What Doughnut Economics means for business: Creating enterprises that are regenerative and distributive by design
This guide is intended for businesses and individuals who want to implement Doughnut Economics principles. It provides guidance on how to redesign a business through its strategic decisions and operations by focusing on purpose, networks governance, ownership and finance. The paper explores barriers and innovations to sustainable business design.
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OVERVIEW
It is becoming increasingly apparent that the current global economic system is causing ecological crises and leading to extreme social deprivation and inequity. This document is a guide for businesses interested in implementing Doughnut Economics principles in the (re)design their business model.
The Doughnut Economics Action Lab (DEAL) and the Centre for Economic Transformation (CET) collaborated to create this document. It aims to investigate how a company’s purpose, networks, governance, ownership, and finance affect its strategic decisions, operations, and potential for transformation towards a regenerative and distributive future. This resource offers case studies and theoretical knowledge to showcase how transforming businesses can support and improve alternative methods of change.
This paper sets out recommendations using DEALs Doughnut Design for Business tool to assist businesses in their redesign journey. The aim of this tool is to cater to the requirements of all individuals while adhering to the limitations of our planet’s resources and boundaries. Offering valuable guidance on the process of (re)designing an enterprise to establish regenerative and distributive dynamics effectively. Promoting investments, innovations, actions, and solutions facilitating the creation of businesses and economies based on regenerative and distributive principles.
The paper highlights the need for regenerative and distributive business dynamics. Numerous businesses globally still operate under the outdated linear model of “take, make, and lose.” Emphasised is the need to shift towards a regenerative economy that functions in harmony with the natural cycles of the world. This paper highlights that it is essential to transform towards distributive economic models that share value and opportunity more equitably.
The concept of deep design encompasses factors such as the business’s purpose, its network operations, governance, ownership, and financial relationships. Transformative ideas for more regenerative and distributive practices, such as supply chain improvement, fair product pricing, ethical employment practices, and sustainable product design, can often be hindered by deep design. A redesign of business can aid in promoting, nurturing, and empowering a more comprehensive transformation of the broader economic system.
In applying Doughnut economics to businesses, the document utilises Marjorie Kelly’s five design elements of enterprise ownership: purpose, networks, governance, ownership, and finance. By incorporating this framework into business design, several objectives can be achieved. These five layers are connected and work in harmony to create feedback loops that ground businesses and contribute to the success of the communities they serve.
This document offers comprehensive guidance and information on the process of redesigning a business. It recommends following the lessons listed below to ensure a successful journey.
- Put the most transformative ideas on the table
- Explore the limits of your current business design
- Remember that redesign can ensure business resilience
- Build momentum and commitment for your business redesign
- Decide on the right size and scope for the business
- Tailor the redesign journey and start where it is possible
- Steer towards systemic change and industry transformation
The document details specific steps that can be followed as a standard approach to developing and enhancing innovative techniques within a company’s structure.
MENTORS & CONTRIBUTORS
Things to learn
ESG issues
SDGs
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- General Sustainable Development Goals
- GOAL 01: No Poverty
- GOAL 02: Zero Hunger
- GOAL 03: Good Health and Well-being
- GOAL 04: Quality Education
- GOAL 05: Gender Equality
- GOAL 06: Clean Water and Sanitation
- GOAL 07: Affordable and Clean Energy
- GOAL 09: Industry, Innovation and Infrastructure
- GOAL 10: Reduced Inequality
- GOAL 11: Sustainable Cities and Communities
- GOAL 12: Responsible Consumption and Production
- GOAL 13: Climate Action