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Leveraging a Growing Sector

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By joining the Buy For-Benefit Coalition, organizations can take a large step toward operationalizing purpose, cleaning up harmful supply chain practices, advancing the 2030 Agenda, and creating benefit for all stakeholders, while providing satisfying long-term profits and viability to shareholders. 

 

The For-Benefit Promise

The For-Benefit Promise

 

Fueled by significant and growing demand among consumers, workers, investors, entrepreneurs and other stakeholders for purpose-driven business, for-benefit enterprises represent an untapped opportunity for addressing many intractable challenges in global value chains. For-benefits are businesses defined by their intention to generate one or more social or environmental benefits as their primary purpose.

Leveraging a Growing Sector

Fueled by significant and growing demand among consumers, workers, investors, entrepreneurs and other stakeholders for values- and purpose-driven business, for-benefit companies represent an untapped opportunity for addressing many intractable challenges in global value chains. They constitute an emerging fourth sector of the economy, which could account for as much as 10% of GDP as well as nearly twice the job growth rate as traditional for-profit businesses in the US and Europe. Globally, many traditional businesses and NGOs have adopted for-benefit approaches, and there are millions of for-benefit start-ups being launched each year.

For-benefits are businesses defined by their intention to generate one or more social or environmental benefits as their primary purpose. Purpose is at the heart of the for-benefit model, and it is supported and reinforced by their structure. They can pursue a wide variety of social and environmental goals, like equal pay and gender equality, the inclusion of marginalized populations in the workforce, a priority to address relevant needs of society, and a focus on demonstrating care for the planet's resources and the environment at scale, in a sustainable manner.    

For-benefit organizations complement other models and extend their capacities to drive positive change. For traditional businesses, the growth of the for-benefit sector will bring access to expanded markets, new customers, and business and investment opportunities. It will enhance stakeholder engagement, improve productivity, and strengthen supply chains. For nonprofits, it will bring new contracting and partnership opportunities, increased philanthropic resources, and the opportunity to build self-sustaining, scalable solutions. And for governments, its growth will bring increased revenue and greater private investment, and it will stimulate job creation and economic growth while reducing the liabilities linked to social and environmental degradation.