Here’s your Daily Brief for December 9th:

Women at the BoP: what does it mean when your money belongs to you? (via Perspective 2.0) – Ownership is a critical step toward empowerment at the bottom of the pyramid. Advances in technologies, in this case biometric ID cards, will be the future of solving this problem.

The ever-growing business case for CSR/sustainability (via Business Fights Poverty) – Ian Berry takes a look at a recent survey of 250 global business leaders on CSR/Sustainability initiatives. Of those surveyed, 68% are using CSR as a platform for growth and differentiation to create new revenue streams. And 54% believe their CSR activities are giving them an advantage of their top competitors. (Full Report Here)

Rallying the World against “Blood Oil” (via Africa Business Source) – I posted earlier on the topic of conflict minerals in the DRC (with Appfrica’s wonderful use of Ushahidi data to visualize the correlation between conflict and mining). Today, this post from Africa Business Source shares the problem of “Blood Oil” in Nigeria — the “use of proceeds from stolen crude oil in financing international terror groups and domestic insurgents in Nigeria.” What is amazing is the magnitude of stolen crude oil — ranging from 100,000 to 300,000 barrels per day! Outside of the criminal uses of stolen money, there is an enormous lost opportunity cost to the people of Nigeria.

Nigeria’s Brain Gain – It seems that the rising unemployment rates in the US and the UK are driving native Nigerians to take up job opportunities available in their home country. We talk so much about brain-drain in the developing world, it’s interesting to see that the current economic climate is driving quite the opposite effect: brain-gain! (HT: Annansi Chronicles)

Here’s your Daily Brief for November 17th:

The School for Social Entrepreneurs: Scaling social entrepreneurship (or why many molehills make a mountain) – Many people are talking about “scale” these days – as it pertains to their individual enterprises and social entrepreneurship on the whole. This article presents 5 key points to be considered before focusing too much attention on the scale issue.

Secrets of Successful Social Intrapreneurs: Advice From Three Major Brands (via Triple Pundit) – One of the challenges I’ve come up against is that there aren’t many job positions available that focus directly on sustainability or CSR. This article presents advice from three corporate sustainability leaders on how to create your presence.

Bill Gates’ Plan for Fixing the World (via Mashable) – This post from Mashable takes a look at Bill Gates’ strategy for maximizing the social impact of his attained fortune. Through his foundation he has focused on investing in health and education — core investments that can yield tangible results and have a multiplier effect (healthy children learn better, learned children turn into an educated workforce, etc). This is definitely an interesting article to read.

Take a look at Bill Gates’ TED Talk on Malaria, Mosquitos, and Education (Yes, the one where he unleashed mosquitos on the audience!):

Here’s your Daily Brief for September 23rd:

Cause Marketing: Social Responsibility Is Dead (via GoodWorks) – In this article, Tim Sanders argues that Corporate Social Responsibility (as he defines it) died (or is on life support) in our current economic state. He argues that there is a need to fuse CSR and core business operations (an argument this blog has long advocated for). Tim writes:

Long live CSO: corporate social opportunities. CSO should be a marketing function, designed to seek out the cutting edge of brand innovation — where a company’s assets intersect with the greater community’s needs. When you find this match, you can produce a sustainable program that inspires sales while it makes a difference.

He cites two examples – Aveda:

Aveda Corp.’s joint venture with the Yawanawa tribe in Brazil is one example. The company’s founder, Horst Rechelbacher, heard a speech by a tribesman from Yawanawa at the 1992 Earth Summit in Rio de Janeiro about the group’s struggle to resist clear-cutting of their forests. Meanwhile, Aveda’s chemists in Minnesota discovered that uruku, a rain forest plant grown by the Yawanawa, provided a rich red-brown pigment for Aveda’s growing makeup product line. Inspired by the social opportunity, Mr. Rechelbacher fast-tracked an alliance with the Yawanawa and invested in a new city in Brazil called Nova Esperanca (New Hope) that would focus on producing a sustainable supply of uruku.

And Office Depot:

At Office Depot, the social opportunity came in a different arena: small-business development. The company has a practice of seeking out product suppliers that are historically underutilized businesses, or HUBs, for its customers. The company operates in tandem with the National Minority Supplier Development Council in picking HUBs to buy from and feature in the company’s product catalogs.

