The Matterhorn Moment
James Reed Chairman and CEO of Reed Chairman of the Board of Trustees at Big Give
thereby ensuring a positive impact on people and the planet. We know it works. The idea of PhilCos is much more prevalent in Europe, with some of the world’s biggest brands, including Ikea, Carlsberg, Lego, Rolex and Bosch and Europe’s biggest company by market cap, Novo Nordisk, adopting the foundation owned company model. In Denmark, where the structure is popular, the 40-year survival rate is 10% for non-foundation owned companies but increases to 30% for foundation- owned companies. As well as longevity, being a Phil- Co offers a legacy for the company founders and leaders. It also enhances a company’s reputation and improves employee motivation, retention and reduces absenteeism. Companies which adopt the PhilCo ownership structure will join a community of other PhilCos, and perhaps be recognised by a PhilCo hallmark. Our aim is to create a movement of companies in the UK which follow the same model. If we succeed, we can build a new variant of capitalism – one that’s more robust, delivers better returns and also does enormous social good. If you’re interested in finding out more or joining this movement, please email philco@biggive.org
It was a near-death experience on a mountaintop that led to my big idea . I was climbing the Matterhorn back in 2013 when I was 50 with my son Harry, then 18. Having narrowly avoided a sheer drop and certain death climbing up, on the way down, I fell and broke my leg badly. I only made it off the mountain thanks to an Italian helicopter mountain rescue crew. As I spent time in hospital and then in bed at home recovering from my injuries, I had lots of time to reflect. I felt strongly that I had been given a second chance, another go… so how should I make the most of it? How should I use the second half of my life? I became much more focussed on my purpose as a person and on the purpose of our organisation. I was much more engaged in what we might do positively for other people. We settled upon our company purpose sometime after. Free-market capitalism has achieved incredible things – lifting millions out of poverty, fuelling innovation and offering people opportunities to succeed. But it clearly hasn’t worked for many. The UK has among the highest levels of inequality in Europe, climate change is threatening to spiral out of control and our young people are suffering a mental health crisis. A new movement is needed. But what form should it take?The idea I alighted upon was creating what I call a purpose-led philanthropy
company, or PhilCo for short. The values of the business I wanted to lead came from our family. They are very simple and non-negotiable. “We are fair, open and honest. We take ownership. And we work together.” The purpose of Reed is also clear and encapsulated in just four words: “improving lives through work”. It’s memorable but above all it’s actionable every day by everyone who comes into work. Everyone can do something in the course of their day to improve someone else’s life, even if it is in a small way. We all try to balance the desire to deliver for shareholders with the need to effect good for society. Reed has transferred 18% of its shareholdings to the Reed Foundation, which has since given away tens of millions of pounds to good causes. This means all our staff work the equivalent of one day a week for charity. We also run the charity Big Give, the UK’s biggest match funding platform which doubles donations to thousands of other charities taking part in its fundraising campaigns. To date, it has raised almost £300 million. aims to encourage businesses to embed philanthropy into their ownership structure in this way, by transferring at least 10% of their shareholding to a charitable foundation, The PhilCo movement
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