united for freedom 

Business Model

Building Ethical Exchanges is the best way to create the knowledge based, creative businesses that typify the Creative Economy. It is not the business that defines the amount of creativity it contains it is how it is operated. All businesses can be and should be knowledge based and creative.  Businesses should as a matter of course seek greater efficiencies and ways to use less energy. This is the elimination of the Industrial Era processes in the generation of the knowledge networks of the Creative Economy.

When everyone is motivated to do their best and find ways to reduce energy use we have what the Transition Initiative calls an Energy Descent Action Plan (EDAP). Transition Initiatives are incorporated within Exchanges. Because the Exchange, which may have been founded on or developed on the foundation of an old style, energy sucking enterprise of the old industrial tradition, is owned by the members. It is important to each and everyone that energy use be reduced to the minimum. This ups the creative level of the enterprise and what was or had been an Industrial Era process becomes a knowledge based enterprise simply because of the level of concern shown by the knowledge based job creating team responsible for its operation.

Conventional businesses all try and motivate workers but this is generally a waste of time and resources. If workers need to be motivated there is something structurally wrong with the business and it is unlikely a patch will solve the problem. The problem is not how to motivate the worker it is discovering how business structure marginalizes employees inducing apathy.

The worker that needs to be motivated believe their efforts will not be compensated or recognized. A disjuncture between income and effort is observed. We call this the Parasitic Effect. The business does not want to spend money on motivational programs that do not produce good results but neither does the worker wish to engage in motivational programs that do not fundamentally alter the dynamics under which she or he works.

Exchanges solve the dilemma of recompense in the workplace. Employees are paid comensurate with their contribution individually and collectively. The connection between effort and compensation is real and visible to all.

Ethical Exchanges are owned by its members. All income earned by an Exchange accrue to the members. Members do not necesarily own the private assets that generate income anymore than investors own the assets of the business they invest in. A business may be owned by an Exchange or a business can be a member of an Exchange or a business may be an Exchange but owned by a private entity. Ethical Exchanges create jobs.

The Exchange pays workers for their personal effort according to the hours employed but the income that the Exchange makes is then shared amoungst the body of members so that the collective contribution of the group is also rewarded.

 

 

 

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