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to learn about lasting values-driven enterprise.
Sustainable Business Startup.Sustainability: Conserving energies to survive
Public Purpose & Private Benefit: Reap what you sow for yourself and others
Balancing Interests: Owners, employees, customers, suppliers &community
Financial, Ecological and Social Bottom-lines: Measuring long-term results
Enterprise at the Bottom of the Pyramid: Opportunity for the poorest
Sustainable Business—Books & Links: Read all about it & find out more
Starting a business is a creative act. Business is about creating value. Creating value means making something to last. WorkSavvy declares: Start Sooner, Develop Stronger, Last Longer. Start Sooner—because with no sales, there is no business, so starting sooner will not only get revenue flowing, but others will experience your business and you'll get feedback. Develop Stronger—because strength will offer viability for the longer-term. Many startups are encouraged to grow fast, but this can lead to short-term failure. Last Longer—because if the enterprise makes a contribution, it's worth sustaining. In other words, "sustainability from the startup."
"Lead with your values. Do something you believe in, something that feeds your soul. If the excitement is just about making money, I don't think that's going to work long-term." - Ben Cohen, co-founder Ben & Jerry's Ice Cream
Sustainability: Creating the conditions for all to flourish
Sustainability is a big concept that cover a vast field of principles and policies in public affairs and the business world. Definitions are many and various. Some are set to curb the worst excesses of the free market economy and come from a political motivation. Others are narrower definitions arising from ecological concerns for the basic survival of the planet. There are many also concerned with social
justice and using commerce to help diminish economic disparities. At
the national and international level, activists
target
the biggest consumers of resources. Definitions of sustainability coming from an economic perspective focus on moving the business world from short-term to long-term perspectives.
"I define sustainability as the possibility that humans and other life flourish on the Earth forever." These are the words of John Ehrenfeld in Beyond Sustainability. John also says, "First and foremost, we must conceptualize sustainability in a manner that includes the thoughts, beliefs, and values of men and women." In business, I believe this is the view that should prevail. It is not a matter of correcting or arresting the degrading commercial processes we have allowed, but rather making a fundamental shift in our approach to the purpose of business.
Is sustainability a term understood by people on a wide scale? The Hartman Group's Report on Sustainability: Understanding the Consumer Perspective says, "Few consumers have deep or extensive knowledge of expert, policy, or corporate discourses related to sustainability and sustainable development. In fact, relatively few consumers have any familiarity at all with the terms "sustainability" and "sustainable development." At the same time, however, most consumers do (93%), in fact, operate in everyday life with varying degrees of what we have come to think of as "sustainability consciousness." Our research clearly reveals that a cultural shift is taking place in terms of consumer awareness, acceptance and practices that relate to sustainability. Specifically, this report provides detailed sociological exploration of how perceived risks from air, water, sun and food vectors translates into both personal behavior as well as larger notions of what are sustainable and environmental practices, products and services."
"I briefly checked out the site -- very cool. We should discuss collaboration opportunities." a sustainability organization
The Sustainable Business Institute (a nonprofit, nonpartisan organization dedicated to bringing about increased understanding of, and commitment to, the concept of business sustainability worldwide) describes business sustainability as,"the opportunity for business to improve its profitability, competitiveness, and market share without compromising resources for future generations." The Forum for the Future (a charity that works in partnership with business, the public sector and others to build a sustainable future) describes sustainable development as, "A dynamic process which enables all people to realise their potential and improve their quality of life in ways which simultaneously protect and enhance the Earth’s life support systems."
Paul Hawken (see Books below) says, "Sustainability is an economic state where the demands placed upon the environment by people and commerce can be met without reducing the capacity of the environment to provide for future generations."
Some of the issues that iminge on sustainable business are created by the way we measure performance, most notably the concept of GNP - Gross National Product. An alternative view of the way to measure progress was pioneered by the King of the Himalayan Kingdom of Bhutan. In Bhutan the national measure of progress is GNH - Gross National Happiness, based on 1. Promotion of equitable and sustainable socio-economic development 2. Preservation and promotion of cultural values 3. Conservation of the natural environment 4. Establishment of good governance.
While the entrepreneur may have a caring commitment to sustainability at the personal level, carrying this into the business startup may appear a luxury—when survival until tomorrow morning is what causes sleepless nights.
However, sustainability is a savvy way of doing business. Philippe Charas, a Swedish technologist and thinker of the Exergy Group of Sigtuna, Sweden calls for us to "shift from a set of values based on self-interest to a set of values based on common interest and good for all."
The entrpreneur has a special opportunity to contribute to the process; though the leverage of an individual small businesses may be slight, the collective impact of large numbers of entrepreneurs dedicated to sustainable business is considerable, both economically and by example.
Conserving energy is about not just switching off the light. Savvy business people think about conserving their personal energies. Making do with less will not just consume fewer resources, but will also cost less. Many exciting new business opportunities exist within the sustainable business field, such as renewable energy and energy conservation, organic
products, natural healthcare, fair trade foods, remanufacturing (watch out
for the new jargon, "reman"),
wireless IT, nanotechnology, and a whole host of others but the biggest
of all
is just to set out to be a sustainable business startup.
By taking careful stock of the purpose, policy and practice of your business, you will soon discover for yourself that sustainability and profitability generally go together. Take a look at Six Steps to Sustainability it is an article aimed at big companies, but the advice is also valid for smaller ones.
Respect and honesty are watchwords and though easy to say, these values require the entrepreneur to check reasoning, will and action on a continuous basis. Much of the emphasis on sustainability is directed towards the big corporations. The trouble is that in the multinational, devolved responsibility, sheer size, and complexity risk working against steadfast purpose to be well and good.
The small enterprise and particularly the startup business have a great advantage because purpose, policy and practice can be more tightly directed. There are likely to be less different publics to be satisfied. Nonetheless, values do not appear from thin air. They will require reflection, consideration and unless yours is a one-person business, debate and consensus.
