New and in-depth explorations of solutions to social, environmental, or organizational problems (more)
In their efforts to be socially responsible, most companies fail to wield their most powerful tool: lobbying. Yet corporations such as Mary Kay, Royal Dutch Shell, and General Motors are increasingly leveraging their deep pockets, government contacts, and persuasive powers for the cause of good. Not all kinds of socially responsible lobbying are created equal, however. The authors discuss which forms are best for companies and society.
Consumers say they want to buy ecologically friendly products and reduce their impact on the environment. But when they get to the cash register, their Earth-minded sentiments die on the vine. Although individual quirks underlie some of this hypocrisy, businesses can do a lot more to help would-be green consumers turn their talk into walk.
The world's neediest people are using mobile phones in ways that were never intended, and with great success. With wireless technologies, Indian farmers are finding out the latest crop prices, Nigerian youth are learning how to prevent the spread of HIV/AIDS, and Peruvian citizens are reporting criminal activity in their neighborhoods. Yet dialing into these powerful tools is not always straightforward. The author explains how to make the wireless revolution ring in economic growth and prosperity for people living at the bottom of the pyramid.
Certain nonprofits can take a page from business's playbook and learn how to attract cash for expansion.
Social entrepreneurship and social enterprise have become popular and positive rallying points for those trying to improve the world, but social innovation is a better vehicle for understanding and creating social change in all of its manifestations.
Commercial microfinance institutions (MFIs) must calculate two bottom lines: alleviating poverty for clients and also generating profits for investors. To achieve the latter goal, some MFIs charge their impoverished clients exorbitant interest rates. The recent Banco Compartamos IPO in Mexico raises a red flag, demonstrating how easily well-intentioned MFIs and their investors can shift from microlending to microloan-sharking.
For-profit businesses can efficiently and quickly raise large amounts of money to fund growth and innovation by tapping equity capital—money that people invest in a company in return for ownership and a share of profits. The nonprofit world has no corollary, making it difficult, costly, and time-consuming to raise money. In this article the author explores ways that nonprofits and funders can create their own version of equity capital, and, just as important, develop an equity approach to doing business.
Critics of microfinance institutions (MFIs) ask them to choose between helping the poor or making money for investors, but this is a false choice. MFIs can have their impact and profit, too, says the author, the CEO of the Grameen Foundation. He sketches a new vision of microfinance as a platform, not a product; one that relies on high volumes, not high margins, and that uses limits on private benefit, holistic performance standards, and third-party certification to help MFIs meet both their bottom lines.
From the Girl Scouts, to Partners In Health, to the city of Providence, R.I., great organizations have one thing in common: great managers. These managers, in turn, share four simple management principles that they use to guide organizations from mere mediocrity to stand-out stardom.
Social enterprises combine the best of the nonprofit and for-profit worlds, but that very innovation has made it difficult for them to raise money. Philanthropists are reluctant to give grants to profit-making organizations, and commercial investors are wary of investing in organizations that are driven by a social mission. The authors explore the social enterprise capital market and offer short- and long-term solutions to this funding gap.
