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Purpose, Community Impact, Capitalism 2.0 Letting purpose guide the growth of a business
Firebrand Artisan Breads was founded in 2008, "with just four employees in a West Oakland warehouse, baking bread and pastries in a wood-fired brick oven. In 2017, Firebrand moved to a new, larger facility, jumping overnight from a dozen to 55 employees. It now has its own cafe and hundreds of retail partners across the Bay Area, from local coffee shops and delis to four Whole Foods locations." Now they anticipate hiring 40 more people in April. "But if Firebrand went that route, what would happen to the workers in Oakland or Alameda, not to mention the families and the neighborhoods who they support? Would shareholders or corporate executives leave them behind to move production to somewhere far away for the sake of lower labor costs or land costs? How much wealth would that create for (the founder, Matt) Kreutz, a white cis man, and venture capital investors, who are overwhelmingly white cis men, while simultaneously reducing wages and upward mobility for Firebrand’s workers, who are 80 percent people of color? "Firebrand instead worked with outside advisors and lawyers to incorporate something called a perpetual purpose trust to serve as a new parent company, and Kreutz donated 51 percent of his voting shares to the trust to hold in perpetuity. The governing body of the trust is a stewardship committee, consisting of Kreutz, Firebrand employees and external community members who work on issues affecting Firebrand’s employees." |