A blog about marketing, causes and a variety of topics in the “goodsphere”

Category Archives: Social Entreprenuers

Hello Rewind

If you get the chance, check out Hello Rewind.   This young group takes old T-shirts and turns them into cool laptop sleeves.

After my house was recently broken into, I had an incentive to throw all the rest of my old stuff out (what was left of it anyway).  In the process, I realized that I had a lot of old T-shirts that had sentimental value…but were on their “last legs.”  So, why not turn them into something like a laptop bag?

Fast Forward a couple of years

I really like the T-Shirt Art recycling idea.  Admittedly, I already have a functional laptop cover, but I could think of loads of ideas for old T-shirt products.  I’m hoping that Hello Rewind gets some traction & then moves beyond Laptop bags.

And a good cause embedded as well…

Hello Rewind is working to employ victims of sex crimes in the production of the laptop bags.  The team works with women formerly sex trafficked in New York City so they can learn new skills and support themselves.

By purchasing a Hello Rewind laptop sleeve, you help sustain their mission.  So, if you are in the market for a laptop bag, check these guys out!

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A week that simply blew me away

Like many of you, I was horrified, inspired and amazed at different times throughout this tragic week.

Horrified:  Watching the horrific tales of desperately trapped people unfold during the Haitian earthquake was gut wrenching.

We’ve all seen tragic events unfold on TV over the years & we’re used to seeing graphic coverage.  But what was it about this specific disaster that gnawed at me so hard?

Was it watching the poorest country in the W. Hemisphere get hammered by a disaster (again) & then being reminded that the country has more or less been exploited/abused since it was founded?

I don’t know…

Amazed: Watching how new technology galvanized the aid effort was amazing.  Mobile donation campaigns, Twitter updates, Video uploads, remote people identification methodologies via crowdsourcing…wow.

The Extraordinaries, a crowdsourcing social venture, worked around the clock after the quake hit to adapt their tools to enable people to help identify missing persons.  2,000 volunteers have been sorting through thousands of photos taken by journalists, relief workers, missionaries & anyone else documenting the crisis on the ground.

Check out the site at http://haiti.beextra.org…what an empowering tool!  Today, we can even donate our time to help people in a remote crisis (not just reach for our wallets).

Inspired: Watching so many good people go down to Haiti to help was inspirational.

Speaking of inspiration…it was also Martin Luther King day this week.  So, as I was going through a couple of his speeches online, I came across a great post from Change.org about King’s 1967 speech to the SCLC.  I liked it so much that I’ve copied it below for you (with a couple of modifications for brevity) to help reflect on Haiti & where we go from here.

By 1967, the triumph of the 1964 Civil Rights Act had had time to sink in, and the challenge of addressing poverty and injustice during a rapidly escalating war was leading to increasingly radical activism. The 1967 SCLC address was King’s chance to boldly affirm his positions on economic justice, nonviolence and power.

“Audacious Faith In The Future:” King begins his speech with an affirmation that true freedom can only begin on the inside, and that as long as people – in the case of this speech, the African-American population – remain slaves to the limits of their own self-conception, they can never be truly free. He wrote:

No Lincolnian Emancipation Proclamation or Johnsonian Civil Rights Bill can totally bring this kind of freedom….the Negro must boldly throw off the manacles of self-abnegation and say to himself and to the world, “I am somebody. I am a person. I am a man with dignity and honor. I have a rich and noble history. How painful and exploited that history has been. Yes, I was a slave through my foreparents and I am not ashamed of that. I’m ashamed of the people who were so sinful to make me a slave.”

This is the part of the speech that I believe brings up the most important questions we must ask ourselves as we ask about the state of our moral universe and where we go from here.

What does a child believe he or she can be?

What about n Iraq? In Haiti? On the south side of Chicago?

They are owed, at the very minimum, the plausibility of their own triumph.

