The second-largest recruitment and services business in the UK, Cordant Group, has turned its business plan on its head to become a social enterprise.
As part of a five-year plan, the firm has pledged to reinvest the majority of its profits into social programmes across education, employment and healthcare.
The family-owned business, which has revenues of £840 million and employs 125,000 workers across the likes of schools, care homes and hospitals, is also capping dividends for shareholders and pay for executives.
Annual shareholder dividends will be limited to approximately £250,000 per annum for each shareholder family – equating to £3 million in real terms.
Executive salaries will also not exceed 20 times that of the lowest paid worker, the company has confirmed.
Fantastic to hear about @CordantServices flipping business model to become a social enterprise @SocialEnt_UK @UnLtd #purpose
— Tom Fox (@cunningasa) September 13, 2017
Fantastic work by @SocialEnt_UK to work with Cordant Group in becoming a #socent. Hopefully the first of many!
— Andrew O’Brien (@CFG_OBrien) September 13, 2017
They have also vowed to open their doors to independent auditors to ensure that they hit recognised social impact measurements.
The Cordant Group will now re-invest their profits into community-driven initiatives, including a teacher programme being developed by international education expert Richard Gerver to examine the link between the classroom and life/work preparation.
They will also fund IT platforms offered at zero cost for the healthcare sector, enabling hospital trusts to offer shifts directly to doctors and nurses, which they claim will save the NHS millions of pounds.
The new focus will also encompass partnerships with key clients focusing on upskilling and training for the temporary workforce in a bid to improve productivity and worker satisfaction.
It is business as usual at Cordant but with one key difference – profits will now be used to benefit society as a whole
Staff will also be able to take part in profit share scheme while there is also the promise of ongoing investment in technology to better connect pupils to apprenticeships, workers to jobs, and patients to doctors and carers.
Phillip Ullmann, Chief Energiser, Cordant Group said: “Our dream of building a genuine global social enterprise that can delight people and improve the lives of thousands of people is now being realised.
“We believe our teacher programme will change the classroom, our workplace initiatives will re-engage employees, and our healthcare ideas will transform patient care.”
Chris Kenneally, CEO, Cordant Group, added: “It is business as usual at Cordant but with one key difference – profits will now be used to deliver a broader prosperity, benefiting society as a whole and not just our shareholders.
“Whilst we believe this is an important moral position given the overwhelming response, we also know it will be positive for our businesses and drive efficiency, productivity and profitability.
“Our key customers are keen to work and partner with us on a journey that will create deeper relationships and returns.”