Several posts ago, we blogged about the idea of using for-profit business models for social benefits, one example of this being Ben & Jerry’s partnership with the ONE Campaign.  While we salute this effort and contribution to improve the quality of life, we posed the following question: Is there a more effective way to use business for social ends?

Muhammad Yunus, pioneer of microfinance and winner of the 2006 Nobel Peace Prize, recently published a new book titled “Creating a World Without Poverty - Social Business and the Future of Capitalism.”  A concise and informative synopsis of the book can be found at the Social Ecosystem Blog.  I heard Professor Yunus speak a couple of months ago at MIT about this new model for social business enterprise.  The basic idea is that instead of generating profits for shareholders, Yunus’ model generates profits which are immediately reinvested into local development projects.  What’s more, the company is actually owned by the people it serves. 

Flickr image courtesy of danone.communities

In a partnership with Danone (another dairy-product company. . . coincidence?), Yunus helped to create a company called Grameen Danone Foods (or Danone-Grameen Foods, depending on who you’re talking to) under the social business model.  The company produces a nutrient-fortified yogurt, which is sold at an affordable price (about US $0.05 per 80 gram cup) to poor Bangladeshis.  Grameen Danone Foods employs Bangladeshis at its plant and also creates jobs for local farmers and distributors.  Additionally, the use of clean energy and sustainable environmental practices are a significant part of this holistic business model.  Yunus discusses this model briefly in an NPR interview and a YouTube video published by Ashoka.

This could certainly signal a paradigm shift for socially-minded business; what remains to be seen is whether this model will become the new foundation upon which for-profit ventures “do good.”  If so, what will be the new role for NPOs who have traditionally delivered these products through aid?  Will NPO and for-profit partnerships become rare if social businesses are now fulfilling this role, or will we begin to see partnerships generating entirely new (social) businesses like Grameen-Danone?  See also an interesting discussion by Pete Burden regarding marketing for social business on the Just Means blogroll.

Firstgiving interns

This past weekend, the dedicated Firstgiving interns made their way through the pouring rain and thunderclaps to the Bank of America Pavilion to hear State Radio and to promote Bikes Not Bombs and Firstgiving, simultaneously.

State Radio in conjunction with Bikes Not Bombs was endorsing alternative forms of transportation to promote a cleaner environment and alternative to war. That is why the band members as well as hundreds of fans rode their bikes to the Boston Harbor for the concert. The band actually planned to ride with their fans to their own concert! They acknowledged and rewarded those who took public transportation by handing out raffle tickets—prizes which included a new bike, meeting the band and an upgrade to front row seats. These guys are not just talented musicians, but activists as well.

We, the interns, came to the concert with backpacks loaded with promotional Firstgiving merchandise—Sharpies, Post-its, stickers and magnets. This helped us talk to fans about what State Radio was endorsing, why they had partnered with Bikes Not Bombs and how they could fundraise for causes they care about in the future. The Sharpies were a huge hit, everybody loves Sharpies. And the concert was amazing. Despite the weather, thousands of fans showed up and it’s safe to assume everybody had a fantastic time. Check out our myspace page or facebook for pictures and more!

The Last Lecture presented by Carnegie Mellon University’s Computer Science Professor Randy Pausch has moved and inspired millions. His speech on achieving childhood dreams has truly touched people’s lives. His ability to deliver such a compelling speech given his circumstances is a wake up call for those of us who have not appreciated our own. The professor said “I’m dying and I’m having fun. And I’m going to keep having fun every day I have left. Because there’s no other way to play it.” I simply cannot think of a more light-hearted and simple philosophy. “You just have to decide if you’re going to be a Tigger or an Eeyore.”

Pancreatic cancer is the leading cause of cancer deaths because early signs and symptoms are not easily recognized. Most signs don’t appear until the cancer has spread and is no longer surgically removable. Despite his grim diagnosis of terminal pancreatic cancer, Randy Pausch is joyfully living life. He was diagnosed in September of 2006 and when he delivered his lecture one year later he looked happy and seemed healthy—he demonstrated this during his lecture by doing push-ups, the hand-clapping kind.

His speech was full of energy, honesty, humility, compassion, hope and zest. He seemed so satisfied with life— who wouldn’t be with the amount of success and accomplishments he has and all the amazing and influential people he knows? Everybody has taken a different life lesson from his lecture.

One of my favorite parts of Randy’s lecture is his reminder to Help Others. It’s essentially an ancient golden rule, but it’s amazing how refreshing it is to hear someone actually say it. I’m constantly reminded of the value of helping others at firstgiving.com and it’s great because it seems to always come full circle. Just as his family, mentors and professors helped him reach his childhood dreams, he in return has helped thousands of students achieve their childhood dreams. And long after he is gone, his legacy will continue helping students reach their goals.

People helping people; that’s what firstgiving is all about. So we were pumped to see that one of Randy Pausch’s friends set up a firstgiving.com page to help raise funds for research on pancreatic cancer. In 2006, an estimated $66.7 million dollars of the National Cancer Institute’s (NCI) cancer research investment was spent on pancreatic cancer research. This is just 1% of the NCI’s $4.8 billion dollar cancer research budget for 2006 (PanCan). It has the worst survival rate yet it is the most underfunded of all major cancers. Funding has a lot to do with its progress and the lack of funding for pancreatic cancer has caused there to be little progress. Since the survival rate is so short; 75% die within 12 months and 5% survive for 5 years, it’s imperative that we raise more funds for research. That is what Randy Pausch is doing, raising awareness which will ultimately raise more funds.
The sweetest part of Randy’s lecture was his conclusion (the headfake). His last lecture was not only or even primarily for his students or anybody else but for his three children. It just happened to be that his reflections enlightened everyone who saw it. He extracted a life lesson from all his experiences and compiled them into one speech to offer to his children.