The Hagagruppen in Bottnaryd is no ordinary wholesale company. It is a for-profit business that sells sofas and armchairs, but it is also driven by values other than financial profitability. Entrepreneurship has become a way to make a difference in society, which piqued the curiosity of sustainability researcher Duncan Levinsohn at Jönköping University.
In the private sector, there is greater scope to influence how an organization’s resources are used so that they align with the owner’s values and passions.
“Small businesses take advantage of this opportunity far more than we realize. The Hagagruppen is a good example of this, as they take responsibility for social and environmental values, both in the local community and among foreign suppliers,” says Duncan Levinsohn.
Adapts tasks to the circumstances
“It’s a problem that so many people in Sweden are far removed from the labor market, something we also notice in a small town like Bottnaryd,” says Bernt-Arne Winberg, who runs Hagagruppen together with his wife Gerd Winberg. A job is often the key to establishing oneself and being included in society, and we want to use our company to give people a chance to build a good life here. Our staff consists of people from different countries; several of them started working with us during their first days in Sweden.
“We try to tailor the work tasks to our employees’ abilities, and we have a fantastic and loyal team,” Gerd adds. “One of our key employees is illiterate, and over the years we have also had several employees with disabilities.
Invisible transfers hinder deeper change
Duncan Levinsohn has been following the Haga Group for many years through regular in-depth interviews. He has observed the process by which management, having initially experimented cautiously, now pursues a clear course with greater confidence and pride.
– In coaching and research, there is a concept called “Immunity to Change.” The theory notes that what often hinders deeper change is an “invisible shift” toward a different priority than the one one claims to follow. In traditional companies, there is usually an invisible and unspoken shift toward prioritizing profit in all situations. What you’re not aware of is hard to change, so it’s only when you dare to identify and question this aspect of the company that you can bring about major changes,” says Duncan Levinsohn.
The Haga Group’s goal is to use 10 percent of its profits to help build a better society, in line with the company’s vision of a good society.
“We invest in community organizations in Bottnaryd and in aid efforts in developing countries,” says Bernt-Arne Winberg. Environmental issues are also important, and we try to contribute what we can through the way we run our business. We have long-term partnerships with a few suppliers and require that their employees have fair working conditions and work with high-quality materials.
“To help raise awareness about pollination and biodiversity in our local area, we partner with a beekeeper and pay him to keep bee colonies on the industrial land here,” says Gerd Winberg. “We buy honey from the beekeeper and give it away to customers as gifts. This usually leads directly to conversations about sustainability and other aspects of business that we consider important.
More Dimensions of Entrepreneurship
As a researcher, Duncan Levinsohn helps spread good ideas and examples that might otherwise remain unknown or receive limited exposure.
“Bernt-Arne sometimes meets with my students at the Stockholm School of Economics, and I notice that his perspective on entrepreneurship sometimes challenges the students because it’s not what they expect,” says Duncan Levinsohn.
“By showcasing examples of how companies operate, I want to inspire both students and business leaders to dare to take new initiatives in social innovation. As a researcher in sustainability issues, I believe it’s important for entrepreneurs to dare to stand out and follow their hearts.” If you dare to run your business based on more than just good profitability, entrepreneurship can be incredibly exciting, he concludes.
Read more about the Haga Group’s focus areas in sustainability here.
Read more about Duncan Levinsohn’s research here.