Dr. Melanie Rieback, CEO of Radically Open Security, highlighted the challenges social enterprises face in seeking sustainable business models. On Wednesday (3/7), in a guest lecture for the Decision Making course at the SBM ITB during the “Post Growth Management & Entrepreneurship Hybrid Seminar,” Rieback emphasized the importance of prioritizing welfare and sustainable development over continuous economic growth.
Rieback stressed that social enterprises must focus on the triple bottom line, including people, planet, and investable margin. She warned that financial extraction can lead to greenwashing, which contradicts the true purpose of social enterprises.
Entrepreneurial success is often measured by the ability to grow quickly, attract external capital, and sell the company. However, Rieback pointed out that exponential growth inevitably plateaus and can become disastrous for a business.
“We need to question the assumption that exponential growth is always good. From a mathematical point of view, too fast growth can be unreasonable and unsustainable,” she said.
Therefore, she emphasized that companies should aim to change their culture from the beginning rather than pursuing financial extraction. Rieback introduced the concept of trustee ownership, which includes mechanisms such as gold shares to ensure the company maintains its mission and values over time. These structures prevent value extraction for personal gain and help keep the organization aligned with its core goals.
Indeed, this is not an easy task, as losing assets is not a pleasant prospect. However, decision-makers must be aware of the importance of choosing approaches that, while small, can significantly impact business sustainability. Rieback concluded the seminar by encouraging participants to dare to change and innovate, starting with small steps for sustainability. She emphasized that social enterprises don’t have to be large; everyone can be part of the change by holding firm to company values and avoiding unsustainable financial extraction.
