More than 25,000 companies a year are looking for a suitable succession plan. If you don't want to pass on your business to your children, hand it over to the competition or sell it to a financial investor, you have an alternative: to have the company permanently supported by a foundation set up by the entrepreneur himself. In 1889, the optoelectronics group Carl Zeiss was the first company in Germany to be converted into a foundation. The economist Prof. Dr. Lutz Frühbrodt from Würzburg-Schweinfurt University of Applied Sciences took the 125th anniversary of Zeiss in 2014 as an opportunity to examine the phenomenon and highlight a special form in his new book: "Das soziale Stiftungsunternehmen. Eine wirtschaftspolitische Alternative" (Königshausen & Neumann, 14 euros).



In a social foundation company, the previous owner transfers all of the company's assets to a foundation, which becomes the sole owner of the company. The capital is thus "neutralized", as there are no longer any owners who want to assert their specific interests, such as a particularly high return. The majority of the profit flows back into the company: For investments and to strengthen the equity base. This is intended to ensure stability and independence and secure the future of the company and its jobs. Another part of the profit is distributed to the employees. The company acts with a high degree of social responsibility towards its partners and customers. The foundation not only serves as a corporate vehicle, but also supports charitable causes defined by the founder. In addition to Carl Zeiss, Prof. Frühbrodt portrays other examples of best practice from the SME sector in this practice-oriented volume, such as the natural cosmetics manufacturer Wala ("Dr. Hauschka") and the Siegen-based car dealership chain Hoppmann. From these, the author derives the optimal foundation structure.



Frühbrodt comes to the conclusion that the senior entrepreneur can best preserve the spirit and culture of his company in the long term by using the foundation solution. However, he also recommends the social foundation as an economic alternative. Surveys have repeatedly shown that the vast majority of Germans want a fairer economic system. Foundation companies can make an important contribution to more economic democracy and value-oriented corporate management: full co-determination on a parity basis, secure jobs even in times of crisis, social commitment beyond image-boosting PR projects and fair play towards customers and partners are the maxims of these pioneers of a new third way.



In May 2008, the "Vogel Foundation Dr. Eckernkamp" established a specialist journalism endowed professorship at the University of Applied Sciences Würzburg-Schweinfurt. Author and endowed professor Dr. Lutz Frühbrodt is head of the "Specialist Journalism and Corporate Communication" course at Würzburg-Schweinfurt University of Applied Sciences. Until 2008, the economist worked as a business reporter for the "Welt" group. He has published extensively on economic policy issues.



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