What are the “Rules” for a Social Impact company?

Hint: There are none.

We all know we’re in a new economy that has a greater emphasis on social impact, esg investing, and corporate responsibility.

What economy were we in before? Stakeholder Capitalism as coined by Milton Friedman

What was the first step to the new economy? The August 2019 announcement by the Business Roundtable in D.C. that the purpose of business is changing

Did the Business Roundtable statement work? Yes according to this analysis by the Wall Street Journal , this analysis also by Just Capital & this analysis of profit in doing good by Motley Fool

What faulty assumptions are made by both sides on whether social impact acting businesses are good or bad for profit?

• that businesses should be run like activist social organizations
• that companies never have to choose between business success and social responsibility 
• that social impact changes will occur overnight in their business structures
• that every company works on the same time table, software companies can reach carbon neutrality faster than fossil fuel companies

What’s the timeline to transition into an economy focused on social impact? it took 2 decades to adopt shareholder capitalism

Washington Post | The right formula for managing a socially responsible company? There is none.