Mission First: The Case for Steward-Ownership in Today’s Economy

Let’s face it – most companies today are driven by one thing: profit. And while there’s nothing inherently wrong with making money, it becomes a problem when profit starts to overshadow everything else. As businesses grow, they often lose sight of their original mission in the relentless pursuit of higher returns.

But what if it didn’t have to be this way?

I’ve always walked the line between the world of high returns and purpose-driven work. On one side, I rely on the stock exchange and invest in startups with the hope of multiplying my returns – chasing that classic venture capital success story. But on the other side, I’ve put my time and money into initiatives simply because I believe in them, with no expectations of major financial returns.

It’s a strange tension, balancing profit and purpose. And it’s made me realize something critical: the current system pushes companies to prioritize profit, even if it goes against their values.

That’s where steward-ownership comes in – a game-changing business model that separates power from financial gain, allowing companies to stay true to their mission while remaining financially sustainable. It’s a radical rethink of how businesses operate, and it could be the key to a more balanced, purpose-driven economy.

The Problem with Profit at Any Cost

Let’s be honest – as long as shareholders stand to benefit from maximizing profits, many companies will prioritize returns over everything else. We see it all the time – business decisions that might look great on paper but have devastating effects on employees, the environment, and communities.

I’ve been there myself, part of ventures where the pressure to deliver growth led to decisions that didn’t align with my personal values.

It’s not that profit is inherently bad. But when profit becomes the sole measure of success, companies lose sight of their original mission – the reason they were founded in the first place. The system is set up to reward shareholders endlessly, even when other stakeholders are left behind. And once a company starts chasing profit, it’s hard to stop.

The good news? There’s another way.

What is Steward-Ownership?

Steward-ownership offers a bold alternative.

In a typical company, shareholders own both the economic rights (they receive dividends and profits from selling shares) and control (they vote on company decisions). This gives them tremendous power to push for profit maximization, often at the expense of the company’s mission.

In a steward-owned company, these rights are separated. Control over the company is placed in the hands of stewards – individuals or groups whose job is to protect the company’s mission. These stewards can’t sell their decision-making rights or profit personally from their control, ensuring that the company remains aligned with its purpose.

Investors can still provide financial support and receive fair returns, but they don’t get to dictate the direction of the business.

It’s a model that allows businesses to grow without compromising on their values. By cutting the link between power and financial gain, companies are free to focus on what truly matters – making a positive impact.

Steward-Ownership in Action

This isn’t just some lofty ideal; it’s already happening in real businesses across the world. Some companies have embraced steward-ownership to ensure that their mission stays at the core of everything they do, no matter how big they grow.

• Patagonia: In 2022, Yvon Chouinard transitioned Patagonia into a steward-owned company. Its new structure involves a trust that controls the company’s values and a nonprofit that uses profits to combat climate change. This ensures that Patagonia’s environmental mission is protected, regardless of future leadership or investors.
• Ecosia: A search engine that plants trees with its profits, Ecosia is another example of steward-ownership. The company’s founder ensured that neither he nor future investors could sell the company for profit. All of Ecosia’s profits go toward reforestation and other environmental causes.
• Bosch: The German engineering giant Bosch has been structured as a steward-owned company for decades. The majority of the company is owned by the Robert Bosch Foundation, which reinvests profits into charitable causes. This setup allows Bosch to stay focused on long-term innovation and social impact rather than short-term shareholder returns.

These companies are thriving, proving that businesses can be financially sustainable while staying true to their mission.

My Own Struggle with Profit and Purpose

Personally, I’ve found myself caught in this struggle. I’ve invested in startups expecting big returns, chasing the thrill of that next financial multiple. At the same time, I’ve supported projects and businesses simply because I believe in their mission, without expecting major financial rewards.

It’s been a constant balancing act, and I’ve learned that, ultimately, the current system forces us to prioritize one over the other.

That’s why I’m drawn to the idea of steward-ownership. It presents a path where businesses can pursue both profit and purpose, without sacrificing their core values. It creates space for long-term thinking, mission-driven decisions, and positive impact. Steward-ownership asks a fundamental question: How much is enough?

A New Chapter for Upstream Festival?

This realization has inspired me to make a bold move. I’m currently working on transitioning Upstream Festival, the event I helped create, into a steward-owned company. Upstream’s mission has always been about fostering innovation, supporting entrepreneurs, and driving positive societal impact.

By adopting steward-ownership, I want to ensure that Upstream remains true to that mission, even as it grows. Resisting the temptation to fall for short term financial gains.

Turning Upstream into a steward-owned venture is a commitment to its long-term purpose. I’m excited about this shift, and I invite anyone interested in this journey to join me. Whether you’re an entrepreneur, an investor, or simply curious about how steward-ownership works, let’s explore how we can create more purpose-driven businesses together. Drop me an email at lars@upstreamfestival.com

Join the Movement

Steward-ownership is more than just a business model – it’s a mindset shift. It challenges us to rethink the purpose of business and how we measure success. It’s about ensuring that companies can grow, innovate, and make an impact without losing sight of their mission.

For those interested in learning more about steward-ownership, I encourage you to visit We Are Stewards, a foundation dedicated to helping entrepreneurs explore and adopt this model.

Let’s start building a future where businesses truly put their mission first. And if you’re as passionate as I am about creating a more purpose-driven economy, I invite you to join me on this journey with Upstream Festival. Together, we can ensure that our companies – whether big or small – stay focused on what really matters: making a difference in the world.