Yeni sosyal sorumluluk anlayışı: "Sosyal İyilik" / JWT

1. SOCIAL GOOD
SEPTEMBER 2011

2. TABLE OF CONTENTS
Executive Summary ...................................................................................... 3
Social Good .................................................................................................. 5
The End of Goodwashing ........................................................................ 6
The Rise of Shared Value ........................................................................ 12
Things to Watch: Buy One, Give One Away ............................................ 18
Creative Urban Renewal ........................................................................ 19
Ripping a Page From the For-Profit Playbook ............................................ 27
The Global Do-Good Generation ............................................................ 32
Things to Watch .................................................................................... 35
Gaming for Social Good .................................................................... 35
Beyond Slacktivism: Incentivizing Online Engagement ............................ 37
Donation Channel Innovation ............................................................ 38
Case Studies ........................................................................................ 41
Appendix ........................................................................................................ 44
Learn More About Our Experts and Influencers .............................................. 45
Additional Charts .......................................................................................... 49
A note to readers: To make the report easy to navigate, we’ve added hyperlinks to the Table
of Contents and Executive Summary, so you can jump immediately to the trends that most interest
you. We’ve also added summary pages of each trend where, again, you can click items on the pages
to jump to more information (or alternatively, you can read the material straight through).
This is a report from JWTIntelligence. Go to JWTIntelligence.com to download this and other
trend research.

3. SOCIAL GOOD
EXECUTIVE SUMMARY
With leaders of multinational organizations embracing socially responsible practices as good business strategy, nonprofits
taking a page from the for-profit playbook to drive results and a socially conscious generation coming of age, we’re seeing
new energy and increasingly innovative initiatives in the area of social good.
This report explores how macro trends—including the call for radical transparency, rapid urbanization and advancements
in technology—are influencing social good initiatives across the globe. For instance, expect less “goodwashing,” more
creative strategies for urban renewal and corporations embracing “shared value.”
• The End of Goodwashing: Cynical and savvy, today’s consumers expect greater accountability from nonprofits as well
as brands involved in cause marketing—e.g., exactly where the money is going and what impact it’s having. More
transparency will mean more focus on effecting real change and less “goodwashing.”
• The Rise of Shared Value: Rather than simply doling out checks to good causes, some corporations are starting to
shift their business models, integrating social issues into their core strategies. The aim is to create shared value, a
concept that reflects the growing belief that generating a profit and achieving social progress are not mutually
exclusive goals. By reconsidering products and target demographics, forging partnerships with local groups and
improving productivity in the value chain, companies can become a force for positive change while enhancing their
long-term competitiveness.
• Creative Urban Renewal: Human environments will become increasingly important as the global population becomes
more urbanized over the next few decades and cities boom. Brands will become key partners in enabling creative
strategies for urban renewal—improving local environments, adding beauty or helping to bring communities together.
• Ripping a Page From the For-Profit Playbook: Nonprofit organizations are increasingly adopting for-profit tactics,
fusing social consciousness with business acumen and focusing on achieving visible change. The shift from blanket
or black-hole benevolence to targeted giving and venture philanthropy places more emphasis on cause and effect,
measurable results and return on investment.
The four macro trends above represent the driving forces in social good today. In addition, this report outlines things to
watch in this space, including gamification, new ways to incentivize online engagement and donation channel innovation.
We also highlight a number of standout case studies from around the world.
METHODOLOGY
JWT’s “Social Good” report is the result of quantitative, qualitative and desk research conducted by JWTIntelligence in
partnership with EthosJWT, a unit specializing in brand strategy, ideas and activation for social change and societal
benefit.
JWTIntelligence and EthosJWT interviewed experts and influencers from the nonprofit and corporate social responsibility
sectors and conducted quantitative surveys in the U.S., the U.K. and Canada. The surveys used SONAR™, JWT’s
proprietary online tool, to poll 908 adults aged 18-plus from June 28-July 6, 2011.
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4. SOCIAL GOOD
EXPERTS AND INFLUENCERS*
David Belt
MIT
DAVID BELT, executive NATHAN EAGLE, founder VANESSA EDWARDS,
director and founder, and CEO, txteagle head of corporate
Macro Sea responsibility, WPP
TIM FAVERI, director, KIM FINN, vice president STEVE LEWIS, CEO and
sustainability and and managing director, co-founder, Living PlanIT
responsibility, Tim Hortons, Inc. EthosJWT, Toronto
IRA LISS, CEO and CHARMIAN LOVE, YAO-HUI HUANG, CEO,
co-founder, AOK chief executive, Volans Win4Causes
WALKER MORRIS, Malawi ALEXIS OHANIAN, co-founder, MILTON PEDRAZA, CEO,
country executive, Clinton Reddit; founder, Breadpig Luxury Institute
Foundation
TONY PIGOTT, president KRISTINE SHINE, vice
and CEO, JWT Canada; global president, PopSugar Media
director, EthosJWT; co-founder,
Brandaid Project
*See Appendix to learn more about these experts and influencers.
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5. SOCIAL GOOD
5

6. THE END OF GOODWASHING
DRIVERS TREND MANIFESTATIONS
}}
Consumer cynicism
More (and easier-to-digest)
Expectation of radical labeling and reporting
transparency (sustainability indexes, Tesco
Cynical and savvy, today’s green labeling scheme,
Starbucks Global
consumers expect greater
Reading the fine print Responsibility Report,
accountability from nonprofits as Apple’s environmental
well as brands involved in cause footprint, Patagonia’s
marketing—e.g., exactly where “The Footprint Chronicles,”
Social media Best Buy CSR and
the money is going and what
sustainability webinar)
impact it’s having. More
Competitive and transparency will mean more
government pressures focus on effecting real change
and less “goodwashing.” Benefit Corporations
taking a holistic approach to
More monitoring social good
organizations and
watchdogs
Digitally enabled
advocacy groups
SIGNIFICANCE/RELEVANCE
It’s no longer enough to simply claim virtuous actions after some token efforts. As consumers learn all they ever wanted
to know about the impact of their donations, volunteer efforts and cause-related purchases, brands and philanthropic
organizations will need to ensure their credentials are up to the scrutiny. This goes for internal operations as well as
partnerships. Better to acknowledge flaws in CSR programs and business operations—along with plans on how these
issues will be addressed—than to be found out by watchdogs or engaged individuals and have reputations smeared
across the media.
6

