Can Social Innovation be a sustainable business model? Nowadays, we do not simply rely on the government or NGOs for solving social problems. What can be done by a start-up enterprise or multinational corporation? How can Social Innovation be incorporated into their business practices? In this session, we looked at Social Enterprise in Asia, the opportunities and hurdles that exist, and the scalability of various businesses

1. Beyond Business as Usual
- Social Innovation as a Sustainable Business Model
Richard Brubaker
October 2012

2. Business As Usual Defined
1. Growth is the goal
2. Economic and Business Model are heavily subsidized
3. Externalities of models are someone else’s problem
4. Responsibility and Accountability are mutually
independent

3. The Reality
Economic
Performance
Sustainability Gap
Environmental Social
Performance Performance

4. Increased Tangibility of
Externalities

5. Shifting of Business as Usual
illegal Bad B.A.U. CSR Sustainability
Old B.A.U New B.A.U Sustainable
Leaders

6. Recalibrating Social Innovation
Traditional Definition of Where Things Get
Social Entrepreneurship Interesting
product/ service product/ service
revenue model revenue model
Profit Social Profit Social
Impact Impact
Event/ grant/ Event/ grant/
fundraising fundraising
revenue model revenue model

7. For Profit Social Enterprise?
product/ service
revenue model Core Characteristics:
• Exist because an issue of society, environment, or
economy exists
• Primary stakeholders include
Profit Social
Impact founders, investors, clients and society
• Clients may be society
• Secondary stakeholders are partners, government
agencies, and media
Event/ grant/ • Has a for profit business model
fundraising
revenue model • High percentage of profits are traditionally plowed
back into organization
• Founders / Investors CAN take dividends

8. Corporate With A Conscience
product/ service
revenue model Core Characteristics:
• Exist because a market opportunity exists
• Primary stakeholders include founders, investors,
Profit Social and clients
Impact
• Clients may be society
• Secondary stakeholders are partners, government
agencies, and media
Event/ grant/ • Has a for profit business model
fundraising
revenue model
• Profits and assets can be distributed
• Firm must create profits to sustain itself
• Legal and accounting regulations are clear
• Tax benefit only enjoyed through external
donations

9. Profit
? Social
Impact
1. What will this picture look like in 5 years? 10 years?
2. What firms / industry are going to see greatest pressure to change?
3. What forces (internal and external) will drive the change?
4. What will be the opportunities for niche players to scale?
5. What will be the opportunities for “traditional” firms to recalibrate?

10. “In the end, environmental, social and economic sustainability cannot be
separated. A sustainable planet must include a sustainable human
civilization – resilient human systems that respect the complicated
relationships among poverty, human rights, economic
development, environmental health, and human success”
- Institute for the Future, 2008
Richard Brubaker
rich@collectiveresponsibility.org
@ChinaCSR