The case for a Boddha Brand

The world needs a new kind of brand, believes author Subramanian Krishnan. He proposes, in minute detail, a model that combines principles of socialism with the efficiency of capitalism.

Capitalism dominates the marketplace, but its blemishes can no longer be airbrushed. The unequal distribution of wealth, disproportionate use of resources, degradation of the environment, exploitation of labour and chasing profit efficiency at the cost of human effectiveness are just some of its gross imperfections in an otherwise flawless exterior.

One particular alternative got a bad reputation in the 1980’s. It has never managed to recover since then. While capitalism promised the glitzy appeal of western free markets, individualism, and the American Dream, socialism primarily got associated with economic inefficiency. It was seen as inherently flawed and incompatible with democracy and individual freedom. Socialism became a surrogate for government control, central planning, and a lack of economic incentives. It failed to deliver on its promises of equality and prosperity. Instead, it was seen as a prescription to economic stagnation, inefficiency, and poverty.

And yet, what cannot be ignored is that socialism promises all that bedevils capitalism.

The dreamer in me was aroused. What if there was a model that had socialist principles at heart while combining it with the efficiency of capitalism? Something that takes the best of both the worlds?

This article makes the case for such a socialist brand with capitalist ingredients.

Let us start by calling such a brand as a ‘Boddha Brand’.

Why Boddha (बोधः)? Because ‘Boddha’ means conscious, aware, enlightened, awakened, learned, a higher intelligence. One can easily misread it as Buddha (बुद्ध) but that would also not be far from the meaning we wish to ascribe. And if the reader is keen on an English translation, we could call such a brand an ‘Enlightened Brand.’

Many brands and businesses only exist to maximise the return on capital employed (ROCE). They are easily identified as the ones who are slaves to the stock exchange indices. These are the people who worship at the altar of Milton Friedman whose doctrine says that a corporation’s only obligation is to its shareholders. When they chase shareholder value at the cost of everything else, they are guilty of being ‘unconscious’ (or un-enlightened?) of their impact on the community and the planet under the garb of convenience and modernity.

In opposition to such ignorance, a Boddha Brand prioritizes the needs of the people and their community over mere profit maximization. This does not mean that such brands do not retain a profit to return to the business and the shareholder. However, it does mean that they do not exist to maximise margins and return on capital.

How can the products and services offered by the brand be designed to meet the needs of individuals and communities, rather than maximizing profits? All it takes are simple common-sense initiatives, such as producing goods that are more durable and repairable, prioritizing fair labour practices, sustainable sourcing of materials, applying the principle of ‘Do No Harm’.

Secondly, such a conscious brand would prioritize democratic decision-making and worker ownership. Rather than being owned by a small group of shareholders who prioritize profit over all else, such a brand would be owned by the workers who create the products and services.

For example, Larsen & Toubro (L&T) formed the L&T Employees Trust in 2002, comprising all past and present employees of the company. This trust has a majority shareholding in the company which preserves its independent character while keeping the employees and the community invested in the well-being of the company. Many dairy co-operatives like Gujarat Cooperative Milk Marketers Federation (GCMMF), the owners of Brand Amul, are jointly owned by eight district level cooperative member unions of Gujarat, which in turn are owned by local dairy farmers.

Beyond putting consumers first and being owned by the workers, thirdly, a Boddha Brand would prioritize social responsibility. Again this is fairly simple to comprehend. All this means is that the brand would ensure that it never takes more than it gives. When it follows this principle, it would put sustainability at the heart of everything it does.

Finally, a Boddha Brand would wholeheartedly embrace transparency. This means that it would be open about its operations, finances, practices, and environmental impact. It would be honest to its workers, customers, and communities, with mechanisms in place to ensure that the business lives up to its commitments.

Of course, there are potential challenges to creating a successful Boddha Brand.

One challenge is the perception of the conscious brand being ‘anti-profit’. This needs the conscious brand to emphasize the economic benefits of a more sustainable business model in the short and the long term.