7. THE END OF GOODWASHING
TREND
Cynical and savvy, today’s consumers expect greater accountability from nonprofits as well as brands involved in cause
marketing—e.g., exactly where the money is going and what impact it’s having. More transparency will mean more
focus on effecting real change and less “goodwashing.”
DRIVERS
Consumer cynicism: Today’s consumers have seen plenty of “goodwashing,” or dubious
PR- or marketing-driven efforts, such as BP’s $125 million investment to position itself as
environmentally responsible prior to causing a catastrophic oil spill. So people are more
apt to question brands’ commitment to the causes they support: Just over half of
respondents to our survey agreed with the statement, “I’m skeptical of brands that are
Amy Phetamine
aligned with charitable/social causes; their efforts seem somewhat halfhearted.”
People have also seen nonprofits being taken to task—from Madonna’s Raising Malawi
to the foundation set up by Three Cups of Tea author Greg Mortenson—so they are
somewhat cynical about charities as well. For example, 88% of our respondents said they are “sometimes suspicious
about how much of the money I donate actually goes to people in need, as opposed to management and administrative
costs.” (See figure 1a; for country breakdowns, see Appendix, figures 1b-d.)
“Brands are becoming far more discerning about who to cooperate with in terms of
institutions. Madonna had a problem with her charity, and so did Oprah. So before brands
step in to sponsor a charity, it has to have impeccable credentials, have substance.”
—MILTON PEDRAZA, CEO, Luxury Institute
Expectation of radical transparency: With the rise of Maximum Disclosure—brands telling consumers more about
everything from calorie counts to carbon footprints—consumers are growing to expect greater transparency from the
philanthropic world as well. More than eight in 10 of our respondents agreed that “Brands that are aligned with
charitable/social causes need to do a better job of telling me how my donation is benefiting the cause.” And three-
quarters of our respondents agreed with the statement, “Brands and companies don’t disclose enough information
about their charity/social cause programs.” (See figure 1a.)
Reading the fine print: People are putting more time and energy into research—they are increasingly apt to seek out
more details about programs and brands that attract their attention and discover additional information about
environmental impact, business practices and more. Indeed, 55% of our survey respondents reported doing research to
learn how their funds are allocated before donating to a charitable organization; Millennials and Gen Xers are the most
diligent cohorts, with around 60% in agreement. (See figure 1a.)
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8. THE END OF GOODWASHING
Figure 1A: RISE OF CONSUMER CYNICISM AND
“My sense is that, with EXPECTATION FOR TRANSPARENCY (U.S., U.K., CAN)
the younger generation, Percentage who agree with each of the following
if they cannot read Millennials (18-33) Gen X (34-46) Boomers (47-66)
things about your
company on the Web, you have very
little credibility in their eyes. … It is
I’m skeptical of brands that are aligned
with charitable/social causes, their
efforts seem somewhat halfhearted
I’m sometimes suspicious about
53%
49%
55% } 52%
almost like they do not believe you
unless they can read it for themselves
and get comfort that someone out
how much of the money I donate
actually goes to people in need, as
opposed to management and
administrative costs
85%
87%
92% } 88%
there has blogged or given the issue Brands that are aligned with
the ‘Like’/thumbs up.”
–TIM FAVERI, director, sustainability and
charitable/social causes need to do a
better job of telling me how my
donation is benefiting the cause
86%
84%
83% } 84%
responsibility, Tim Hortons, Inc.
Social media: Facebook, Twitter and other social
Brands and companies don’t
disclose enough information about
their charity/social cause programs
71%
77%
77% } 75%
platforms have made it easy for anyone to become an I do background research to learn
agent of social change. With a quick click, activists,
watchdogs, thought leaders and average Joes can
exactly how my funds are allocated
before donating money to a
charitable organization 45%
60%
61%
} 55%
disseminate their perspective to the masses, bringing
varied points of view to light and limiting an
organization’s ability to gloss over less flattering facts.
I wish there was an easier way to see
the direct impact my time/monetary
donations have
86%
84%
83%
} 84%
Competitive and government pressures: Legal requirements and competitive pressures are forcing businesses as
well as nonprofits to more fully disclose everything from carbon footprints and labor practices to metrics charting a
charity’s effectiveness.
“We are being pushed by socially responsible investors and other stakeholders to measure the
‘impact’ or ‘outcomes’ of our social/community programs. I think this will be a big area of interest
and focus in the next few years.”
—TIM FAVERI, director, sustainability and responsibility, Tim Hortons, Inc.
More monitoring organizations and watchdogs: Third-party
charitynavigator.org
organizations are making it easier for people to find out more
about individual charities and how they stack up. Guidestar,
for instance, has aggregated information on more than 1.8
million nonprofits and 6.6 million people in the sector with
the hopes of getting organizations to share their information more “openly and completely.” Charity Navigator evaluates
more than 5,500 American charities based on their organizational efficiency and how well they sustain their programs
over time, while the more stringent American Institute of Philanthropy (billed as “the pit bull of watchdogs”) is on a
mission to “educate the public about the importance of wise giving.”
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9. THE END OF GOODWASHING
Aiming to build a more transparent marketplace, GoodGuide is a website that uses a staff of researchers (chemists,
toxicologists, nutritionists, etc.) to rate consumer products based on a wide range of criteria. Its mobile app allows
consumers to scan products and get instant ratings to help them “Find safe, healthy, and green products,” as GoodGuide’s
tagline states. In 2010, GoodGuide announced plans to build a portal where manufacturers can learn how to boost their ratings.
goodguide.com
Digitally enabled advocacy groups: Digital media is
helping advocacy groups reach a broader audience
with messages about avoiding brands that use
offending ingredients, unsavory labor practices and so
on. With so much information out there, these groups
help simplify issues for consumers while pushing
corporations to keep it clean. The Rainforest Action
Network, for instance, relies on aggressive marketing
campaigns against practices perceived as harming
rainforests and natural resources; its mission is to get
companies to “balance profits with principles, [and] to
ran.org
show that it is possible to do well by doing good.”
MANIFESTATIONS
More (and easier-to-digest) labeling and reporting: Some of the world’s leading brands are making the environmental
impact of their products and operations more transparent. At the same time, reporting is becoming more visually driven,
making sometimes complex information more digestible.
• Sustainability indexes: Since 2009, Walmart has been working with vendors to develop a sustainability index for all its
products. The retailer sells so many products and has such an extensive global presence that the initiative could
eventually be a tipping point for universal eco-labeling. IKEA recently announced a “Sustainability Product Score
Card” for its products, saying that by 2015, it aims to make the bulk of its home furnishing products more sustainable
than predecessor or competing products.
• Tesco green labeling scheme: Under this government-led voluntary program, the U.K.-based retail giant is working to
label the 70,000 products on store shelves with carbon emissions data. So far Tesco has labeled more than 500 products.
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10. THE END OF GOODWASHING
• Starbucks Global Responsibility Report: Among the annual
responsibility reports that companies publish, which
include updates on progress toward CSR and related
goals, some stand out for their ability to make the
information more digestible. Starbucks, for example, uses
a visually driven format to reveal its progress in the areas
of coffee purchasing and farmer support, community
involvement, cup recycling and energy and water
conservation; this is viewable under the Responsibility tab
of the company’s website.
• Apple’s environmental footprint: Apple’s website reveals its
greenhouse gas emissions and outlines the environmental
footprint of all its products in a visually appealing way.
• Patagonia’s “The Footprint Chronicles”: The outdoor-gear
brand details the environmental impact of its products,
listing “the good” and “the bad” for each (e.g., the Nano Puff
starbucks.com/responsibility
Pullover jacket’s water-repellent finish contains a “synthetic
chemical that is now persistent in the environment”).
• Best Buy CSR and sustainability webinar: In mid-2011, Best
Buy took a brave leap into transparency by hosting a
discussion of its annual sustainability report with a live
audience via Livestream and Twitter.
Benefit Corporations taking a holistic approach to social good:
While capitalism in the past century blossomed around the
idea of increasing shareholder value, a new crop of
corporations known as Benefit Corporations (or B Corps)
operates under recently adopted legal provisions that make
apple.com/environment
it easier to put sustainability and accountability at the center
of the business model. B Corps can legally consider all
stakeholders when making decisions, not only stockholders.
To become a B Corp, companies must be certified by B Lab, a nonprofit that evaluates a business’s operations and legal
framework to ensure that doing good is ingrained in the DNA. There are nearly 450 B Corps across North America and
the EU—including Method and Seventh Generation—and they generate $2.18 billion in revenue across 54 industries,
according to bcorporation.net.
“The answer is not to play ‘gotcha’ at the back end. The answer is getting in front of the problem
and preventing situations in the first instance.”
—TIM DELANEY, president, National Council of Nonprofits, “Can You Know
Where Your Charity Dollars Go? Not Easily,” npr.org, May 6, 2011
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11. THE END OF GOODWASHING
SIGNIFICANCE/RELEVANCE
It’s no longer enough to simply claim virtuous actions after some token efforts. As consumers learn all they ever wanted
to know about the impact of their donations, volunteer efforts and cause-related purchases, brands and philanthropic
organizations will need to ensure their credentials are up to the scrutiny. This goes for internal operations as well as
partnerships. Better to acknowledge flaws in CSR programs and business operations—along with plans on how these
issues will be addressed—than to be found out by watchdogs or engaged individuals and have reputations smeared
across the media.
POTENTIAL
With consumers on high alert, claims must be solid: Consumers will see through “goodwashing” and similar practices.
And transparency is essential too. It’s likely that simply being open will matter more to consumers than the specific
information revealed.
As more corporations spell out their CSR credentials and nonprofits more clearly illustrate their mission, it will become
increasingly important to practice Visual Fluency—that is, convey complex information in an easily digestible way. People in
today’s attention-scarce economy prefer a graphic synthesis of information to an avalanche of data and reading material.
Watch for more businesses to follow the lead of companies like Best Buy, which is opening up a two-way dialogue about
its CSR reporting; Patagonia, which divulges the shortcomings of its products in addition to their green credentials; and
Starbucks, which lets consumers easily check the company’s progress toward self-imposed CSR goals. Such efforts will
help companies differentiate themselves from the cacophony of CSR messaging.
Meanwhile, brands with the cleanest credentials can ramp up efforts to educate consumers about why they should care
and apply competitive pressure on organizations that have been slow to adopt the “Do no evil” creed or are still practicing
old-school philanthropy.
Brands that don’t become more responsible for their social impact and act more sustainably will lose ground.
11

