Hybrid Organisations

Is it time for Australia to scrap the binary way of thinking about organisations as either being for profit or not for profit?

According to visiting London School of Economics Professor Julian Le Grand, hybrid organisations derive a majority of their income from trade but with two or three explicitly stated objectives – profit, social and environmental impact.

Hybrid organisations are not just motivated by one purpose such as profit and shareholder value. Nor are they motivated to maximise social welfare as in a public agency or to achieve a mission as do not-for-profits.

Co-operatives and Mutuals are hybrid organisations because their member ownership structure combines enterprise and concern for community.

London School of Economics Professor Julian Le Grand visited Australia as the guest of the Business Council of Co-operatives and Mutuals in December 2017.