Another challenge is the potential difficulty of competing for resources in a capitalist marketplace. However, the author feels that a confederation of like-minded individuals and companies will rise to assist each other. This would happen because all of them believe in their own commitment to sustainability, and would like to see it reflected in their associates, vendors, and customers too.

An ecosystem of conscious brands would rise, enabled by certifying agencies like the non-profit organization B Lab, which evaluates companies based on their impact on their workers, community, environment, and customers.

A certified B Corporation, or simply “B Corp,” is a type of business that meets rigorous standards of social and environmental performance, accountability, and transparency. To become a B Corp, a company must undergo a thorough assessment (and score a minimum number of points) that evaluates the company’s performance across a range of areas, including governance, workers, customers, community, and environment.

Certified B Corps are part of a global movement of companies that are committed to using business as a force for good. They are businesses that aim to create value not just for their shareholders but also for their employees, customers, and communities.

As of September 2021, the largest certified B Corporation by revenue was Natura & Co., a Brazilian cosmetics company of over $10 billion USD that also owns brands such as The Body Shop and Aesop. Other large B Corps include Danone (a French food and beverage company) and Eileen Fisher (an American clothing company).

In summary, Boddha Brands emphasise the idea that businesses can be a force for good in society, creating fair value not just for their shareholders but also for their employees, customers, and the wider society, while operating within free market principles.

There are many green shoots examples of such Boddha Brands around the world.

The Worker’s Coffee Company in the United Kingdom is owned and operated by its workers who share in the profits of the company, while sourcing its coffee beans directly from small-scale farmers by paying fair prices and promoting sustainable practices. Similarly, Divine Chocolate is a UK based chocolate company owned by a cooperative of cocoa farmers in Ghana.

Patagonia is a US based, certified B Corporation outdoor clothing and gear company that prioritizes sustainability, fair labour practices, and environmental activism. The Mondragon Corporation is a Spanish federation of worker cooperatives that employs over 70,000 people in a variety of industries, including manufacturing, retail, and finance.

TOMS is a shoe and accessory company that has a “One for One” business model, where for every pair of shoes purchased, the company donates a pair to a child in need. Warby Parker does the same for eyewear.

Closer home in India, elsewhere in this article, we have already learnt about Amul and the L&T Employee Trust. Similarly, Eco Femme is a social enterprise based out of Auroville in Tamil Nadu that produces eco-friendly cloth pads as an alternative to disposable sanitary napkins to support menstrual health and women’s empowerment.

Another evolving success story is of Kudumbashree that started in Kerala in 1998. It is based on the concept of community-based micro-enterprises for women in low- income households. The women of Kudumbashree are provided with skills, credit, and marketing support to start their own small-scale businesses that range from food processing, handicrafts, tailoring, and cleaning services. The profits are redistributed among members to help increase their income. As Kudumbashree completes 25 years of change on May 2023, it is now arguably the largest women’s collective in the world running over 49,200 micro-enterprises.

While these were some interesting and diverse examples of Boddha Brands, I am sure that there are many more that are thriving both in India and the world.

One can be relatively certain that naysayers would rebrand this as ‘Buddhu’ Brands (Foolish Brands). But then the joke would be on them. People with an ostrich attitude to change, people who have their backs towards progress, have mostly been cast aside into the dustbins of time.

Others may ask, “why not just call them Conscious Brands?” Well, the concept of ‘Boddha’ (or aware enlightenment) is more specific and expansive than being merely conscious. It includes the impact of the business on customers, employees, community, other stakeholders and providers of capital. Such awareness compels action to uplift humanity collectively, rather than work for the betterment of one or the other stakeholder.

As is the atom, so is the universe. And when combined with Eker’s maxim, “How you do anything is how you do everything,” we arrive at a simple charter:

Only Boddha Brands give, in every little action, more than they take in return for it.

Let us join hands to support such brands with our hearts, our wallets and our capital.

Author’s Note: ESG Investing vs. Woke Capitalism is a whole other article, beyond the remit here.