12. THE RISE OF SHARED VALUE
DRIVERS TREND MANIFESTATIONS
}}
New opportunities in
emerging markets Rather than simply doling out
checks to good causes, some
corporations are starting to shift
Reconceiving products to
their business models,
Pressure to cut costs and address social issues
carbon emissions integrating social issues into (Campbell’s Nourish,
their core strategies. The aim is Philips’ “Sustainable
to create shared value, a concept Energy Solutions for
Blurring lines between Africa,” GE’s Vscan)
that reflects the growing belief
business, nonprofits and
government that generating a profit and
achieving social progress are not
mutually exclusive goals. By Reconceiving supply
Looming resource shortages reconsidering products and chains (Sabritas’ Educampo
target demographics, forging project, Marks & Spencer’s
“Plan A,” Walmart’s fuel-
partnerships with local groups
efficient trucks)
Consumer expectations and improving productivity in
the value chain, companies can
become a force for positive
change while enhancing their
The Millennial outlook
long-term competitiveness.
SIGNIFICANCE/RELEVANCE
By putting shared value at the center of their strategy, brands can benefit their business, their customers and society in
general. Companies should identify needs and develop products, services and/or processes to meet them; invest in the
charitable, nonprofit and/or NGO space; and seek ways to reduce fuel consumption, which reduces costs and emissions.
In the long term, these strategies can expand companies’ market presence, insulate them from shocks in the supply
chain and improve the way they are perceived by consumers.
12

