Subscribe to Next Economy Now on Apple Podcasts, Spotify, Pandora, Google Podcasts, YouTube, or wherever you find your podcasts.
The work to set up a better future is often difficult and unglamorous, and installing the economic and legal structures that are necessary to support the needs of all, requires a particular kind of determination and belief. This is known all too well by Derek Razo, our guest in this episode, who is the Co-Founder of Common Trust and the Purpose Foundation.
Derek is deeply invested in setting up alternative ownership transactions, raising mission-aligned capital, and building infrastructure to enable equitable ownership and governance. Derek is a true ally to our work here at LIFT Economy, and his commitment to deeper understanding and discernment is always inspiring.
In our chat we get into the particulars of stewardship models, and their two central components of self-governance and 'profit serving purpose'. Derek explains how this enables real protection and why the legal aspect is so vital in maintaining the integrity of organizational values. We also discuss what it means for more people to be engaging with concepts of corporate governance and ownership, and what this signals for the future. Join us to hear it all.
---
Key Points From This Episode:
Looking at some of Derek's background and route to his current work. [0:02:47]
The genesis of the Purpose Foundation and the principles of its creation. [0:06:18]
Common failures of the traditional co-operative model. [0:14:55]
Derek comments on the structures of benefit corporations and non-profits. [0:19:20]
A little about the Perpetual Purpose Trust and how it used to. [0:23:04]
Distinguishing between different kinds of trustee roles and responsibilities. [0:28:09]
Derek's perspective on the example of Patagonia. [0:31:18]
Imagining a world where these standards for corporate structures became the norm. [0:37:52]
The question of capital; Derek and Purpose's approach to engaging with this central piece. [0:44:30]
The best recipe for scaling systems in order to serve the people. [0:52:50]
---
Tweetables:
“The key function that a lot of co-ops don't have is the protection of self-governance.” — Derek Razo [0:16:55]
“Any democratic structure worth creating, is worth preserving.” — Derek Razo [0:17:46]
“In the legal system ownership is king. So you have to rewrite the ownership of the entity in order to make any real claims about the durability of that purpose and mission.” — Derek Razo [0:21:30]
“It's so inspiring and powerful to have a company with the cultural presence that Patagonia has, making such a bold move.” — Derek Razo [0:31:30]
“The vision is something like a civic society that is engaged in its own self-governance and engaged in the benefit created by the economic institutions at every level.” — Derek Razo [0:38:55]
---
Links Mentioned in Today’s Episode:
Derek Razo: https://purpose-economy.org/en/who-we-are/derek-razo/
Common Trust: https://www.common-trust.com/
Purpose: https://www.purpose-us.com/about-us
UC Berkeley: https://www.berkeley.edu/
Enspiral: https://www.enspiral.com/
Patagonia: https://www.patagonia.com/home/
Organically Grown Company: https://www.organicgrown.com/
---
LIFT Economy Newsletter
Join 8,000+ subscribers and get our free 60-point business design checklist—plus monthly tips, advice, and resources to help you build the Next Economy: https://lifteconomy.com/newsletter
---
Next Economy MBA
This episode is brought to you by the Next Economy MBA.
What would a business education look like if it was completely redesigned for the benefit of all life? This is why the team at LIFT Economy created the Next Economy MBA (https://lifteconomy.com/mba).
The Next Economy MBA is a nine month online course for folks who want to learn key business fundamentals (e.g., vision, culture, strategy, and operations) from an equitable, inclusive, and regenerative perspective.
Join the growing network of 350+ alumni who have been exposed to new solutions, learned essential business skills, and joined a lifelong peer group that is catalyzing a global shift towards an economy that works for all life.
Learn more at https://lifteconomy.com/mba.
---
Show Notes + Other Links
For detailed show notes and interviews with past guests, please visit https://lifteconomy.com/podcast.
If you enjoy the podcast, would you please consider leaving a short review on Apple Podcasts/iTunes? It really helps expose these ideas to new listeners: https://bit.ly/nexteconomynow
Twitter: https://twitter.com/LIFTEconomy
Instagram: https://instagram.com/lifteconomy/
Facebook: https://facebook.com/LIFTEconomy/
YouTube: https://youtube.com/c/Lifteconomy
Music by Chris Zabriskie: https://chriszabriskie.com/