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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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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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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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While perusing our site stats I discovered a site with an excellent collection of links (Credo is listed under Corporate Responsibility). Pablo Halkyard (I assume, based on the title of the page that he is the site owner) has amassed links of blogs and sites covering, “international development, social enterprise, Africa, cause marketing, technology for development, microfinance, philanthropy, healthcare, the environment and corporate responsibility.” Be sure to check the list out when you have a moment.

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I am working on creating a visual overview of what comprises corporate social responsibility (CSR) and wanted to take a moment to mention the company that a few of my friends run called Greenland Enterprises. CSR encompasses many distinct areas of business activity or issue area, one of which is sustainability. Through Greenland Enterprises, Georges and Michelle help companies create sustainability solutions that are critical to addressing CSR. Take some time to visit their site and explore with them what role sustainability plays in an organization.

Here’s a snippet about their purpose:

“Greenland Enterprises’ core purpose is to role model the profitability of sustainable business practices, to spread the message of a strategic sustainable development, and to contribute to the creation of a sustainable global society”

[Update: 6/28/07] It looks like they just updated their website so the screenshot above is a bit out of date. Also, I didn’t mention that there were three members of their team — check out the “Team” page for bios on all three partners.

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CSRwire today has a release from SustainableBusiness.com that presents the first positive news I have read regarding the real estate industry in some months: Real Estate Industry Quietly Embracing Green Development, Progressive Investor Reports. Following are a few interesting snippets:

“In an analysis of the industry, Progressive Investor reports that 41% of the 300 U.S. real estate investment trusts (REITs) are actively pursuing energy efficiency and green building upgrades and another 27% plan to do so.”

Those figures are a bit too low to be firmly optimistic, but promising nonetheless. Several factors were cited for the increased interest in incorporating green design into real estate:

  • Higher energy costs
  • Lower cost of “building green” than in years prior
  • Increasing client/tenant preference for green buildings
  • Noted increase in high-profile clients establishing green corporate headquarters (Bank of America, Toyota, Goldman Sachs, and others mentioned)
  • Increasing mandate for green building
  • Preemptive attempt to flush non-green and/or older and more inefficient properties from portfolios by real estate firms
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Via the Principled Profit, this news very interesting indeed: ISO Developing Social Responsibility Standard. Shel also posted a link to a PDF overview (image to the right) of how NGO’s can get involved in the process.

The text is indeed a bit dry as Shel points out, but the content, if you are interested in the topic, is quite interesting. In short, it is about the ISO 26000 standard which will “give guidance to organizations on social responsibility.” More specifically, the guidance will involve:

  • principles and issues relating to social responsibility;
  • integrating, implementing and promoting socially responsible practices;
  • identifying and engaging with stakeholders;
  • communicating commitments and performance relating to social responsibility; and,
  • contributing to sustainable development through social responsibility.

I look forward to watching the standard come together.

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Not exactly the most jarring combination of words. The jump — from “green” to “money” when the former is paired with a reference to one of Manhattan’s most posh neighborhoods — is really more of a small hop. In fact, second to conjuring up images of Central Park, I would find it hard to connect “green” with little else, given the context. The New York Times has a different idea, though, and the result, Eco-Socialites Make Cleaning Green a Priority, is an interesting read.

A few choice clips:

“Her guests, familiar fixtures in the party pages of Vogue and Harper’s Bazaar, were improbable grime fighters. They included young society stalwarts like Renée Rockefeller, Valesca Guerrand-Hermès, Melania Trump and Jessica Seinfeld. Given their designer wardrobes, their houses flung about the country, and an aggregate income the size of a small duchy, they were odd candidates for a sales pitch that urged looking beneath the kitchen sink and tossing out your toxic powders and sprays…”

“Still, [Ms. Barnett] has no plans to reduce the family’s significant carbon footprint by, say, selling the Manhattan second home. ‘I’m not a perfect person,’ she said. ‘I’m not the greenest woman in America.’ And there was scant indication that other guests, most of whom, presumably, knew their way up the steps of a private jet, were contemplating major lifestyle cutbacks. Glancing about the room, Ms. Barnett said, ‘We aren’t all going to move to one-bedroom apartments.’”

And perhaps my favorite:

“[Ms. Rockerfeller] plans to practice conservation, to a point. Energy-saving light bulbs are fine — for the utility closet, perhaps. In other rooms, ‘they don’t give a very pretty light,’ she said.”

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Vanity Fair Green

April 15th, 2007 | Posted by Peter in Corporate Social Responsibility | Social Enterprise - (Comments Off)

I was not planning about posting about this, but if you have yet to notice the new issue of Vanity Fair, be sure to take a gander. If you are unfamiliar with the magazine (admittedly, I am not sure if I have ever read an issue before) grab the latest copy off of the newstand and see if you can figure out the glaring contradiction. In short, the magazine stands a fair chance of having a good time on a seesaw with a Mini Cooper on the other end (as would most magazines of the same genre I suppose).

My first exposure to the “Green Issue” came last night when I opened one of the grocery bags from a trip my wife and I took to Whole Foods. She, like many readers, purchased the issue because of her interest in the environment and related issues. While I gawked at the heft of the magazine (The Inspired Protagonist noticed the same contradiction of “green” being bundled with such massive paper usage) the second wave of irony (that the magazine was purchased at Whole Foods) made me feel a bit silly. Will readers really take a magazine seriously that uses for its cover image a photograph of Leonardo DiCaprio decked out in an arctic coat and crampons and nearly snuggling a baby polar bear? It almost diminishes Leonardo’s more serious side

I think the concept is somewhat cheesy, but from a more “level” standpoint, it is promising to see Vanity Fair publicizing the issue. If I can force myself to crack the magazine open, I’ll post about anything I found interesting.

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