Phenix

What are the organizational transformations related to this change?

➢ Transparency within the company (everyone knows about good and bad news) and within
employees (they know each other's salaries).
➢ Beside the traditional board of directors (investors, managers), a new committee is introduced, we
can call it a “stakeholder” committee. This council is composed not only of shareholders, but also
employees, charity and other minority interests. It permits everyone within the company to
express him/herself.
➢ Beside KPIs and other financial indicators, there are several non-financial indicators used by the
company. Profitability is important, but it is not the only objective: it is not a case that the
company itself posed a limit on its lucrativity.
 What are the main benefits of such transformation?
From the external aspects:

➢ Putting the extra financial impacts and the financial impacts on the same level helps to build the
brand name on society. Not only focusing on financial impacts like shareholders’ profits, but also
emphasizing on social impacts like green finance and the number of being helped families, Phenix
enhances its brand awareness and influence.
➢ Absorb more investment. Based on the principle to be responsible for all stakeholders, individuals
and institutions will trust Phenix, consider it as a reliable one hence invest on Phenix.

From the internal aspects:

➢ Mobilize the initiatives of the staff and improve the retention rate for staff. By limiting the wage
ranges, and making salaries transparent and sharing all the figures with employees, employees
will be motivated and they will be more likely to stay. As the consequence, their performance will
be better.
 What are the main limits of such transformation?

➢ The difficulty of balancing on social and economic value. Rather than the traditional model, which
considers profits only, the hybrid one needs to think about the social impact when making
decision, while for some occasions, the social impact is regarded as non-profit, a compromise
needs to be made.

➢ The need of reaching big scale to support the social economy. The social contribution, such as
social reporting demands a strong financial support, and a big scale of business is necessary.
Please provide a personal judgement & synthesis on the sustainability
innovation potential of the initiative.

Social innovation is the process of developing and deploying effective solutions to challenging and often systemic
social and environmental issues in support of social progress.

It balances social and environmental purposes and growth in a concept of a new type of enterpriship. It is a more
fair way than traditional ways to shareholders and stakeholders.

By social purpose, it focuses on three missions: demand, charity and finance. And it has achieved the goal savings in
waste management expenses and taxes.

In addition, Phenix has the potential to balance social and economic value well, and to manage the goal of increases
which show great potential in future growth.