Credo Advisors Blog | Results-driven small business and non-profit consulting

Inc.com Article About Kiva

January 20th, 2012 | Posted by Peter in Business Strategy | Nonprofit | Social Enterprise - (Comments Off)

Check out this great article on Inc.com about Kiva, which includes good insight into how the organization gained traction early on, as well as some of their upcoming plans. For the uninitiated, “[Kiva is] a non-profit organization with a mission to connect people through lending to alleviate poverty. Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world.”

You can read more about or support Kiva here.

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Check out this interesting article from NextBillion.net about Oliberté. Of particular note, is the social enterprise the company employs, which has a different twist than that of TOMS (which has received some criticism, despite its good intentions). Instead of one-for-one handouts given away for free, the company relies on local resources and labor, directly contributing to welfare and growth of local economies.

Specifically, as the article points out, Oliberté is “the first company to make premium shoes in Africa using African materials and explicitly linking shoes sold by Western retailers to job creation on the continent.”

Interesting stuff, and a very solid business model that benefits everyone from the beginning of the product cycle, to the end consumer.

(Image sourced from Oliberté’s blog.)

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Chaos to Order

December 19th, 2011 | Posted by Peter in Business Strategy | Miscellaneous | Nonprofit | Small Business - (Comments Off)

I have been mulling over how to create a graphic or diagram that adequately describes my core expertise. Distilling down the value people get when hiring you into a single image is a complicated challenge, I found. Nonetheless, I think the exercise was well worth it. Here’s what I came up with:

Overly simplistic? Perhaps. Annoying colors? That was intentional. Too cryptic? Hopefully not…

Making order out of chaos, in a nutshell, is my expertise. The nature of the chaos does not matter much, nor does the scope. Everything can ultimately be organized, prioritized, made more efficient, aligned appropriately, and ordered in a logical and sensible manner.

I get a kick out of this sort of a challenge and love helping organizations transition from a place of chaos and disorder, to clarity and order. If that sounds like an unmet need at your organization, please get in touch with me!

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Entrepreneur.com offers a short clip about Warby Parker, an eyewear company with a solid social enterprise offering. Warby Parker gives away a pair of glasses for each one sold. The concept is simple and well-tested, made popular by a number of companies, though most may have first heard about the model through TOMS.

Personally, I think the one-for-one model is a phenomenal idea. Key to its utility is that the product or service offered serves a genuine need in the world. A free pair of prescription glasses (Warby Parker) or a free pair of shoes (TOMS) directly attends to the needs of many people who are struggling financially throughout the world. A one-for-one candy bar company, on the other hand, would be a poor match (in my very biased opinion).

Not everyone thinks the one-for-one model is such a good idea, however, and it is well worth investigating some counter-arguments such as the ones mentioned in, “When the Shoe Doesn’t Fit: An Investor’s Take on One-for-One Models.” At first blush criticizing companies that give away products to help those in need sounds quite harsh, but consider these points from the article:

  • The toxic, disempowering effect of giving things away. When individuals receive donations, they begin to see themselves as passive recipients of aid rather than active participants in making decisions about their own communities.
  • The distortion of local markets. When products are given away (be they shoes or English classes), local businesses that sell those products wither.
  • Poor allocation of donor dollars. Shoes, no surprise, are not often on the priority lists of the poor. When outsiders choose what gets donated, they often overlook other (more pressing) needs.

Perhaps there is a happy medium to be found…

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WSJ Article on Career Change to Non-Profit Sector

November 20th, 2011 | Posted by Peter in Nonprofit - (Comments Off)

A recent article in the Wall Street Journal broaches a subject most of you have probably considered at some point in the past, or are perhaps mulling over at the present moment: Contemplating a Career in Nonprofits?

It’s a fair question and the author jumps right to the crux of the issue in the first sentence implying that those seeking a change to the nonprofit sector are, “lured by the opportunity to serve a social purpose.” Indeed, that remains to me the most compelling and gratifying reason to consider making such a change. There are a host of other reasons that the author presents, in addition to some caution and advice.

If you are considering a transition from the corporate world, it is a quick read that is well worth a few minutes of your time.

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Colorado Nonprofit Resources

November 2nd, 2011 | Posted by Peter in Nonprofit - (Comments Off)

The following is certainly far from an exhaustive list. Instead it represents a small sampling of nonprofit resources I either recently discovered, or have known about for a while but frequently return to. All pertain to Colorado nonprofits but can also largely apply to organizations throughout the US.

Enjoy!