My great fear today is that we are beginning to lose faith in the future. This economic crisis has destroyed ten years of economic progress in America, we’re told. A generation of Americans is expected to have a shorter lifespan than its predecessor, largely because of our addiction to cheap food and our broken health care system. And in most parts of the world, the story is worse.

If we let this be the story of our time, we will cede the optimism that even in our darkest hours has aimed our compass towards progress. This is why I spend so much time telling a different story – of an entrepreneurial spirit that believes and acts as though all people have agency; of a global generation that is coming into its own as a force for good in the world; of the people who are quietly building the infrastructure for a more just tomorrow.

Because what King knew was that, in the long run, the contradictions of this nation and indeed – of human nature – could not stand in the way of the boldness of our experiment in liberty, equality and creativity. He believed that when you give people the foundations to be successful, they usually are, and that when you give people the chance to be good – to themselves and to others – they usually will be.

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Danone: Building a socially focused multinational

NEW YORK - SEPTEMBER 26:  Microfinance pioneer...Image by Getty Images via Daylife

When Nobel prize winner Muhammad Yunus, the father of microcredit, gets fired up about a big idea, things just seem to happen.

A couple of years ago, Yunus, best known for his revolutionary microcredit big idea that launched Grameen bank and lifted millions out of poverty, partnered with Danone to begin his latest innovation–a social (multinational) enterprise.

Social business is not a new idea…but embedding a “social unit” into a traditionally profit focused Global Consumer Goods company is pretty new.

Yogurt to the rescue

Back in 2005, Yunus and Danone CEO Franck Riboud met in Paris.  Yunus asked Riboud if Danone would come to Bangladesh and build his first social business enterprise. Riboud said yes and the idea of selling yogurt via Grameen Danone was born.

The Plan

The yogurt was priced affordably at 7 cents per unit and Danone fortified the mix with vitamins in order to help curb malnutrition.  All the profits from the joint venture with Grameen were reinvested in the operation. According to this comprehensive 2007 CNN article about the venture, Danone only planned to take out its initial cost of capital, about $500,000, after three years.

The entire model works to advance social good in the region.  The factory is supplied by cows from Grameen microborrowers, and Grameen microvendors (typically entreprenurial sales ladies) sell the yogurt door to door.  Danone estimates that it will provide income for 1,600 people within a 20-mile radius of the plant. Biodegradable cups made from cornstarch, solar panels for electricity generation and rainwater collection vats make the enterprise environmentally friendly. (again, see the CNN article for details)

New markets?

Clearly, every big consumer oriented company is looking for growth and innovative ways to get their brand(s) into emerging markets in unique ways.  So, critics might look at this case cynically and say that over time the social (and locally integrated) model will probably morph into a pure profit play for the giant multi-national.  I prefer, however, to think about this as an excellent experiment that helps create jobs and opportunity in a completely neglected region.  I am impressed by Danone’s willingness to think differently about business within a multi-national.

New metrics?

Another part of the experiment for Yunus and Danone is about figuring out how to measure all this social good and getting business leaders and investors to think about success differently.  Instead of focusing solely on rev./profit metrics, Yunus has pushed the organization to consider the # number of children rescued from malnutrition, etc.  The Grameen Danone website currently notes that the project will also be judged on non-financial criteria: the number of direct and indirect jobs created (milk producers, small wholesalers, door to door sellers), improvements to children’s health, protection of the environment etc…

This is a valiant, but tall, order (especially in today’s climate).  It is tough for most operationally minded business people to see success beyond the standard metrics, however, I would put my money on Yunus  finding a way over time.

A model for the future?

Hats off to the folks at the Danone.  They have chosen to partner with a proven social entrepreneur, who has proven that he can do good through the power of business.  No doubt the partnership with be a huge learning opportunity for Danone.  If it is successful, it will be 1 step ahead of competitors. The partnership  seems to be a real win/win./win  Danone learns how to serve some of the poorest consumers in the world.  Grameen learns how to work with a multinational (and expands to consumer products) and the bottom of the pyramid consumer gets a product they can afford that provides key nutrients.  In addition, this “proximity based business model” is deeply integrated into the local economy, helping to grow independent businesses

Time will tell if Yunus’s hypothesis–that companies can raise “social capital” and invest it in sustainable businesses without a profit motive–will work, enabling new reach into emerging markets and allowing for the expansion of core multi-national businesses + improving lives.  One thing is for sure, if the venture works and is scaled rapidly across the region, Danone will be a role model and others may seek to replicate the model around the world.