This is no wishy-washy exhortation. Grant Thornton's 15th annual Survey of US Business Leaders (2007) found that 8 out of 10 executives believe that corporate responsibility programs contribute to the bottom line, and only a quarter believe that they are a drain on profits. "Corporate responsibility is not just buzz, it's a legitimate practice and will impact business strategies over the next few years. Companies want to become more responsible not just for the sake of being compassionate but for the pursuit of $$."
The B Corporation: B Corporations™ are a new type of corporation that are purpose-driven and create benefit for all stakeholders, not just shareholders. As a B Corporation™ you differentiate your business from the growing barrage of green- and cause-marketing campaigns and stand out as a leader in the market, creating a clear path for others to follow. This new community is developing. As soon as your business is established, take their 'the change we seek™' survey and see how you measure up. Even if you do not wish to seek B Corporation status, you will learn something useful.
TheWorkSavvy Compendium of enterprises committed to sustainability
The WorkSavvy Compendium lists hundreds of enterprises committed to sustainability through the triple bottomline of profits, ecology and society. The Compendium links to each one listed. The purpose of the listing is to enable you to visit enterprises that look interesting—and in learning about them, you may be able envigorate you convictions about the values that you want your own new business to espouse and live.
Public Purpose & Private Benefit: Reap what you sow for yourself and others
Being either a closet sustainable business or making public statements claiming sustainability are each insufficient. Sustainability will need to be your business way of life to have any value. Making your values explicit will require your enterprise to have implicit characteristics that shape and direct the business.
Nailing your colors to the mast will let all your stakeholders, both the obvious ones close by as well as those at the periphery, know what drives your behaviors and they will know what to expect from your business. If people are aware of what you stand for, they will also have the opportunity to call your bluff. Expect to be challenged and be prepared
to amend or change your policies to make them better adapted to your fundamental
aims.
"I just checked out your website... great information!" a community worker
It will be transparent if you claim sustainability merely as a means of appearing attractive to your stakeholders. On the other hand a genuine commitment to sustainability will draw to you people of like mind. Such people, you will find, are not just the environmental activists or social justice seekers of the world, but a very large and often a non-vocal slice of society.
Your business will reap what it sows in many other ways. In the business literature there are many cases of companies that clean up their act finding that they can reduce cost and improve output while eliminating waste, recycling by-products, using non-toxic ingredients or employing diversely.
Being comitted to your local community, or what Professor Stuart Hart calls, "being indigenous", will not only bring relationship rewards and personal satisfaction, but also freqently make a direct contribution to the performance of your business through reduced costs and network benefits. Consider too, where your business is local. It may not simply be in the locality of your headquarters, but also in many others too, particularly when your are working or selling remotely via the Web.
Here's a business that demonstrates a local, integrated ecological business—a brewery. Breweries normally produces quite a lot of waste. The model below comes from Zero Emissions Research & Initiatives (ZERI)—a global network of creative minds seeking solutions to world challenges. The common vision shared by the members of the ZERI family is to view waste as resource and seek solutions using nature's design principles as inspiration. In the brewery example, ZERI changed the concept of waste into that of a valuable resource to create more jobs, more income and a better environment. The red boxes show how.
And ZERI is not alone; here is an example from Samoa; another is the Anderson Valley Brewing Co that brews solar-powered beer; or Great Lakes Brewing Company—a principle-centered, environmentally respectful and socially conscious company committed to crafting fresh, flavorful, high-quality beer and food for the enjoyment of our customers: "We aspire to maintain our status as the premier craft brewery in the Great Lakes region and are dedicated to uncompromising service, continuous improvement and innovative consumer education." Take a look at the list of many more at Fermenting Revolution by Chris O'Brien, author of the forthcoming book, Fermenting Revolution: How to Drink Beer and Save the World, appearing in the fall of 2006 from New Society Publishers. Professionally, he has dedicated his time to organizing businesses as a force for positive social and environmental change.
Balancing Interests: Owners, employees, customers, suppliers & community
The entrepreneur tends to talk about, "my business...", but the enterprise can only survive if it meets not only the aspirations of the owner, but also the other stakeholders in it.
An interesting example of brand integrity and community support is the concept of Hannadowns. The Hanna Andersson children's clothing company in Portland, OR make quality garments for kids that often outlast the growth of the wearer. So the company introduced the concept to Hannadowns (like hand-me-downs), whereby any parent can return outgrown garments to the company who then redistributes them to needy low-income families. Interesting also is that even though the subject of a buyout by Dorset Capital (investors in growth consumer products companies), this policy has been maintained and the Hanna Anderrson Foundation continues Hanna’s commitment to children and community, through the company's donation of office space, in-kind support and a percentage of its annual profits to the Foundation.
Inclusive Capitalism are two English words that have been around since the eighties, but are gaining in usage right now. There are been a growing negative reaction to the concept of 'maximizing shareholder value' for reasons of morality, but also because this one-sided approach to business is not sustainable over the long term. Inclusive Capitalism is about including all the parties in the social contract that enable business to function. Anti-globalization movements point up the need for business to take responsibility in the wider world that allows it to operate.
Financial, Ecological and Social Bottom-lines: Measuring long-term results
Long-term success in business depends upon the enterprise delivering quality financial results and social performance. There are two terminologies that are becoming widely used. Double bottom-line refers to the evaluation of a business not simply based on its financial performance, but also on its social conduct. Triple bottom-line adds the third specific dimension of measurement of environmental impact. There is an over-riding concern of both forms of measurement with integrity of business behavior.
The term triple bottom-line The phrase was coined by John Elkington, co-founder of the strategic consultancy and independent think-tank SustainAbility, in his 1998 book Cannibals with Forks: the Triple Bottom Line of 21st Century Business. Established in 1987, SustainAbility advises clients on the risks and opportunities associated with corporate responsibility
and sustainable development. The company works at the interface between market forces and societal expectations, seeking solutions to social and environmental challenges that deliver long term value.
Corporate Social Responsibility (CSR) has become a high priority for almost every multinational and many now have corporate responsibility officers whose task it is to monitor triple bottom-line performance. The business startup has as great a necessity to consider these issues. However the founders are likely to be the guardians of corporate responsibility, rather than an delegtated executive in the business.
