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Adrian and Achim Hensen: "Companies must take responsibility again"

Adrian and Achim Hensen: "Companies must take responsibility again"
Photo: © Purpose

The tendency for large companies to buy up smaller ones has visibly increased in recent years. The organization PURPOSE wants to change that: It deals with alternative ownership and financing structures and advises and accompanies companies on the subject of "responsible ownership". What is it all about? How does the concept work?
 

INTERVIEW   CAROLIN MACKERT

 

CCB Magazine: Hello Adrian and Achim, you co-founded PURPOSE six years ago. What is PURPOSE?

Achim:That's not so easy to say in one sentence. In essence, PURPOSE is an association of different organizations. We are all looking into the fundamental question of what healthy corporate ownership is - and designing very specific solutions to this. The goal is to bring more companies back into the world that remain self-determined in the long term, i.e. that are managed by people who are truly connected to the company. And who see quick profits less as their actual entrepreneurial task.

CCB Magazine:You are working for a new understanding of ownership and use the term "responsible ownership" or "steward ownership" for it. What is this all about?

Adrian: One thing is important for us to say: By "responsible ownership" we do not mean to insinuate that everyone else who does not set themselves up in this way is irresponsible. It simply means that this form of ownership focuses on responsibility for the company - not ownership of the company's assets. Specifically, this involves legally enshrining two key principles in the DNA of the company. First, profit is always only a means to an end; the owners have no access to the assets and profits. These are reinvested - or donated. Second: Control, i.e. the steering wheel of the company, always remains in the hands of those who are connected to the company. The company cannot be sold as a speculative asset. Thus, these companies belong to themselves, so to speak. They are run in a fiduciary capacity by people who feel deeply connected to the company's mission.

We invest with Purpose Ventures side by side with other investors to show: Other ways are possible - and they pay off

CCB Magazine:And how exactly do you support these companies? 

Adrian: We focus on two key points: First, we want to inspire entrepreneurs and other people. Second, we want to enable them to implement responsible ownership and work with the two principles. To this end, we founded the Purpose Foundation, which primarily conducts research and education on the topic, collects knowledge and disseminates it to the world. We want to provide people and organizations with targeted food for thought and the opportunity to delve deeper into the topic. For most entrepreneurs, taking a different approach to ownership is a difficult step. It has to be well thought out and well prepared. We bring together the neuralgic points and possible solutions to facilitate the path to an alternative form of ownership. This work of the Purpose Foundation is completely non-profit and is financed by donations. From individuals and organizations who wish to support our mission of an economy that serves people and the environment.

CCB Magazine:You have also established a cooperative. 

Achim: Yes, Purpose Ventures e.G., with which we accompany, advise and, if necessary, invest in companies on their way to a new form of ownership. Because we want to help ensure that self-owned companies also have sufficient capital at their disposal. Our investor network is also expanding peu á peu. And, of course, the cooperative is also responsibly owned. So no profits can be privatized through investments, the investments are only used to provide capital for startups. Finally, our Purpose cosmos also includes Purpose Evergreen Capital, a company that also invests in responsibility-owned companies - for example, to enable transformation into this ownership structure. So it's very similar to Purpose Ventures, except that we're not talking about start-ups here, but usually mature medium-sized companies.

CCB Magazine:But how do you ensure that full responsibility remains with the company at the end?

Adrian: First of all, every company or start-up has to deal decisively with the most fundamental questions. With whom should the decision-making power lie? Should the company be tradable and bequeathable? Where do the profit rights lie? If the answers to these questions are in the sense of ownership of responsibility, there are various ways to install the principles mentioned at the beginning in a legally binding way. For, of course, a founder can decide not to distribute profits and always leave control and thus responsibility in the company. But she can also change her mind at any time and end up selling the start-up and turning it into personal profit. So as an employee or customer, I don't know whether a company won't become a speculative asset or whether profits will mainly be privatized. This is where the great opportunity of legal liability lies. This can be implemented with foundations, for example. For smaller companies, however, this is usually too expensive and complicated. We provide a solution for such startups or medium-sized companies with the help of a veto share model, with which they can make a binding, legal promise to anchor responsible ownership and thus their own sense orientation in their DNA in the long term.

CCB Magazine:What are your conditions? Who can use Purpose?

Achim:In principle, we support all companies that want to rethink ownership. Whether through the open source materials, research and education - or even more concrete collaboration in our consulting and financing activities. The prerequisite in our financing work, however, is that the relevant startups and companies are already in responsible ownership or are on their way. And of course we also have to be convinced by the team, the idea and the product.

CCB Magazine:Do you also pay attention to criteria that stand for a new culture of responsibility? Do ecological or social criteria such as fair pay, for example, play a role in the selection process?

Adrian: Our main goal is to promote an economy that serves people and the environment. Of course, this also involves ecological and social criteria. But we do not impose any requirements on the companies with which we work. Instead, we rely on the power of self-determination and a positive image of humanity - and thus on the entrepreneurial freedom of entrepreneurs and founders. At the same time, we firmly believe in the transformational power of responsible ownership, also with regard to ecologically and socially sustainable entrepreneurial solutions. It is often the case, for example, that startups with explicit environmental or social goals want to set themselves up in responsible ownership because they find that this form of ownership fits much better with what they want to move.

Talking with Creative City Berlin: Adrian and Achim Hensen. Photo: Purpose 
 

CCB Magazine: When you invest in a company: What does the company have to pay back and what do you earn from it? 

Achim: In the case of investments, we receive a return for providing the capital. However, the amount of this return is fixed, and the investment is made without us receiving any voting rights. This is the only way to ensure that the whole thing is consistent with responsible ownership - control should always remain within the company. The exact conditions depend very much on the individual case and the risk profile. In concrete terms, this could mean, for example, that Purpose Ventures receives 2.5 times the investment back over ten years. We use our profits to cover our costs, invest in other startups that belong to ourselves, and compensate for defaults.

CCB Magazine: So far, there are hardly any approaches like Purpose. Are there differences in different countries or pioneers? 

Achim: There are many organizations and people who, with good ideas and approaches, want to work for a different economy in the interests of people and society. For example, the many social enterprises, the Benefit Corporation or Zebras Unite should be mentioned here. Our perspective on ownership structure here is, we think, an important addition to the already existing efforts and possibilities, which quite fundamentally ensures sense-oriented entrepreneurship in the long term. At the same time, responsible ownership in this form is not new. Rather, it is very old - Ernst Abbe created the world's first foundation company with Carl Zeiss 130 years ago, in which the two principles of responsible ownership are still legally binding today. We see ourselves more as carriers, speakers and enablers of this idea. We are not the pioneers, but entrepreneurs who break new ground.

CCB Magazine: Achim and Adrian, the new coalition wants to pave the way for a new legal form for responsibly owned companies in the new legislative period. How much do you welcome this initiative? And, stupidly asked, will your work still be needed at all?

Adrian:In fact, one of our goals is to make ourselves redundant in a certain way, because that would mean that responsibility ownership would have unfolded its full potential and there would be no questions left unanswered, and that's what we're working toward. And yes, a new legal form for responsibly owned companies would make a lot of things easier - and would have tremendous charisma. It would be an absolute milestone for this ownership model, because it would then finally no longer need any legal detours to implement responsibility ownership. We therefore support the initiative. However, it will probably not make us superfluous for a long time yet. 

Achim:After all, the decision in favor of a specific new legal form will not automatically solve all the challenges faced by the companies. There will still be unanswered questions and a need for support, advice and, above all, financing. So there is still a lot to do. And we are looking forward to it!

Category: Innovation & Vision

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