations that are needed if we are to move beyond incremental improvements in our current systems.
Dennis Pamlin, UN-Advisor (www.pamlin.net)
THE AUTHOR
HANS HASSLE, CEO OF THE YEAR 2012 BY EUROPEAN CEO MAGAZINE:
"A world leader in the field of corporate social responsibility, the founder and CEO of Plantagon has become a shining beacon of inspiration for ethical business people. Having written on the subject of business attitudes in his homeland, Hassle’s early life as a travel journalist has had a profound effect on his career in business, and his organization was founded in cooperation with the Onondaga Nation, a Native American nation. Always promoting a moral basis for business, Hassle merges the principles of a non-profit and a for-profit organization, ensuring the company is equally responsible for the success of both intentions."
THE ACADEMY
AN ONLINE COURSE, TOOLS, DOCUMENTS, AND COACHING FOR ENTREPRENEURS COMBINING PROFIT WITH PURPOSE. BE INSPIRED BY THE COMPANIZATION®, OR GO THE WHOLE WAY AND CERTIFY YOUR COMPANY. EITHER WAY YOU WILL GET ACCESS TO AN INTERNATIONAL NETWORK.
At the Companization® Academy you will learn how to apply the Companization® governance model on your business.
You will take the courses online, in your own tempo, step by step. And, you will get a direct contact with us.
​