How Enterprise Foundations Can Sustain Sustainability. The European Relevance of a Nordic Ownership Model
Research output: Chapter in Book/Report/Conference proceeding › Book chapter › Research › peer-review
Standard
How Enterprise Foundations Can Sustain Sustainability. The European Relevance of a Nordic Ownership Model. / Feldthusen, Rasmus Kristian; Thomsen, Steen.
Nordic Company Law: Broadening the Horizon. Scandinavian University Press, 2023. p. 110-128.Research output: Chapter in Book/Report/Conference proceeding › Book chapter › Research › peer-review
Harvard
APA
Vancouver
Author
Bibtex
}
RIS
TY - CHAP
T1 - How Enterprise Foundations Can Sustain Sustainability.
T2 - The European Relevance of a Nordic Ownership Model
AU - Feldthusen, Rasmus Kristian
AU - Thomsen, Steen
PY - 2023
Y1 - 2023
N2 - In this chapter, we argue that foundations have a huge untapped potential to contribute to addressing the great social challenges of our time. Foundations in effect are private providers of public goods and therefore combine private sector initiative with social purpose. However, realizing this potential requires freeing foundations from some of the canonical limitations of contemporary foundation law, in particular the strict separation between philanthropy and business, which authorities in many countries zealously enforce. Allowing enterprise foundations (foundation ownership of business companies) as the majority of Nordic countries do will enable foundations to exercise benevolent long-term ownership of business companies while contributing a steady source of funding for sustainable development through donations and operating philanthropy. We outline the regulation necessary to make the structure work, including a central foundation regulator operating at arms’ length distance to the political system, full disclosure of philanthropy and ownership ties, audited accounts and good governance including independent boards.
AB - In this chapter, we argue that foundations have a huge untapped potential to contribute to addressing the great social challenges of our time. Foundations in effect are private providers of public goods and therefore combine private sector initiative with social purpose. However, realizing this potential requires freeing foundations from some of the canonical limitations of contemporary foundation law, in particular the strict separation between philanthropy and business, which authorities in many countries zealously enforce. Allowing enterprise foundations (foundation ownership of business companies) as the majority of Nordic countries do will enable foundations to exercise benevolent long-term ownership of business companies while contributing a steady source of funding for sustainable development through donations and operating philanthropy. We outline the regulation necessary to make the structure work, including a central foundation regulator operating at arms’ length distance to the political system, full disclosure of philanthropy and ownership ties, audited accounts and good governance including independent boards.
KW - Enterprise foundations
KW - Sustainability
KW - Philanthropy
KW - Long-term Ownership
KW - Stewardship
UR - https://ssrn.com/abstract=4636111
M3 - Book chapter
SN - 9788215054094
SP - 110
EP - 128
BT - Nordic Company Law
PB - Scandinavian University Press
ER -
ID: 382901451