Beyond Sustainable commits itself to allocate 80% of all profits generated are reinvested or go to internal and external social impact projects. Furthermore, a 20% minimum is set for the allocation to social impact. This minimum increases by 2% every year until it caps out at 60%. However, Beyond Sustainable still plans to go beyond these minimums if the conditions allow us to do so.
The system is set up in a way to ensure an effective balance between growth, competitiveness, and the ability to prove the legitimacy and immediate impact of the company. We believe that there needs to be a certain degree of freedom to manoeuvre to be able to reach our goals.
The remaining 20% will have no further allocation restrictions, so that the ability to attract employees and investors is not completely closed off.
Why do we need a profit model?
Trust and accountability. A promise can only create some credibility. People might be critical of the founder's intentions, but they might understand how the profit model works and how it forces the company to go after its mission, no matter what happens. Trust in a well working and transparent system can be established easier than trust in a person.
Why not just be a non-profit organisation?
In our minds non-profit organizations are great, but they are limited in their potential. They are not able to compete with traditional companies, because they do not have access to some important tools. For example, they are not able to offer shares to employees, which is necessary to get the best and smartest people to help make Beyond Sustainable a success or to attract investors, which might be needed for fast scaling or to get out of a financial pinch. As Beyond Sustainable has ambitious goals and wants to compete with and replace traditional companies, we need to have some access to these tools to become strong enough to achieve them.