TPC A4 8pp

SOCIAL CAPITALISM
Towards a Better World
AND
How all those in business
can make a difference!
SO...
Professor Brian Cox, the renowned
physicist, has claimed aliens have not made
contact with us because the most advanced
civilisations have always killed themselves
off - and in his opinion, we will too!
What kind of society do we need to ensure our world
survives for the foreseeable future?
In order to achieve this objective, what will be the roles
played by the three fundamental parts of civil society: the
government, society itself and the business sector?
What should be the role of business in creating this
better world?
What contribution can we make, as individuals, in
creating a better and more sustainable world?
This paper will argue that business, but more importantly, all those who work in
business, must take a more responsible role in ensuring that Professor Cox is wrong and
that mankind will continue in perpetuity.

2
What sort of society do we want?
What sort of society is most likely to ensure mankind continues for the foreseeable future?
We hope most reasonable people would find a society based on “fairness and justice” to
be an acceptable objective.
A definition of a “fair and just” society could be a society that provides for everyone, as
a minimum, a sufficient living standard – a decent home, enough to eat, adequate heating,
free education, free welfare, free healthcare, an environment without pollution and most
importantly, the protection of the minorities and disadvantaged.
The social contract between government, society
and business
The government, civil society and business need to
work together, in harmony, towards the common
aim of achieving a “fair and just” society. Should
this symbiotic relationship break down, then the
objective, of a “fair and just” society, will not be
achieved.
What is the role of business in our society?
Capitalism certainly plays a vital part in our society
with around 5.5 million private sector businesses in
the UK employing in the region of 26 million people
out of a working population of 31.5 million.
But where would these companies be without
the services provided by the two other pillars of a
civil society? There would be no educated, socially
stable and enthusiastic employees. There would
be no infrastructure (hospitals, welfare, transport,
power, law and order). Without this infrastructure,
companies would be unable to do business.
Businesses have a duty to pay society for the
privilege of using the services provided by the
government and civil society. These services do not
come free. This is why companies pay tax. Tax is
society’s invoice for services used!
The image of capitalism
However, there is a growing perception that business
is failing in its obligations to society. Scandals
involving high executive pay, tax avoidance, low-pay,
mistreatment of staff and mis-selling occur almost
daily and are undermining the image of capitalism.
People are arguing that many businesses seem to
have a single purpose: to maximise the profit for
shareholders in the short-term.
There are, of course, some business models
where simply making their product serves society
in a very clear and concise way – not-for-profit and
social enterprises, for example. There are clearly
some excellent purpose-driven, for-profit businesses.
But, for the vast majority, the main objective is to
maximise profit.
Single purpose capitalism is causing a dysfunction
Consequently, with the business environment
seemingly focussed on profit, there is now a
dysfunction, certainly a perceived dysfunction,
between business and its social contract with civil
society and government. The popularity of capitalism
is certainly on the decline!
Capitalism must change from single purpose to
triple purpose
To restore the balance in the social contract between
government, society and business, we are advocating
a fundamental shift in attitudes within business. We
contend that having the single purpose (of making
a profit) is not sufficient. All businesses, and most
importantly, the people who work within them (from
CEO’s to the new interns) need to become triple
purpose in their work: to make decisions that serve
society, to protect the environment and to make
an ethical profit. Ethical values need to be deeply
embedded into the heart of the business. Business needs
to become more purpose driven. Business needs to take
its responsibilities towards civil society more seriously.
Everyone in business needs to ask themselves “is this
decision helping to make the world a better place?”
This way, and with the social contract
working well, maybe Brian Cox is wrong
and we can build a society that will last for
generations to come!
This is Social Capitalism – capitalism with a social conscience.

