It’s no secret these days that as consumers we demand greater social and environmental performance from businesses, and that, if given a choice, we are more likely to buy products that resonate with our values and advance a higher purpose. Nor is it news that many businesses are quite motivated to be responsible corporate citizens and to improve their reputation with their constituents, or that non-profits need to find innovative ways to increase awareness of their causes and to gain financial self-sufficiency. With these trends as a backdrop, the stage is set for a new class of social enterprise that can better address the needs of consumers, non-profits, business, and society: the For-Benefit enterprise.

For-Benefits are an emerging new class of organization. They are driven by a social purpose, they are economically self-sustaining, and they seek to be socially, ethically, and environmentally responsible in their practices. Like non-profits, For-Benefits can organize in pursuit of a wide range of social missions. Like for-profits, For-Benefits can generate a broad range of beneficial products and services that improve quality of life for consumers, create jobs, and contribute to the economy.

For-Benefits seek to maximize benefit to all stakeholders, and 100% of the economic profits they generate are reinvested into furthering their purpose and supporting other causes. Because of their architecture, For-Benefits can embody some of the best attributes of other organizational forms. They strive to be democratic, inclusive, open, transparent, accountable, effective, efficient, sustainable, socially and environmentally responsible, and cooperative.