While there is debate about how socially responsible big companies are, it is interesting to note that the multinational GE announced in 2007 that they had doubled their revenue from environmentally friendly products (wind turbines, water purification, for example) in the previous two years—to $12bn, and aims at $20bn in "green" sales by 2010. Also in 2007, IBM ("Big Blue") announced its "Project Big Green", a $1bn a year effort to make data centers worldwide more energy-efficient, cost-effective and greener overall. While being circumspect about greening, what's to be concerned about is eco-effectiveness rather than eco-efficiency. For more on this, read Cradle to Cradle: Remaking the Way We Make Things by William McDonough & Michael Braungert.
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Enterprise at the Bottom of the Pyramid: Opportunity for the poorest
Imagine creating a "commercial process where you can include the world's poorest people in the business model, lift them out of poverty and create new opportunities for the company itself. Think of the needs for electric power at late at night, clean water, a dependable source of protein, clothing, housing materials." The words of Dr Stuart
Hart (see Academic links below) in a recent interview at the Earth & Sky website. Take a look below at a couple of examples of how rethinking about the base of the pyramid has taken shape (Grameen Bank in Bangladesh and Shakti in India).
There are now many people working the developed and developing world to use the inborn creativity of even the poorest to solve social and environmental problems through business. The initiatives include those by indigenous and individual actions, social activists, charitable foundations, large corporations and governments. The projects include social banking, pedal operated generators, LED and photovoltaic lighting, community Internet connectivity, minimally-priced computers, soap distribution for hygiene. See the books by CK Prahalad and Stuart Hart in Books below.
An example of this is Intel's Discover the PC program—for India: rugged hardware, low-cost wireless connectivity, rural applications, finance access for rural entrepreneurs. They are not alone the the quest for a basic computing tool at very low cost. Another example is at Hindustan Lever (HLL), the Indian Unilever company: Shakti is HLL's rural initiative, which targets small villages with population of 2,000 people or less. It seeks to empower underprivileged rural women by providing income-generating opportunities, health and hygiene education through the Shakti Vani programme, and creating access to relevant information through the iShakti community portal. There is also Greening Barrens, HLL's Water Conservation and Harvesting project to reduce water consumption in its own operations and regenerate sub-soil water tables at its own sites through the principles of 5R - Reduce, Reuse, Recycle, Recover and Renew, as well as helping adjacent villages to implement appropriate models of watershed development.
Grameen Bank (GB) is another powerful example. GB has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh, without any collateral. At GB, credit is a cost effective weapon to fight poverty and it serves as a catalyst in the over all development of socio-economic conditions of the poor who have been kept outside the banking orbit on the ground that they are poor and hence not bankable. Professor Muhammad Yunus, the founder of Grameen Bank and its Managing Director, reasoned that if financial resources can be made available to the poor people on terms and conditions that are appropriate and reasonable, "these millions of small people with their millions of small pursuits can add up to create the biggest development wonder."The 2006 Nobel Peace Prize was awarded to Muhammad Yunus and his Grameen Bank. Part of the citation reads, "Every single individual on earth has both the potential and the right to live a decent life. Across cultures and civilisations, Yunnus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development." As of May, 2006, it has 6.39 million borrowers, 96 percent of whom are women. With 2185 branches, GB provides services in 69,140 villages, covering more than 100 percent of the total villages in Bangladesh. The rate of defaulters is so low that it would make many other lending institutions green with envy. Among other ventures and on similar principles to the bank, GB has now established Grameen Shakti/Energy, a not-for-profit rural power company to supply renewable energy to unelectrified villages, and GrameenTelecom that aims to bring GSM cellular mobile phone service to 100 million rural village inhabitants.
Technoserve helps entrepreneurial men and women in poor rural areas of the developing world to build businesses that create income, opportunity and economic growth for their families, their communities and their countries.
Engineers Without Borders is another nonprofit that partners with developing communities worldwide to improve their quality of life. This partnership involves the implementation of sustainable engineering projects while involving and training internationally responsible engineers and engineering students.
While not strictly microfinance, take a look at Habitat for Humanity. It finances home ownership for the poor through no-profit mortgages, where eventual homeowners put in 'sweat equity' by helping to build their own future homes.
These examples concern the developing world and large enterprises, but the way of turning what seem to be 'business givens' on their head is a practice that frequently enlightens the entrepreneur. I recommend Jerry Wind's book Impossible Thinking to help you get in touch with alternative mental models and opening up to possibiliies and potentiality.
There is however, a contrary view that the "real fortune at the bottom of the pyramid" is to be found by focusing on the poor as producers, rather than buyers. Professor Aneel Karnani of the Ross Business School at the University of Michigan, concedes that "private companies should try to market to the poor. However, the profit opportunities are modest at best... best opportunities exist when the firm reduces price significantly by innovatively changing the price-quality trade-off in a manner acceptable to the poor." Fortune at the Bottom of the Pyramid: A Mirage - How the private sector canhelp allieviate poverty.
If you want to know more about what universities around the world are doing in the BOP field, download the Aspen Institute's Closer Look at Business Education paper that investigates how and why the BOP is being integrated into business school education.
Sustainable Business—Books: Read All About It
There are several books that will show you how to approach sustainability and grow your business responsibly.
Perhaps the best place to start reading is Paul Hawken's The Ecology of Commerce: A Declaration of Sustainability. This book will give you a basis for thinking seriously about building a sustainable business. Paul Hawken is a thinker and writer on enterprise and has been a very successful entrepreneur on more than one occasion. He has set the following principles for sustainable small business:
The book was first published in 1993 and remains completely valid today. As the author points out, "Small business is the arena in which pragmatists, inventors, and idealists operate, where they can act clearly, directly, and affirmatively."
Growing a Business is also by Paul Hawken. Why am I suggesting a book published nearly 20 years ago? Because Paul Hawken was ahead of his time. In this book he says, "To see the reward of commerce as money and the risk of commerce as failure is to see nothing at all. The bottom line is down where it belongs—at the bottom." He then goes on to show you many practical ways to create a sustainable business.