3
What is a Triple Purpose Company?
In order to help this change to social capitalism and a more ethical business
culture, we need to introduce a new model of company, where the core purpose
of the business is focussed on its positive social and environmental impact as
well as making an ethical profit.
This concept of Triple Purpose provides a template for companies
and individuals who wish to instil an ethical ethos into the DNA of
their company.
Triple Purpose Companies focus on:
People
Establishing a happy and more fulfilled workforce through an investment in a caring work
environment, training, health and safety, motivational leadership, equality of opportunity
and work-life balance will lead to a more profitable, sustainable company.
Planet
The company and staff will make a commitment to securing the future of our planet via
careful consumption of energy and water and management of waste and toxic substances.
Ethical Profit
The company will maximise profit via an ethical, caring and socially responsible and
environmentally sustainable business strategy.
Accreditation
We are not advocating an accreditation system for
Triple Purpose. All companies will have their own
circumstances, challenges and priorities. It is for
them and their employees to decide the exact path
towards making the world a better place. We put our
trust in those, claiming to work ethically, to be true
to their word.
Should a business wish to introduce an
accreditation system, there are a number of wellestablished
options to consider namely:
B Corps (www.bcorporation.uk)
Future-Fit (www.futurefitbusiness.org)
Blueprint for Better Business (www.blueprintforbusiness.org)

4
Four Core Principles of a Triple Purpose Company
The Triple Purpose template is not intended to be prescriptive. We are looking to
companies to determine their own journey but there are four basic principles.
1 All staff will agree to uphold the principles of Triple Purpose by signing the Triple
Purpose Pledge (see page 6) and will communicate this culture throughout the company
at all times.
2 The company will set out, clearly and in detail, its corporate governance responsibilities
in its Constitution/Mission Statement ensuring its workers, shareholders, customers,
suppliers and other stakeholders are aware of this commitment.
3 Management systems will be installed to measure Triple Purpose objectives on a regular
basis and ensure the results are communicated to all staff and relevant stakeholders.
4 To appoint someone within the business (the Purpose Officer, for example) with
responsibility for ensuring that Triple Purpose is engrained in the DNA of the business.
The Purpose Officer will have direct access to the CEO and present the
non-financial reports at Board Meetings.
Why is it important to make
an Ethical Profit?
• Companies need to make a profit for investment
in equipment, machinery, staff, training, health
and safety, innovation and R & D.
• Companies need to be seen as profitable should
they require capital from a bank or share capital
and to repay investors.
• Companies making an ethical profit are likely to
be more sustainable.
• An ethically profitable company will retain staff
and be more able to employ the top talent.
• Profitable companies employ more staff, provide
more jobs and contribute more to the exchequer
via National Insurance Contributions, income and
corporation tax.

5
Other crucial elements of the Triple Purpose strategy
There are many factors that contribute to a genuinely ethical
company with the major ones including:
Happy Workforce
Creating a happy and fulfilled work-force is most critical in establishing
a truly ethical organisation. They need to be well-trained, proud in their
work, safe, have equal opportunities, made to feel valued and part of
a team, have a fair work-life balance and are justly paid. Certainty of
purpose from management and the executive is vital.
The work-force must feel
their views, particularly with
regards to values and ethics,
are listened to and valued.
Triple Purpose Committee
Subject to the size of the business, we recommend the formation of a Triple Purpose Committee or similar
name. This committee will oversee the company’s adherence to the Triple Purpose Principles. Additionally, as
part of its mandate, it will encourage ideas from colleagues and provide regular updates to the workforce.
This committee will comprise of the Purpose Officer, who will report directly to the Board, a non-executive
director and a number of Purpose Ambassadors from within the business.
Taking care of the environment
In a Triple Purpose Company, the company and its employees will consider the ethical implications, as well as
legal, in all decisions which have an environmental impact. They need to make a commitment to achieving
environmental sustainability by the careful management of its consumption of energy and water, waste and
toxic substances.
Non-Financial Reporting
Management, measurement and reporting systems will be introduced that provide the structures and processes
that help embed strong societal values and environmental efficiency into the company’s culture.
Respect and integrity towards one another
In a Triple Purpose Company, everybody will need to behave responsibly and treat
each other, the company and other stakeholders with respect, integrity and in a
caring manner at all times.
Illegal and unethical activities
A Triple Purpose Company will ensure that no member of staff will
undertake, or be asked to undertake any illegal, unethical and
unacceptable behaviour. There will be an easily accessible and
confidential help-line available for complaint. Senior management
needs to guarantee protection for whistle-blowers.
Responsibilities of the company towards its stakeholders
In addition to its employees, a Triple Purpose Company will show
care, respect, integrity and compassion towards all its stakeholders
including those in the supply chain, the local and wider community,
government and shareholders and encourage these stakeholders,
where relevant, to embrace a Triple Purpose strategy.

