Fair Enterprise
What Is Fair Enterprise?
A balance between the three driving forces of a company: labour, capital, and management. Wealth is created through their combined effort.
The Philosophy
Built on balance.
To support this balance, the company adopts both a Corporate Charter of Rights and an Employee Charter. The Employee Charter guarantees fair treatment, a safe and healthy workplace, and competitive wages. It also gives employees the right to participate in the company's financial success through profit and equity sharing.
This principle, called Magna’s success formula, helps create a strong sense of ownership and pride across the organization.
Employee Profit-Sharing
How annual profits are shared.
Based on Magna’s Corporate Constitution, a governance model that publicly declares and protects the rights of all stakeholders.
of net profits to shareholders
of pre-tax profits to employees, in cash and shares held in trust
performance-based profit sharing for management
to research and development
to social responsibility: charitable, cultural and educational initiatives
reinvested into the business and used to meet tax obligations
Decentralized Management
Entrepreneurial at scale.
Rather than relying on a centralized, top-down model, Fair Enterprise companies are structured as a network of independent divisions. Each division operates as a profit centre, run by entrepreneurial managers directly responsible for profitability, customer satisfaction, and upholding the Employee Charter.
This structure minimizes bureaucracy, increases flexibility, and enables faster decision-making, all while ensuring employees benefit directly from the success they help build.
Transparency and Accountability
The Constitution pre-determines how profits are distributed among shareholders, employees, management, and broader societal causes, so everyone knows the rules in advance.
Shared Success
Fair Enterprise is not just good for business. It benefits society as a whole. When employees have a real stake in their workplace, productivity rises and living standards improve. Fair Enterprise strengthens both democracy and economic freedom.
A cup of wisdom mixed with a cup of common sense.
Bring the principles of Fair Enterprise into your own business with the Stronach Academy.