13. THE RISE OF SHARED VALUE
TREND
Rather than simply doling out checks to good causes, “The concept of shared value can be defined as
some corporations are starting to shift their business policies and operating practices that enhance
models, integrating social issues into their core strategies. the competitiveness of a company while
The aim is to create shared value, a concept that reflects
the growing belief that generating a profit and achieving simultaneously advancing the economic and
social progress are not mutually exclusive goals. By social conditions in the communities in which
reconsidering products and target demographics, forging it operates. Shared value creation focuses on
partnerships with local groups and improving identifying and expanding the connections
productivity in the value chain, companies can become a
between societal and economic progress.”
force for positive change while enhancing their long-
term competitiveness. —MICHAEL E. PORTER AND MARK R. KRAMER,
“Creating Shared Value: How to reinvent capitalism—and
unleash a wave of innovation and growth,” Harvard Business
DRIVERS Review, January-February 2011
New opportunities in emerging markets: As businesses seek
“We have observed that
new sources of revenue in emerging markets, they are coming
to see that they can generate opportunities for growth if they companies that choose to take
help to address some of the endemic problems they find (for on a more proactive approach
example, by creating relevant products and services and in the form of ‘social
investing in sustainable manufacturing processes). In Africa, for innovation’ are capturing much greater
example, where an estimated 560 million people live without
electricity, new solar-powered technologies offer a cheap way to
competitive advantage. This competitive
provide families with lighting. advantage is rooted in an ability to create
new products and services that deliver social
Pressure to cut costs and carbon emissions: Companies are
developing more sustainable,low-cost manufacturing and transport
and environmental impact alongside financial
practices as they seek ways to both reduce costs and fall in line with impact, gain access to new markets, engage
pressures to cut carbon emissions. These practices,and others and retain their internal talent, as well as
focused on stewarding natural resources,can be both economical build brand differentiation in the market.”
and effective,cutting pollution and improving local living conditions. —CHARMIAN LOVE, chief executive of social
innovation consultancy Volans
Blurring lines between business, nonprofits and government:
Corporations are partnering with governments and nonprofits—from academic institutions to development organizations—in
alliances that advance the objectives of all parties. As part of The Cocoa Plan, Nestlé, for example, has partnered with NGOs,
governments and private companies in an effort to help cocoa farmers run profitable farms, improve production, respect the
environment and better their local communities. We’re also seeing more social business enterprises—organizations that
comprise both for- and nonprofit components—such as Waste Concern, which promotes recycling and waste management in
Bangladesh, and Terracycle, which helps to collect waste in more than a dozen countries and upcycles it into sellable products.
As Michael E. Porter and Mark R. Kramer wrote in Harvard Business Review earlier this year,“The principle of shared value creation
cuts across the traditional divide between the responsibilities of business and those of government or civil society. From society’s
perspective, it does not matter what types of organizations created the value. What matters is that benefits are delivered by those
organizations—or combinations of organizations—that are best positioned to achieve the most impact for the least cost.”
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14. THE RISE OF SHARED VALUE
“We’ll see a growing recognition (at least among the most progressive companies) of
the opportunities associated with sustainability and a greater commitment to creating
‘shared value’ for business and society. In terms of implementation, partnerships are
often essential because of the complex nature of the challenges being addressed.”
—VANESSA EDWARDS, head of
corporate responsibility, WPP
Looming resource shortages: In today’s globalized Figure 2A: CONSUMER EXPECTATION FOR
environment, demand for resources is growing RESPONSIBLE BUSINESS (U.S., U.K., CAN)
exponentially, and experts are sounding warnings about Percentage who agree with each of the following
looming shortages. In Africa, for example, political instability
and antiquated farming techniques mean volatile supply Millennials (18-33) Gen X (34-46) Boomers (47-66)
chains and greater risk for companies. Corporations are
trying to ensure the long-term viability of key resources by
84%
improving living conditions and providing communities
with new, more sustainable technologies.
Brands and big corporations
should take responsibility for
improving the world
89%
87%
}87%
Consumer expectations: Consumers care about social
responsibility and expect corporations to care as well, as
our data shows: 87% of respondents across the markets
surveyed agreed that “Brands and big corporations
Companies need to do more
good, not just less bad
88%
88%
93%
} 90%
should take responsibility for improving the world.” I believe brands are able
Moreover, 90% felt that “Companies need to do more
good, not just less bad.” (See figure 2a; for country
to be both powerful/
profitable and kind to the
world at the same time
88%
88%
92%
} 90%
breakdowns, see Appendix, figures 2 b-d.)
The Millennial outlook: Millennials, who tend to be optimistic, entrepreneurial and socially engaged, are entering the
business world and bringing this mind-set with them. This globally connected generation wants to effect social
change and use intuitive, commercial strategies to do so. (See “The Global Do-Good Generation,” page 32.)
MANIFESTATIONS
Reconceiving products to address social issues: Global brands are developing products and services tailored to address
issues prevalent in the markets where they operate.
• Campbell’s Nourish: Distributed in Canadian groceries, Nourish is a single-serving can of soup designed to
provide a complete daily serving of three key food groups at a low cost. Campbell’s considers the product both a
commercial opportunity and a way to address hunger and food security issues. Additionally, the company donated
200,000 cans of Nourish to Food Banks Canada. Campbell’s has developed partnerships with nonprofits such as
the World Food Programme and local governments, and is considering rolling out Nourish in other markets.
• Philips’ “Sustainable Energy Solutions for Africa”: As part of this solar-focused effort, Philips is partnering with the
Dutch government in a bid to provide affordable, sustainable energy solutions to some 10 million people across
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15. THE RISE OF SHARED VALUE
lighting.philips.com
10 sub-Saharan African nations by 2015. The Solar Home wfp.org
System, for instance, is a low-cost, highly efficient light for
Projects that create shared value “sidestep
homes and small businesses. Its solar-charged battery pack the age-old debate about whether business
powers two LED lamps, and a full day’s charging in the sun is good or evil. ... They just want to solve
can provide more than five hours of light. A cheap, lightweight social problems in the most effective way
solar reading light is designed to help children complete their they know how, and engaging business
homework at night or allow people to read in the evening.
know-how, resources and the profit
• GE’s Vscan: GE started selling this smartphone-sized imaging motive turns out to be an important part
tool, which brings ultrasound technology to physicians’ of many solutions.”
pockets, in 2010. The device has an hour’s worth of battery
life, allowing medics to diagnose patients in the field—most —LESLIE R. CRUTCHFIELD, JOHN V. KANIA, and
notably in crisis zones where access to power is limited—and MARK R. KRAMER, “Do More Than Give: The Six
along bedsides. With a price tag just under $8,000, the Vscan Practices of Donors Who Change the World,”
offers a considerably cheaper alternative to standard as reprinted in Fast Company, March 2011
ultrasound machines, which can cost upward of $100,000.
Reconceiving supply chains: Faced with rising manufacturing and
transportation costs—especially as the price of oil increases—
businesses are starting to reduce packaging and reconfigure
their logistics systems, steps that both save money and lower
carbon emissions.
• Sabritas, Educampo project: As part of efforts to improve the
sustainability of its corn supply, Sabritas works with farmers
close to its factories in Mexico, in collaboration with the
Mexican Foundation for Rural Development. The PepsiCo-
Vscan Primary Care Online Brochure
owned snack brand provides seeds, fertilizer, water usage
guidelines and agrochemicals to help farmers increase their
yields. Between 2008 and 2010, the project helped close to 300
small families, and the average corn yield more than doubled.
Meanwhile, PepsiCo was able to lower transportation costs
while ensuring access to the type of corn best suited to its
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16. THE RISE OF SHARED VALUE
needs. The company runs similar agricultural programs
in other countries, including Russia and China.
• Marks & Spencer, “Plan A”: The British retailer Marks &
Spencer has committed to the lofty goal of becoming the
world’s most sustainable major retailer by 2015. The
company reported that in 2010/2011, this ongoing
initiative contributed to a net benefit of £70 million for
M&S. Among other strategies, the retailer switched its
delivery fleet to 50% bio-diesel fuel and implemented a
“‘green’ business travel policy to reduce CO2 emissions
caused” by travel. It is currently upgrading its refrigeration
pepsico.com
systems in stores, leading to a reduction in greenhouse
gas emissions.
• Walmart’s fuel-efficient trucks: Walmart is working to
double its truck efficiency by 2015 (based on a 2005
baseline), switching to fuel-efficient tires, recalibrating
engines and adding aerodynamic elements to truck
carriages. It has also replaced two-thirds of its nearly
7,000-truck fleet with fuel-efficient tractors and used
detailed analysis to shorten its route network, by 49
Walmart Stores
million miles. In 2010, these initiatives helped the
company cut its fuel costs and save almost 40,000 metric
tons of CO2 emissions.
SIGNIFICANCE/RELEVANCE
By putting shared value at the center of their strategy, brands can benefit their business, their customers and society in
general. Companies should identify needs and develop products, services and/or processes to meet them; invest in the
charitable, nonprofit and/or NGO space; and seek ways to reduce fuel consumption, which reduces costs and emissions.
In the long term, these strategies can expand companies’ market presence, insulate them from shocks in the supply chain
and improve the way they are perceived by consumers.
POTENTIAL
There are more than 3 billion low-income consumers worldwide, according to estimates by Nestlé, and as global
population growth explodes, this number is set to spike. By creating products and services to meet the needs of this
segment, brands have a huge opportunity to expand outside developed markets. And by investing in emerging markets,
brands can create a virtuous circle, where employed locals become aspiring middle-class consumers.
Brands can innovate by scaling down existing offerings into lower-priced versions. GE’s two-year-old Healthymagination
project, for instance, which aims to lower the cost of health care, has already birthed several economical devices. One
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17. THE RISE OF SHARED VALUE
example: The Brivo DR-F, a digital X-ray machine with a space-saving design, costs 30% less than premium systems and
is also more energy efficient than typical film-imaging systems.
Brands should consider how to best educate shareholders about the potential of these kinds of ventures. This can be
done by emphasizing the importance of a long-term business strategy, highlighting learnings about new areas for
product development and making incremental changes to corporate practices. At the same time, expect a new group of
shared value auditors, which will develop new metrics that assess companies’ performances in terms of social impact and
shared value generated.
“Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve
economic success. It is not on the margin of what companies do but at the center. We believe that it
can give rise to the next major transformation of business thinking.”
—MICHAEL E. PORTER and MARK R. KRAMER, “Creating Shared Value: How to reinvent capitalism—
and unleash a wave of innovation and growth,” Harvard Business Review, January-February 2011
17

