Today’s NY Times has a great article about “fourth sector” businesses that are for profit organizations that also have a mission at the same time.
The result is a small but budding practice â€” what some label the fourth sector â€” composed of organizations driven by both social purpose and financial promise that fall somewhere between traditional companies and charities. The term â€œfourth sectorâ€ derives from the fact that participants are creating hybrid organizations distinct from those operating in the government, business and nonprofit sectors. But because the types of participants vary widely and much of the activity is nascent, no single name for what is occurring has gained broad use.
â€œThereâ€™s a big movement out there that is not yet recognized as a movement,â€ said R. Todd Johnson, a lawyer in San Francisco who is working to create an online wiki to engage in the give and take of information for what he calls â€œfor-benefit corporations,â€ another name for fourth-sector activities.
Consumers, employees, managers and â€” perhaps most important â€” investors are driving the phenomenon.