P.S.  If you have not read Yunus’s book on social entrepreneurship called Creating a World Without Poverty,  go check it out…

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Stepping out of a comfort zone…TOMS Shoes

Over the weekend, I stepped out of my comfort zone and bought my first pair of “bio” shoes.  I picked up these Converse “look alikes” from The Natural Shoe Store.   Admittedly, I had no clue about the manufacturer, but trusted the Natural Shoe Store to carry sustainable lines. Just a week after settling into my bio shoes, a short TV spot reminded about the great work that TOMS Shoes is doing.  I have wanted to write about TOMS for a very long time, but just never got around to it…so here goes.

TOMS Shoes has a very simple, but powerful & single minded cause related marketing idea built into the very fabric of their overall brand equity…for every pair of TOMS Shoes you buy, TOMS donates a pair of shoes to a child in need.   Effectively, TOMS uses Cause related marketing as a continuous and ongoing activity, building purpose into everything that they do.

TOMS, as a company, is entirely set up to drive a singular social benefit; the ‘social thing’ is not just an add-on (see ClearlySo for further info on social businesses).  TOMS is profitable (from what I understand) and is simply making an impact every day.  What is interesting about TOMS is that they don’t have to think up new social benefits when they roll-out a new initiatives.  When expanding to coats or whatever, they can simply stand behind their strong “like for like” donation idea.  I thought they would do this for their shirts, hats, etc., but for the most part they still donate 1 pair of shoes if you buy any of these items (though in the case of the skateboards, they also give an equivalent skateboard).

Why TOMS works

1.  The consumer is the winner & is part of the solution:  TOMS puts the consumer in focus & makes the consumer the hero for buying a pair of shoes.  TOMS simple idea makes you feel like you are helping children instantly.

2.  Enabling people to live the cause and take part:  TOMS does a great job of deeply involving people in the cause.  Friends of TOMS is a non-profit that is integrated into the overall TOMS website.  Friends of TOMS coordinates volunteer experiences around TOMS “Shoe Drops”.  If you want to organize your own shoe drop within your organization, Friends of TOMS can help you there as well.

3.  TOMS Customer Story:  This is just a guess, but TOMS seems to have done a pretty good job at selling their story with key customers.  For a social start-up, they seem to have relatively strong distribution after only a couple of years in market (the first line of shoes apparently started shipping in 2007). All to often we forget how important the customer story is…it seems like TOMS found a way to convince retailers on the proposition and I am guessing that this has been critical to their success.

4.  Strong online WOM and community:  TOMS seems to have an active online community and they do a good job in participating actively in key online social channels.  Their blog is regularly updated as well.

5.  Authentic leadership:  I don’t know much about TOMS, but when I saw founder Blake Mycoskie’s interview on TV…I must admit that I was impressed with his passion and vision.  It felt like this guy really was focused on the social good piece of his business.

So, after writing about TOMS and spending a few more minutes looking at their site, I think I will put them on my purchase list.  Perhaps my blue “bio” shoes will not last too long & I will need to pay TOMS a visit sooner than I think.  Strangely I didn’t see TOMS in the Natural Shoe Store.  Maybe I missed them…?  Hopefully they are working the enviro side of their story…it would seem like a natural fit for the brand.

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Could Amazon.com be doing more of this?

The eCommerce wiz kids seem to be back on their game…Amazon’s kindle is RED hot right now and if the economy wasn’t so horrible, you might be forgiven for thinking it is 1999–the year Jeff Bezos was Time magazine’s person of the year.