18. THE RISE OF SHARED VALUE
THINGS TO WATCH
Buy One, Give One Away
Watch for more companies to adopt the novel buy-one, give-one away model pioneered by TOMS, which donates
one pair of shoes for every pair it sells (more recently the company expanded into eyewear). This strategy offers
consumers a powerful incentive to become customers while also contributing to the greater good.
sirrichards.com
betterworldbooks.com
warbyparker.com
Warby Parker: To help low-income people with vision problems increase their earning potential, Warby Parker
donates one pair of eyeglasses for every pair sold. So far, the company has given away more than 50,000 pairs to
people around the world.
Sir Richard’s Condom Company: This company claims to offer the “first ever buy-one, give-one condom.”
For every condom sold, it donates another to a country in need to help meet the world’s unmet demand
for condoms.
Better World Books: In August 2011, this online bookseller—which seeks to improve literacy rates by collecting and
donating books to partner organizations—began donating a book for each one purchased on the site.
18

19. CREATIVE URBAN RENEWAL
DRIVERS TREND MANIFESTATIONS
Creativity bubbling up
}}
(ArtBridge, Guerrilla
Fastest urban boom in
Gardening, Greenaid, Macro
history
Sea, Detroit’s Imagination
Station and Loveland, Favela
Painting project)
Government stagnation and
lack of funding
Human environments will
Techie urbanites leveraging
become increasingly important data (SeeClickFix, Give
Empty retail space
as the global population a Minute, Roadify, Code
becomes more urbanized over for America)
the next few decades and cities
Environmental concerns
boom. Brands will become key
Brands supporting
partners in enabling creative Creative Urban Renewal
strategies for urban renewal— (KFC, Apple, Kia, Dulux
DIY ethic improving local environments, Paints, Planters, Levi’s,
BMW Guggenheim Lab)
adding beauty or helping to
bring communities together.
“We vs. me” mind-set Giving new life to dead
space (Absolut Stairwell
Gallery, Wasted Spaces, “I
Wish This Was”)
Brand involvement in
community is expected
Corona’s “Save the
Beach” project
SIGNIFICANCE/RELEVANCE
Brands will be key partners in enabling creative strategies for renewal, taking local CSR initiatives to the next level.
Brands can show their creativity, innovative spirit and community-mindedness by tapping into the “urban hack” mind-set.
19

20. CREATIVE URBAN RENEWAL
TREND
Human environments will become increasingly important as the global population becomes more urbanized over the
next few decades and cities boom. Brands will become key partners in enabling creative strategies for urban renewal—
improving local environments, adding beauty or helping to bring communities together.
DRIVERS
Fastest urban boom in history: With cities booming, there’s never been a more pressing need to rethink them. In the
developing world, people are drawn to new opportunities in urban centers, which are adding an average of 5 million
people per month, according to UN-HABITAT. In Asia, Foreign Policy estimates, about half the population (1 billion
people) will migrate from the countryside to urban centers by 2030. Meanwhile, the U.S. is seeing “bright flight,” with
younger, educated Americans reversing the trend among their parents and grandparents to leave cities for the suburbs;
among first-time home buyers, 77% say they want to live in urban areas.
Government stagnation and lack of funding: Despite government stimulus funds earmarked for infrastructure, many
officials cite lack of money as a key barrier to infrastructure investment—a reality that is leading to citizen frustration.
Nearly seven out of 10 respondents agreed with the statement, “My local community is in need of a lot of care, and the
city government has been slow to act”; discontent is even higher among British Millennials, with three-fourths in
agreement. (See figure 3a; for country breakdowns, see Appendix, figures 3b-d.)
The private sector can boost the speed and effectiveness of government projects to upgrade infrastructure.
Governments in emerging markets “have plans to have private companies take a larger role,” according to a Bank of
America Merrill Lynch study on investing in emerging market infrastructure.
Empty retail space: As so many chains have declared bankruptcy and closed stores, developers have been forced to
consider repurposing excess retail space for activities other than shopping. They are recognizing the importance of
utilizing these spaces, which, if done correctly, can encourage foot traffic and maintain the vitality of urban areas.
“The whole idea of dead retail space is pretty prevalent in the downturn.
Artists used to go in and take over warehouse spaces. Now warehouse
spaces—at least in cities—are often expensive. So maybe the next move is to
David Belt
take over some of these huge areas of strip malls that are so inexpensive or
dead malls and create art studios. … I think people would love to take some of these spaces
and turn them on their heads. … A lot of what happens in art these days is about
appropriation, so if there was a way to rethink junk space and let the community use that,
without too much money or intervention, [brands] could create an interesting place for
[people] to go that’s sort of the anti-mall.”
—DAVID BELT, executive director and founder, Macro Sea,
a development firm that uses everyday objects to create unexpected interactive urban projects
20

21. CREATIVE URBAN RENEWAL
Environmental concerns: Public awareness surrounding environmental degradation is leading many to rethink
urban spaces.
DIY ethic: People are losing faith in big institutions and governments, becoming more motivated to implement their
own, often unorthodox ideas for change. Indeed, 82% of our survey respondents agreed with the statement, “It’s better
to take local community projects into your own hands rather than waiting for big institutions or city government
action.” This figure jumps to 88% among British Millennials. (See figure 3a.)
“We vs. me” mind-set: There’s a growing belief in Figure 3A: CONSUMER DESIRE FOR BRAND
collectively driven positive change, both among INVOLVEMENT IN LOCAL COMMUNITY (U.S., U.K., CAN)
Percentage who agree with each of the following
professionals (designers and architects, developers,
Millennials (18-33) Gen X (34-46) Boomers (47-66)
urban planners, etc.) and everyday folk driven to
better their environs.
Brand involvement in community is expected:
Renewed interest in local provenance and
community building has spotlighted the impact a
My local community is in need of a
lot of care and the city government
has been slow to act
68%
67%
67%
} 68%
It’s better to take local community
multinational corporation can have on communities.
As a result, consumers are beginning to hold these
organizations to a higher standard. Our survey
projects into your own hands rather
than waiting for big institutions or
city government action
81%
83%
83%
} 82%
found that 84% of respondents agreed with the Brands and large corporations have 82%
statement, “Brands and large corporations have
a responsibility to improve the local communities
in which they do business.” And nearly seven in
a responsibility to improve the local
communities in which they
do business
83%
86%
} 84%
I wish a brand or company would 76%
10 respondents said they felt that big business
and corporations should be more involved when
it comes to supporting charitable, social
help by making substantial
investments to improve my
local community
80%
80%
} 79%
Members of my local community
and/or environmental causes in local 75%
communities.
are willing and able to roll up their
sleeves and work on projects that
will improve our town; we just need
the tools and leadership to do it
80%
75%
} 77%
MANIFESTATIONS
Creativity bubbling up: So-called urban hackers, artists, environmentalists and nonprofits have traditionally dominated
this movement, challenging the status quo by re-creating spaces. Often, the ideas involve simple ways to beautify spaces.
• ArtBridge: This nonprofit public arts organization is working to turn overhead construction scaffolding in New York
into showcases for emerging local artists.
• Guerrilla Gardening: This U.K.-based group uses the motto “Let’s fight the filth with forks and flowers!” and says it’s
for “anyone interested in the war against neglect and scarcity of public space.” The movement is picking up
adherents in the U.S.
• Greenaid: In Los Angeles, this grassroots environmental campaign makes “candy machines loaded with
‘seedbombs’” for people to toss into unused plots of land.
21

