I had an opportunity recently to share an introductory presentation on social intra/entrepreneurship with a class of high school seniors at The Culver Academies on March 10, 2010. These students were sharp and did a great job of outlining the case for “Good Business” at the beginning of the presentation and asked fantastic questions throughout! Despite a few technical glitches (Mac vs. Windows), I think the presentation went very well — all thanks to the students’ awesome participation.

At the risk of being fact-checked, I’ve posted video of my presentation (available exclusively through blip.tv and iTunes this time) as well as the SlideShare of the presentation itself. In fact, I want you to fact-check the presentation and leave your comments on this page!

I know the video is long, but I hope there is some value in it for some readers!

The Presentation Itself:

Videos Embedded in Presentation:

1.) TOMS Shoes

2.) D.Light

3.) VisionSpring

Just a few weeks ago — Feb 11-15th — I had the great opportunity to join fellow social innovators from around the world at the 2010 StartingBloc Social Innovation Institute in Boston. I absolutely love attending events such as this (including GES, SOCAP, The Feast, and the upcoming SVC/SE Conferences). It’s a rare opportunity for like-minded entrepreneurs, intrapreneuers, and social-change enthusiasts to come together and share passions, ideas, and talents/resources. StartingBloc has done a great job recently in carving out a nice market in the field focused on not only students, but young-professionals in the field as well (serving as the middle-ground between GES and SOCAP).

The Institute was broken down into several components: Speakers, a Social Innovation Competition, and an “Ideas Marketplace” pitch competition.

The Speakers

The lineup of speakers included:

Houston Spencer – an inspirational speaker who I unfortunately missed on the first day due to travel failure, but really enjoyed hearing him speak a few days later about unconventional leadership and staying motivated in the field of social change.

Scott Sherman – One of the most excited and energetic people I’ve ever met whose Transformative Action Institute is spreading to colleges and universities across the world “training a new generation of social entrepreneurs, innovators, visionaries, and problem-solvers for the 21st century.” Scott’s presence alone is enough to get you out of your seat and want to change the world, and I had an awesome opportunity to chat with him on the second morning as we took the bus to Tufts.

Bob Tomasko – A professor at American University that I never had the opportunity to meet while I was there, but who is passionate about social enterprise and corporate social responsibility and integrating this into the curriculum. He has an extensive background consulting for companies like Coca-Cola, Ford, Mariott, and Toyota. I can’t wait to continue talking with Bob once I move back to DC!

Corey Szopinski – A social media guru who shared social media strategies for social change. Corey has been involved with developing interactive marketing initiatives for brands among the likes of Coca-Cola, Anheuser Busch, Volkswagon, Virgin Atlantic, and the Nelson Mandela Foundation. His company, Core Industries, brings “award winning interactive marketing to organizations that are leading the green economy and that focus on the triple bottom line: people planet and profit.”

Tom Szaky – An entrepreneur I’ve been hearing a lot of lately — the co-founder of TerraCycle — talked “trash” at StartingBloc. It was actually very interesting hearing him talk about some of the legal challenges TerraCycle has faced in reusing a product like an old Coke bottle as a container for another re-branded product because Coke owns the patent on the shape of the bottle! He shared some interesting insight between “little guy” vs. “big guy” battles that can come with entrepreneurship and the need for legal protections that can support innovation and keep “big guy” companies from holding-up startups in court. Plus, TerraCycle is a very interesting case study of a social startup!

Jeff Chapin – Probably has the coolest job in the world as a “Social Impact Designer” for IDEO. Jeff provided awesome insight into the product design process, particularly BOP-focused design. He shared some projects he’s worked on with IDEO around the world, and I think inspired a lot of to either pursue design-focused careers or at least focus more attention on design approaches to problem solving.

Patrick Meier – A member of the Ushahidi team, Patrick shared an awesome overview of Ushahidi and its involvement in the recovery effort of Haiti. It was really amazing seeing pictures and video “behind the scenes” of the massive volunteer effort of people tracking down information across the web and mapping it on the database. Text messages, tweets, news reports were all dissected to get accurate information to rescue teams on-the-ground. I think everybody in the room was just in awe and inspired by the massive undertaking and work that Ushahidi and the teams of volunteers managed to do in the wake of one of the largest crises of our lifetime (so far).

