Foreward to Chinese edition of Putting Purpose Into Practice: the Economics of Mutuality

Cindy Xiangyu Ma
President, China Social Enterprise and Impact Investing Forum

In 1947, Forrest Mars Senior proposed the “mutuality” means of operations which clarified the social purpose of Mars’ business operations as being: quality, responsibility, efficiency, freedom and mutuality. By 2006, successor to this family business John Mars raised the question “what kind of profit level is justified for Mars?” which cut straight to the heart of the matter. The Mars think tank and Oxford University then conducted joint research into why businesses exist. This is not only a consideration for Mars but also represents an exploration of the business into its own goals and significance during this historical period.

From the pursuit of maximizing shareholder interests to paying attention to stakeholders, and then to proposing that the healthy development of a business should establish its own commercial ecosystem, Mars has, within the construction of its commercial ecosystem, fully considered and designed relations with non-business such as with government and social organizations which have gone far beyond the design of stakeholders limited just to commerce.

During our efforts to explore the promotion of business being for the good, we have been fortunate to become acquainted with Bruno Roche, one of this book’s authors, and to read an advance copy of this book. Reading this book as resonated with me and the great excitement I have felt is indescribable. All our thinking and our confusion over the years is expressed in this book.

The mutually beneficial altruism advocated by we Chinese people is precisely what we discuss today: corporate philanthropy, social responsibility and ESG; the distinction between corporate philanthropy and corporate interests; the relationship of business with society, the environment and governance; the relationship between business and social organizations in particular; how can business internalize mutuality promoting as high as business strategy while also paying attention to the relationship with external stakeholders; a clear and open view that business operations must pay attention to its profits while at the same time directing its operations with mutuality so that it ultimately returns to creativity in which mutuality does not harm the profits of business and actually promotes a rise in the business’ profits.

This is also in line with business being for good which we have proposed over the past few years meaning that "commercial businesses are committed to solving social and economic issues, developing projects related to their main business or services, and creating financial and commercial returns for the business while achieving innovative social and environmental returns.

At the same time, when we are probing sustainable social value innovation, Mars has long been emphasizing the social purpose of the business, an admirable business philosophy of mutual benefit. At the same time, this book also objectively demonstrates the principle of mutual operation which even in Mars where it is practiced successfully under certain conditions still has a long way to go for it to become a tradition and an accepted principle.

I thank from the bottom of my heart both editors as well as all the authors and explorers. I am fortunate to have read this book at the right time and am eager that this book is published as soon as possible so that more entrepreneurs and social innovators who think about the mission of business in this age of change, and people from all walks of life who agree with the idea of business being for the good read and benefit from this book as soon as possible.