Small Giants: Companies That Choose to Be Great Instead of Big by Bo Burlingham, editor-at-large of Inc. magazine. The 14 small companies profiled here have owners who are interested in being great at what they do, creating a great place to work, providing great service to customers, having great relationships with customers, and finding great ways to lead their lives. Most companies have built their strategies around a model of continuous growth. This is assumed to be the model to follow, but here are companies that have created value in other ways. Take a look at the ideas in the book Managing Upside Down. And for challenging your unthinkingly accepted mental models, look at The Power of Impossible Thinking.
Never Bet the Farm: How Entrepreneurs Take Risks, Make Decisions—and How You Can, Too. This is by Anthony L Iaquinto and Stephen Spinelli, Jr (entrepreneurs and academics) and it will give you a great reality check, based on preparing for setbacks, to reduce risk and simplify decision (via 15 principles) so to increase the probability of success. Here is another book that turns 'business givens' on their head. The classic business models are now very much open to re-evaluation.
Cannibals with Forks: the Triple Bottom Line of 21st Century Business by John Elkington convincingly argues that future market success will often depend on a company's ability to satisfy the three-pronged fork of profitability, environmental quality, and social justice. This lively and practical guide outlines the seven great sustainable revolutions that are already unfolding and shows how business leaders should respond.
Managing Upside Down: the Seven Intentions of Values-Centred Leadership by Tom Chappell - one of the founders of Toms of Maine. The seven intentions are: connect with goodness; know thyself, be thyself; envision your destiny; seek counsel; venture out; assess; pass it on. You can read more at the Saltwater Institute. The book was published in 1999. The company was on the crest of a wave and you'll find it interesting to read in the light of the company's experience since that time. Much of the book was given over to the process of their move into natural medicinals from their base in natural personal care products. Tom's of Maine found that their herbal remedies did not sell well and as a small company they had to limit their products to those that have the most widespread consumer support. The company has been purchased by Colgate-Palmolive, so keep you eyes on the company!
Getting to Scale: Growing Your Business Without Selling Out by Jill Bamburg. There's hardly a startup that lacks passion. Here's a book that will help you maintain that passion and avoid selling out. Based on the experience of nearly 40 enterprises, Jill Bamburg, Dean of the MBA Program at Bainbridge Graduate Institute, shows clearly that there is another way. Several high profile mission-driven firms have sold out to multinationals recently: Body Shop to l'Oréal, Ben & Jerry's to Unilever, Tom's of Maine to Colgate-Palmolive, Stoneyfield Farm to Danone, as these firms not only want to acquire the brands, but also hope to imbibe values. Other mission-driven companies, such as Burt's Bees have been sold to financiers—in their case to AEA Ventures who purchased an 80% interest a couple of years ago. It will be interesting to watch how these acquisitions develop. Ben Cohen of Ben & Jerry's says, "If I had it to do all over again, I would have worked the legal end of it differently. There are ways to be publicly held yet remain independent and continue to use your business as a force for social change." Jill Bamburg shows how any business with a values-rich mission can be conserved and enhanced. The ways include: organic and steady growth; financial independence through bootstrapping and creative funding; building values into the brand; matching manufacturing to the mission; learning and being prepared to transform; choosing a structure appropriate to the mission; working deeply on personal and personnel issues; being clear about success constitutes in your special case. This is a book every entrepreneur should read.
The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits by CK Prahalad. This inspiring book recognizes the 4 billion people (80% of the world's population) who live on less than $2 a day, not as victims, but as resilient and creative entrepreneurs and value-conscious consumers. The book promotes and a new way of dealing with global poverty. At the same time the zero-based nature of the approach has many lessons for thinking about business building among companies in the developed world. For an article on the subject by CK Prahalad: The Innovation Sandbox is available if you join Strategy+Business. Take a look and learn!
Capitalism at the Crossroads: the Unlimited Business Opportunities in Solving the World's Most Difficult Problems by Stuart L Hart. Dr Hart argues the case for business to be at the forefront of sustainability. He shows how companies can find innovative and profitable products and contribute to solving the world's acute societal problems at the same time. His Sustainable Value Framework looks from the ecological drivers of today to the population, poverty and inequity drivers of tomorrow. He considers the chaqllenges of today's developed markets and those of the emerging ones, contrasting them with the traditional land-based markets. Professor Hart illustrates what he calles "the great leap downward" to the base of the pyramid (of wealth), with cases of creative ways that companies have met the challenge.
Marketing That Matters: 10 Practices to Profit Your Business and Change the World, by Chip Conley and Eric Friedenwald-Fishman. This book by two entrepreneurs is a must-read for any leaders of a values-driven startup concerned to integrate their marketing practices. Traditional businesses determine their success most frequently using the measurement of return on investment (ROI). The authors propose that this is combined with the measurement of advancement of mission (AOM). It's all very well to have high aspirations for the sustainable enterprise, but their results need measuring, too.
Cradle to Cradle: Remaking the Way We Make Things by William McDonough and Michael Braungart. Paper or plastic? Neither, say the authors. Why settle for the least harmful alternative when we could have something that is better—say, edible grocery bags! In Cradle to Cradle, the authors present a manifesto calling for a new industrial revolution, one that would render both traditional manufacturing and traditional environmentalism obsolete. Their cradle credo is "Putting Eco-Effectiveness into Practice" through commiting to a new paradigm, rather than an incremental improvement on the old one.
The Business Guide to Sustainability: Practical Strategies and Tools for Organizations, by Darcy Hitchcock and Marsha Willard. This is indeed a practical book, though rather more aimed at established corporations than startups. The greatest stress is on the environmental rather than the social aspects of sustainability, but it provides an excellent resource for business people by sector and function.