Dan Pallotta – Author of the book Uncharitable, Dan talked about how the way that we measure and perceive how nonprofits should run dramatically impacts their effectiveness. High overhead and compensation packages are not necessarily bad or signs of corruption — especially when you compare them head-to-head with the budgets and salaries of private-sector companies. We need to move beyond these misconceptions of the social sector and provide them with the tools they need to maximize impact. This involves developing more results-oriented metrics that do not punish charities for running more like businesses. This is something that I’m very interested in and hope to talk more with Dan about.

Colette Stanzler – Building off the need for more results-oriented metrics, Colette shared how her organization — Root Cause — approaches building a social impact market that blends the nonprofit, private, and public sectors through cross-sector partnerships and collaboration. A major part of their work is focused on measuring social impact, identifying successful programs, and spreading and scaling those programs effectively through cross-sector partnerships.

Cheryl Kiser – Cheryl shared her experience as a consultant for businesses’ CSR and sustainability initiatives. She is just now settling into her new role as Managing Director of The Lewis Initiative at Babson College.

Ryan Allis – Co-Founder of iContact, Ryan is actually very much engaged in the concept of social entrepreneurship and CSR. Ryan shared how his company has integrated a 1% Time/Product/Equity/Payroll model for its CSR initiatives. Ryan is somebody to keep your eyes on as an emerging player in the social enterprise space. I’m looking forward to seeing where he goes down the road.

Mindy Lubber – Mindy’s work as the President of Ceres is focused on integrating sustainability into the capital markets, encouraging and helping companies outline and publish sustainability initiatives (and ideally metrics as well). Having recently returned from the World Economic Forum in Davos, she told us how sustainability is becoming a more serious and central issue for business leaders — leading top business executives to attend her session at Davos.

Mitchell Wade – Concluding the Institute, Mitchell left us all with a quote that really resonated: The only change that really matters is that which happens after you leave. This is something that’s so important for us to remember as we build organizations or programs around the world focused on sustainability. From the very beginning we need to be focused on training others to build and grow the organization on their own! It seems like common sense, but you’d be surprised by how often this principle is forgotten.

Social Innovation Competition

One of the conference features was an event called the Social Innovation Competition. It was definitely an innovative way to help fund the institute — using the collaborative power of the fellows to serve as a consultancy to a corporate sponsor. I’m not sure how much I can talk about publicly about the client and the strategy we put together, but we put together a cross between a communications strategy and sustainability initiative for a major US corporation with offices around the world. My team had a blast working on the project, and actually made it to the final round!

Ideas Marketplace

This aspect of the conference allowed anybody to give a 1-minute pitch about their project or something they were passionate about. It was an awesome opportunity to hear everybody talk about their passions and interests! Three finalists were selected to give a longer pitch. Among the finalists were Maria Springer (Kito International) and Leticia Jauregui (CREA).

Final Thoughts

There is a lot of room for StartingBloc to grow as a network of social innovators and as an Institute. It would be nice to see more speakers at a TED-style pace (quick and to the point) as well as more workshops (a la GES).

Where StartingBloc really shines is in attracting an awesome group of fellows that have been vetted through the application process, and developing a strong life-long network connecting like-minded individuals and organizations. This is what attracted me to StartingBloc and was by-far my greatest take-away. As I return to Washington, DC in just a few weeks, I plan on being as active and engaged with this network as possibly by volunteering and helping organize events. Already in the last couple of weeks, I’ve had amazing phone calls and conversations with several fellows. They inspire me with every conversation, and I hope that I can bring some value to their work and their lives. That said, I really look forward to having a continued relationship with the StartingBloc community!