Having said all that, when I wanted to order a book tonight…I didn’t go over to Amazon.com.

Don’t get me wrong, I am a hugely loyal Amazon.com customer.  Unless I need something ultra specialized, I pretty much always buy my books (and occasionally other items) at Amazon.com.  They have always been incredibly reliable and I really don’t have anything at all to complain about.

But tonight I wanted to try out the services of Better World Books instead of Amazon.  Better World Books is for profit online bookseller that shares its revenues with world changing literacy initiatives. Check out their blog here.

It is easy to go over to BWB and make an average, run of the mill new book purchase–just like you would if you were on Amazon.com.  But the magic of this venture lies in the grassroots book drive approach…BWB connects to libraries and colleges seeking to donate used books.  The used books are then either i) sold online ii) donated donated directly to non-profit partners or iii) recycled.  If the books are sold online, BWB donates 10% of the proceeds to literacy partners.

Beyond the outstanding social mission, BWB has a strong consumer value proposition.  In the U.S., BWB provides free shipping…and for those of us living overseas, shipping runs up to a mere $3.97.  Of course, every order that gets shipped is carbon neutral with offsets coming from Carbonfund.org.

Better World Books is a triple bottom line company, meaning it seriously considers its impact as a company in terms of people, planet, and profit.  It is also a certified B corporation which I have written about here.

Amazon.com is obviously aware of BWB and the buzz it is starting to generate around the blogosphere…so will they start to leverage a few of the good social ideas from BWB moving forward?

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Separating the “good” marketers from the really “good” companies?

Have you heard of a B corporation?

The good folks at B Lab have developed a new certification that will supposedly help to separate the companies who are really, really trying to “walk the enviro & social talk” from those that are just playing the green marketing game.  The certification process is basically an audit of a company’s operating practices to provide a standard for Corp. social responsibility claims.  To date, they have certified 100+ small/mid-size businesses as B corporations.

As there are already certifications and standards out there (and none seem to have really done that well)…what makes a B corporation any different?  Well, it does seem that a B Corp. cert. requires a company to go a bit farther than normal.  As a recent Financial Times article points out:

“A B Corp has what co-founder Jay Coen Gilbert calls a “gut check”. Having scored sufficiently high on an initial survey, a B-Corporation must then amend its articles of incorporation to require its board to take into account the interests not only of shareholders, but of “current and retired employees, suppliers, customers” and “the communities and society” in which it operates.”

So, the B corp “stamp of approval” requires companies to actually amend their articles of incorporation to embed their core values into the company…nice.

In addition, it seems that B Lab asks companies to sign up for a pretty expensive process -(annual license fee of 10 basis points of sales).  But, the founders are banking on the idea that this certification could finally help folks separate the good marketing from the good companies (as the mentioned on their website).

This is a pretty good idea and it has some heavy hitting investors behind it (e.g. Rockefeller Foundation).

If you get 5 minutes, hop over to the webpage.  And check out their Declaration of Interdependence in the about me section.  I really like their vision of a new, more sustainable world and I wish them all the best in getting this movement going.

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How can a marketer leave consumption behind?

Just how overrated is consumption?

Gaurav Mishra is trying to answer some pretty heavy questions about the nature of consumption in his blog to book experiment, The Marketer Who Went Off Consumption.

As global warming breathes down our collective necks and we enter “the age of responsibility” we should all probably question our consumption habits. Do we really need all this things?  Why does XMAS now just have to be about the gifts?  What if we all really made a commitment to just live a bit simpler & unclutter our lives?

Gaurav believes that “owning, buying, hoarding” is shifting into a experience, share/exchange/giving mindset.

At times in my life I have lived pretty lean.  During my days at West Point, I basically survived with a radio, computer & a bed.  Once you live like this for a few years, you realize that you really don’t need much.  My wife sometimes jokes that I could probably live like a monk and not have a problem…though we live relatively lean in Europe right now, we could certainly still clear out about half of our stuff and be just fine.

