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The province of British Columbia has legislated a new type of organisation.
Companies now can register to become a Community Contribution Company (CCC or C3), a new business model for British Columbians who value a balance of social responsibility and profit, Minister of Finance Michael de Jong announced today.
Regulations for the C3 business model are now in effect. Designed to bridge the gap between for-profit businesses and non-profit enterprises, this innovative business model is the first of its kind in Canada.
This new type of hybrid business model responds to an emerging demand for socially focused investment options. C3 status signals that a company has a legal obligation to conduct business for social purposes and not purely for private gain. This obligation will help attract capital not currently accessible to the social enterprise sector by appealing to philanthropic investors who still expect some financial return.
I discussed B-Corp earlier. The question to understand better is what is the problem that this types of organisations solves: signal to potential investors and customers or attract new capital or something else. is this the most important problem and is this the best way to solve it? I have been asked about the structure of a new organisation trying to be a social enterprise and my answer right now in Australia is that whatever helps you attract capital. May be simplistic but that’s quite important.