22. CREATIVE URBAN RENEWAL
• Macro Sea: This development company is bridging the gap between
the creative grassroots and the private-sector approach, utilizing
materials (oftentimes junk) and space in unexpected and visceral
ways. One project turned Park Avenue in midtown Manhattan into a
“lo-fi country club that featured dumpster swimming pools, cabanas,
bocce ball and barbecues.”
• Detroit’s Imagination Station and Loveland: In the wake of Detroit’s
decline, a wave of artists have hijacked the city, turning it into a
center of urban and artistic experimentation. The Imagination
Station, a nonprofit group of artists and designers, aims to “reclaim”
ruined properties, creating community centers and public art spaces.
Loveland is a “micro real estate and entertainment fundraising
startup,” with “inchvestors” from around the world invited to buy a
square inch of property in Detroit; an online community then
decides what should be done with the physical space. The project
Antonia Wagner
aims to “provide a fun, game-like ownership experience while
creating entertainment fundraising, community collaboration, and
social mapping tools that work at any scale.”
• Favela Painting project: European artists Haas&Hahn have been beautifying Brazilian slums since 2005. The
organization behind this, Firmeza Foundation, “supports the creation of striking artworks in unexpected places. It
collaborates with local people to use art as a tool to inspire, create beauty, combat prejudice and attract attention.”
Techie urbanites leveraging data: Empowered by technology, urbanites are setting out to improve real-time access to
information, often bypassing city agencies, by making data mobile, collaborative and social.
• SeeClickFix: This service allows anyone to report and track nonemergency issues such as downed trees, broken
streetlights and potholes anywhere in the world. In April 2011, it launched a Facebook app, awarding “civic points” for
each community-related effort done through SeeClickFix. The Facebook platform includes gaming elements, showing
users how they stack up against friends and the SeeClickFix community.
• Give a Minute: Currently operating in Chicago, Memphis, Tenn., and
San Jose, Calif., Give a Minute is akin to a virtual community board; it
provides a platform for people to share ideas on improving their city
youtube.com/LocalProjects
with community leaders, who respond to the best submissions.
• Roadify: This SMS-based service—currently operating in parts of
Brooklyn—compiles user-generated data to provide real-time status
updates on parking spots and public transit.
• Code for America: This new nonprofit similar to Teach for America and supported by Yahoo! and Microsoft, among
others, taps Americans’ newfound sense of DIY civic reform. This year 20 idealistic techies are partnering with four
U.S. cities—Boston, Philadelphia, Washington and Seattle—to create efficient and saleable Web-based solutions that
address core civic problems and will help make cities “more efficient, transparent and participatory.” The goal is to
help bring American cities into the 21st century while bridging budget gaps created by the recession.
22

23. CREATIVE URBAN RENEWAL
“I believe this massive amount of data that’s being generated can be used to better
design cities, to build better disease surveillance models, to do things that
ultimately are going to improve the lives of billions of people.”
MIT
—NATHAN EAGLE, founder and CEO, txteagle, which creates opportunities for
mobile subscribers in the developing world to generate income via their phones
Brands supporting Creative Urban Renewal: With local municipalities strapped for cash, multinational brands are
partnering with local city agencies to fund urban improvements.
• “Re-Freshed by KFC”: In the absence of government funding, KFC donated money to help fill some of the potholes
in and around Johannesburg, South Africa, and sponsored pothole and road repairs in five U.S. cities; the repairs
were stamped “Re-Freshed by KFC” with a nonpermanent stencil.
BizCommunity.com
• Apple’s transit station renovation: Before opening a Chicago store, Apple spent $4 million renovating a nearby
transit station that was in terrible condition; it now has a new façade and park-like plaza, with Apple granted
advertising rights.
• Kia’s “Drive Change” campaign: In Canada, Kia built its “Drive Change” campaign around renewal projects, with
spots showing Kia teams making over two rundown spaces each in the course of a day.
• Dulux Paints’ “Let’s Colour Project”: Taking a cue from nonprofits such as Publicolor and Favela Painting, Dulux
Paints embarked on the “Let’s Colour Project” in March 2010, supplying material and organizing communities
in Brazil, France, the U.K., South Africa, Turkey, India and the Netherlands to help paint schools, homes and
public spaces.
• Planters’ community parks: Throughout 2011,
Planters is sponsoring the creation of peanut-
shaped community parks, dubbed Planters Groves,
in four U.S. cities as part of the nut brand’s
“Naturally Remarkable” campaign and a national
tour to promote sustainability. The parks are
prnewswire.com
constructed on unused land with recycled materials,
and local volunteers come together alongside
Planters employees to work on them.
23

24. CREATIVE URBAN RENEWAL
• Levi’s donations to a Rust Belt town: Braddock, Pa.—a town
hurt by the decline of jobs for the skilled blue-collar worker—
is the beneficiary of Levi’s Creative Urban Renewal project.
The brand, which showcases Braddock locals in its national
“Go Forth” campaign, agreed to fund a refurbishment of the
Braddock town community center and to support an urban
farm that provides inexpensive produce to residents.
• BMW Guggenheim Lab: Some efforts focus on simply
generating ideas and bringing people together. BMW teamed
youtube.com/LevisReadyToWork
up with the Guggenheim Foundation to build a “lab” that will
spend six years traveling through nine cities worldwide,
serving as “a public place for research, experimentation, and
the sharing of ideas about major issues affecting urban life.”
The project launched in New York in August 2011.
“Just to put [your brand’s] name on a banner isn’t so interesting, but to take a
leadership role where they’re raising money for a community garden or where
David Belt
they’re providing a creative space for people to interact with—that’s pretty
empowering because it gives people the tools.
“I feel [brands] don’t have to accommodate that many people in order to have a tremendous
impact and influence and get a pretty big bang for their buck, because if they have the right
people in there the word really gets out and the ripple effect is felt.”
—DAVID BELT, executive director and founder, Macro Sea,
a development firm that uses everyday objects to create unexpected interactive urban projects
Giving new life to dead space: Developers and DIYers are repurposing excess retail space for activities other
than shopping.
• Absolut Stairwell Gallery: This initiative was created as part of the Dead Space Living Artists initiative, which converted
neglected spaces in Sydney into “culture pockets”; each month a staircase leading up to a popular bar displayed
works from emerging artists.
• Wasted Spaces: This London-based
nonprofit “transforms vacant properties and
other unloved [oftentimes retail] spaces into
exciting art experiences,” placing smiley-face
graphics on an abandoned storefront, for
instance, and creating a public art
installation that utilizes commands from
Twitter users to power an image projected
wastedspaces.org
onto a wall. The organization also held an
open call for ideas on intermediary uses for
an abandoned shopping center.
24