Cleveland inner-city office chair parts manufacturer Master Manufacturing is one of Office Depot’s HUBS, and another example of a corporate social opportunity. Master Manufacturing is run by Iris Rubinfield, who founded the company with her husband in 1951. She has her own CSO program, hiring underemployed people, such as single mothers. Her workers are loyal to the opportunity and make some of the finest chair casters in the country.

Office Depot was inspired by Master Manufacturing’s hiring practices, so it features the company prominently in its product catalogs and in promotions. Customers have responded to those placements, giving high share to Master Manufacturing over much larger (and cheaper) competitors. Over the last decade, the company’s business has grown exponentially, helping the company delve into new areas such as chair cushions and door stoppers.

Economic Crisis Demonstrates Corporate Social Responsibility (CSR) is here to Stay (via 3BL) – This article highlights some points gathered in a “State of Corporate Citizenship” survey of 800 senior executives, showing that “the recession has deepened the integration [of] corporate citizenship into the core of business strategy and operation.”

Highlights include:

• Despite upheaval in the economy, a majority of U.S. companies are not making major changes in their corporate citizenship practices. Of those who made changes 38% reduced philanthropy/giving, 27% increased layoffs, and 19% reduced R&D for sustainable products.
• Reputation was cited by 70% as a driver for corporate citizenship, tied for the top spot with “it fits our company traditions and values.”
• Most U.S. senior executives believe business should be more involved than it is today in addressing major public issues including health care, product safety, education, and climate change. Surveyed in June, just as the national debate on health care began to intensify, some 65 percent said business should increase its involvement in this issue.
• Large companies significantly increased their investments and involvement in citizenship activities, but were more likely to impose layoffs. Small firms stayed committed to their emphasis on treating employees well by minimizing layoffs. But they significantly decreased attention to other aspects of citizenship.

On The Eve of CGI, A Secret Meeting with President Bill Clinton (via Social Edge) – Co-Founder of Zenzele Circle, Magogodi Makhene, wrote this great piece describing a “secret meeting” with President Clinton prior to the kickoff of CGI. One of the questions asked President Clinton was about social innovation and the role of business in Africa. Here’s what Magogodi tells us about President Clinton’s response:

Clinton spoke about a need for business to bake social investment into its model beyond and instead of giving out cash.  When I asked how do businesses do this, he gave the example of Coca-Cola in South Africa.  At the outset of the HIV/AIDS pandemic, the company was among the first in South Africa to offer free HIV/AIDS tests to all employees.  The company encouraged an open environment and investing in the health of its employees because it recognized that it “wanted more Africans to live, to drink more Coca-Cola”.  
”It’s good business.  We have to broaden the notion of what it means to be an effective corporate citizen”.

The President also spoke favorably about the Office of Innovation, “I like it”, but made no further comment about its perceived impact.  It would be interesting this week to get a sense of the role social entrepreneurship can play as a stop-gap for government shortfall on service delivery, especially in developing African economies.  The Founder of South Africa Private Equity (SPESA), Kojo Parris–who will speak at the Africa Social Enterprise Forum Saturday September 26 at the Desmond Tutu Center–has some interesting thoughts about the application of African social entrepreneurship in this regard.

Here’s your Daily Brief for August 26th:

“An idea whose time has come” (via Acumen Fund Blog) – I enjoyed this piece written by Chris Bennett, a rising senior at Stanford and recent participant in Acumen Fund‘s Student Leader Workshop. The Workshop is an awesome opportunity for students to interact with the social capital movement and take the lessons learnt and experiences back to their college campuses to build greater awareness and engagement in social enterprise and social capital markets.

Chris cites Seth Godin’s speech, which I’ve embedded below. Godin’s primary point is that the most important step in an entrepreneur’s journey is “deciding.” And that very decision can add significant value in the countries where the entrepreneur’s business operates and in the overall spectrum of social capital markets.

50 (plus 1) Great Sites For Corporate Social Responsibility and Sustainability (via Business Fights Poverty) – Here’s a nice collective list of sites and resources relating to Corporate Social Responsibility (CSR).

