As the world grows more socially conscious business owners seek ways to reassess their position in the economy and ensure they are not doing harm. One example is The Sentinel in West Texas. While initially just a local newspaper, its new owners Max Kabat and his wife expanded it to be more of a cultural hub for the area. It now acts as a coffee shop, restaurant, and retailer while continuing to do local independent journalism.
With his new successful business, Max Kabat sought to increase its value through new and unexpected avenues. With a newfound understanding of socially conscious business management, he lays out how others can do the same.
One of the examples he cites is a perpetual purpose trust. Through a perpetual purpose trust, the mission of a business owner can be preserved even after they are gone. This would entail trusting the business to a committee to ensure it sticks to its mission. This form of business management has grown increasingly popular. For instance, Patagonia and the Oregon-based Organically Grown Co. have both opted for a perpetual purpose trust. This means the missions and desires of their current owners will be maintained through committee decisions. This can help ensure your business maintains good social practices. For instance, in Kabat’s case, he believes that businesses should be environmentally conscious, ensuring that agriculture is not too destructive and that excessive waste is not produced. Through a perpetual purpose trust, this mission can be preserved.
Perpetual purpose trusts are now growing increasingly popular as businesses come under more scrutiny. Safe, environmentally conscious, and fair businesses are more important to the consumer than ever before, and a perpetual purpose trust can ensure that businesses maintain these ideals
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