  1. Community Resource Center: “The Community Resource Center (CRC) creates opportunities, tools and strategies to develop nonprofits and community groups to strengthen Colorado.  We are a mission driven nonprofit that offers a continuum of services throughout the state of Colorado.”
  2. TechSoup: I have seen TechSoup benefit nonprofits many times over the years and only wish I had heard about the site sooner. “TechSoup is a nonprofit with a clear focus: providing other nonprofits and libraries with technology that empowers them to fulfill their missions and serve their communities. As part of that goal, we provide technology products and information geared specifically to the unique challenges faced by nonprofits and libraries.”
  3. Colorado Nonprofit Association: An absolutely excellent website with many resources for growing nonprofits. In addition, it has one of the most active and well-trafficked nonprofit job boards in Colorado. “Colorado Nonprofit Association works with and for all of Colorado’s nonprofits to create impact in our communities. We do so by providing cost-saving member benefits, up-to-date resources and practical information to help nonprofits. The Association provides an important voice on behalf of the sector at the Colorado State Capitol as well as nationwide. We rely on the support of our members, foundations and the community at-large to provide these services.”
  4. Idealist.org: A very popular website internationally. As of this writing the job listing activity is a bit sparse for Colorado, but growing. All other areas of the site are excellent and well worth visiting. “Idealist connects people, organizations, and resources to help build a world where all people can live free and dignified lives.”
  5. Colorado Nonprofit Development Center: “Our mission is to foster the development of a healthy and vibrant nonprofit sector in Colorado by enhancing the effective and efficient use of community resources and by supporting the development of charitable projects and nonprofits.”
  6. SCORE Colorado Nonprofit Resource Guide: An excellent online resource from the Denver SCORE chapter.
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Eat and Aid the Environment

June 1st, 2008 | Posted by Peter in Business Strategy | Corporate Social Responsibility - (Comments Off)

So, you want to change the world, eh? Turned off by the suggestion (visit the link, then scroll down about 3/4 of the page) to eat-less-meat and wondering just how significant the meat-emission link might be? (There’s bad news for cheese too, unfortunately.)

Reading through the current issue of WorldArk this morning (the May/June 2008 issue — not yet available online) I discovered an excellent resource to aid in determining what impact our individual food choices ultimately have on the environment. (Click on the image to the right for an enlarged view.) The site, Eat Low Carbon Diet Calculator, presents a simple interface for quickly analyzing the carbon impact of various food choices.

While I take issue with having to plop fresh fruit into an iron skillet to simulate consumption, the tool is nonetheless very helpful. For instance, I was surprised to see the significant impact of tofu and rice, though when I think through the production cycle of each, the numbers make a bit more sense. I was glad to see that locally sourced seafood remains a good source of protein, and not surprised at all to see the impact of beef. Enjoy!

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A few days ago I made a post containing a pretty brash statement:

In the off chance that you are not paying attention to what is happening in the US right now, and increasingly around the world, the party is over folks. For those of you who have little adjustment to make when living standards and life styles see a reversion to the mean similar to what is likely to happen in the US housing market, I commend you. For those of you who face a much larger delta, I’d get started on making some adjustments right now.

I do not feel any differently now, but I do think some additional thoughts are called for.

First, I think it is important that people do their best to take a look at the various inputs in their lives and determine what biases those inputs may hold. For instance, if you get all of your news from a handful of television stations and/or cable channels, you might want to consider how those entities make their money.

Second, I think it is nearly impossible to find an individual, myself certainly included, that is not in some way perpetuating the problem.

While I’d like to think that the world is entirely made up unflinchingly aware and selfless people, I think most would agree that the opposite is true. We all, to varying degrees, have our “hooks.” For some, a fat salary, expense account, and prestigious job title are motivation enough to get them to do pretty much anything. For others, the very real need to simply put food on the table in front of their children each evening is essentially unavoidable. Moreover, and with a deep nod to my good friend Alan, I mention, yet again, Mr. Stanley Milgram. And then there is invariably another group comprised of individuals completely unaware of what is going on and the distinct role they play. In short, we’re all culprits, and we’re all victims.

So what is a society to do? How about its citizens? What’s the value in pointing out faults if you fail to offer any solutions?