00:00 – 01:00 Introduction
01:00 – 03:11 About John Kim and Interest in WorldCupCSR
03:11 – 05:37 Creating Sustainable Infrastructure
05:37 – 07:08 How Did You Decide to Explore This Topic Via Blogging?
07:08 – 10:17 Trends and Major Players
10:17 – 12:43 How Are Sponsors Engaging in CSR?
12:43 – 13:31 Nike
13:31 – 15:03 One Goal Campaign
15:03 – 16:20 Nestle
16:20 – 17:07 MTN
17:07 – 19:13 IBM
19:13 – 21:21 ADIDAS
21:21 – 23:07 Do Firms Look At South Africa or Africa as a Viable Market?
23:07 – 24:44 Why Should Companies Engage in CSR / Cause Marketing Efforts Around the World Cup?
24:44 – 26:32 While in The Global Spotlight, What Does South Africa Have to Gain?

This is a video I’ve been excited about doing since I came up with the idea for my podcast! For the last couple of months, John Kim has been blogging and tweeting about Corporate Social Responsibility (CSR) around the 2010 World Cup hosted by South Africa. I’ve been following his writing for a while now, and wanted to invite him to talk on the matter — to help give us an overview of what companies are doing in the CSR / Cause Marketing field surrounding the event!

In our discussion, we covered a lot of ground (hence the length of the video!) and some key points came up:

1. Building sustainable infrastructure around the event. Not just environmentally, but economically! Roads, trains, and the like — things that can last beyond the event and serve to drive forward the country’s economy.
2. Aligning CSR initiatives with the company’s brand! And,
3. The precedent that this sets for the Rio Olympics in 2016 — how should companies engage sponsorship, CSR, and cause marketing in a poverty-stricken country? (Less included in the video, maybe a good topic for future discussion after the event!)

What John pointed out to me was a disappointment that the potential for successful CSR campaigns wasn’t being entirely fulfilled. Now, granted, this could be because it is still early (he made sure to note). But he gave an example of how car manufactures like Kia, for example, could be investing in building roads or transportation infrastructure to help garner greater market share — I think it’s brilliant! There is still a lot to be seen!

John is going to be in attendance at the games, so keep an eye on his blog and twitter for updates and more awesome related content!

• WorldCupCSR Blog
• Follow @WorldCupCSR on Twitter

As always, this video is available through the following sites (subscribe, comment, and rate! Oh, and share!):

• YouTube Part 1 / Part 2 / Part 3
• Vimeo
• blip.tv
• iTunes

In an effort that is becoming more and more associated with politics, the World Economic Forum is soliciting your participation — an opportunity to share a cause that is important to you via YouTube. The winning video will have a panel dedicated to their cause.

From the official YouTube Blog:

Is there one issue facing the world today that you feel passionate about? Have you always wanted to take your cause directly to people who have the power to do something about it, but lacked access to have your voice heard? Now is your chance to make your pitch – and win a spot at this year’s World Economic Forum in Davos, Switzerland, where world leaders will gather to hear what you have to say about the issue that matters most to you.

There is just one week left to submit a video for the opportunity to go to Davos. Each year, heads of state, business leaders, and social entrepreneurs gather at the World Economic Forum to discuss the most critical challenges facing citizens and nations around the world. And this year, one of you will get direct access to a special panel of these leaders at the Forum, to let them know why your cause matters.

The submission deadline is Monday, January 4, 2010, and all videos should be no longer than three minutes. Speak clearly and from the heart. Five finalists will be selected by a judging panel comprised of Paolo Coelho, Arianna Huffington and Muhammad Yunus. These finalist videos will then go to public vote on January 8, with a winner announced on January 19.

This is the chance you’ve been waiting for… unprecedented access to the worlds most powerful leaders who can make a difference for your cause. Visit the Davos YouTube channel to submit your video and make your pitch to the world.

While I would obviously encourage everybody interested to participate, the whole competition appears to me as a failing effort by the WEF/Davos people to try and integrate social media into their Forum (“Because it’s the cool thing to do” – So LAST decade!). I take issue with the fact that they will only be selecting one winning video, and the winner gets a “panel discussion” dedicated to their issue. Talk, talk, talk!