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Sustainable Business—Links: Finance, Organizations & Academic
Finance
Why not consider providing a microloan in the developing world? Click the link and learn about Kiva. Assuming you'd like to help, the great thing about Kiva is that you get to choose exactly which individual you'd like to support with a loan and you can monitor progress. You'll get a feeling of direct
participation in doing something about poverty. Kiva has made loans of over $11 million from more than 112,000 people. Of the $1,188,110 of loans with completed loan terms, the default rate is 0.4%. On Kiva's Advisory Board is John Hatch (founder of FINCA—see below), Geoff Davis President and CEO of Unitus—see below) and a Board member is Reid Hoffman (CEO and co-founder of LinkedIn).
If you need or want evaluation of microfinance institutions, then visit MicroRate who specialize in the evaluation of microfinance institutions (MFIs). Its objective is to link MFIs with funding sources and in particular with international capital markets. MicroRate evaluations allow lenders and investors to measure risk and they thereby help to create the transparencywithout which financial markets cannot work.
The Microfinance Gateway is the a comprehensive source of information for and about the microfinance industry. It includes research and publications, discussion groups, specialized resource centers, organization and consultant profiles, and the latest news, events, and job opportunities in microfinance.
Or give to the Freeplay Foundation that is making available Lifeline self-powered radios and now portable energy sources, powered by human energy through step action and encouraging the establishment of micro enterprises in Africa using this technology.
You can learn more about microcredit by visiting Unitus—the Unitus Acceleration Model combines best practices from the venture capital, investment banking and strategy consulting industries to help create large-scale, poverty-focused and commercially sustainable Micro Finance Institutions
(MFIs). Unitus, a nonprofit organization, provides incredible donor leverage; each $100 contribution to Unitus results in 18 additional micro-entrepreneurs receiving financial services from their MFI partners. Unitus partners with the world's
highest-potential MFIs,
and helps them grow into large-scale,
commercially sustainable banks for the poor.
FINCA is an other alternative. Village Banking: developed by FINCA Founder John Hatch, the village banking method is unique in the responsibility and autonomy given borrowers in running their banks and in its emphasis on community, as well as individual, development. With programs in 21 countries
in Latin America, Eurasia, Central Asia, and Africa, FINCA’s geographic reach is among the widest of the leading microfinance networks.
Jamii Bora Trust in Kenya is an example of one of their MFI partners. The Trust began in 1999 when several former beggars and slum dwellers asked Ingrid Munro—then head of the African Housing Fund—to help them improve their lives. She agreed, and since then, a once-small savings matching program has grown into a nationwide MFI with truly ambitious growth and impact goals. With nearly five million USD of outstanding loans, the Trust has upwards of 150,000 borrowers; there are low default rates, the Trust is profitable and maximum first loans are only $105.
KickStart is a non-profit organization that develops and markets new technologies in Africa. These low-cost technologies are bought by localentrepreneurs and used to establixh highly profitable new small businesses. They create new jobs and wealth, enabling the poor to climb out of their poverty for ever. In the same way the Scojo Foundation develops markets for reading glasses at the base of the economic pyramid. It selects, trains, equips and funds local entrepreneurs to establish new businesses that sell reading glasses; it also conducts locally relevant social marketing campaigns to raise awareness about blurry up-close vision.
Investors' Circle is a US network that seeks early, expansion-stage companies or small venture funds whose businesses address significant social or environmental issues. Applications are taken only from companies in Energy & Environment - Food & Organics - Community & International Development - Education & Media - Health & Wellness. Companies that are most likely to find interest within Investors' Circle membership will have a combination of the following characteristics: strong management team; clear understanding of their market(s); legally defensible technology; third party product or business model verification; clear commitment to a social and/or environmental mission.
An example member of Investors' Circle is the Boston-based Commons Capital LLC who do double bottom-line investing in early stage companies in clean energy, environment, education and healthcare. Their objective is to realize competitive rates of return by investing in promising young companies whose products, services and corporate cultures promote a sustainable economy and deliver market solutions to major social and environmental problems. They believe that business can be a powerful force for good in the world and that early stage companies – due to their creativity, flexibility and energy - have a unique capacity, disproportionate to their size, to generate positive solutions.
Community Development Venture Capital Alliance is the trade association for the rapidly growing community development venture capital industry. Formed in 1993 and incorporated as a not-for-profit in 1995, CDVCA promotes use of the tools of venture capital to create jobs, entrepreneurial capacity and wealth to advance the livelihoods of low-income people and the economies of distressed communities. At their site, you'll find over 60 CDVC funds actively investing across the U.S. and internationally
Cleantech Venture Network aims to be the leading provider of events, publications, information and networking services for clean technology entrepreneurs, investors, service providers and related stakeholders. The concept of "clean" technologies embraces a diverse range of products, services, and processes that are inherently designed to provide superior performance at lower costs, greatly reduce or eliminate environmental impacts and, in doing so, improve the quality of life. Clean technologies span many industries, from alternative forms of energy generation to water purification to materials-efficient production techniques.
According to New Energy Finance $18.1bn was invested in the clean energy sector by venture capital (VC) and private equity (PE) in 2006, a 67% increase over 2005. They have identified 1, 859 VC/PE investors who have either made investments or stated their intention to do so and they forecast the sector will grow by about 17% through to 2013.
Expansion Capital Partners LLC is an example of an investor that is interested in companies that use energy, water or other raw materials more efficiently and productively to deliver equal or superior performance in profitability through cost reduction and/or increased revenues and create less waste and toxicity.
Upstream 21 is a corporation created to put investors' capital to work in local communities by purchasing small, successful companies whose products and services are part of their vision for a sustainable future. Some of these companies were founded by people ready to sell, but not sell out. Others are companies that are ready to grow, but not alone. By purchasing these businesses and helping them grow, Upstream 21 will be a catalyst for advancing local economies that build rather than erode, natural, social and economic capital in communities.
Women’s Growth Capital Fund is a Washington, DC-based SBIC venture fund investing in women entrepreneurs across several industries, with an emphasis on high-tech, Internet and e-commerce.
