Co-Profit Model: Business Benefits

The co-profit model is based on the belief that many, but not all, societal problems can and should be solved by bringing sensible, responsible market forces to bear. But more importantly for the business perspective, the co-profit business structure can help companies be more competitive by:

  1. Increasing brand loyalty and market share by enhancing brand reputation;
  2. Increasing productivity by reducing waste, manufacturing expenses and operating costs;
  3. Driving innovation and creating new business opportunities; if a co-profit business makes flashlights, why not invest in exploring new ways to build super affordable, sustainably built flashlights for the 3 billion people in the world that do not have light?  We maintain that such a pursuit would not only open potential new markets, it would help inform design for the market rate flashlights and likely improve employee morale (maybe even productivity) and certainly be viewed beneficially by the greater community.
  4. Improving stakeholder relationships (with communities, government bodies and regulators, suppliers, customers, etc.) and attracting and retaining top talent;
  5. Investment:  a co-profit business can and should invest in a for-profit social enterprise serving under developed communities both in the US and abroad.  Such investments may include placing capital in sustainable agriculture (Bamboo or Hemp farming) and renewable energy (solar, wind, biomass).  The investment should yield market rate returns AND provide much by way of social dividends to poor communities.
  6. Reducing risks associated with regulation, boycott, litigation, etc.