Cordant Group – the UK’s second largest recruitment and services business and which includes Cordant Security – has announced its new status as a Social Enterprise. Framed around a five-year plan, in due course the Group will reinvest the majority of its profits into social programmes across education, employment and healthcare, pledging to touch on and improve thousands of lives, one community at a time.
The family-owned business, which boasts revenues of £840 million, employs 125,000 workers annually in security, schools, hospitals, care homes and specialist roles such as engineering. It’s the company’s firm belief that this powerful multi-sector reach can deliver a lasting social impact by direct engagement and redistributing its wealth to a majority – at an individual and society level – not just a minority of shareholders, driven solely by profit.
To illustrate its intent, Cordant Group has already capped all annual shareholder dividends at approximately £250,000 per shareholder family per annum (which, in today’s, terms equates to £3 million), capped all executive salaries at 20 times that of the lowest paid worker on the books and agreed to be independently audited using recognised Social Impact measurements.
Investment for key initiatives
While Cordant Group’s businesses will continue to operate as normal, these changes will enable it to reinvest profits into key initiatives, including:
*a teacher programme being developed by international education expert Richard Gerver to examine the link between the classroom and life/work preparation
*IT platforms offered at zero cost for the healthcare sector, in turn enabling Hospital Trusts to offer shifts directly to doctors and nurses, thereby saving the NHS millions of pounds
*partnerships with key clients focusing on up-skilling and training for the temporary workforce to drive productivity, but also deliver deeper job satisfaction
*the creation of a profit share scheme for staff
*ongoing investment in technology to better connect pupils to apprenticeships, workers to jobs and patients to doctors and carers
Integrity and transparency
Brendan Musgrove, managing director at Cordant Security, commented: “This type of initiative is the first of its kind for a business like ours and fully reflects the integrity and transparency with which we’ve always operated. We believe it will benefit our colleagues, workers, customers and their related communities, adding further value to our industry-leading solutions.”
Phillip Ullmann, chief energiser for the Cordant Group, added: “Our dream of building a genuine global Social Enterprise that can delight people and improve the lives of thousands of people is now being realised. We believe our teacher programme will change the classroom, our workplace initiatives will re-engage employees and our healthcare ideas will transform patient care.”
Chris Kenneally, CEO of the Cordant Group, concluded: “It’s business as usual at Cordant, but with one key difference – profits will now be used to deliver a broader prosperity, benefiting society as a whole and not just our shareholders. While we believe this is an important moral position given the overwhelming response, we also know it will be positive for our businesses and drive efficiency, productivity and profitability. Our key customers are keen to work and partner with us on a journey that will create deeper relationships and returns.”