What Is a Zero Basis Risk Swap (ZEBRA)?

What Is a Zero Basis Risk Swap (ZEBRA)?

By Charles Joseph | Editor, Financial Affairs
Reviewed by Corey Michael | Senior Financial Analyst

Zebra is an acronym that refers to a specific category of companies operating within the finance and investment sector.

It stands for:

  • Z – Zero-based budgeting
  • E – Ethical commerce
  • B – Balanced funding and ownership
  • R – Resilience
  • A – Accessibility to diverse groups

Unlike ‘unicorn’ companies, which allocate their resources on rapid growth and acquisition, Zebra companies focus on building sustainable businesses that provide ethical solutions and support to socio-economic and environmental issues.

The core principles of being a Zebra company can be summarized as smart growth, profitability, sustainable business practices, collaboration, resiliency, and inclusivity.

Businesses that adopt the Zebra moniker often believe that solving meaningful problems can be a well-balanced route to prosperity.

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So next time you come across the term Zebra companies, you will know that it represents a more thoughtful and ethical approach in the world of finance which prioritizes both profit and sustainability.

Key Takeaways

  • Zebra companies represent a sustainable, ethical, and accessible approach to doing business in the finance sector.
  • These companies focus on solving real-world problems through thoughtful and responsible practices, prioritizing both profitability and social/environmental solutions.
  • Zebra is an acronym for Zero-based budgeting, Ethical commerce, Balanced funding and ownership, Resilience, and Accessibility to diverse groups.
  • In contrast to ‘unicorn’ companies, Zebra companies aim for smart growth and stability rather than market domination or rapid expansion.
  • Zebra companies demonstrate that the modern financial landscape increasingly values social and environmental responsibility, integrating core long-term values alongside business growth.

Related Questions

1. How do Zebra companies differ from traditional companies in terms of profit goals?

Zebra companies strive for balanced financial gains, mission-driven impact, and long-term sustainability, contrasting with traditional companies, mainly focusing on profit maximization and shareholder returns.

2. Why are Zebra companies considered more sustainable?

They prioritize ethical commerce, community impact, and environmental responsibility and consider the well-being of each stakeholder, contributing to overall long-term viability and sustainability.

3. What industries can Zebra companies be found in?

Zebra companies aren’t limited to a specific industry; they can be found in sectors like technology, finance, healthcare, retail, and more, where an emphasis is placed on responsible and sustainable business practices.

4. How do Zebra companies foster collaboration within their ecosystems?

Zebra companies prioritize partnerships with complementary organizations, cross-sector engagement, and ongoing knowledge sharing, emphasizing long-term relationships within their ecosystems.

5. Can both small and large companies adopt Zebra principles?

Yes, Zebra principles can be adopted by organizations of any size or scale, ranging from small startups to large corporations, contributing to an ethically-minded, inclusive, and sustainable business environment.