Count Me In—a non-for-profit women's enterprise group, have a small loan scheme and Biz Help Services. Count Me In's Make Mine a $Million Business business plan competition was won in 2006 by SmartsCo—take a look!
Shore Bank invests in people and their communities to create economic equity and a healthy environment—in Chicago, Cleveland and Detroit, and now in many other parts of the world, via ShoreCap International, based in London.
The Equator Principles are a financial industry benchmark for determining, assessing and managing social & environmental risk in project financing, adopted so far by some 50 or so banks and other institutions round the world.
Ecostructure Capital helps develop and finance businesses and projects that benefit forests, rivers, coral reefs, open space,and people.
The Acumen Fund invests in enterpreises that improve access to markets for base-of-the-pyramid customers.
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Green Collar is a great resource site, whose mantra is "Facilitate Profitable Sustainability". They belioeve thatb as business people, we want to make a profit and as human beings we want to make a diofference. The publishers, Green Collar Media is founded on the basis that these two concepts are not mutually exclusive. Going green as businesses will mean new markets, new products, better relatyionships with customers, less waste and more profit.
Research Initiative on Social Entrepreneurship at Columbia Business School studies the growing practice of building profit and nonprofit ventures that aim to achieve social and financial impact through their products, services and other business practices, and the entities that fund them.
Sustainable Business helps green businesses grow. This organization is a mine of material on sustainable business and covers information on business opportunities, green investment, organic products, renewable energy, green building, recycled products and has a jobs section.
Sustainable Connections is a non-profit membership organization of well over 500 businesses and community leaders working to transform and model an economy built on sustainable practices.
The Global Reporting Initiative's vision is that reporting on economic, environmental, and social performance by all organizations is as routine and comparable as financial reporting.
Since 1988, The Natural Step has worked to accelerate global sustainability by guiding companies, communities and governments onto an ecologically, socially and economically sustainable path. More than 70 people in twelve countries work with an international network of sustainability experts, scientists ,universities, and businesses to create solutions, innovative models and tools that will lead the transition to a sustainable future.
Forum for the Future (UK) works with forward looking organisations – in business and the public sector – to find practical ways to build a future that is environmentally viable, socially just and economically prosperous.
The International Society for Industrial Ecology, directed by John Ehrenfeld, promotes industrial ecology as a way of finding innovative solutions to complicated environmental problems, and facilitates communication among scientists, engineers, policymakers, managers and advocates who are interested in how environmental concerns and economic activities can be better integrated.
Ceres (pronounced “series”) is a national network of investors, environmental organizations and other public interest groups working with companies and investors to address sustainability challenges such as global climate change.
Co-op America’s mission is to harness economic power—the strength of consumers, businesses and the marketplace—to create a socially just and environmentally sustainable society.
The Organic Exchange is a non-profit organization committed to expanding organic agriculture, with a specific focus on increasing the production and use of organically grown fibers such as cotton. Its ten year goal is to secure commitments from leading retailers and brands to use organic cotton in amounts equaling 10% of global cotton production. By making this commitment, companies support organic farmers who build soil quality, enhance biodiversity and protect the air and water on which we all depend. In addition, these brands and retailers give their customers the opportunity to look good, feel good and do good at the same time. They already list more than 50 brands. One, for example sets "ecological sustainability as the measure of success. The company protects the environment by replacing toxic, non-sustainable synthetics with organic natural fibers and dyes while following fair trade principles. Thereby weaving together a commitment to connect ecology, cultural preservation and social justice." (Indigenous Designs). It's interesting to note that the organic cotton and recycled fibre clothing market is growing at 30% a year in UK (Co-operative Bank's Ethical Consumerism Report 2005). A venture of some vintage (established in 1989) is Vreseis Ltd, established by Sally Fox and producing naturally colored cotton fibers, yarns and cloth—take a look.
Social Accountability International promotes human rights for workers around the world as a standards organization, ethical supply chain resource, and programs developer. The SAI works with an array of stakeholders who are instrumental in the effort to improve and implement the Social Accountability 8000 (SA8000) standard. The requirements cover child and forced labor, health & safety, freedom of association, discrimination & discipline, working hours, remuneration and management systems.
The Social Venture Network (SVN) was founded in 1987 by some of the most visionary US leaders in socially responsible entrepreneurship and investment, SVN is a nonprofit network committed to building a just and sustainable world through business. SVN has published the Standards of Corporate Social Responsibility, a collection of principles and models for entrepreneurs.
The Institute for Liberty and Democracy (founded by economist and former business leader, Hernando de Soto), based in Lima, Peru, has created a key that can open the economic system to everyone—a time-tested strategy for legal reform that offers the majority of the world's people a stake in the market economy.
Rocky Mountain Institute (RMI) is a non-profit organization that studies resource issues, by research and consulting as well as through education and outreach. RMI's areas of study are energy, buildings & land, businesses, communities, climate, transportation, water, and other issues.
Envirofit develops and disseminates products and services that address major environmental problems in the developing world.
World Resources Institute (WRI) is an environmental think tank that goes beyond research to create practical ways to protect the Earth and improve people's lives. As well as its fundamental mission, the WRI challenges the private sector to grow by improving environmental and community wellbeing. In that context it has the Sustainable Enterprise Program (SEP) that promotes entrepreneurship and climate protection, as well as supporting business education and change. Within the SEP, the New Ventures program supports sustainable enterprise creation in emerging economies by accelerating the transfer of venture capital to outstanding investment opportunities that incorporate social and environmental benefits. It selects SMEs seeking $100,000 to $3 million in fast-growth environmental sectors such as ecotourism, non-timber forest products and certified wood, organic foods and fibers, renewable energy, sustainable fisheries management and clean technologies. The program matches entrepreneurs with executive mentors and consultants and teams of MBA students to improve the enterprise's business plan to present to a New Ventures Investor Forum. Take a look at their report on n-Logue that aims to significantly enhance "the quality of life of every rural Indian" by setting up a profitable network of wirelessly-connected Internet kiosks in villages throughout India. Or the one on Tarahaat in a similar business.