In a post for another time, I’ll explain the irony of how I stumbled across the following excellent, though hardly complete, list of things we can all do on a daily basis. But for now, I simply provide reference (John Perkins, The Secret History of the American Empire, Plume Printing 2008, pp.323-325) and strongly encourage everyone to check out the other ~350+ pages of the book. Here’s the list:

  • When tempted to engage in “retail therapy” instead jog, meditate, read, or find some other solution.
  • Shop consciously if there is something you must have; purchase items whose packaging, ingredients, and methods of production are sustainable and support life.
  • Make everything you own last as long as possible.
  • Purchase at consignment and thrift stores where everything is recycled.
  • Protest against “free” trade agreements and sweatshops.
  • Write letters telling Monsanto, De Beers, ExxonMobil, Adidas, Ford, GE, Coca-Cola, Wal-Mart, and other labor exploiters and environment destroyers why you refuse to purchase from them.
  • Write letters praising Home Depot, Kinko’s, Citicorp, Starbucks, Whole Foods, and other companies that cooperate with RAN [Rainforest Action Network], Amnesty International, and other NGOs. [My note: I'm not sure I would include most of the organizations listed here in my list of companies to praise, but perhaps more recent research into their intentions and actions is warranted.]
  • Cut back on oil and gas consumption.
  • Downsize your car, home, wardrobe, everything in your life.
  • Send money to nonprofits, radio stations, and other organizations that promote just causes.
  • Volunteer your time and energy to such organizations.
  • Support local merchants.
  • Encourage stores to buy from local growers, producers, and suppliers.
  • Shop at your local farmers’ market.
  • Drink tap water (get the water company to do a better job if necessary, but avoid buying bottled water).
  • Vote for enlightened school boards, commissions, ordinances, and politicians.
  • Run for office.
  • Insist that those who use your money–banks, pensions, mutual funds, companies–make socially and environmentally responsible investments.
  • Speak out whenever forums present themselves.
  • Volunteer to talk at your local school about your favorite subject (beekeeping, weaving, tennis, anything) and use it to challenge students, to wake them up.
  • Discuss externalities, the costs of pollution, poor working conditions, public subsidies, corporate exemptions, and other environmental, social, and political factors that should be included in the prices we pay for goods and services but are not (discussed in Chapter 54); let people know that when we do not pay for these very real expenses we rob future generations.
  • Encourage “taxes” on externalities–higher prices for gas, clothes, electricity, etc., as long as the difference pays to right social and environmental wrongs.
  • Offer study groups at local libraries, bookstores, churches, and clubs.
  • Expand this list and share it with everyone you know.

I agree with nearly all of the above. That said, I have a few quick additions to suggest:

  • Turn off the television and pick up a book, go outside, talk to strangers, wonder at nature’s beauty, plant a tree, cook… anything you can, but don’t turn it on again! If you keep it up, you’ll probably go through TV withdrawal for a few weeks or months (depending on your prior dependency), but you’ll find that you have more energy, are less susceptible to manipulation (er…advertising), and are using your brain more.
  • Learn a second language.
  • Learn a third. A fourth. Keep going…
  • Take up a creative pursuit–painting, photography, drawing–anything to get the creative juices flowing.
  • If you are in a leadership position (dig deep and you’ll find that we are all leaders: parents, managers, teachers, peers, etc.) commit to teaching empathy, compassion, and the value of life-long learning to everyone who looks to you for guidance.
  • Eat. Less. Meat. (Note that I did not say, “abandon meat.”) The energy you gain from eating one serving of meat (via calories) requires enormous inputs (energy) and with very real externalities (toxic waste in the form of festering feces in vast industrial farms, displaced land that could have been used to raise more efficient crops, etc.). The same equivalent in caloric content from vegetarian fare is far more energy efficient, and quite frankly, a heck of a lot healthier anyway (assumes that the meat option and the vegetarian option were both sourced locally).
  • Look into what your employer is doing to positively benefit society, the environment, and the rights of all individuals. Find the negatives as well. Support what they are doing well, and create and suggest solutions to eliminate or mitigate the negatives.
  • Have integrity. Do the right thing. Stand for something. Believe in yourself.
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Yesterday I mentioned Peak Oil (read this Big Picture post for a good primer about Peak Oil) so today I suppose it makes sense to start into Peak Water (again, check out this Big Picture post for a good primer).

While there are plenty of economic tangents to take about either issue (or indeed, from most any Peak “X,” where “X” is an oft-used commodity), I want to prompt the mental fermentation process on the following two issues:

1) Life Necessity v. Non-Life Necessity
I have some serious issues with a handful of executives and shareholders raking in the dough as a result of oil supply/demand factors (plus a few other less obvious factors), while the vast majority of the world struggles to deal with resulting price hikes as they consume the end product. That said, and I do not put this out there lightly, if I had to choose between profiting off of oil and profiting off of water, I would 100% support the oil industry.

Water is a basic and critical human necessity (i.e. you will eventually stop functioning — you’ll die, that is — if you lack access to *potable* water for long enough [say a week or two, depending on a large number of factors]). Let me say it again — mankind would cease to exist without sufficient access to potable water (at least until oil can be turned into a “water pill” by Monsanto for $100,000/20 pills — I’m being cheeky, and extremist, but hey…)

Oil is NOT a human necessity (it is, however, arguably a current societal necessity — i.e. required to maintain current standards of living and production). Humans existed for many, many, many centuries without automobiles, petroleum-based pesticides, fleece jackets, and all of the other petroleum offshoots. Oil, once sucked out of the earth, transported, refined/processed/etc., and transported again, produces or feeds and/or becomes things that are not necessities.