6
The Triple Purpose Pledge
We believe asking employees to sign a commitment to adherence to the principles
of Triple Purpose to be absolutely vital. Again, we are not being prescriptive
recommending companies create their own Company Pledge which will be signed by
all members of staff.
A typical Pledge could be along the following lines:
People
• I will play my part in the company commitment to
ensure all staff are happy in their job, motivated,
well-trained, safe, have equal opportunities, a fair
work-life balance and are fairly paid.
• I will behave responsibly towards my colleagues,
the company, customers, suppliers and the
wider society with care, respect, integrity and
compassion at all times.
• I will work with my colleagues and other key
stakeholders to develop and improve the
company’s contribution to society.
• I agree that no member of staff will undertake,
or be asked to undertake, any illegal or unethical
behaviour. I will ensure there is an easily accessible
and confidential help line available for complaint.
Environment
• I will consider the ethical implications, as well as
legal, in all my decisions and work practices, which
have an environmental impact.
• I will play my part in the company commitment
to achieving environmental sustainability by the
careful management of its consumption of energy
and water, waste and toxic substances.
• I will work with my colleagues and other key
stakeholders to develop and improve the company’s
contribution to the environment
• I will play my part in ensuring the introduction
of environmental management, measurement
and reporting systems that provide the structures
and processes that help embed environmental
efficiency into the company’s culture.
Ethical Profit
• I will play my part in maximising profit via an
ethical, socially responsible and environmentally
sustainable business strategy.
• I will play my part in ensuring that sustainability
issues are embedded into the governance and
decision-making processes of the company.

7
Benefits of being a Triple Purpose Company
Most importantly, the company and its employees would be fulfilling their obligations
to help make the world a better place for both current and future generations.
However there are a number of benefits being a truly ethical company.
• Employers who value a happy work-force and encourage independent
judgment, creativity and decision-making will attract more talented
people (and, of course, retain them), will reduce absenteeism and
increase productivity.
• A purpose-driven work-force will be happier in their job, have pride
in their work, be more fulfilled and more innovative enabling the
company to be competitive, able to adapt to new market conditions
and remain sustainable.
• There is less chance of costly damage to the company’s reputation
where more ethical values are embedded into the core DNA of the
business. Should the unthinkable happen, it is likely a truly ethical
company would resolve the problem more quickly and satisfactorily.
• A stronger ethical relationship with clients, one built on friendship,
trust, integrity and respect, will lead to more sales. A stronger
ethical relationship with other stakeholders including suppliers, again
one built on friendship, trust, integrity and respect, will lead to more
sustainable contracts and agreements.
• There is also strong evidence that companies with ethical values are
more successful. Firms that invest in improving their performance on
societal and environmental issues, experience better profitability and
attract more long-term, dedicated investors.
“Better Businesses do Better”

What now? A call to action
YOU can help make the change!
Unfortunately, we cannot rely on CEO’s to enact this transformation
of capitalism (although we hope some will ‘get it’) so we must rely
on a mass movement of people in business to make the change. This
is a grass-roots campaign encouraging individuals to get involved and
become Triple Purpose Champions to argue the case for ethical change
within their business.
We need “champions” to help start the journey
There will be challenges along the way. Becoming a truly ethical, caring and sustainable
company can take many years! It will be a long and winding road.
But we need “champions” for social capitalism - people who believe that businesses
and most importantly all the people who work within them, have a responsibility towards
society and the environment as well as making an ethical profit.
We need “champions” who believe this move from single purpose to triple purpose is
not just a nice thing to do - it is a MUST thing to do!
We need people who believe that business can help to make the world a better place!
These champions can be the CEO, middle management or a newly appointed intern. They
need to be leaders and visionaries, but most of all they need to have a passion for change.
Are you such a champion?
Social Capitalism — Towards a Better World
Triple Purpose — the template for change
Contact: Jim Bignal
Mobile: 00 44 (0) 7983 338085
Email: jim.bignal@triplepurpose.org
www.triplepurpose.org