World Business Council for Sustainable Development (WBCSD) brings together some 180 international companies in a shared commitment to sustainable development through economic growth, ecological balance and social progress. Members are drawn from more than 30 countries and 20 major industrial sectors. WBCSD has a global network of 50+ national and regional business councils and partner organizations. Its mission is to provide business leadership as a catalyst for change toward sustainable development, and to support the business license to operate, innovate and grow in a world increasingly shaped by sustainable development issues.
Small Enterprise Development (SED) division of the Swiss NGO, Intercooperation. Within the organization's focus on poverty reduction, especially at the micro level (households, enterprises and community groups), SED produces tools, information and training in micro-enterprise development in support of projects in many parts of the world.
The Natural Edge Project (TNEP) is a non-profit sustainability think-tank partnership driven by a team of early career Australians. The secretariat team receives mentoring and support from a range of experts and leading organisations in Australia and internationally.
Business for Social Responsibility (BSR) is a global organization that helps member companies achieve success in ways that respect ethical values, people, communities and the environment. BSR provides information, tools, training and advisory services.
One Report is a service of SRI and offers companies a means of preparing an easy-to-use, comprehensive, online reporting solution on corporate sustainability. The entry level reporting is free and designed primarily for companies that are reporting for the first time. It allows companies to choose between reporting to a single research and rating agency or reporting a set of 25 Global Reporting Initiative (GRI) core indicators to our global network of research and rating agencies.
Diversity Inc's mission is to bring education and clarity to the business benefits of diversity.
The Ethical Trading Initiative brings together a wide range of organizations from all parts of society—to improve the lives of poor working people round the world. It is an alliance of companies, NGOs and trade unions working on corporate codes of practice which cover supply chain working conditions.
AccountAbility is a nonprofit membership organization that promotes accountability innovations that advance responsible business practices, and the broader accountability of civil society and public organizations.
BankTrack is a network of civil society organisations and individuals tracking the operations of the private financial sector (commercial banks, investors, insurance companies, pension funds) and its effect on people and the planet.
The Fair Trade Federation (FTF) is an association of wholesalers, retailers, and producers whose members are committed to providing fair wages and good employment opportunities to economically disadvantaged artisans and farmers worldwide. Out of the FTF grew the Fair Trade Resource Network that provides education and information.
The Organic Trade Association is the membership-based business association for the organic industry in North America. OTA’s mission is to promote and protect organic trade to benefit the environment, farmers, the public, and the economy.
Fairtrade Foundationis for people who want to use the Fairtrade Mark on a range of consumer products including food, fibers, spices, drinks.
Transfair USA: Fair Trade Certified coffee is now the fastest-growing segment of the US specialty coffee market. TransFair USA opened its doors in late 1998 and began certifying Fair Trade coffee in 1999.
Rugmark is RugMark is the international nonprofit organization devoted to building schools, programs and opportunities that give children back their childhoods by ending child labor in the handmade carpet industry in South Asia.
The International Fair Trade Association aims to improve the livelihoods and well being of disadvantaged producers by linking and promoting fair trade organizations, and speaking out for greater justice in world trade. An example member is People Tree, that works with 70 Fair Trade groups in 20 developing countries, helping people from some of the world's most marginalized communities to use Fair Trade to escape from poverty.
The Fair Labour Association (FLA) has a methodology that involves participating companies adopting the FLA Code of Conduct and implementing a comprehensive compliance program, including internal monitoring, throughout their supply chain. The FLA then contracts with accredited monitors to conduct independent monitoring of each company's high risk facilities, works with companies to remediate problems identified in their facilities and independently verifies and accounts for company internal compliance programs.
The Sustainable Packaging Coalition (SPC) is an industry working group inspired by cradle to cradle principles and dedicated to transforming packaging into a system that encourages economic prosperity and a sustainable flow of materials. The SPC envisions a world where all packaging is : sourced responsibly; designed to be effective and safe throughout its life cycle ; meets market criteria for performance and cost ; made entirely using renewable energy ; once used, is recycled efficiently to provide a valuable resource for subsequent generations. In 2006, Timberland introduced environmentally-friendlier packaging for its footwear products and new packaging and labeling, including information about their "footprint". The new labels will cover environmental and community impact as well as listed the name and location of where the product was made.
The Sustainable Forestry Initiative® (SFI) program is a comprehensive system of principles, objectives and performance measures developed by professional foresters, conservationists and scientists, among others that combines the perpetual growing and harvesting of trees with the long-term protection of wildlife, plants, soil and water quality.
There is also the Forest Stewardship Council (FSC) which is an international network to promote responsible management of the world’s forests. FSC brings people together to find solutions to the problems created by bad forestry practices and to reward good forest management.
Vermont Businesses for Social Responsibility (VBSR) was founded in 1990 by a group of businesspeople who believed businesses have as much responsibility to workers, communities and the environment as they do to being financially successful. VBSR was started to pioneer a new focus for business: "the multiple bottom line." the organization has more than 600 members—a high number for a small state.
Business Alliance for Local Living Economies (BALLE) is an international alliance of 34 independently operated local business networks with more than 5,000 members dedicated to building Local Living Economies. BALLE envisions a sustainable global economy made up of Local Living Economies that build long-term economic empowerment and prosperity through local business ownership, economic justice, cultural diversity, and environmental stewardship.
The Product-Life Institute in Geneva is an independent institute doing contract research, or selling knowledge and time, in the field of the product life of goods and services. The institute's researchers work together or independently as consultants to industrial companies, government authorities and universities. The main focus is on developing innovative strategies and policies to foster the move towards a more sustainable society.
The U.S. Green Building Council (USGBC) is a of leaders from every sector of the building industry working to promote buildings that are environmentally responsible, profitable and healthy places to live and work. It has more than 6,400 member organizations and a network of more than 80 regional chapters advance USGBC's mission of transforming the building industry to sustainability.
Divest Terror.org is negatively oriented for posititive purposes; is a nationwide campaign aimed at some 400 public companies worldwide that are providing revenues, technology and moral cover to governments that sponsor terrorism, aiming to encourage investors to remove their investment from them.