I am interested in hearing more from this “Amish marketer:” Keep going Gaurav…

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Facebook serendipity & One Acre Fund

How are you using Facebook today?  Though Twitter & FriendFeed are much more “real time”, and seem to take the one to many communication revolution to the next level, Facebook is still a place where you can catch up with old friends, or connect to new like-minded people (if they are open to connecting on Facebook).  On Facebook, you can also share a little bit more content (e.g. pictures) beyond just your “up to the minute” thoughts.

Just recently I connected with John Yi, an old friend from my West Point days, on Facebook…after our connection, I learned that John is on the board of One Acre Fund.  One Acre Fund is a relatively new & innovative non-profit that is re-thinking the chronic hunger problem in Africa.  Instead of giving “hand-outs”, One Acre provides families with a tiny investment package (think micro-credit) that enables them to grow their own way out of hunger.  John told me that with $240 worth of qualified seed, hand tools, and training, One Acre Fund can double a farmer’s income in 12 months and have them afford to pay the Fund back (with interest!)  After only 2 years out of the gate, 2000 families have been served and the young organization is closing in rapidly on fiscal sustainability.

Under the leadership of founder Andrew Youn, One Acre Fund has quickly gained credibility within the social entrepreneur community by winning both the Stanford and Yale Social Entrepreneurship fellowships and by gaining support from the Draper Richards Foundation.  As always, however, more resources are needed in order to help One Acre Fund achieve its lofty goals over the next 2-3 years.  Click here to join Andrew, John and the rest of their team in stopping chronic hunger in Africa now.

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More web 2.0 sites popping up around “cause”

I just stopped by one of my favorite cause related marketing blogs…aptly titled Cause-Related Marketing.  Paul Jones does a great job of covering cause related marketing campaigns.  I suggest you check out his blog.

Today, Paul talks about some cool new cause related web 2.0 sites that could use a little network effect love.  So, I am doing my part to link to the them this evening…go on over and check them out.

Good2gether: This is a very interesting idea (my favorite of the 3) led by serial entrepreneur Greg McHale.  Currently, many of the 1.5 million non-profit websites out there don’t get much traffic & suffer from a lack of awareness…Greg is trying to solve this issue via a widget provided to media outlets (e.g. newspapers). When a story pops up around a crisis event (e.g. Chinese earthquakes) the widget will provide links to local nonprofit resources helping to battle the issue.  If a user clicks on a link, they are directed to a page where they can get more info about the non-profit…cool idea, I will put Good2gether on my watch list

Just Cause:  A “social networking with a purpose site”.  JUST CAUSE is an integrated media property with a  national print magazine, an interactive online community site, and community events.   I am a big fan of Good Magazine and its online site + print pub…it seems Just Cause will try to differentiate via the creation of community & a more local focus.

uPlej: In Paul’s words, a fundraising company that uses the power of a networked downline to raise money for charities.

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Amazon’s associates; Geneva’s spectacular small library; Room to Read

Yesterday I was playing with Amazon widgets and stumbled across the Amazon.com Associates Program. As far as I understand the program, bloggers can refer their traffic to Amazon and if a purchase is made from the referral, then the blogger gets to pocket a small %. When you join the program, you can choose to receive the money via 1) gift cert. 2) direct deposit or 3) check. I joined the program via gift cert. and will be donating 50% of every sale generated from this site to the excellent Room to Read charity via a gift in kind. Room to Read was established by John Wood, the guy who left Microsoft to Change the world. John’s social entrepreneurship story is fantastic & he is responsible for the establishment of around 5100 libraries worldwide–highly recommend you check out his book. Mitch Joel interviewed John here.

All this talk about libraries, reading and Amazon got my wife and I over to see one of the best private libraries in the world on a cloudy Geneva Sun. (no more rain, please). Over in a small, super wealthy part of town, the Fondation Martin Bodmer holds some of the world’s literary treasures…like a copy of the Gutenberg Bible.

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