Here’s your Daily Brief for August 3rd:

US Africa Trade on Exhibition at 8th Annual AGOA Forum (via Africa Business Source) – A nice overview of this weeks AGOA forum. Makes the good point that the issue needing MOST focus is no longer market access, but rather building up the competitiveness of African Countries by addressing infrastructure, information sharing, and capacity building.

Coca-Cola Enterprises Joins Carbon Footprint-Cutting Race (via Triple Pundit) – Coca-Cola, one of my favorite companies, has pledged to reduce its carbon footprint by 15% by 2020.

What Western Executives Should Learn About Design Thinking in Emerging Markets – This is an article from back in March by John Hagel and John Seely Brown, both from the Center for Edge Innovation at Deloitte. They look at the case of Tata Motors, which released a car called the Nano which was a “disruptive innovation” in the developing world car market. It’s a great piece, and at the end they list four key points (or “broader lessons”) to be learnt.

Maker Faire Africa in 2 Weeks (via WhiteAfrican) – Erik Hersman posted a preview of what to expect at the upcoming Maker Faire Africa – “a celebration of African ingenuity, innovation and invention” – in Accra. Check it out!

Kiva.org: July: 2nd biggest month of lending ever! – Despite (or maybe IN spite of) the global economic recession, Kiva announced today that July posted the second highest lending numbers EVER through their site! The highest month EVER you ask? JUNE! This comes off the back of five (5) very strong months of lending ranging from $3.8 Million in February 2009 to June’s record $4.9 Million. This is awesome, congrats KIVA!

• Video of The Philanthropist Debate (via Tactical Philanthropy) – Sean posted video on his blog of a debate held recently in Washington, DC over the TV show “The Philanthropist”
• Kenyan Gov’t Promises Reforms on Private Sector – President Kibaki has promised reforms on the private sector (particularly SMEs) designed to reduce red tape, increase transparency, and encourage business as a stimulus to economic development! Great news!
• Making the B List (via Stanford Social Innovation Review) – A great overview of B-Corporations, through the lens of Numi Tea!

I’ve been meaning to write this post for some time now, however the launch of Transparency Solutions has been quite time consuming. So with no further ado, per the request of a reader: A look at B-Corporations!

I was first introduced to B-Corporation (B standing for benefit, and B-Corp for short) a few months ago at the Global Engagement Summit by ­­­­Alex Michel of HubSF. Part of what Transparency Solutions seeks to do is certification of businesses and organizations in the developing world that comply with certain standards of accountability and transparency. Alex had suggested I take a look at B-Corp as an example/model of an organization acting as a certifying agent.

Being a “B-Corporation” is not a legal status of incorporation (yet), but more a symbolic recognition that a business meets and applies, “comprehensive and transparent social and environmental standards,” set forth by B-Lab (the non-profit organization that runs this whole thing). Beyond the “symbolic recognition” – designed to support consumer-driven change, B-Lab is working on pooling exclusive resources and investment opportunities for registered businesses.

What Makes a B-Corporation?

To become a certified B-Corporation, a business must first complete a survey measuring its procedures and protocol against standards of social responsibility set by B-Lab. Certified B-Corporations must submit documentation validating approximately 20% of the questions on the survey. Additionally, 10% of B-Corporations are audited every year – creating a one in five chance of being audited within the corporation’s two-year term.

After the survey is complete, B-Lab asks for an incorporation of its “Legal Framework” into the company’s governing documents. This Legal Framework calls for the consideration of both short-term and long-term prospects and interests of employees, suppliers, customers, and the community in which the company or any of its subsidiaries work.

Businesses then sign a “Term Sheet” – an agreement with B-Lab that certifies their relationship. Additionally, the organizations signs a “Declaration of Interdependence” – which reads:

We envision a new sector of the economy which harnesses the power of private enterprise to create public benefit. This sector is comprised of a new type of corporation – the B Corporation – which is purpose-driven and creates benefit for all stakeholders, not just shareholders.

As members of this emerging sector and as entrepreneurs and investors in B Corporations,

We hold these truths to be self-evident:

That we must be the change we seek in the world;

That all business ought to be conducted as if people and place mattered;

That, through their products, practices, and profits, businesses should aspire to do no harm and benefit all.

To do so, requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations.