So, I hate to say it, but I do think that if forced to choose between making money off oil or water, hand over fist I would push oil. By extension, I think the very few things that are essential for humans to stay alive (water, food, shelter — assumes clean oxygen and a few other things such as sufficient nutritional balance of the food, but this could go on for 200 pages if I don’t focus more high-level) should be available to as many people as possible for the most accessible price possible (completely free would be fantastic, but show me an economic system that can make that happen in reality, long-term, and not just on paper…).

2) Limited Resources, Increasing Consumption
If the above didn’t ruffle your feathers too much and you are still reading, check out the graphic to the right that Barry includes in his Big Picture post (click on the graphic for a larger version — credit: WIRED SCIENCE, Peak Water, PBS, The Big Picture).

Study the, “How much water does it take to make a…” side of the graphic and then tell me honestly if you do not see some startling issues. First and foremost, take the energy available in one orange (62 calories) and plot it against the energy available in one hamburger patty (279 calories) and you get an approximate 1:5 relationship. Now plot the water requirements to produce each item to find that ratio and you get a 1:50 relationship. (Note that this is before you factor in all of the other resources required to produce the orange and burger respectively, from the grass to feed the cows [or the land used to produce the orange tree] all the way down to the processing and packaging of each food item.)

If you are not following me, let me be blunt: As water becomes more precious, diets and consumption habits will most likely need to shift out of pure necessity (note that if water becomes more expensive, so should that patty of hamburger meat, or those designer blue jeans).

And if you are still with me, what are the various ethical implications that are floating out in the ether related to these two issues?

- – -

A conundrum indeed…

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A film about urban sprawl and peak oil might seem a bit off topic for a business ethics and corporate social responsibility blog, but if you see the connection and/or have an interest in either subject, I highly recommend you check out a fantastic documentary, The End of Suburbia.

If you need some help finding the bridge between this blog and the focus of the film, look no further than the endless forced expansion of the consumer’s appetite for more consumption (homes, cars, clothes, decorations, kitchen gadgets, high-tech gadgets, and so much more) by companies in the pursuit of increasing shareholder return. What’s a homebuilder to do when money is pouring in and competitors are continuing to put up ostentatious and resource-binging skyscraper homes (a.k.a. “McMansions”) at a frantic rate 100 miles out from city centers and lining up 0% down ARMs for the self-delusional nouveau-rich (a.k.a. the negative net-worth and heavily debt-laden soon-to-be or currently former middle class), even if they know deep inside that their business plan is not sustainable long-term (say, when the right crop of inflation and credit turmoil pops up…)? Build more houses of course!

Why not? they ask. Their competitor over at ABC CrazyBig Homes is churning them out like cans of tasty and completely nutritious meat on an assembly line earning a fat bonus each period, and watching their company’s stock price skyrocket. Who cares if the system comes crumbling down later as long as I get mine, they rationalize.

In the off chance that you are not paying attention to what is happening in the US right now, and increasingly around the world, the party is over folks. For those of you who have little adjustment to make when living standards and life styles see a reversion to the mean similar to what is likely to happen in the US housing market, I commend you. For those of you who face a much larger delta, I’d get started on making some adjustments right now.

Even if you are not slightly interested, I say bite the bullet and watch it anyway. Here’s an overview of the film to whet your appetite:

“Since World War II North Americans have invested much of their newfound wealth in suburbia. It has promised a sense of space, affordability, family life and upward mobility. As the population of suburban sprawl has exploded in the past 50 years, so too has the suburban way of life become embedded in the American consciousness.

“Suburbia, and all it promises, has become the American Dream.

“But as we enter the 21st century, serious questions are beginning to emerge about the sustainability of this way of life. With brutal honesty and a touch of irony, The End of Suburbia explores the American Way of Life and its prospects as the planet approaches a critical era, as global demand for fossil fuels begins to outstrip supply. World Oil Peak and the inevitable decline of fossil fuels are upon us now, some scientists and policy makers argue in this documentary.

“The consequences of inaction in the face of this global crisis are enormous. What does Oil Peak mean for North America? As energy prices skyrocket in the coming years, how will the populations of suburbia react to the collapse of their dream? Are today’s suburbs destined to become the slums of tomorrow? And what can be done NOW, individually and collectively, to avoid The End of Suburbia?

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