What kind of community would we have if all the businesses within it put back 80% of their profits into local projects that enhanced the liveability factor?
One could assume a dynamic, vibrant community would be the result; that attracted others to live and invest in it, thus continually enhancing its vibrancy and growth. But no business would do that, would they? 80% is a huge commitment.
Yet I have come across a business that does. It is the Bendigo Community Bank model. Their charter dictates that the local board that runs the branch must put back 80% of its profits into community projects.
From a community that looked like having no bricks and mortar banking presence this commitment has help fund the Centenary of Anzac Memorial Walk, the Hartley Street Sport and Recreation Precinct and supported local events, clubs and associations in their endeavours. This is just happening in Emu Park. It is being duplicated throughout the country. There are 313 Community Bank branches, partnering with Australia’s fifth largest retail bank, who have reinvested $165 million back into their communities.
It is a demonstration of how communities can help themselves; not be solely reliant on government grants and/or big business location decisions to enhance job growth. And it can be done without having to do anything outside what you normally would. Home loans, personal loans, credit card usage, making a deposit is helping fund sports parks, hospital wings, disabled and aged care services within their own communities.
How many other businesses could operate under this community model?
Would a grocery and fruit outlet that was run by a local board and put 80% of its profits towards community projects gain a feasible slice of this multimillion-dollar sector (that is just locally)? Would existing local businesses that made this tangible commitment gain a greater market share and still provide reasonable returns for the owner?
There is a trend back to ‘small is beautiful’ economies. Community groups and individuals providing alternatives to the multi-nationals’ offerings. Their pricing and distribution may not be as attractive, but the tangible evidence of how their funds are reinvested back into the community more than overcomes this. Look at Emu Park, no other financial institution could financially justify having a branch there, yet Bendigo Community Bank filled the void, providing local jobs and is making a tangible difference within the community by reinvesting 80% of its profits back into it. The success is validated in the local board decision to open another branch in Yeppoon by the end of this year.
It’s a demonstration of how you, as an individual, can help bring the change you want our community to be.