A major new report from World Fair Trade Organization (WFTO), Traidcraft Exchange, University of York and Cambridge University challenges leaders gathering in Davos and beyond to foster business models that put people and planet first. The report unveils key features of such mission-led business models and provides a direct contrast with profit-primacy businesses.
The report, titled ‘Creating the new economy: business models that put people and planet first’ challenges government, business and finance leaders to foster mission-primacy business models in order to kick-start the new economy. The report gives specifics to the idea of stakeholder capitalism, which is the focus of leaders gathering in Davos this week. A broad range of senior voices from academia and international organisations have already expressed support for the ideas in the report .
Roopa Mehta, the president of WFTO, says: “The new economy is already here. Fair Trade Enterprises are joining forces with the broader social enterprise movement and others to demonstrate that business can truly put people and planet first. We all need to embrace this revolution in business.”
To support this report, the authors called on several people from the Fair Trade or Social Solidarity Economy communities. Among the supporting quotes, Jason Nardi, Coordinator of RIPESS Europe, did not miss the call:
“The ‘business models that put people and planet first’ report is a remarkable demonstration of how ‘mission-led’ enterprises such as Fair Trade enterprises are much more successful than the profit-maximisation ones when it comes to creating a positive social impact, reducing poverty and increasing wellbeing, re-investing in social and environmental causes, increasing opportunities for farmers, workers, artisans and communities. Not only: gender equality is greater in Fair Trade enterprises and in general they have more diverse and representative governing boards. As social solidarity enterprises, they are usually more financially resilient. What does this all mean? It means that in today’s unsustainable globalised financial market economy, not only it is possible to survive with different business models that care for community and environment, but that on the long run, those enterprises – networking with each other and in cooperative and SSE circuits – will have much better chances to emerge and to be part of the change of economic system we urgently need.” – Jason Nardi, European Coordinator of RIPESS