The Schwab Foundation for Social Entrepreneurship provides platforms at the country, regional and global levels that highlight social entrepreneurship as a key element to advance societies and address social problems in an innovative and effective manner.
The World Business Council for Sustainable Development brings together some 180 international companies in a shared commitment to sustainable development through economic growth, ecological balance and social progress.
The Aspen Institute, founded in 1950, is an international nonprofit organization dedicated to fostering enlightened leadership and open-minded dialogue. Through seminars, policy programs, conferences and leadership development initiatives, the Institute and its international partners seek to promote nonpartisan inquiry and an appreciation for timeless values. See especially their work on Business and Society.
The World Business Council for Sustainable Development has designed a Global Water Tool: a free tool for companies to map their water use and assess risks relative to their global operations and supply chains. The WBCSD is a fount of knowledge on sustainable development and produces many newsletters to which you can subscribe for free.
Here is something for not-for-profit organizations that you might be involved with: a client of mine is Transformations in the business of fitness. They offer a fundraising partnership. You can raise funds and help participants witrh their wellness.
Center for Sustainable Global Enterprise at the Johnson School, Cornell University was founded by Dr Stuart Hart, the author of Capitalism at the Crossroads (see in Books above). At CSGE, innovative research and teaching programs generate and disseminate cutting-edge ways for private enterprises to achieve unparalleled financial success. Stuart Hart is also Co-Director of the Base of the Pyramid Protocol and the Center also hosts The Base of the Pyramid (BoP) Learning Laboratory™ is a membership-based consortium of leaders from companies, Goes, multilateral organizations, and universities. Lab members work together to discover and implement win-win solutions that open new opportunities for business value creation while simultaneously expanding the development horizon of the world's poorest people and communities in ways that are culturally appropriate and environmentally sustainable.
The Center for Sustainable Enterprise (CSE) was established by Stuart Hart (see above) at the Kenan-Flagler Business School at he University of North Caorlina. The CSE helps executives and future business leaders understand how social and environmental considerations are changing the competitive landscape of business. You subscribe their Sustainable Enterprise Quarterly (free).
The Bainbridge Graduate Institute (BGI) offers both an MBA in Sustainable Business and Certificates in Sustainable Business and Entrepreneurship & Intrapreneurship. Founded by Gifford Pinchot III, the author of Intrapreneuring, BGI's mission is to prepare diverse leaders to build enterprises that are economically successful, socially responsible and environmentally
sustainable.
We mean this mission in the broader sense – not only preparing our own students, but also helping other business schools integrate sustainability (i.e., environmental and social responsibility) into the heart of their programs."
The Green MBA at Antioch University New England covers sustainable business practices, the natural environment as well as the behavioral and social sciences.
The Marlboro MBA in Managing for Sustainability is a 2-year on-campus and online program based in Brattleboro, Vermont. The Marlboro MBA doesn’t simply instill a compassionate approach to business, it instills a realistic approach to business.
Green Mountain College in Poultney, Vermont, an environmental liberal arts college, offers an MBA in Sustainable Business. It is based online with on-campus residences.
Goddard College in Vermont offers an MA in Socially Responsible Business and Sustainable Communities that has three tracks: socially responsible business; social entrepreneurship; sustainable communities. This graduate program is designed for both leaders and entrepreneurs.
Center for Responsible Business at the Haas School of Business at Berkeley Launched in 2003, the Center's vision is to create a more sustainable, ethical, and socially responsible society by establishing the Haas as the preeminent educational institution for research, teaching, experiential learning, and community outreach in areas of Corporate Social Responsibility (CSR).
A Green MBA is offered by the New College of California in the San Francisco Bay Area.
The Presidio School of Management has an excellent Dictionary of Sustainable Management.
The University of Vermont offers an intensive 5-day program on Sustainable Business: Practices in Support of People Profits and Principles (non or with credit options).
The Sustainable Enterprise Academy (SEA) is at York University, Toronto. The SEA's purpose is in Assisting business in the transformation to corporate sustainability by providing senior executives in business, government and civil society with the vision, education, tools and support necessary to champion sustainable development in their organizations
The Center for Social Innovation at the Stanford Business School builds and strengthens the capacity of individuals and organizations to develop innovative solutions to social problems for a more just, sustainable and healthy world.
Other universities that are active in the field include: Oregon State that has a Sustainable Business Initiative; Presidio School of Management, San Francisco offers an MBA in Sustainable Management; Aquinas College in Grand Rapids, Michigan offers a Sustainable Business Degree program; Nottingham University in the UK offers an MBA in Corporate Social Responsibility—any there are many others round the world.
Beyond Grey Pinstripes, is a biennial survey and ranking of business schools, spotlights innovative full-time MBA programs and faculty that lead the way in integrating issues of social and environmental stewardship into business school curricula and research.
Publicatons & Newsletters
Green Money Journal "From the Stockmarket to the Supermarket" encourages and promotes the awareness of socially & environmentally responsible business, investing and consumer resources in publications & online.
GreenBiz is an excellent website that disseminates news, best business practices, provides expert advice, hands-on tools, and other resources. Green Biz is a program of The National Environmental Education and Training Foundation. They have an excellent newsletter - Green Buzz.
SocialFunds.com features over 10,000 pages of information on SRI
mutual funds, community investments, corporate research, shareowner actions, and daily social investment news. You can subscribe to free weekly news alerts and order their free report on Investing in Socially Responsible
Mutual Funds.
In their massive Corporate Social Research Center, you will find company news relating to corporate social responsibility.
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Welcome to WorkSavvy! / Entrepreneurship & You / First Steps to a Business Start / Savvy Business Planning / Savvy Business Finance / Savvy Marketing / Savvy Business Organization / Savvy Web-biz / Sustainable Business Startup / Savvy Business Resources / About WorkSavvy! / Lift Off newsletter / Contact WorkSavvy! : will @ worksavvy.ws
William Keyser • WorkSavvy LLC • will @ worksavvy.ws
