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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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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Green Tech News

August 25th, 2006 | Posted by Peter in Corporate Social Responsibility | Interesting News - (Comments Off)

Audeamus lists a number of great green technology news items today starting with information on venture capital fund based in the Netherlands which intends to focus on sustainable technology startups.

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…And another interesting press release from CSRwire catches my eye…

The release, TerraCycle Plant Food™ Becomes First Consumer Product to Earn Zerofootprint™ Seal, introduces TerraCycle Plant Food and is my first exposure to the Zero Footprint organization. The product and the organization sound compelling, though I wonder if the word choice will help or hinder the company’s efforts.

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Another plug for CSRwire.com — check out a recent press release for Care2′s launch of the “world’s largest listing of jobs at socially responsible companies.” The release, Socially Responsible Companies Rank High With Job Seekers, covers the topic of potential employees’ willingness to take pay cuts to work for non-profits or socially responsible companies but also mentions the launch of the job search site.

Curious about what Care2′s screening criteria are and what definition of socially responsible they use, I took a gander at the site’s “Learn More” page (actually a F.A.Q. page). The information was interesting and left quite a bit of room for huge variations in social responsibility.

From the answer to “What’s ‘Socially Responsible’?”:

“Perhaps one of the most important attributes of a Socially Responsible Business (SRB) is that they demonstrate a commitment toward continuous improvement. Social values change, new challenges emerge, and companies face challenges balancing their values and the bottom line.”

Interesting. There is more text there (I encourage you to read the whole page) but I thought that sentence was particularly interesting.

…And about their screening methodology:

“We worked with social responsibility screening experts, KLD Analytics, to help us identify the best public companies in the U.S. KLD reviews numerous sources to analyze positive and negative attributes including community impact, corporate governance, diversity, employee relations, environment, human rights, and the product itself.

“We started with this list, then kicked out a number of companies we felt just weren’t making the grade, then added a number of private companies we respect most. We also got lots of feedback from our members to further refine our list.”

Again, curiously vague. How many companies were kicked out? For what reasons? What were the private companies that were added? How many of those are there? Do they fit the grade, or are they simply companies worthy of the site creators’ “respect”?

…And, of course, the disclaimer (the response to the question, “How can you say Company X is ‘Responsible’ when they….”):

“The challenge with ever publishing a list of socially responsible companies is that almost every company (particularly the big ones) has some (non-organic) dirt in its closet. See our definition for “what’s responsible” above.

“And for some folks, ‘business’ almost by definition is evil. On this point we strongly disagree. Businesses have to part of the solution, and have the potential for enormous good. It’s important to support the companies making great progress.”

The response continues by noting that the site is in “beta,” further deflecting accountability, but the point they make is still valid. Creating a list of socially responsible companies that we can all be proud of (and find no fault in) is nearly impossible. I don’t like half-baked solutions, but in lieu of fully-baked ones, I’ll take a job site that at least attempts to differentiate the socially responsible from the what-the-heck-is-CSR ones.

That said, I did a quick search for jobs in the Boston area and didn’t really see a difference between listings on the site and what I would expect to find elsewhere. The companies that had job listings didn’t scream “socially responsible” to me, nor did the positions that were listed. Without further research, it will be difficult to determine if this service is merely trying to ride a wave or truly doing the due diligence to filter out all but the most socially responsible companies.

As a matter of comparison, here are a few sites to check out that I have visited before:

  1. Idealist.org: Primarily non-profit jobs, but definitely a large selection depending on the search area. Searching in the Boston or Washington D.C. area provides a nice contrast.
  2. Green Dream Jobs: A bit more focused on the environment, but a broader selection of for-profit company listings than on idealist.org.
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Cereplast recently issued a press release via CSRwire.com that is worth checking out. Its product is a bio-based plastic (from such sources as corn or potato starch) that is competitive with petroleum-based plastics.

I mentioned a few weeks ago that I attended a presentation, while in China, of a representative of NatureWorks and found the technology and the company to be fascinating. Cereplast appears to offer a viable alternative and should give NatureWorks and other entrants to this less-of-a-niche market a run for their money.

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