Strategies

Changing how we think about change

By Erica Olsen ⋅ May 25, 2007 ⋅  Email this post ⋅  Print this post ⋅ Post a comment

Increasingly today, we are witnessing the blurring of
commerce and social responsibility. Companies navigate a complex and evolving set
of economic, environmental, and social challenges, all the while addressing
stakeholder demands for greater transparency, accountability and
responsibility. Senior Advisor Allen White of Business for Social
Responsibility contends that rethinking the social contract remains one of the
most urgent imperatives of our time. He recently wrote that “the emergence of
the corporation as an investor, advisor and partner has moved from the exceptional
to the expected. By all indications, this trend will accelerate in the coming
decades as societal expectations of business stretch the traditional boundaries
of companies from purely profit-driven entities to organizations with an
obligation to operate with an enduring commitment to the public interest.”  And many clever companies are looking to
social entrepreneurs and their tested theories of change for guidance.

With their annual Social Capitalist Awards, Fast Company
(Jan 2007) celebrates those leaders who “combine savvy business models with
solutions to pressing social needs in ways that challenge our assumptions about
making a profit and making a difference.”  One 2007 award winner was TransFair USA which
certifies fair-trade coffee and other developing-nation crops, then works with
certified growers to get higher prices. When CEO Paul Rice hosted Perry Odak,
CEO of the Wild Oats Markets grocery chain, on a Mexican coffee trip, the strategy
played well for Wild Oats and for the farmers. Odak was impressed to learn from
farmers that joining a fair-trade cooperative could mean scholarships for their
kids, preventative health programs, and better futures for all. With a steady
income, many more young people are also staying in their communities and returning
to work on the fields. When Wild Oats promoted their fair-trade coffee with
giant signs that described to customers the effect of the labor, price and
environmental requirements of fair trade, volume
sales went up 20% despite a $2/pound price increase (organic beans cost
more to grow). The company’s purchase also yielded more than $1.5 million in
additional revenue for 100,000 farmers and their families. Needless to say, Wild Oats has introduced
fair-trade loose tea, bulk sugar and fruit as well.

TransFair’s whole model is based on consumers’ voting with
their wallets. Fair trade consumption is growing at 75% per year, CEO Rice
says, and TransFair has sparked partnerships with Costco, Sam’s Club, and even McDonald’s.
According to Jeff Hamaouli, founder of Origo Inc., a consulting firm that helps
both nonprofits and for-profits navigate this blended arena of social
enterprise, “Companies are beginning to realize that these questions of ‘How
can I accomplish more good in the world?’ and ‘Where is the market
opportunity?’ are essentially the same question.

Consider these approaches for finding opportunities to
include social responsibility in your business

1. Scout
   new market
2. Unleash
   the consumer
3. Invent
   new products