How Stakeholder Capitalism Will Help The World
This post includes content from Jean Russell and Virginie Glaenzer's upcoming book,
“The Economics of Abundance” scheduled for publication in Q3.
Today’s economy isn’t just experiencing a recession or inflation. It’s the end of an era. Our research has led us to the conclusion that we are at the dawn of a new world in which intelligent, distributed organizations will arise.
In our information age, digital peer-to-peer networks and open knowledge are game-changers for those who can see it. The barriers to industries, investment, know-how, and geographies have fallen, providing us with a cornucopia of abundance.
Abundance doesn’t mean having more than what we need; to us, abundance means having enough. The Cornucopia of abundance is everywhere in our society but invisible to those who don't have an open mind: an abundance of information, education, ideas, services, experiences, global reach, access to expertise, investable wealth, and virtual experiences.
For most people, it is difficult to understand how our belief in scarcity has given rise to the idea of competition. When we focus on our competitors, we become fearful and try to win at all costs.
However, when we focus on our own needs and desires for cooperation, we create lasting connections with others based on shared values.
The Next Economy Fuel Is Stakeholder Capitalism
One of the most fundamental requirements of a capitalist economic system—and one of the most under-appreciated concepts—is access to real estate property.
As such, a stable and fair economy comes in part from giving people access to the property because it encourages them to invest in physical and human capital and technology.
In the same way as giving access to property create a stable and fair economy, giving employees, fans, customers, partners, and distributors access to capital ownership is going to not only revolutionize the future of fundraising but will also build the abundance economy. We call it stakeholder capitalism, a social capitalism movement resulting in a more fair world.
How Will Stakeholder Capitalism Take Form?
1. Web3 is Not What You Think
“If we assume that the Web1 has revolutionized information and the Web2 revolutionized interactions, the Web3 has the potential to revolutionize agreements and value exchange. It changes the data structures in the backend of the Internet, introducing a universal state layer by incentivizing network actors with a token." Shermin Voshmgir, Token Economy
Web 1.0 was read-only pages like Yahoo. Web2 introduced the social platforms, and as a result, Interactions between users rose, and dynamic content was created, like Facebook and blogs. Web3 is about access to ownership because it embeds new ways to distribute and exchange value. For our team at Reap, Web3 is co-creation and co-ownership at its best and a new way to interact.
After 40 years, it’s no surprise that the internet is evolving to reflect society’s new values and people’s desires. Web3 is embedding a new way with digital native to distribute and exchange value, unconstrained by legacy financial infrastructure, for we need tools for the next era of social networks, creators, and businesses to engage with their community while monetizing along the way. This is how crypto is making it possible to financialize creation and participation.
2. Communities Fuel The Brands of the Future
Communities are one of the best-kept secrets in web3 and in the abundant economy. This old way of thinking, that as an entrepreneur you have to do the work alone, is going out of style. Few people truly understand the power of communities because it requires letting go of one’s control. Yet, giving businesses the opportunity to turn equity into their most powerful community engagement tool is what will separate thriving brands from the dying ones.
Community is built around a shared idea or value proposition that goes well beyond a product or service. A true community is a safe place for members to voice their truth, should they be customers or employees.
But more importantly, a community is the new way to sell. Forget the sales team, the VP of sales, and inside sales. We believe that the brands that will survive and thrive in this new economy will be the ones nurturing a community.
The benefits are tremendous: The community spreads the word about your product beyond the market, you’ll be able to try out new ideas, and you’ll stay market fit by using votes and ranking for the product team to know which feature or service needs to be prioritized.
At Reap, we have designed our community within the DNA of our business.
3. The Financial Future of Work
Tokens and cryptocurrencies are the new business models. In web3, everyone is a shareholder in something, with Robinhood slices of shares to Angellist slices of start-ups, the micro everything removes the barriers to entry.
As such, once the domain of high wealth and privilege, we are now witnessing the rise of co-ownership with much lower barriers to entry. The rise of alternative investing, from NFT ownership to private equity funds, represents an investable wealth abundance. Ownership is the expectation of the new consumer.
We encourage you to consider implementing tokens in your organization. There is a huge opportunity for businesses to create their tokens, which will not only engage customers but also help their business grow. At Reap, we have created our token to raise funds and reward the members so that they can truly be part-owners of the company.
4. The Relationships Future of Work
The great resignation is a reality. Work independence and self-determination are the biggest drivers that will shape the future of work. In the past, most people worked for one company their entire working life. Today, freelancing or independent work is increasingly common, often in addition to a full-time job.
Remote and fractional resources fundamentally change how we think of resources, requiring trust and collaborative tools to succeed. The four-day workweek is now a trend in many organizations. Post-COVID, more companies are experimenting with alternative work schedules. As an entrepreneur, we invite you to rethink how you categorize roles and responsibilities as you grow your company.
5. The Governance Future of Work
The pandemic has changed the way we live. Post-Pandemic Culture is now synonymous with transparency, Inclusion, and social responsibility.
Customers are no longer satisfied with a transactional relationship with brands. Customers across all industries are now realizing that the true power they have as individuals and consumers is in what they eat and what they buy. There is a real collective consciousness happening that changes people’s behaviors when it comes to purchasing. Converting customers into shareholders is a way of enhancing relationships and strengthening bonds.
If you want your organization to succeed in the future, it's important that you also empower your employees by giving them a seat at the table and allowing them to make decisions about the future of the organization.
Both of those governance opportunities require us to give up some control and embrace a new form of leadership.
Built by Founders with Founders
We’re excited to unveil a new generation of community for entrepreneurs, solopreneurs, freelancers, and independent workers. Thriving on Web3, our Reap Community is built by founders with founders, with our own Ethereum crypto-currency $Reap. We believe that ownership creates a sense of belonging and unleashes creativity. That’s why every Reap member owns a piece of the organization.
Join our collaborative community and experience Web3 to be part of the movement redefining how we share value. You'll meet with founders and creators who believe that there is an alternative to constantly feeling financial pressure and measuring success in old-fashioned ways. They believe that trust is how you succeed in a noisy world.
Join us now or sign-up to attend our next Web3 training webinar.