SQA Pharmacy: RHD's for-profit crossover

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oth the non-profit corporation and the for-profit corporation are remarkably powerful economic tools. While the former is tax-free and able to receive grants, the latter is designed to attract the capital needed for business activities. When both are used they can stimulate an infinite range of economic activities, and generate sufficient discretionary revenue to address business as well as social issues. Non-profit common good corporations can create one or more for-profit corporations and use them to attract the capital needed to invest in businesses that can address a social agenda.

RHD's for-profit crossover business, SQA Pharmacy, was featured in a Philadelphia Inquirer article recently. Executive director (and The Common Good Corporation author) Robert Fishman was asked "Why is RHD starting the for-profit SQA Pharmacy Services Inc.?" He answered,

RHD is facing a cutback in funds to take care of a number of needy populations. We are looking to be able to take care of those populations by entering into businesses, which can augment our ability to take care of the uninsured. We saw the closed-end pharmacy as one of a number of businesses that we could look at as an opportunity because we were giving that business to the private sector.

Double Bottom Line

These practices are not RHD’s alone. They are part of a larger socially responsible business effort to seek the “double bottom line” to balance profit making with a social agenda. As a corporate member of the Social Venture Network and Investor’s Circle RHD joins with other entrepreneurs across the nation who are making the link between profit and the common good:

Ben & Jerry’s Ice Cream
Stonyfield Yogurt
The Body Shop
The White Dog Café
UnTours

The last two listed (which are in Philadelphia) as well as many others balance profit-making with such important efforts as organic farming, local purchasing, worker ownership, and ecological awareness. In this movement, common good business people talk to others who think similarly. The support we get from each other is invaluable. For-profit common good corporations could establish joint ventures with at least one non-profit corporation. And, every for-profit could establish a separately incorporated patient capital fund, which can be capitalized with tax-deductible donations of stock or cash to enable a social agenda. Like Murex Investments, any for-profit common good corporation can can set the rules for ownership and the distribution of profits on business endeavors so that they meet particular interests.