Central to this start up we are developing is how we plan to look at stakeholders, that is the broader community which will interact with the business.
We want to set aside a portion of net profit before tax and return this in some way to the community. We want to do this because we genuinely believe in the community as a stakeholder in every business.
Achieving the goal is a challenge because we need to allocate the funds prior to tax being calculated. This means they need to be donated to charities etc which have tax deductible status.
It may seen naive but I would like the government to consider such a concept of community ‘stakeholdership’ (as compared to share ownership) and how businesses might allocate funds in a tax deductible form without the need for the funds going to tax deductible approved charities.
For example, we would be interested in providing a scholarship for rural students moving to the city to study. Under current arrangements would could only do this through a charity already established to do this and with tax deductible status. We want to keep the line between our provision of funds and the recipient as short as possible to ensure maximum funds get to the recipient and no on charity overheads.
While it is somewhat premature to consider these things for a business yet to make even a dollar in revenue, we want to have the processes in place from the outset so there is no doubt about our intentions and how we plan to execute.