Steward ownership and the Economy for the Common Good

A comparison

The Economy for the Common Good (ECG) and steward-ownership can be combined effectively, but they are fundamentally different approaches. The ECG has developed a catalog of criteria that companies can use to evaluate themselves and their engagement in various areas. The result is a Common Good Balance Sheet that is reviewed by independent auditors and then published for transparency.

The following areas are included in the Common Good Balance Sheet: suppliers, customers, owners, financing, employees, and the social environment. A detailed description of the Common Good Matrix can be found here.

Compared to the ECG, steward-ownership is a binding change in the ownership structure of the company. There are no rules or guidelines for what a company should or should not do, only that the ownership structure ensures the two principles. Like B Corps, the lever for change in the ECG is voluntary certification. This certification is not limited to ownership but it does include it as one of many issues. In doing so, steward-ownership can have a positive impact on the scores in ECG Matrix.

The lever for change lies in measuring output, evaluating how well the company performs in various categories, and its measurement and ranking. In contrast, steward-ownership starts at the ownership level as the base of corporate behavior.

The two approaches, despite their differences, can be combined well or complement each other. Many steward-owned companies are also ECG certified.