25. CREATIVE URBAN RENEWAL
• “I Wish This Was”: In New Orleans, artist Candy Chang launched this project in late 2010, encouraging community
members to tag abandoned buildings with stickers detailing how the space could be better used.
Corona’s “Save the Beach” project: Launched in 2009,
this project was created to clean up the litter on one
European beach each year. The initial year more than
120,000 people voted via the “Save the Beach” website,
for Capocotta beach in Rome. In 2010, Corona—in
partnership with JWT Madrid—decided to push the
concept even further. To call attention to the litter issue
in a unique way, it created a beach hotel made out of
garbage, symbolizing what vacations will be like in the
future if people continue to litter on beaches. The
German artist HA Schult, known for his work with trash,
designed the building, which included more than 12
coronasavethebeach.org
tons of litter picked up from European beaches. The
hotel began to receive bookings in the first few hours.
This year, the cleanup took place in Litorali di Augusta
in Sicily, Italy.
SIGNIFICANCE/RELEVANCE
Brands will be key partners in enabling creative strategies for renewal, taking local CSR initiatives to the next level. Brands
can show their creativity, innovative spirit and community-mindedness by tapping into the “urban hack” mind-set.
POTENTIAL
At a time when CSR and more traditional marketing efforts are meshing, Creative Urban Renewal projects present ways
for brands to both help communities/neighborhoods and craft an image as innovative, original and cool. These projects
tend to be sustainable, fun, educational and interactive—key areas/attributes for brands. Our research suggests that
consumers would be open to brand-sponsored community renewal projects, with 79% of respondents agreeing with the
statement, “I wish a brand or company would help by making substantial investments to improve my local community.”
(See figure 3a.)
With today’s “we vs. me” mind-set and DIY ethos, there is ample opportunity for brands to partner with professionals,
residents and nonprofits to spearhead innovative ideas and solutions. In our survey, 77% of Americans, Britons and
Canadians agreed that “Members of my local community are willing and able to roll up their sleeves and work on projects
that will improve our town; we just need the tools and leadership to do it.” (See figure 3a.) By creating opportunities for
active participation in the revitalization of a space, brands can further generate goodwill by giving citizens a sense of
ownership over the project and pride in their achievements.
Large corporations can also leverage their economic weight on behalf of communities and side with citizens to spur local
government action.
25

26. CREATIVE URBAN RENEWAL
The efforts must be substantial: This movement has roots in anti-consumerist notions, and skeptical consumers will
quickly smell empty gestures. Additionally, with 89% of survey respondents in agreement, local citizenry must be involved
in the decision-making process before brands or big corporations embark on projects to improve a community. (See
Appendix, figure 3e; for country breakdowns, see Appendix, figures 3f-h.)
“Unfortunately, we’re still in the phase of insincerity. The next evolution of this is
when some of those companies actually say, ‘Look, we need to do this because it
makes great business sense for us, because it creates a meaningful environment in
which to be employed.’ The more we push on creating change and improving quality
of life for people through what we do best, which is technologies and business
models and investments, the more comes to us. And the more that comes to us, the more we can
reinvest. And it creates an acceleration of not only our business ethic and our business model, and
our business, but also it starts to have real tangible, measurable impacts on people.”
—STEVE LEWIS, CEO and co-founder, Living PlanIT, which builds large integrated technology platforms for managing city operations
26

27. RIPPING A PAGE FROM
THE FOR-PROFIT PLAYBOOK
DRIVERS TREND MANIFESTATIONS
}}
Surge in public-private
Nonprofit organizations are partnerships (Walmart and
increasingly adopting for-profit Treasure Coast Food Bank,
tactics, fusing social IBM and Turkish nonprofit
A race for funding Toplum Gönüllüleri Vakfi,
consciousness with business
HP and mothers2mothers,
acumen and focusing on micro-volunteering)
achieving visible change. The
Desire for self-sufficiency
shift from blanket or black-hole
benevolence to targeted giving Surge in social enterprises
and venture philanthropy places (Me to We, Breadpig)
Donor insistence on results more emphasis on cause and
effect, measurable results and
Venture philanthropy funds
return on investment. (Acumen Fund, International
Finance Corporation)
SIGNIFICANCE/RELEVANCE
Nonprofits and other socially focused efforts will need more than good intentions to stay viable as supporters seek
measurable change. Indeed, with the rise of social enterprises, we’ll see a more open-minded attitude toward the means
that organizations use to achieve their ends, as long as that means real-world impact.
27

28. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
TREND
Nonprofit organizations are increasingly adopting for-profit tactics, fusing social consciousness with business acumen
and focusing on achieving visible change. The shift from blanket or black-hole benevolence to targeted giving and
venture philanthropy places more emphasis on cause and effect, measurable results and return on investment.
In the next few years, CSR and social change initiatives will evolve “from traditional
development models of aid provided with an undetermined end-game for
sustainability to a business-plan approach with a quantifiable baseline, benchmarks,
outcomes and timeline for sustainability.”
—WALKER MORRIS, Malawi country executive, Clinton Foundation
DRIVERS
A race for funding: With more organizations vying for less money, nonprofits need impressive numbers to get the
attention of donors and show why they’re the better investment.
During the recession, nonprofits
found themselves in crisis when
donations diminished and revenue
streams dried up. (According to a
2010 report by The Nonprofit
Research Collaborative, 37% of
2,500-plus organizations surveyed
reported a decrease in funding
during the first nine months of the
year.) At the same time, more
organizations require funding—
in the U.S., for example, the number
of registered nonprofits grew by
nearly 380,000 between 1999 and
2009. There’s an excess of choice:
86% of respondents said they are
tableatny
overwhelmed by the number of
social causes and charities out there.
Desire for self-sufficiency: Since private donations, grants and government funding often carry stipulations as to how they
can be used, nonprofits are increasingly looking for ways to develop their autonomy. By creating steady self-generated
revenue streams, they gain the flexibility and security needed to allocate funds as they see fit.
Donor insistence on results: Today’s well-informed consumers expect total transparency from the nonprofits they support
(see “The End of Goodwashing” on page 6 for more): They want to know not only how funds are spent but also exactly
what kind of impact those funds are making.
28

29. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
MANIFESTATIONS
Surge in public-private partnerships: Instead of simply donating funds as part of their CSR
efforts, more corporations and professionals are lending their know-how, boosting the ability of
nonprofits to achieve their goals.
• Walmart and Treasure Coast Food Bank: In 2009, Florida-based
Treasure Coast Food Bank leveraged Walmart’s famed logistical
stophunger.org
expertise to determine how to deliver more meals each week with
their existing resources. Members of the Walmart distribution
facebook.com/wlamart
team helped the food bank build its warehousing capabilities, improve storage and more
rapidly sort food; they also developed new truck routes to facilitate more frequent food
deliveries. The food bank was able to increase its culinary partners from 140 to 200 and
doubled the number of meals it serves weekly.
• IBM and Turkish nonprofit Toplum Gönüllüleri Vakfı: In Turkey, IBM volunteers partnered with the educational
nonprofit Toplum Gönüllüleri Vakfı (Community Volunteers Foundation), using the company’s “Share project
management skills” solution to help develop and teach a children’s literacy program. This and similar efforts are
coordinated via IBM’s On Demand Community portal, which allows IBM volunteers to combine their skills and
IBM’s technology. Since its 2003 launch, 170,000 IBM employees have logged more than 12 million hours of
volunteer service via the site.
• HP and mothers2mothers: As part
of a new partnership with
mothers2mothers—a South African
group that works to prevent HIV-
positive mothers from
transmitting the virus to
their children—HP is
using its database,
cloud and mobile
technologies to digitize
the organization’s patient
records. This will allow
mothers2mothers to share patient
information across regions, helping
counselors provide better education
and support services, and eventually
m2m.org
enable staff to collect and share basic
data via mobile phones.
• Micro-volunteering: A new crop of organizations connects
skilled volunteers with nonprofits in need of relevant services,
such as logo design, accounting help or membership
catchafire.org
development strategies. Examples include Catchafire and
Sparked, both for-profits, and the nonprofit Taproot Foundation.
29

30. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
metowe.com
Surge in social enterprises: Entrepreneurs are starting
philanthropy-driven organizations based around for-profit
models.
• Me to We: Harnessing for-profit strategies to achieve socially responsible objectives, this retailer was launched by the
founders of Free the Children with the sole purpose of creating a steady revenue stream for the charity. It sells
environmentally friendly and socially conscious apparel, self-empowerment books and music, and also coordinates
adventure travel trips, donating half the profits to Free the Children and investing the other half back into the
business. In 2010, Me to We donated $1 million in cash and in-kind contributions.
youtube.com/MeToWe
“With innovation as the driving force, Me to We is redefining how to do business, with big ideas that
push the boundaries of social entrepreneurship. As a social enterprise, Me to We is a revenue-
generating business with a twist. We measure our bottom line by the number of lives we change. We
calculate our return on investment by our social and environmental impacts.”
—Me to We annual report, 2010
• Breadpig: This organization sells products such
as magnets, clothing and posters at a profit then
donates the proceeds to its nonprofit “allies,”
which include Room to Read and the San
Francisco SPCA. One of its objectives is to forge
long-term relationships that include
collaborative projects. Since it was founded in
2008, Breadpig has raised and donated more
breadpig.com
than $186,000.
30

31. RIPPING A PAGE FROM THE FOR-PROFIT PLAYBOOK
Venture philanthropy funds: These nonprofits are like venture capital
organizations—they provide seed money to nascent businesses—except they
invest exclusively in socially responsible enterprises. Once a company has
developed, it must repay this investment, but interest rates are low; all returns
from investments are directed back into the fund.
• Acumen Fund: Acumen provides loans or equity—but not grants—that
acumenfund.org
typically range from $300,000 to $2.5 million, describing this funding as
“patient capital.” To be eligible for support, organizations must provide
low-income consumers with access to water, health care, housing, agricultural inputs or alternative energy. In 2007, for
example, Acumen invested in Jamii Bora, a Kenyan microfinance organization that supported the construction of 750
low-income homes outside Nairobi; the organization repaid in full by 2010.
• International Finance Corporation: Part of the World Bank Group, the IFC supports sustainable economic growth in
emerging markets by providing private-sector investment and advisory services. The organization will support only
projects that, among other things, have good prospects of being profitable, benefit the local economy and are socially
and environmentally sound. In fiscal year 2010, the IFC committed $18 billion to 528 projects across the globe.
Average returns on assets and capital ranged from around 3% to 10%.
SIGNIFICANCE/RELEVANCE
Nonprofits and other socially focused efforts will need more than good intentions to stay viable as supporters seek
measurable change. Indeed, with the rise of social enterprises such as Me to We and Breadpig, we’ll see a more open-
minded attitude toward the means that organizations use to achieve their ends, as long as that means real-world impact.
POTENTIAL
We’ll see more partnerships and collaborations between for- and nonprofits, allowing charities to leverage considerable
resources. Organizations can even outsource the implementation of a project while handling the rest of the responsibilities.
ColaLife, for example, turned to Coca-Cola to help in its mission to deliver hydration packs to impoverished communities in
developing countries, since the company has one of the world’s most advanced distribution networks. ColaLife
manufactures the packs and prepares them for shipping, while Coca-Cola aids the cause by providing access to its
distribution network; the scheme is being tested in Zambia.
Such relationships offer benefits to both parties: Brands can earn CSR points (at a relatively low cost, in some cases), while
nonprofits become more efficient and effective.
31

32. THE GLOBAL DO-GOOD GENERATION
Millennials strive to be active and engaged in their world. A globally minded cohort, they’re already taking on today’s
biggest issues, tackling them with an entrepreneurial mind-set, a “we vs. me” mentality, a belief in large-scale
collaboration and an optimistic, can-do spirit.
“For the generation coming up now, there is a much stronger optimism and a
much bigger desire to do well while also doing good.”
—ALEXIS OHANIAN, co-founder of Reddit and founder of Breadpig, a U.S.-based social enterprise that
sells geeky products and donates the profits to nonprofit organizations.
This generation—born between 1978 and 2000—is uniquely motivated to make a difference: They want to improve society
but without compromising personal aspirations; do good, the thinking goes, and the personal benefits will follow. And as
so-called digital natives, they’re uniquely equipped to make a difference: They have the tech savvy to create innovative
solutions and to organize on a scale never before possible. And then there’s the sheer size of this generation: some 78
million individuals in the U.S. alone.
Another key factor is that they’re the first “global generation,” with more overlapping values and shared experiences than
any before them, thanks to globalization and the communication technology revolution. They are more likely than their
elders to identify with and embrace people and cultures beyond their own borders.
Technology enables young people to swap ideas, connect
with like-minded individuals across borders and organize
events. And social media helps to push social causes into
the mainstream of Millennial consciousness: “Liking” a
cause on Facebook or tweeting about injustice helps define
who you are and what you believe in. (Although the verdict
is still out as to whether this “activism-light” translates into
any meaningful real-world change.) There are even social
networks based around the idea of social good, like
TakingITGlobal, which has more than 340,000 members
working in nonprofits worldwide, and KooDooZ.com, a
kids network. Nearly nine in 10 Millennials we surveyed
acknowledged that they have the communication tools to
make a huge difference in the world.
Causes.com
This global do-good generation is quickly shifting
attitudes and approaches to activism. Take organizations
like U.S.-based DoSomething.org, which has nearly 2 million people under age 25 participating, or Causes.com,
co-founded by a Millennial (Sean Parker of Napster and Facebook fame), which is the world’s largest platform for activism
and philanthropy.
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