The Common Good Matrix: A Framework for Sustainable Development

The Common Good Matrix represents a transformative approach to evaluating organizational impact beyond traditional financial metrics, with growing applications in sustainable housing and urban development. This comprehensive framework offers a systematic method to assess how organizations contribute to societal wellbeing rather than merely financial success.

Origins and Philosophy of the Common Good Matrix

The Common Good Matrix emerged from the Economy for the Common Good (ECG) movement, initiated by Austrian economist Christian Felber in 2010. Felber published his seminal book "Gemeinwohl-Ökonomie" (Economy for the Common Good) that year, presenting an alternative economic model that prioritizes human dignity and environmental sustainability over profit maximization.

The ECG movement draws inspiration from historical philosophical traditions dating back to Aristotle, whose concept of "oikonomia" referred to creating a good life and just society rather than merely accumulating wealth. The movement also references democratic constitutions worldwide, noting that many contain language about the economy serving the common good. For instance, the Bavarian Constitution explicitly states: "All economic activity serves the common good."

The foundational premise is straightforward yet revolutionary: the purpose of economic activity should be to enhance wellbeing for all rather than maximize wealth for a few. This perspective inverts the conventional understanding of business objectives, positioning money and profit as means rather than ends.

Structure and Methodology of the Matrix

The Common Good Matrix is an assessment tool structured as a grid with five core values as columns and five stakeholder groups as rows.

Core Values (Columns):

• Human dignity
• Solidarity and social justice
• Environmental sustainability
• Transparency and co-determination
• (These values are derived from fundamental democratic principles)

Stakeholder Groups (Rows):

• Suppliers
• Owners and financial partners
• Employees
• Customers and business partners
• Social environment and community

This creates 20 intersection points where organizations evaluate their performance. For each theme, the organization positions itself on a scale indicating how developed each value is within their operations. The assessment process generates scores ranging from -3600 (worst possible performance) to +1000 (exceptional performance), with zero representing basic legal compliance.

Organizations document their assessment in a Common Good Report, explaining implementation of common good values and identifying areas for improvement. These reports undergo external auditing before publication, making organizational contributions to the common good transparent to all stakeholders.

Application to Sustainable Housing and Urban Development

The housing sector presents unique opportunities for applying the Common Good Matrix principles, as housing directly affects fundamental human needs while having significant environmental and social impacts.

Community-Led Housing Initiatives

Several housing projects have embraced the Common Good Matrix framework to create more equitable, sustainable living environments. For example, TING Projekte in Germany has initiated housing cooperatives guided by Economy for the Common Good principles. Their approach emphasizes that housing should serve social purposes rather than merely generate profit, addressing questions of "how we want to live together in the future."

These initiatives recognize that housing is not merely about physical shelter but about creating socio-physical habitats that promote behaviors addressing fundamental societal challenges: inequality, social isolation, and resource inefficiency.

Limited-Profit Housing Models

The Common Good Housing (CGH) concept, inspired by the Austrian model of limited-profit housing, implements several key principles:

• Cost rent (rents based on actual costs rather than market maximization)
• Reinvestment of surpluses
• Limited business activities focused on housing
• Strict audit and supervision procedures

This model demonstrates how housing can operate as a service of general economic interest rather than a speculative asset. Preliminary calculations show this approach can deliver affordable housing at rates significantly below market prices while maintaining sustainability and quality.

Cooperative and Co-Living Models

The ASC Project (Sustainable and Cooperative Villages) exemplifies how cooperative principles can align with the Common Good Matrix. This initiative aims to create low-cost, ecological housing that balances individual needs with community spaces and cooperative governance.

Similarly, the "Co-living and the Common Good" concept explores how shared living arrangements can address contemporary challenges while creating more resilient communities. These models provide alternatives to the standard housing market by emphasizing factors beyond financial return: environmental impact, social cohesion, and long-term sustainability.

Current Implementation and Future Potential

The practical application of the Common Good Matrix in housing is growing, with notable examples including:

Municipal Housing Providers

Viennabase became the first municipal company in Vienna to complete a Common Good Balance Sheet in 2023. As a student housing provider, they emphasize diversity, affordability, and community building, demonstrating how public housing entities can integrate common good principles.

Housing Cooperatives

Housing cooperatives globally have found natural alignment with Common Good Matrix values, as their governance structure already incorporates stakeholder participation and limitation of profit-seeking. The matrix helps these organizations systematically evaluate their broader social impact and identify improvement opportunities.

Policy Integration

At policy levels, some European municipalities have begun incorporating Common Good principles into urban development frameworks. This includes privileged access to public land for common good housing entities and financial incentives for developments that demonstrate strong common good performance.

Conclusion

The Common Good Matrix represents a comprehensive approach to reorienting economic activity toward social and environmental wellbeing rather than mere financial gain. In housing and urban development, this framework offers promising pathways to address persistent challenges of affordability, sustainability, and community cohesion.

By providing systematic evaluation methods and transparent reporting mechanisms, the Matrix enables housing providers to demonstrate their social value while identifying areas for improvement. As housing crises intensify globally, approaches that balance individual needs with collective welfare-as articulated in the Common Good Matrix-may offer crucial guidance for creating truly sustainable urban environments.

References

• Economy for the Common Good (ECG) Official Website - https://www.econgood.org
• Rosy Green Wool: Common Good Balance Sheet - https://rosygreenwool.com/know/ecg
• Common Good Matrix - Timelab Academy - https://academy.timelab.org/portfolio/co/
• Economy for the Common Good: A Workable, Transformative Ethics-Based Alternative - https://thenextsystem.org/sites/default/files/2017-08/FelberHagelberg.pdf
• Common Good Matrix 5.0 - https://www.econgood.org/apply-ecg/common-good-matrix/
• Co-Living and the Common Good - Housing LIN - https://www.housinglin.org.uk/_assets/Resources/Housing/OtherOrganisation/Report-rsa-co-living_final.pdf
• Housing for the Common Good: Sustainable Governance - https://klimaneutralestadt.at/resources/pdf/schriftenreihe-2024-12-neb-common-good-housing-report.pdf
• Gemeinwohlökonomie - TING-Projekte - https://ting-projekte.de/gemeinwohlokonomie/
• Economy for the Common Good - Wikipedia - https://en.wikipedia.org/wiki/Economy_for_the_Common_Good
• Economy for the Common Good - Monneta - https://monneta.org/en/economy-for-the-common-good/