How I Would Do Things:

If they really wanted to be edgy, they’d shape the entire forum around causes submitted on YouTube by citizens from around the world. EVERY panel at Davos would be the result of a video submission. AND to make things more interesting, once the finalists have been selected and the top videos are open for voting — require each finalist to choose a charity that serves their cause and make each vote worth a $10 contribution to that charity.

What do you think?

Lance was quick to put out a response to Ben Stiller’s new foundation: STILLERSTRONG! Lance’s video involves the entire board of LIVESTRONG, which just so happened to be convening today! Check it out:

Don’t forget to take a look at both initiatives:

• LIVESTRONG Website
• STILLERSTRONG Website

Playing off the infamous cause marketing campaign employed by Lance Armstrong’s “LIVESTRONG”, Ben Stiller has launched a campaign of his own raising money to support a school he recently visited in Haiti.

From the STILLERSTRONG website:

So what’s with the yellow headbands? Well, besides my homage to the great Lance Armstrong… I had this opportunity to visit Haiti this summer. It’s an incredible country, with amazing people and a vibrant culture. It is also one of the most impoverished places in the western hemisphere. When I was there I visited a school in Cévérine, which is in the Central Plateau region. 

With Save the Children, because I assume they know how to save kids, we are raising money to expand the school, dig a drinking water well there, and set up a self sustainable crop field to help the residents keep the school going for years to come. It is only one school, but hopefully our efforts will lead to greater awareness for the education needs of the children in Haiti. If not, maybe it will bring the headband back into fashion.

Starbucks launched its (RED) campaign in the U.K. and Ireland this week — donating 5p/5cents for every purchase made with the promotional (RED) Starbucks card. And remember the cool (RED) tumbler? It’ll land you a 25 cent discount every time you use it at the store instead of using the paper cups. The tumbler costs £9.95/€12.00 with £3/€3 being contributed to the Global Fund to help eliminate AIDS in Africa — a much higher donation ratio (25% in €) than the US campaign I reported here which was only 6%.

The program will run through 31 December 2010. Check out the promo video for the launch:

Here’s your Daily Brief for October 15th:

A New Look At African Competitiveness (via Brainstorm Magazine) – Dr. Malik Fal of Endeavor South Africa proposes that Africa’s infrastructure, health, and education challenges are not the real issues behind Africa’s economic development. He argues that “competitiveness is more about creating ‘unique’ value that productivity.”

Says Fal: “Africa’s mistake has been competing on basic factors like natural resources and cheap labour, which promotes poverty instead of prosperity.” … Fal states that economies prosper if the focus is on a pragmatic, strategic approach to create more value on the assets inherent in industries and firms.

I’ve stated in the past that I believe Africa’s unique situation — the demands imparted by an environment of poverty — can be a major driver of innovation. What Fal speaks of in terms of creating an added value, I think this can be achieved by firms focusing on social value. The world is getting fed up with the poverty that exists in the 21st century, and I think a simple “Made in Africa” label on a product that employs African labor and supports poverty alleviation in a way that is mutually beneficial, is an added value in and of itself.

Social Entrepreneurship Gains Ground at Business Schools (via WSJ.com) – Social Entrepreneurship has made recent strides in the mainstream media, most recently with this article in the WSJ. It takes a look at the growing number of MBAs seeking to integrate social value into business. Because of growing interest in social enterprise by students, MBA programs are beginning to look at how to restructure their curriculums to assist this movement. What’s interesting is the debate over what is behind this movement:

Some administrators say it’s a generational progression of business-school students who have grown up more socially aware. Others say a lack of traditional jobs has spurred an interest in entrepreneurial ventures—and the focus on societal impact is partly a matter of trying to escape the stigma of the “greedy M.B.A.”

Another point made is that a social enterprise may be more attractive for investors, particularly during this economic climate:

“Financing is tough for start-ups,” says Mr. Fairbrothers. “For investors to take a risk with you, it helps to have tangible social good coming from it, not just the promise of a fat IPO that will make everyone rich.”

B Lab’s first annual report: Much progress made, much work left to do (via Anne Field) – An update on B-Corps: More than 200 companies in 54 industries are certified as B-Corps!

