Danny ChenTo solve the climate problem, why do we need social enterprise with profit redistribution?
Climate change is a systemic problem that requires systemic solutions with stakeholder engagement. When it comes to stakeholder engagement, the limitations of the capital market will slow our net-zero progress.
People do not make all decisions based on money. We care about fairness, justice, and health. Although our capital market allocates resources efficiently and effectively, the “winners take all” mindset will discourage other stakeholders from engaging.
Why?
These are businesses asking others to solve the climate problem voluntarily in their own business interests. We, as a stakeholder, pay for the cost of climate problem, where business becomes the top 1% wealthiness.
If only a few stakeholders profit from others to solve the climate problem, it is hard to engage more people to join, which slows our net-zero progress with collective climate action.
A fair profit structure that contributes to social purpose is important to solve the climate problem and engage stakeholders. Accordingly, at Optivide, we commit to the social purposes defined in our Bylaws with our annual profit redistribution to the social purposes aligned with the minimum required profit margin(MRPM).
Different from traditional centralized social purposes decided by the government, Optivide works and experiments to lead as an example of decentralizing social movements with social enterprises without geographic boundaries.
