Looking Beyond Profits

Written by Mary Welch Sunday, June 27 2010

In the 20th century, the phrase was, “What’s good for General Motors is good for the country.” And we all waited for the prosperity to trickle down. Many were convinced to a certain extent that Gordon Gekko (Michael Douglas) was right when he proclaimed in the movie, Wall Street, “Greed is good.”

Well, in the 21st century, General Motors had to be taken over by the government, and the latter day Gordon Gekkos are behind bars. And as the first glimmers of recovery are beginning to appear, we are left looking for a new business model that will continue to produce profit for the investors without a return to the same old self-destructive habits.

The latest model goes by different names and has started in several areas, such as California. For some it is known as a B Corporation; for others, it’s just the right way to run a business.

“While still relatively new, the concept of legally structuring a company to be socially responsible is gaining traction nationwide. The more progressive states, such as Connecticut and California, tend to be the first to adopt new kinds of business legislation, particularly when it favors improving the social good,” says Jeff Woodward, an attorney with Stites & Harbison, who is leading the movement in Georgia. “Then, as businesses adopt those practices, those practices spread across the country and also are implemented in the Southeast and Midwest.”

Woodward says this trend comes under the general umbrella of social enterprises. “Social enterprises are for-profit companies that approach business with a triple bottom line,” he says. “These companies look beyond the traditional focus of profits to emphasize the ‘three Ps’ which are profits, people, and the planet. The simple premise is that you can do well in business by doing right by your fellow man and the environment, and that we have a responsibility to do so.”

Kate Emery joined the social enterprise world when she had a baby. Emery, CEO of Walker Systems Support, a technology concern located in Farmington, Conn., began to re-think her priorities. “My first thought was to sell my business and do something to help people and society at large to create a better future for my child and the world she would grow up in,” Emery says. “But then it occurred to me that it might be possible to do this through my business.

"Businesses can do more than make a profit," she says. “All we need to do is rethink our priorities and reset our goals. I believe this could become a new business model that revitalizes Connecticut. It offers a sustainable, and immensely rewarding, way to make a living and provides business owners with the opportunity to leave a tremendously valuable legacy."

This model includes working toward enhancing the three Ps. She notes that Connecticut is an ideal location to develop this new model. With educated workers, a solid academic base, and a progressive social attitude, all come together to make this Yankee state amenable to honing a new capitalist model.

Emery wanted a business model, not only for her company, but for others that would transcend the firm’s leadership. So she founded reSET, or the Social Enterprise Trust, which brings together like-minded companies to discuss challenges and successes. She is part of a forum, which includes Newman’s Own, the sauces and salad dressing company, and Criterion Ventures, Inc., a consulting firm, to talk about what they have discovered about running their companies as social enterprises, using market forces to create social good,” according to spokesperson Mary Jo Keating of reSET.

The forum is attracting business leaders, nonprofits, college and universities, and students, who will explore how the social enterprise approach of putting people and purpose before profits can be more satisfying and sustainable than the traditional business model. They will consider how it is possible for businesses to do good and do well at the same time. 

“There is an increasing desire among people, both as consumers and employees, to support and work with socially conscious companies," Woodward says. "Now that companies are figuring out how to approach in a socially conscious way and the legal framework is there to support it, it’s safe to say that the number of these companies will grow exponentially in the coming years.”

The Walker Systems Model

What are some actions that Walker Systems has implemented that are above and beyond the bottom line?

Let’s start with its mission statement: “Our vision is to build a world-class, professional information systems support firm where part of doing well is doing good. And, to be a company whose success is measured by our ability to support and sustain all of our stakeholders, which includes employees, clients, investors, the environment, as well as our local and global community.

Here are some of the company’s supporting actions:

Walker Systems Support Foundation: A minimum of 5 percent of profits are spent on charitable programs that meet our criteria.

Walker Pro Bono Work: A number of billable hours each year are allocated to pro bono efforts for nonprofit organizations needing help with special IT Projects.

Walker Volunteer Time Bank: Each employee receives a bank of hours that can be used for volunteer organizations of their choice.

Global Harmony Institute: Global Harmony Institute was founded by Emery as another way to give back to the community. Global Harmony Institute is dedicated to developing compassionate leaders as well as giving people the inspiration, resources, and connections they need to put their compassion into action to help make a difference in our world.

Computer Contributions: Launched as a joint effort between Walker Systems Support and Global Harmony Institute, this program is aimed at refurbishing used computers from homes and businesses to redistribute to students with financial need, nonprofit organizations, and others who might otherwise not have access to technology. A $10 donation per component (central processing unit (CPU), monitor, or printer) is collected to help cover the cost of refurbishing, software licensing, and recycling.

Mary Welch is a freelance writer for the Atlanta Journal Constitution, Dawson Times, Plan Your Meeting magazine, and Atlanta Business magazine. Previously, she held many positions with Leader Publishing, including editor-in-chief of Atlanta Woman, editor of Business to Business magazine, and editor of Catalyst magazine. As editor of Business to Business, she assigned, edited, and conceptualized a series that was awarded Silver in the 2005 GAMMA Awards for Best Series. Welch was a reporter for the Atlanta Business Chronicle for eight years and freelanced for publications including Glamour, Advertising Age, South, Georgia Trend, and Oz. From 2000 to 2003, she served as vice president of media relations for Bank of America, during which time she authored Forever Green: A History and Hope of the American Forest with Rolling Stones keyboardist Chuck Leavell.