One of the major discussions I was engaged in at SOCAP09 was on corporate structures. The main reason there is a need for a new corporate structure that accommodates businesses that go “beyond profit” is that company managers have what’s called a “fiduciary obligation” to maximize profits to shareholders. This is rooted in the law, which is rooted in flawed economic theory. This inhibits businesses from practicing discretion when it comes to social and environmental sustainability, because they can technically be sued by shareholders for doing so!

This raises an interesting question about the legality of corporate philanthropy, and is one of many reasons people like myself argue that companies should integrate “doing good” into their core business operations. The concept of cause marketing was born out of this thought:

Philanthropy accounts for less than 1% of corporate expenditures, where marketing accounts for around 15% on average. Through cause marketing, companies can increase their ROI by creating a more loyal customer base while the causes can tap into a much more vibrant source of funding.

Critics of cause marketing often argue that it is disingenuous, does not help the cause as much as giving would, and in some cases hurts the cause more. Here are some critiques that I heard last week at SOCAP:

• Ethos Water, a company that sells bottled water and donates millions toward water sustainability projects worldwide, is doing more harm than good. Selling bottled water is the worse thing you could for the environment.
• The Starbucks (Red) campaign is nothing more than a marketing ploy. For what it costs to produce the (Red) tumbler, for example, only $1 goes to the Global Fund. If the cost of making the fashionable cup were simply donated, it would have a much larger impact!

The counter-argument is that causes are able to tap into lucrative consumer markets and generate funding from a source that otherwise is unlikely to “write a check and put it in the mail.” My post yesterday about the authenticity behind cause marketing and consumer education sparked a comment from Kevin Asuncion, who wrote, “I think consumer taste is shifting towards more socially and environmentally [sustainable companies] as more and more responsible players enter industries,” thus pushing companies toward being more authentic in their cause marketing and CSR campaigns.

I responded that, “one of the coolest things in the cause marketing space has been the fact that cause-driven consumerism has become fashionable, and it is the consumers that end up educating one another on why their brand (and their identity with that brand) is MORE socially responsible than the other. It sparks a good discussion that raises awareness and holds companies accountable.”

So how do you see it?

How big of a barrier to “doing good” is a company’s fiduciary responsibility to its shareholders?

Is cause marketing a more viable funding option for the causes themselves? Or is it exploitative?

I recently published a post on B-Corporations and the role they play in separating the socially responsible businesses from those that simply market themselves a such. “Cause Marketing” is a proven effective technique at creating a more loyal consumer base and earning a competitive advantage. Look at the (RED) Campaign and TOMS Shoes. With a (RED) Starbucks Card, you can help fight AIDS with every Mocca-Frappa-Latte you purchase! But to what degree is “Doing Good” setting a standard for Corporate Social Responsibility?

Here’s what Starbucks gives to the Global Fund through the (RED) program:

• 5 cents, every purchase on a (RED) Starbucks Card (through 12/31/09)
• $1, per $12 1lb bag of (RED) Coffee (8%)
• $1, per $16 (RED) Coffee Tumbler (6%)
• $1, per $20 (RED) Water Bottle (5%)

Of course with any philanthropic initiative there will be somebody saying, “but they could do more”. There’s always more to do. The question is, is there a point where cause-related marketing is “disingenuous”? Are firms, like Starbucks, using cause-related marketing to maximize their ROI while “giving” the bare minimum? If Starbucks were to register as a “B-Corporation”, would they meet the criteria?

A consumer looking to maximize their coffee-to-philanthropy ratio should probably look at Organic Coffee Cartel — a small social enterprise selling efficiently grown coffee purchased from small farmers in the developing world and giving 51% of profits to charity.

So here are some questions for discussions:

1.) How discretionary are consumers when it comes to cause/cause-related marketing?

2.) If consumers are utility maximizers, does social impact enter into their “utility function”; and if so, to what degree? Is it simply self-serving (eg. I feel good) or is it practical (eg. I maximized my investment)

3.) If the answer to the above two questions is YES, how can we generate broad-based consumer education on how to maximize their social impact?