Benefits of Being a B-Corporation

Certified B-Corporations are able to be recognized for their corporate values and focus on social responsibility. It gives support to the growing number of social enterprises out there, who have substituted maximizing profit and short-term returns to shareholders as their driving motivation, for effecting social change through business and maximizing general long-term and sustainable welfare.

Those values are incorporated in the company’s governing documents, and transparently accessible through the B-Corp Community website.

This third-party voice allows organizations to show that they fully embody these values, not just market themselves as socially responsible.

It also allows companies to join a community of change-driven entrepreneurs, consumers, and investors.

The Future of B-Corp

B-Lab hopes to see B Corporations become legally recognized by states, given tax preference by the IRS, and be given increased recognition and preference by consumers. The more companies that sign-up, the closer this vision can come to achieving reality.

I’m looking forward to seeing where this goes!

B-Corporation Video

Given my affinity to posting videos, this post would be incomplete without:

Side Note:

Andrew Kassoy, one of the founders of B-Lab, will be a speaker at SOCAP09. I’ll try and meet up with him there and will post anything new I learn!

This video is taken from the BBC series “The Other America”, which focuses on poverty in Latin America. The short documentary explores three companies (Dole Fruit, CEMEX, and Perhusa Coffee) and their programs designed to integrate the poor into their corporate value chains.

From the BBC site:

“It is not about philanthropy or giving away resources,” says the boss of one of the world’s largest multinational cement companies, when asked what his company is doing lending money to the poor to build houses and supplying them with building materials.

It’s turning a profit on the deal, and it’s not the only one: multinationals growing bananas, coffee, and producing chocolate are not just selling to the poor but working with them.

Several interesting points arise from the video:

CSR Can Help Companies Achieve Their Bottom Line

The example of Dole Fruit illustrated the company’s 300% increase in productivity. Through “patient investment”, CEMEX reached a market that normally would not be able to afford their product – and given Kiva’s repayment rate on microloans of 99.7%, CEMEX is likely to experience similar repayment. And Perhusa was able to reach the growing high demand for niche “organic” coffee.

CSR Should Empower Local Workers and Communities

The Dole banana farmers, after receiving the technical assistance and the opportunity, saw a 30% rise in their productivity levels, an increase in profit, and the cultivation of a higher quality product that allowed them to export to new markets for more money. The man in the video’s son was subsequently able to attend school, the family moved into a larger house, and this all allowed them to expand the space on which they raised livestock.

The CEMEX example allowed families to use the larger space in their new homes to open home-based small businesses. And women were empowered by assuming control over marketing.

CSR Is Not Always Welcomed With Open Arms

Of the 150 farmers that attended the Dole introductory meeting, only seven opted into the program. The video mentioned the “Residual suspicion that big business behaves like a colonial power.” But when you engage and integrate the community into your company’s “value chain”, you provide a sense of ownership and pride. Others will eventually follow.

For more information on Dole and CEMEX, visit:

• Dole Fruit CSR Site
• CEMEX Sustainability Site

There’s a new organization that has really caught my attention lately: ColaLife. Simon Barry is the mind behind the project designed to leverage the preexisting distribution networks of Coca-Cola (previously mentioned here) to deliver what he’s calling “aidpods” – essentially packages filled with medicines ranging from anti-malarial to anti-diarrhetic medicines that seamlessly fit into the crates of Coca-Cola being distributed throughout Africa. ColaLife recently secured an arrangement with Coca-Cola to run a pilot-program (likely in Tanzania) in the coming months.

From the ColaLife Blog:

Coca-Cola’s response to the Business Call To Action has always been tightly [sic] focused [sic] on growing Coca-Cola’s core business in Africa but doing this is a way that maximizes [sic] impact in terms of the alleviation of poverty (see a fuller explanation here). However, last night, Euan made a specific reference to ColaLife and stated that they wanted to go beyond their original intention and look at the opportunities for social marketing and the distribution of  ’social products’. This is a big step for Coca-Cola and the campaign and in the right direction.

I’ve already mentioned the power of Coca-Cola’s distribution networks in terms of developing a complementary industry to their primary operations. It’s very interesting to think about how, now, social entrepreneurs can build off of these preexisting distribution networks to get much needed supplies and aid to communities previously not easily accessible.

For more information on ColaLife:

• Visit their website: http://www.colalife.org
• Join their Facebook Group

And here is a quick YouTube video: