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8/8/2019 For Profit Social Entrepreneurs Report RISE
1/66
riseproject.org
RISEFor-Profit
Social Entrepreneur
Report
Catherine H. Clarkand Selen Ucak
March 2006
Balancing Marketsand Values
RISEInvestors Circle
Social Venture Network
:
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Partners
RISE jc C Bn Sc. T Egn M. Lng Cn Enn n Sc En Pg c RISE n C Bn Sc.
Inv Cc ng c vn c n n v -g cn v nn n cn. Fn n 99, IC c n nn n g nv nk, n n n cc v n.
Fn n 9 nn vn n cn nn n nvn, Sc Vn Nk
(SVN) nn nk c ng j n n g n.
Sponsors
Fn n 99, Mn In k ngg n n ng, cnncng n cng n n n v, n cn g. T In-
v n nnnc n cc nc nc n .
T Rck Fnn c
ng kng n nnvn nc n
v n v n xc g . T n-
n n nn n, c PVnEx, c k cz v nvn n
-g n gng n cng n Rck n.
Patient Capital for a Sustainable Future
http://www.investorscircle.net/http://www.rockfound.org/http://www.marioninstitute.org/matriarch/default.asphttp://www.svn.org/http://www.investorscircle.net/http://www0.gsb.columbia.edu/8/8/2019 For Profit Social Entrepreneurs Report RISE
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RISE
Investors Circle
Social Venture Network
RISE
For-Prot
Social Entrepreneur
Report:
Balancing Markets and Values
Catherine H. Clark
Selen Ucak
March 2006
Social Enterprise Program
Eugene M. Lang Center for Entrepreneurship
Columbia Business School
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RISE|For-Prot Social Entrepreneur Report
For additional copies of this report, please contact:
RISEColumbia Business School
317 Uris Hall
3022 Broadway
New York, NY 10027
Phone: 212.854.6802
Fax: 212.854.3486
Co-authors:
Catherine H. Clark
Director, RISE
Columbia Business School
Selen Ucak
Research Associate, RISE
Copyright 2006 RISE
c/o Columbia Business School
Design by MANOVERBOARD
Cover photograph by Heidi Yount/The Art Bureau
All rights reserved. Printed in the United States of America.
Library of Congress Cataloguing-in-Publication Data
Clark, Catherine H.
Rise for-prot social entrepreneur report: balancing markets and values / by
Catherine H. Clark and Selen Ucak
Includes bibliographical references.
ISBN 0-9744174-2-4 (print)
ISBN 0-9744174-3-2 (pdf)
mailto:[email protected]:[email protected]://www.manoverboard.com/http://www.theartbureau.com/http://www.theartbureau.com/http://www.manoverboard.com/mailto:[email protected]:[email protected]8/8/2019 For Profit Social Entrepreneurs Report RISE
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Balancing Markets and Valu
Contents
L Dc
I. Incn
II. Ovv n Excv S
III. F Sc Vn CEO
IV. Sc V Cn Fnng
V. Bckgn In Sgn R
VI. In Sgn R
Agc, H n F
Cn Pc n R 3
Eng, Envnn cng n U 3
Fnnc, Cnng n Svc 3
Mncng, Cncn n nn
M, Ecn n Cncn
S n Inn cng
VII. Enn
Appendices A. Sc Vn Dc
B. An
C. C n Ackngn
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RISE|For-Prot Social Entrepreneur Report
|Letter from the Director
Letter from the Director
D Cg,
N g, Rc Inv n Sc Enn (RISE)
C Bn Sc n n kng k, c n
ngn - n nn c n. Sn n C Bn
Sc Sc En Pg n Egn M. Lng Cn Enn,RISE n nng n n n cn cng n k n
cn cc c n, c nvng n c vnng.
O , RISE CAPIAL MARKE REPOR: T D B Ln Pv Eq
Lnc n /3, c nc c v -g - v
c c n nvnn v c nnc n
. T n k v v. Mn nn, n c,
v k n cng nv n nnng nv
c. T nv q, n knn n
n. W g xng , g
n c vn nn.
B nc n . W kn kng nv
n nn c v nn. O n jc n,
- c nn c. An n cv , n n n
n n cc ng. O g v n C Excv Oc
(CEO) n ng gng - c vn n U.S., nn
kn c v cng, cng c, cc
, n kn nncng n n g n cc. W
g cn n ng n c n n
k n n n c cng c v g
- .In c cn Inv Cc (IC) ng jc n Mn In
g n c nv c n c nn. g,
c Sc Vn Nk (SVN), n - n. IC g
nn nk nv cncn ncng c nn c
n c n nvnn . SVN -- nk c
n n n c nn. g, cnc, qn
n x, n n v nn, ncng T Rck Fn
n n O Fnn, n c O Nk. W q g
n n n gn , c Inv Cc,
jc n v n .
W ngg v n C Bn Sc k n jc.
Sc nk n g g , n c cn ,
c C Scc, k jc. W v
n ng n 3, c nn, n ncgng n G
Hg, CEO Sn F. W g n .
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Balancing Markets and Valu
Letter from the Directo
In n n , v c Sc Vn n CEO Dc. T
c nn c nn ng c vn n nn n
n ng . T c, n v ccnn
cn v n PDF nn, www.riseproject.org.
I v n v n n nk. T Sn Uck, n n v
Sc Enn c I g n n cng n
c, n C N Ic c, n gnz GSc Vn Cn, Pg Oc g Fnn n NY, n cn n
nnn n cnn. S jn jc n c n n
c n , n v c- n n
g k I v.
W v c cn k n g n nv ck . W
nkng n nn cn c
nn, kng c v n v c
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Snc,
Cn Ck, Dc, RISE, C Bn Sc
N Yk, Mc
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RISE|For-Prot Social Entrepreneur Report
|Introduction
I. Introduction
Ov 3 , v n vn n cn: or-pro
social venture. Pz nng c nn c Bn Cn n J G
Bn & J, An Rck B S, J Hn Svn Gnn
G Hg Sn F, P Nn Nn On, n n , c
vn k c c n nvnn cng c g n. W n cn c cng v v n gng n
c c n, c vn n nn, n
n, c c nvnn v k n n kng
n n. In n, vn n n
c c c n ng .
Tis rst-o-its-kind exploratory study aims to take a snapshot o the landscape o U.S. or-
prot social ventures, ocusing on emerging companies that started within the past 30 years
T gng gn - c, v, gn n n . Sc
vn n gn cn, n n v c cn, ncngnnn, cn c, c, cn, , n ng. T n
cng c nvnn v: v c gn c -
vc, v c n n, cng, n, nvng cc,
n c, n cnn vc. Mn cv c
n gng c nn cn g gnzn,
n v c n n. On g
v v g , n n v nn
.
Pcn n CEO n ng - n n
v c vn v cng n n v
nn n g g c n c vn. O 3, g CEO n-c n n Inv Cc vn ,1 c
Sc Vn Nk,2 c n G Sc Vn C
n.3 c cz n v -g cn, c c v
g . Gvn cn n n k nn
n, xc n. W cv v 3 n n -,
ng c: cn ng n 3 , n v
n c n U.S.
W n c vn CEO? Accng cn ng n
n , n:
vng commitment to creating some sort o positive social value g ncc;
vng n articulated denition o your mission , cn k kncng c, , , nv, n ck;
ng specic operational practices within the business v c c v, n n j k;
kng cnn rene your commitment to social outcomes ng cng nnng cc - cn.
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Balancing Markets and Valu
Introduction
T n cnc . W c g -c CEO n n
CEO vn c. T c n cn
n c cn c vn, k Nn On Pgn, n
n nknn , c n nv .
Accng CEO, c c nnng c vn nc:
ggng best denitions and labels c c vn, n cng n n c n cnnc n n v ng ;
ng higher costs o some mission-related items cc;
raising money n g cn c n, n nng ng ng n ;
helping customers appreciate company values.
An vng nc:
inspiring the best and the brightestn cng v ng v n n;
cvng c n nn, n acting in accordance with company valuesevery dayng n ngn v n c ;
nng ncg use their purchasing power ng c cng .
T n n n v v g ,
c cng n v n kng n nnvv n
n cc. W CEO n ng nn n, k Sn Yg
n En F, n cn kng n v nnvv k c
c n z n c c. W g gn,
cn cng cng v n c kng
n cc. F, n n c cncn n
n cn cc. P J n, n HGn, c vn cn n Jn H, PA, nc
v c n n:4
I think the ultimate challenge of sustainable business as I conceive it, is howto undercut the compelling advantages of economies of scale with qualityfocused business models. In 10 years time, there will be no distinction be-tween a social venture and most major businesses -- it will be a sine qua nonof business practice going forward.
S g c G Hg, n n CEO Sn F n L
n, NH, c g nc gnc g:
Dont listen to nay-sayers; determination is everything. Promise only whatyou can deliver and deliver on all promises. There is no such thing as a social-ly responsible company . . . it is a continuous improvement PROCESS and nota place . . . it is an adverb not an adjective.
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RISE|For-Prot Social Entrepreneur Report
|Overview and Executive Summary
II. Overview and Executive Summary
Our Sample Consists of Over 200 CEOs of Emerging For-Profit Ventures: M
n CEO n ng - cn n U.S. n
cn c vn n c n . T
gng c vn, c n n 3 , n ng-
cn n v n. M n cn n n - .
Four Social Venture CEO Types: In nng , j ng
z c g c n nnc q. A
nnc jcv c c g cv. W
v CEO ccng n xc
c c jcv n Sc Vn CEO : Acv,
Cng Agn, Mk Pn, n Mk Innc. Dcn gn
n g .
Industry Segments:Mng c vn ng n n n n. ng n cn, cn c-
n n vn n gn, gn vn:
AHF: Agriculture,HealthandFood
CPR: ConsumerProductsandRetail
EEU: Energy,EnvironmentalTechnologyandUtilities
FCS: Financial,ConsultingandServices
MCT: Manufacturing,ConstructionandTransportation
MEC: Media,EducationandCommunications
SIT: SoftwareandInformationTechnology
O In Sgn R, c cn n z nng g-
n, gn n g .
National and Global Impact: T CEO v cn c gng c
vn v n c n n U.S. Dn n
n c n c c. Ag gn , cn
qn vg c c n nn, nnn n g c.
Environment is the Most Popular Mission: Ivng nvnn n n CEO, vng
n vng cn. M nn n n n g .
Product is the Most Popular Vehicle of Social Venture Creation: W k
CEO v qn c c v. Ag
ng n c vc vc cng c
cng, g v vc n cnn vc . T
vc n, n nn cng ,
g cn c n, cng n
nn.
1.
2.
3.
4.
5.
6.
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Balancing Markets and Valu
Overview and Executive Summary
Belief that Growth and Size Do Not Threaten Mission: D
vn, CEO v c vn n n n
n cn g g ng n v n c-
.
Socially Responsible Marginally the Favorite Term: On CEO
v c v k c n cn cc,
n v gnz cn. A ngg gncn c n gn.
High Impact Commitment with Low Evaluation Expenses: CEO
g v cn c c n c cv. M CEO v
c c ng x g nc n cnc c
cn c v c v cn. M
CEO nng n xn (ng, gn n n-
v c, SG&A) n vn c c cv.
Past Financing Mostly Non-Institutional: Cn v n g nnc
g 3 n n, n n, n ng nv. W
cn v nk n nn q nncng c vn
c, nncng nv nq c c, c gn n -
g- nvn (PRI), v n gn c -
c vn CEO. M nn n nncng n g .
Financial Performance Correlates with Company Age and the Sample is
Young: F-nn cn cn cn n v
, n 3 vn vn $ n n
3. An vn v $ n n . Wn k -
n g, CEO n 3. An,
n n 3 xnc cn n , n xnc v
3 g n . M nn n n g .
Most Plan to Hold Companies Privately: M c vn CEO n
cn v, g nc nc n gn
n cqn n gng c ng nv. H nn
n n v, c
$-$ n n c g. T c gn
n n (DBL) nv, xc
nng c vn, n nc n cv c nng.
Fundraising Assistance One of Biggest Needs: T g
n CEO Inv Cc, Sc Vn Nk,n Bn Sc Rn, c c c g
v cn. Fnng nc gg n, nn
k g n c vn n n n .
7.
8.
9.
10.
11.
12.
13.
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|Four Social Venture CEO Types
III. Four Social Venture CEO Types
Denitions
Tg c nn n - c vn, n
ncn n CEO nnn n v nk c:
nn nc n cng nnc n c v, n xcn
CEO n cn cnn, c c, c v
cn nnn cn.
B n ncn, c x CEO nng qn (9
). W n c vn CEO g Acv, Cng
Agn, Mk Pn, n Mk Innc. W n gncn nc n cn
g c v c c (Fg ).
Social Venture CEO Types[n=190]
Figure 1
Balancing Social and Financial Value Creation. T n c c
n c nn n c vnng / n
v cn nnc n c v. J En n xnv n
cn n vn vn c nnc v xn
c v nc n n n cn nc n n n
H c cnc z nnc n g cng n v
n . Wn nvn n c n -g c vn
n 3, n ng nv: nnc v n n c . A nv
c n j nvng n v n. Mn g n
n n n v c n vk nn n
n k nvn.
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Balancing Markets and Valu
Four Social Venture CEO Type
Wn k ng n v c n c cn
nc n cn nnc n c v, g n c. B n
g, ng v v : z c v
n n n nnc v. T g n: [M c
n ] - cn xc gn v c nvnn
kng . W k c v cn c n j n
n c. W c Sc Vn CEO n ng Eq Sc On,
n Acv n Cng Agn.
S Eq Sc On CEO c n :
Social and Environmental First: Our primary goal is to serve our social andenvironmental mission. The generation of prots is sought only for the pur-pose of fullling its social goals and to insure the long-term viability of thecompany and not to bring prot to the owners.
We are a for-prot company explicitly designed to serve a social purpose andgive our prots away.
We are a for-benet company explicitly designed to serve a social or environ-
mental purpose in a sustainable manner. We seek to create value for acommunity or society rather than just for our owners and customers.
D g, nnc v cn n
nc c . M g, 33 v , c n
Ag g cn cnc v, cv k cc cc
n c c v, , cn, n nvnn. O cn
n cc n cnn c nvnn , n v
c v cc c c.
An n c v n cng nnc v. Wn k
nc, c ng n: [W ] c n k n n: Tgnn cn g, c c nvnn v
n nnc n k g n n . In , c
cn Fnnc On n Mk Pn n Mk Innc
Cn Fnnc On CEO nc:
Our social objectives and nancial objectives are inseparable, because every-thing depends on a denition of efciency.
We invent, develop, and market products that help people adjust their livesto be more water-efcient. The greater success we have selling our products,the greater the social value.
The natural market niche of the product automatically generates socialvalue.
Explicitness to Stakeholders. An nng nng v xcn n
CEO c v cn nnn v k (Fg ). A
Sc Vn cn v n n n n cn
c v k n . T k kn
n n c cn : CEO n
n n nv . C
nx n. E n n n kn.
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|Four Social Venture CEO Types
How often are you explicit about your mission to the following groups?
Figure 2
F , c ng xc c gnc
nc ng cn. , Acv n Mk Pn, x-
c c, n , Cng Agn n Mk Innc, n
xc, ng n nv ng .
T ng cn nng q c ng cn
CEO.
1. Activists: Socially Oriented and Always Explicit with Customers
Overview. T Activists n c n n xc
g. T xc cn c jcv, n n k
Sc/Fnnc Bnc, q n c g. O g,
() v c c, n g nvv n ngg n nk
k n n n nggn n n cc c
.Social Value Creation. W k cn qn c c
v, n Sc V Cn Fnng cn . Sc, Acv
k c c v cng cn c vc nn
c v, cng c n, zng c . T
k c v n , Mk Innc
v. Sc, k c c v cng n
-nc zng n n. Acv n c
gncn cn n n V Hg cn cvng c
T n gncn cn cc vng c.
Financial Value Creation. T vg g cn n Acv vn g , n vg vn $. n, . T n
n n 3 n c , $,. T gn g
cng cn n vn. W k cn n ng
Acv n cng cn kn , g vn, n n nn gncn
Quotes and Impressions. Anc, Acv nggng n c, n
n ng v n n n n . Wn k c c
v,Activists z:
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Balancing Markets and Valu
Four Social Venture CEO Types
Sk Invvn n Agnn:
It is imperative for us to do ongoing evaluation of the social and environmen-tal impacts associated with processes, materials, stakeholders practices, etc.We perform certication and ranking of stakeholders relative to their socialand environmental performance, we reward increased transparency as wellas improved performance, and we look for external input and verication.
Heerad Sabeti, President, transForms, FB, a cause-related arts and dcorcompany based in Raleigh, NC
Scz S R n Pn C Sc V:
ShoreBank Pacic employs a Bank scientist to work with business borrowersin the Pacic Northwest to help them improve their conservation footprint.The Chicago/Detroit bank employs a Manager of Triple Bottom Line Innova-tions to develop new products and services to ensure our business stretchesto achieve our conservation and community development mission. Shore-Bank has 5 nonprot afliates that extend our reach in communities beyondour ability as a for prot business.
Anne Arvia, President and CEO, ShoreBank, the nations rst and leadingcommunity development and environmental bank, based in Chicago, IL
2. Change Agents: Socially Oriented and Not Always Explicit toCustomers
Overview. D ng n n nncng c, 3 Change Agents n
ng xc c cn k nnn c
c v. Wn k Sc/Fnnc Bnc, q n c g. T
c cng c n , cng n n k n xc. W n 3 Cng Agn v c c.
Social Value Creation. Sc, c cng, Cng Agn
k c c v ng n, kng nc nn
cn vng cng nc nn. T k
c c v zng nnc n c vc, ncgng
c n n, ng cn n c vcc. S
c n, v, c v g Cng Agn k
nc. T gn nc cn cng c gnc c, cng
, cn ng, n cn n c cn, n v cn
n n nv k nvn n cnc cn n cnc
v.
Financial Value Creation. T vg g Cng Agn-n cn
vn . . T vg vn $. n, . T
vn n 3 c , $,. W k c
n ng Cng Agn n cng cn kn , g vn, n
n nn gncnc.
Quotes and Impressions. S Cng Agn v k n n n
c v q c v . T c n
n, x, n Cng Agn -nnng gnc
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|Four Social Venture CEO Types
n c Cng Agn gn c cn. Anc, Cng
Agn v-vn n c n c n v-cn cnq. Wn k
c c v, Change Agents z:
Cng V g P Pc Svc:
We design and manufacture products that reduce energy consumption.Currently, our solar-powered trash compactor reduces fuel consumption ofgarbage trucks, reduces litter, and improves recycling economies.
James Poss, President and CEO, SeaHorse Power Company, based inSomerville, MA
We own and operate a 250-acre medicinal herb farm and a 40,000 sq. ft. herbalprocessing facility that is fully Certied Organic by Oregon Tilth/USDA. Wefollow stringent validation guidelines for the ethical and ecological sustain-ability of our wildcrafted herbal materials.
Ric Scalzo, CEO, Gaia Herbs, based in Brevard, NC
Cng V g Pn n En:
We provide environmentally friendly pest control alternatives and continueThe Doe Funds mission by providing an alternate source of operating rev-enue to aid in the ght against homelessness and drug addiction.
Isabel McDevitt, Director, Business Development, Pest at Rest/The DoeFund. Pest At Rest is a subsidiary venture that provides pest control servicesfor private and non-prot agencies and serves as an apprenticeship for thejob trainees of its nonprot parent, The Doe Fund, based in New York, NY
Cng V g Dcn Ognc S, F , Lvng Wg n Wn P
We buy largely from local farmers who grow produce organically and raiseanimals on humanely and on pasture. We buy fair trade for imported prod-ucts. We pay a living wage as a minimum wage. We buy 100% of our electric-ity from wind power.
Judy Wicks, President, White Dog Caf, a restaurant focused on award-win-ning cuisine and social activism, based in Philadelphia, PA
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Balancing Markets and Valu
Four Social Venture CEO Types
3. Market Pioneers: Financially Oriented and Always Explicit toCustomers
Overview. T Market Pioneers n z nnc g n
xc c c jcv. W nnc vn,
CEO v c c. Mn vn nc n xc xn
c n nncng n . T n c n g n c, n
k nncng c n , , k.
Social Value Creation. Sc, Mk Pn k c c v
ncgng -c cn ngn, ncgng ng --
n, n vng c vc v nnc c v. T
k c v ng CEO n vcc, n cng
c nn cc n cn n ng.
Financial Value Creation. T vg g Mk Pn cn vn
. . Avg vn $. n, . T n vn
n 3 nx g , $,. W k cn n ng M
Pn n nnc nc, .g., cng cn kn , g vn, n nn gncnc.
Quotes and Impressions. Anc, Mk Pn cn nk n c
n CEO c n ng, n j n, n
n cn k v nc n n. Wn k
c c v, Market Pioneers z:
Ung Cn C Sc Cng n n In:
While Miasole is nancial driven, we are highly dedicated to our goal ofsignicantly changing the economics of photovoltaics. There is deepappreciation that we can change the world for the better by achieving ourgoals.
David Pearce, President and CEO, Miasol, a solar cell company based in SanJose, CA
Ung Cn Mk ng Ivn n Lg n:
Our company improves quality of life for women with incontinence (20M inU.S. alone), and reduces the number of incontinence control products (dia-pers) in the landll. By 2010 adult diapers will surpass childrens in the land-ll.
Barbara Sarkis, CIO,Athena Feminine Technologies, Inc., a company thatproduces products for womens pelvic and reproductive health based inOrinda, CA
Pvng Pc Svc Iv Sc Oc:
We remove paperwork from the process of being a teacher so that teacherscan devote their time to teaching. We provide powerful new tools that gatherclassroom data that fuels continuous improvement in schools.
Larry Berger, CEO, Wireless Generation, a wireless classroom technologycompany based in New York, NY
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|Four Social Venture CEO Types
4. Market Inuencers: Financially Oriented and Not Always Explicto Customers
Overview. T Market Infuencers nnc vn k Mk Pn,
n xc c c jcv. W c nnc c
n c n n q cv n cn, n
n n cn. A , n v c v c
g c n c, n v n cnn
c cnng n nnc cc.
Social Value Creation. Sc, Mk Innc k c c v
ng nn n vc, x, ncgng -c cn
n (.g., n nn c) n ncgng -c cn ng. T
k c c v vng c vc v nnc c
v, cng vn c nvnn n. Mk Innc
c c v cn n . T c-
n n cvn n, n v c cvn (3
ng ).
Financial Value Creation. T vg g Mk Innc CEO vn
. , n vg vn $. n, . T n vn
n 3 g , $,. T g cnn v g cn, c
En F, c g n , kng 3 vn
ng $3. n. W k cn n ng Mk Innc n nn
c nc, .g., cng cn kn , g vn, n n nn
gncnc. D v Mk Innc g nnc
cc gn.
Quotes and Impressions. Wn k c c v, Market Infuencers -
z:
Dcn E nng n On:
All our staff is hired locally. We conduct intensive capacity building and openbook trainings. After a year in employment staff share in the prots. Ourmain service is to provide fresher and healthier food to school students.
Glynn Lloyd, CEO, CityFresh Foods, based in Dorchester, MA
Dcn Lcn n Hng Pcc:
Our physical plant location is in a Federal Empowerment zone, and as suchmore than 50% of our employees come from a 3 mile radius of our facility andhave not typically held a job for any length of time.
Theodore LeBow, CEO, CitySort, a mailing company based in Philadelphia, PA
Pnc Dnn Agn T Mn:
Gardeners Supply actively promotes gardening as an important way forpeople to make the world a better place in their own backyards, in their com-munities, and in the world at large. We donate 8 percent of our pre-tax protsto gardening-related initiatives.
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Four Social Venture CEO Types
Will Raap, Chairman and CEO,Americas Gardening Resource, a gardeningsupply company based in Burlington, VT
Cnn Hng, Cn-Bng n Pn:
We employ persons in a very economically depressed part of Appalachia. Wehave enriched our community by creating a local festival. We purchase all
materials with a strong commitment to regionalism. We have begun a foun-dation to provide much needed capital to the region.
Craig E. Cornett, Owner, Frog Ranch Foods, an all-natural salsa and picklecompany based in Glouster, OH
Types Summary and Conclusions
T c g g g c vn nn -
c , g n cc n. T g n x
- c nn. Sv k n cn n :
Simply put, not all social venture entrepreneurs are Activists. W nk Bn Cn n An Rck nv, n g
v, n nn, c Acv
xc n c g. F q c Mk
Pn, n cn cn nnc n c c-
c, j ng c c cn n
c n.
Nearly 40% of the group is not highly explicit with its customers. P
nng n Acv n Mk Innc.
Acv v c v n c n vc cn.
T k , n nvv k n ckngng nng n. Innc n k n n nn
. Mn k cnn n c vn n-
n. T n c n nn, q
nncng n cn, n n n
c vn.
The age of the company is not the primary determinant of its type. W k
vg n n g cn, nng gng c,
n n c cn g c v
g cng. W cn gn Acv Cng
Agn, 3 Mk Pn, n Mk Innc n Fg . W n
x n kng CEO -cn v c c. T
CEO v gn Acv Cng Agn, n c Mk
Innc c Mk Pn. M v, v, k
c n CEO n n , nnc c. T x
nng CEO cng n c n qn n -
g, c CEO c n n c c n g, nnc
n . T gng c n c, vng Acv n
g n g nv n
k n v n c. T gng c
1.
2.
3.
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|Four Social Venture CEO Types
n vng g Mk Innc Mk Pn, Cng Agn
Acv k ng c c n
ng c c cnn CEO c v n nn-
n.
Nonetheless, financial success does correlate with diversity of social value
created, across types. A n n Fg 3, Mk Innc n g cn-
cnn cn g vn, c n $. n $3 nng. In n, cn g vn (v $ n) g
v cn n c v. In , CEO
nnc cc c vn cng v kn c
v, vn nnc n n/ n xc c-
.
Revenues (2003) and Age of Companies by Type
Figure 3
Within each industry segment, there is a clear preference among CEOs to
put social or equal goals over just financial goals. Fg -
n CEO c vn n gn T c n ,
Acv n Cng Agn, n g n k cv, k n
n gn, xc n gc, n (AHF) xc .
4.
5.
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Social Entrepreneur Types by Industry [n=190]
Figure 4
W n gn (SI) g cng Mk Pn
ng c xc n v zng nnc n. T -
gn (MEC) g cng Mk Innc, n g
cng CEO cng c n v. Mncng (MC) g
cng nn -c Acv.
If you believe that your product or service carries your mission intrinsically,
you do not have to be explicit with customers about your mission. A g
n Cng Agn v n nnc n
n n z c. O nn
c n cv nnc n, n n c
n cv n c n k.
Yet, explicitness to customers is correlated more with the practice of
evaluating impact than is a social value creation orientation. In ,
cn c nnc v xc c
(Pn) v c n n c c v
n xc (Cng Agn). T k c Pn n v c
v n cnn ngg c n nnng c-
n n.
6.
7.
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|Social Value Creation Findings
IV. Social Value Creation Findings
W k g CEO nq cn cn cng c v.
T cn g n n, k c v n n
cn, n n cnc v c.
Creating Social Value: Mission PreferencesA c vn CEO cn c c nvnn v n
nnc n n . W k CEO n c cn k c c
nvnn v, n n . On vg, cn c . T
vng nvnn, c CEO, n nx
() n cn vn (). A n c
n 9 CEO, cv.
O c CEO, n nc x v -n n nc
ng vng nn c, vng c, jvn jc, n g,
cc, , , vn, n n vn.
F n n v cn CEO cn nc n nn Sc
Vn Dc : www.riseproject.org.
Areas of Social Value Creation[n=211]
Figure 5
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Vehicles of Social Value Creation
On cn v k CEO c c v
g cn. T v n k ng n Sc Vn N-
k n c n n cn cc n .6 Gvn gn
v cv, c c n. W v
n n c v nnng n n n n n vc n v gnc n nn. W v
CEO v j vc cn c c v, n k
nc n c cc qnc c c n. F nn
vc v n nnng cn n In
.
T v j vc :
Product/Service: vng c vc nnc v c v
c, c nvnn.
Supply Chain: ng n cn c c v. Wn vc, k CEO :
c vn c nvnn n
ncg c n n, -nc n cnv k
cv k n n n- n n-n vn
cng v ncg vn c nvn-n n c
Internal Operations: ng cn nn n c c v.
W k CEO vc, ncng:ncgng -c cn ngn (.g., xc n n n)
ncgng -c cn ng
nggng -- n
ncgng -c cn cn (.g., n nn c)
ng n n c (.g., q c, ESOP, ng vng g
Advocacy/Philanthropy: ng cn g
c cng nng cv c cng cn. W
k CEO :
ng cn n c (ckgng, n ) vcc (.g., B S)
ng ng c cn CEO n vcc (.g., Bn Cn)
kng nc nn cn
kng nn n g cn nc nn g c nn cn c (.g., Nn On Wkng A)
ncgng nc cnn cng g
1.
2.
3.
4.
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|Social Value Creation Findings
Ethics: ng c n cng c v :
cng n, c c c n cc c v ng k cnnc
n cng c nn cc n cn n ng
Vehicles of Social Venture Creation Findings
Most Popular Vehicles. M n CEO c c/vc
vc cng c cng. F n gn, c cnn c-
n n cng c v, xcn: vcc/n cn
ng kng n (MCE) gn, n nn n cn
n vc cn (CPR) n ncng (MC) gn.
Least Popular Vehicle. T vc n. W CEO
cn n k nc nn cn , n 3
k nn n g nn cn, n n 3 ncg c
n g cn cng g. F c k v ,
n n ncn v nc nn n g cn. O n g cn cc n. W 9 k
ng nn n , nv cn , Nn On kn
c vn, c cn c nn, v
.
I k vc n c gn, nc n n c cn vc
cc gn:
Advocacy nnc vc (FSC) cn.
Philanthropy cn (CPR) n (MEC) cn.
Product/Service nvnn (EEU) cn.
Supply Chain cn (CPR) cn.
S CEO v v ng vc v cn c c
v:
On Pc/Svc n vc:
The product must be of the highest quality for the lowest cost possible to thecustomer rst and foremost. The product itself must be or bring the socialvalue. Social value cannot be engineered apart from the product.
Connie Campbell, CEO, Experiencia, an experiential educational companybased in Kansas City, MO
Social labels (double bottom line, social venture, etc.) can cloud the purposeof a venture - a company should be rooted in its product/service and its man-agement practices. [It is] more productive and sustainable to have the socialbenet intrinsic in the companys product/service, or the choice of marketsserved.
Rezwan Sharif, CEO and Founder, Ferrate Solutions, a provider of waterpurication technologies based in Cambridge, MA
5.
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On nc vcc:
Do something innovative and powerful enough that you are not in any waycompeting with commodity products in your eld. Hire people who sharethe mission because it is too much hard work for those who are just in it forthe job. Invest in the process of becoming a thought leader and broadcastingthat thought leadership.
Larry Berger, CEO, Wireless Generation, a wireless classroom technologycompany based in New York, NY
An q c CEO n nc gvng
c:
Having a social venture creates very strong brand loyalty. Social ventures arescrutinized intensely. Therefore, our auditing systems need to be impeccable.No matter how important my mission is, the single most important thing mycustomer wants is a really good product.
Jody R. Weiss, CEO and Founder, Peace-Keeper Cause-Metics, a cosmetics
company that uses all prots after taxes to support womens health advo-cacy and human rights issues, based in New York, NY
Impact Commitment and Evaluation
Evaluation of impact is critical and important to extend beyond rhetoric. Itis also easier than expected. Many more stakeholders are now committed tothe concept thanks to regular and open info sharing of the good and the bad.
Melissa Bradley, President, New Capitalist, a consulting rm for emergingand social entrepreneurs based in New York, NY
A n n Fg , cn v g c c c ()
v c cv , ng v g.
Commitment to Impact
Figure 6
W k cn n v c nc,
gn c c c cng. Ov, 9 cn
n v c. T gg nc c n gn n
AHF gn n c n 39 v c, n n CPR gn n c 3
v c.
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|Social Value Creation Findings
Purposes
O v c, k n c c vn.
M ng n (), g n c v
n v v cn n (9) n c n
vc (9).
Methods
W v vn n k cn n c
c vn (Fg ). T qn vn c gn
n n (), cv (), n-c n (), n
v (). T n gn, n-c n
q qn n gn ncng nvnn, nnc, n ncng cn,
n c qn n , , gc n cn gn.
Methods of Social Impact Evaluation[n=116]
Figure 7
Ang cn, c O , c cn kn n v cg
We make our own metrics. O cn c nn c vn,
c n v nc c. Sv cn c
. J P SeaHorse Power Company, c gn n nc
c c ng cnn, cn nn nnng ccn
n c. Heed Inc CEO W Kk gg nncng cn
ck nc v ng .
We use other metrics developed in academic settings. Rn N
Equal Exchange, c g cn n U.S., g k c g n n c.
We take internal measures and turn them into economic data. Ac R
Ripple Effects, n cn cn, cn cnc c
cc c n nnc cn c. F x, c
c nc v c $3 n . Energetics International, n
gc c cn n Kkk, IA, c cv cnc .
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Costs of Evaluation
W k cn c nn SG&A c g vn
W n n ( cn) n kn, n 3
c n SG&A. A 9 nn vn c xc
SG&A.
Lkng c n, gncn nc. Mncng cn, c nc n-c n , n n vn, nng
n SG&A. Fnnc, cnng n vc n , 39 nng v
SG&A n vn.
Conclusions on Evaluation. A k n n n x
n vn n gng c vn. Nn,
nv xnn gng n, c vn ng n
n cnc c. W nk nng n cn
ng n-c n, v - n c .
M n n n ng -n n-c n, c q
xnv.7 W nk cn ng g n n,
n cng cnc c g n, n
vng cv gn cnc qvnc c. W xc -
c vn gn cng gn n v cn
n k cnn n .
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|Background to Industry Segment Reports
V. Background to Industry Segment Reports
Industry Segments
Mng c vn ng n v n n.
ng n cn, v cn cn n vn In Sgn R
z .
T vn n gn, - vn g ,
AHF: Agriculture,HealthandFood
CPR: ConsumerProductsandRetail
EEU: Energy,EnvironmentalTechnologyandUtilities
FCS: Financial,ConsultingandServices
MCT: Manufacturing,ConstructionandTransportation
MEC: Media,EducationandCommunications
SIT: SoftwareandIT
Notes on Industry Reports
O vn n cn nn k nng n c gn.
Fck v n v nn, nv-
n gng cn ng n c vnng n c nn.
Ec n cnn n vv cn gn c gn
k nng, n cn n c gn, cng, ggc n, z n vn kn gn, g Sc
Vn , n cn n c gn vn n c
. T n z nng n :
company culture, c nc CEO n c cg n v c/nnc nc, n cc, n v xcn n k;
social value creation, c nc n n c gn, cn vc CEO cv c c, n nn n x n vng c;
nancial value creation, c nc vn n gn, nncng n c , n n nng n x.
T nn n nng n n n cng,
n v nc cn n gn .
A note on information in the reports: W n k cn xc vn
n. T cn n n -cc qn c
ng vn (.g., $-M n vn). W k n n
nk cn n c vn cg. A , nkng n c c-
c. D c cn n cn nng.
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Aggregate Findings
In n v, ggg c n n cn,
vn, n nng, v n ckgn c nc
gn .
Companies by Industry and LocationT n cn gn n ng (Fg ).
Number of Companies by Industry Segment[n=211]
Figure 8
In kng cn gn n cn, n g cng
cn gn: nvnn (EEU) n gc (AHF) cn n
W C, n g nnc (FCS) n cn c (CPR) cn n
E C, n n Fg 9.
Companies by Industry and Location[n=211]
Figure 9
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|Background to Industry Segment Reports
Revenues by Industry
T c vn v g n $ n n z. O CEO
n qn vn n 3, ( cn) vn
$ n, ncng q (3 cn) n vn. T
vn $,-,.
T cn ng. A 9 3 v ng; . Rvn, xc, c c g cn. A
- cn, vn n $ n n 3; 33 cn
v vn n $ n.
On n c, cn () vn v $ n, c
n CPR gn. In c, CPR g vn gn n ,
v $ n n vn. EEU n MC -vn gn n 3
cn n $, n vn (Fg ).
2003 Revenues by Industry[n=155]
Figure 10
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Financing
Social venture CEOs put their money where their mouth is. Fn n n
n n c nncng ( 9 cn v), c
n n 33 cn. O nv n
cng n, n ng nv (ncng DBL ng) nx qn
nncng. Fnng nn nv c vn c n cn
gncn n.
The majority is not planning to go public. Lkng , g
- c nn cnn cn v. O
3 cnng kng cn c. M
kng n v . Gn, v, nn n
n.
Most raising less than $5 million in near term. Wn k cn nng n
v, n CEO n cnn c. Ang CP
n FCS cn, v, cng CEO n c
In n nng, n n $- n. T xc
n CPR n MEC gn ng ng n $ n.
Funding sources vary greatly. A c n c, n v
c n gn. F n gn (EEU, AHF, MC n MEC) c c
gn cv c nng. n- cn v c
c gn n , x EEU n AHF cn cvng nn
g gn. F FCS cn, gnc g g n nng c
n, cv c n SI cn DBL nv n
CPR cn, q ng nv.
Most find DBL investing unattractive. Inng, DBL nv v cv
nng n cn n n gnSI (3) n CPR (In gn, 3- cn n DBL nng v cv. Cn
nn nc DBL-nng k n n n vn
c vn n v, n DBL-c nv v n
c nvn k:
Potential investors do not know how to evaluate our market or viability. Thereis no rational capital market out there; even with companies and angels thatsay they invest in social ventures.
[One of our challenges is] attracting socially-responsible investors with board-level skill sets which are comparable to our venture investors and for-prot
investors.
The socially responsible investment scene likes to applaud and encourage butis not very eager in actually investing (hence being stuck with serious inves-tors) - we have attracted a little bit of capital from idealistic individuals, butthe vast majority stems from prot-oriented investors.
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|Agriculture, Health, and Food
AGRICULTURE, HEALTH ANDFOOD
OVERVIEW
T Agc, H n F (AHF) gn cn
cn v n k c-n gc-
c; n gnc, n-
c, vck, n c; cc n
c cng cn; v nnvv
c vc c; c n k
ckg n n c gnc
gc c; n vc n.
Summary. T gn W C-. M
n cn xc c
c n. T j AHF cn
(c gnc cn) cncn c
cvn gvn c . T -
c n, g n -
c gn c vn. T
cc nn nncng, n g n g
cn cn n v cqn.
Number of Companies in Sample: 3
Average Age: 9
Headquarters Location
West 42%
Northeast 28%
South 17%
Midwest 14%
Staff Size
25 or fewer full-time employees 75%26-250 employees 22%
2003 Revenues
Number of Compaies Reporti Reeues: 26
No Reeue 1%
0-5 millio 54%
5-10 millio 0%
Aboe 10 millio 15%
AHF Company Growth 2002-2003 [n=20]
Figure 11
Type Breakdown
Activists33%
Market Pioneers33%
Change Agents
17%
Market Inuencers
17%
Figure 12
Top 10 AHF Companies by 2003 Revenues
. En F Sn Jn B, CA, 9
. Nn Rnc Okn, CA, 9
3. Sn F Lnn, NH, 93
. G H, Inc. Bv, NC, 9
. W Dg C P, PA, 93
. CF F Dc, MA, 99. AgQ Dv, CA, 99
. Fg Rnc F G, OH, 99
9. Ic Bkng C. F Rck, NC, 99
. VMBCLLC, T Vc C. Rv, MN,
VI. Industry Segment Reports
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COMPANY CULTURE
Social-Financial Balance. Wn k nc
n nnc n c g, ng
cn n gn zng nnc g
g n v .
On nng g gg
n gnc cn c c-
vn, gvn n g c . W
n AHF ng v
c/nvnn n cn
ngv c n c cvn.
With the pressures placed upon the com-pany to be protable, improving marginsoften requires renegotiation with the sup-ply chain. The challenge is to maintain sus-tainable prices for everyone in the supply
chain, especially the farmers. We will nothave an impact on converting U.S. agricul-tural acres from conventional to organic ifit is not economically feasible for them tochange production practices.
La Rhea Pepper, President, Organic Es-sentials, a personal product companyfocused on organic cotton
[The primary challenges to our business]are a combination of two factorsrst, we
pay high costs for organic and completelynatural ingredients, so our products costmore but second, we compete with brandsthat sell cheap products at big margins, en-abling them to use extensive advertising toseduce consumers into believing that theycan get quality for low prices.
Gary Hirshberg, President and CEO, Stony-eld Farm
Labels. Wn nng c
c g, AHF CEO nvnnn . Sng, n-
n c v
gn. O CEO n gn, v
ng c n n cc. An
cn v ng n n
n nv.
Explicitness. W AHF CEO
g xc v k
c nvnn n,
xc nv c v
. W v v
n gnc n k c gn. E g n vn c-
nv n n n, n
n nn c n c vn.
For-prot social and environmentalstart up ventures need to build strongpartnerships with like minded organiza-tions from the get go to draw on existingsupport for such companies. The idea ofenvironmental and social consciousnessin business should be blended into the
company culture.
Krishna Nadella, Co-Founder and Direc-tor, Technology, MicroGREEN Polymer,a producer of environmentally-friendlyplastics.
Commitment and Achievement. In n
qn cn c/nvnn-
n n c, AHF CEO -
vng v g cn. O CEO,
3 c v c cv vg n 3 g.
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3|Agriculture, Health, and Food
SOCIAL VALUE
Missions. In c v cn,
AHF CEO ng v ,
gc () n nvnn ().
Cn vn n cn ,
3 n gn cng n
, cv. On vg, c cn n g-n c 3. n v cn, n
cn c .
CEO c v
n n n g, ncng n
, c n jc, , n g c .
T J Wck, Pn White Dog Caf, n
cn n (n n 93),
n Rn S. Bc, CEO n ng,
Seven Oaks Ranch, n n 3.
Vehicles. Cn n gn, k v
, nn c v g
c vc v, c c nnc -
c nvnn v. In n, g cng
CEO n gn c gn
nng cnn n g
c c v g nn n.
Impact Measurement. W 9 CEO n
v vng c nvnn
c cn, n 39 AHF CEO
. T cn c z ng nc c ,
n n n SG&A n vn. T
ng vn gn v
nn ngn cn. In n,
n ng vn n
x n , gncn n
v , ncng n gn
ng nn n nng c . Ang
x:
Accng G Hg, Stonyeld Farm c gnc A, 3. B , c-
n v , c gnc n
n U.S. I n 3, c B-
zn g, ng n v c n
n. Sn n
n n gnc ngn, n v n
cnvn. Tg ng cnvn
n cng, cn cv c-
n n CO n c n 33 cn
ng c n c, nc 99. T
n vng v $ n v
g , vn , n CO nng
, n v ng ng
. In 99 cn U.S. nc CO n c ng
n cn nn g n
cn n n Gn G Rg.
Mc McCnn, CEO Niman Ranch,
cn vck n,
n n n v c
ng n ng n . T c
n c g n n
nc kng g ,
v c c, n n nn c j c cng n.
J Fn, COO ONaturals, c-
n g n n n c
(3 gnc) , n, n c
nc nng n . H ng
3, n n n gnc c .
ON k cn ng
c c nn, n v
9-/g , n, g n, vc
n, n . T cn n
nvnn n ng cnq.
Owning and leading a social venture com-pany is an incentive to succeed because ofthe benets that can be created from aneconomically successful platform. A strongsocial mission attracts quality investorswho contribute money because of thesocial value and return on their investment.Personally, it is easier to get through thetypical daily challenges of leading a com-
pany by staying focused and committed tothe social goal.
Andrea Lyons, Chief Executive Goddess,Goddess Granola, a gourmet granolacompany
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Agriculture, Health, and Food
FINANCIAL VALUE
Performance. T gn v g
cn, ncng v $ n n vn
n 3. A c gn ng
, n cn n n
3. O cn 3 vn, vn
v $ n, ncng v cn n n g.
AHF 2003 Revenues by Company Age [n=26]
Figure 13
Financing. In nncng , q
n n n ng nv n n
nvn, nk n n gn
gvnn. T n gn n v
n c j cn v
nng nk n n n
n.
Exit Plans. AHF CEO c n cn g kng c/nv-nn n nc. On 3 gn g n c vn n n nn v n ng cq gng c k. Cnng, x n AHF CEO cn.n- cn, 9 CEO n qn nng n, ncng c n ggg $ n. T - nng c ng nv n DBL n;c gn n n n c.
Mn AHF CEO nn cng gng, -
ng c, n nng n nng k .
CEO cn z n g nn nnc-
ng n nvn n cnn cng.
Ann-M Cn, n n CEO Biosyn, -
:
My business is a drug development com-pany that does not yet make revenues. Ourproduct line is geared toward the tradi-tional commercial markets, but also hashuge value for HIV in the developing world.Finding the balance between traditionalventure capital and not-for-prot funding isvery difcult.
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3|Consumer Products and Retail Segment
CONSUMER PRODUCTS ANDRETAIL
OVERVIEW
T Cn Pc n R (CPR) gn cn cn c n k v -
(cnng c, nc, , n
c c, gnng , c.), , n
n c.
Summary. T gn n N-
U.S. M CPR cn () xc
c n, n CEO n
q g n Acv n Mk Pn.
CPR CEO k c n
n n, n n n n . T n
n vcc n n c n vc.
T v n cvn g n
gn, g n n cn-
c c nc g nc vnc.
T gn xncng g g,
cc gvnn nngvnn gnzn
(NGO) n. F , CPR CEO
cn v n .
Number of Companies in Sample:3
Average Age: 9
Headquarters Location
Northeast 48%
West 2%
Midwest 16%
South 1%
Staff Size
25 or fewer full-time employees 58%
251-500 employees 10%
2003 Revenues
Number of Compaies Reporti Reeues: 25
No Reeue 8%
0-5 millio 0%
5-10 millio 52%
Aboe 10 millio 40%
CPR Company Growth 2002-2003 [n=18]
Figure 14
Type Breakdown
Activists38%
Market Pioneers34%
Change Agents17%
Market Inuencers10%
Figure 15
Top 10 CPR Companies by 2003 Revenues
. Ac Gnng Rc Bngn, V, 93
. ABC H Fnng N Yk, NY, 9
3. Ognc V F F L Fg WI, 9
. zn CnP Wngn, NY, 9
. Gv Sng Bck Bn PcOkn, CA 99
. Eq Excng Cnn, MA, 9
. W Pn Sn Fncc, CA, 993
. Svn Gnn Bngn, V, 99. W Inc. Sn R, CA, 99
. S Dg Ecnc W, V, 99
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Balancing Markets and Valu
Consumer Products and Retail Segment
COMPANY CULTURE
[It is our] corporate strategy to integrateevery aspect of the business to meet ourenvironmental and health mission goals.Every decision is made in the context ofthe question does it promote a healthier
and more sustainable environment, and isit what our customers and/or employeesdesire? Sometimes the answers conict,and we then work them out as a manage-ment team.
James Wiggins, President and CEO, HomeGreenBuild, a provider of healthy andenvironmentally friendly buildingmaterials
Social-Financial Balance. Wn k -
, CEO n gn n nncjcv n c g. A ,
cn g (3 ng) cn c n c
ng c n nvnn c.
Labels. T CEO n c n
n nc n c
n, c c n, nvnn
n n n. O nn n
gn, v ng c -
n cc.
Commitment and Achievement. O CPR CEO, c v v g cn kng
v c n/ nvnn c. Hv, n
c v c cv v g.
Explicitness. Accng CPR CEO, g
xc v k c/n-
vnn n cn n v .
T g xc , cn,
nv, n, n, n, g g,
c k. T n xcn : CPR
CEO n c n c 3 v .
SOCIAL VALUE
Missions. T gn c c/nvnn v
n v ng . T v nvn-
n (), cn vn (),
(39), cn (39), n nnn vn
(3). T nn c n vg 3.
v 3.3 n v . O nc g, n/kc cc, c
, n n ng. CPR gn
n c nnn vn n c
v cn.
Vehicles. C CEOS n n gn
CPR CEO ng n vcc n n-
vc c n nvnn cng. T
cnn n v
cnc cn. CPR cn q
c n c vc c v cn . Ang x:
Seventh Generation nn ng n n
xc n nvnn c. Gg
Bn, Mng C Sc Rn (CS
Pjc, cn c V n
Ong C c n cng
ncng cn v n c n
H k CSR n v
CSR cn g .
Equal Exchange, n n 9, n - cn n U.S. Rn N
c nn, c x vc
cng : ) cn (-
n - c cn c);
n-k ngn, g c
n ngn kc cc; 3) ng n
vc n cng c n
c n cc n; ) kn vcc
kc cc n -n; ) cn
nvn n cn cn n c n
nvnn nvv n g c, ncc n; n ) ng nn ccng g
H S, Pn Transforms, FB, n n
c cn c -n c
n, n v ngng vn
c n nvnn c c c
, n k cc. H cn
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3|Consumer Products and Retail Segment
ccn n nkng k v
c n nvnn nc, nc
nnc v nc, n k
xn n n vcn.
Impact Evaluation: Hvng n xc xncn c nvnn n,
CPR CEO v c v c-
n, g nc. O CPR cn,
3 v c c 9 v-
, g n . O CPR c-
n ck c n n vn, 33
n n SG&A v
n . Ex nc:
Equal Exchange, c c n F
c k, F cc
c, n cc . In 3,
nc c- n
$. n ( vn) n
v n c x. In n,
cn vn c cnv g
v -v c c-
. In 3, g v
n $ n n c c.
Tarsian & Blinkley Agn v
k n q k
. Accng S k, Cv n MngngDc, cn x
n cv c
qn k. In n, cn
q cn n n
c n Wn. S v
c n n v n cn
g v.
FINANCIAL VALUE
Performance. T CPR gn g
cn n . Fn CPR cn
xcng $ n n 3; cn v
v c vn v $ n.
CPR 2003 Revenues by Company Age [n=25]
Figure 16
Financing. CPR CEO c ng n n c nng. O gn,
n nng n
q. D n cn: n 9 n
nng.
Cnng, CPR nn c nng
n n n, g, n
n. Pnc nnggn n PRI
nn, vn n gvnn
n v gn
Future Plans. F CPR nn g
c vn cn g ng n v n
g gng c k. Nn,
n cnvv n c n
cn. O nn, ng n
ngng cn v n . On
n n n kng cn c. DBL
n nv n q ng nv
v c nng; n q n,
. In n, cn n n
gn n n n; , 9 n
n $, n $ n.
A for-prot social venture is perhaps morechallenging (or limited) than a not-for-protin terms of funding. It is critical to be ableto bootstrap and sustain nancially duringthe start-up phase. If you are driven by chal-lenge and have the will to succeed for thebenet of society . . .this is it!
Josef Knoff, President and CEO,MyNaturals.com, a provider of earth-friendly products
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Balancing Markets and Valu
Energy, Environmental Technology and Utilities
ENERGY, ENVIRONMENTALTECHNOLOGY ANDUTILITIES
OVERVIEWT Eng, Envnn cng n U (EEU)
gn cn cn v n c-
cz nnvv cng n nv/n
ng, ng cnc, ccng, n n
n n .
Summary. O CEO n v W C-
gn, xc c -
n. T n c n Acv Mk
Pn, g j v k -c n k n n
g n n n. T g
c qnv c n n
c c, n n n nn
ngn . Ag g xnc
g n 3, v n cc
ng n v g c n 9
nng . U, EEU CEO
k cn c.
Number of Companies in Sample:
Average Age:
Headquarters Location
West 44%
Northeast 4%
South 12%
Midwest 10%
Staff Size
25 or fewer full-time employees 5%
More tha 100 employees 0%
2003 Revenues
Number of Compaies Reporti Reeues: 6
No Reeues 47%
0-5M 5%
5-10M 0%
Aboe 10 millio 0%
EEU Company Growth 2002-2003 [n=21]
Figure 17
Type Breakdown
Activists41%
Market Pioneers24%
Change Agents22%
Market Inuencers14%
Figure 18
Top 10 EEU Companies by 2003 Revenues
. CnPn N Yk, NY,
. Ecng Innn B, CO, 99
3. BRcn In n, OR, 99
. Cn P Cn Ln, CO, 99
. g S Engnng Inc. An, ME, 9
. EnGnc Innn Inc. Kkk, IA, 9
. Pn S Inc. Enn, M, 99
. R R LLC C M, CA, 99
9. Vn P LLC. Angn, VA,
. Pnx cng C. Sg, MA,
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COMPANY CULTURE
I call it capitalism plus. To integrate, youneed to operate in the playing eld. Youneed to win in that eld. So we can talk so-cial venture but, truly, we talk capitalismrst, plus second. Think globally, and act
locally. Take care of our business, and theimpact will speak for itself.
Ellen L. Batzel, President and Los Angelesattorney, Solar Sailor USA, a hybrid ma-rine power company
Social-Financial Balance. Wn k
n nnc n c g, CEO n
gn n g c jcv,
nvnn. Hv, n g ng
c c n c ng c n nvn-
n c.
A cn g cn g-
n gvnn g gn
ncg n nvnn cc. In c-
, EEU CEO cn c n ncn
g n cnng c. Gvn g
c n vn c nvv n gn,
c cvn c nn n c.
T cn n ncn g c
ccnc n cng cnvnn
k.Labels. T CEO cc n
n, c n, nvnn/-n-
vnn, n nvnn n. O
nn, 9 v ng c
n cc. On n, v
gnz n, v v-
. In n n ngv c
n nv, nn x cncn
v . T c/nvnn -
x ng , g
n n n c cc.
Commitment and Achievement. O EEU CEO, 3
c v v g cn kng -
v c n/ nvnn c. On , -
v, c v c cv v g.
Explicitness. EEU CEO g xc
k, n c n c k-
, c n gn g
g.
SOCIAL VALUE
It takes imagination to create productsthat advance social goals. This imaginationmakes the economic value of an enterprisemore sustainable and, frankly, enhancesour prot margins.
Michael Gordon, President, Consumer-Powerline, a strategic energy asset man-agement rm
Missions. T CEO n gn vng
ng nvnn n ng , c
c n , cv. Innn
vn n nx
c c EEU cn. Cn
ng, n k n c cn
k c c nvnn v, n-
n c . n vg c vg 3.3 gn.
Vehicles. CEO n EEU gn n v
vc,
g. EEU CEO, v, vcc
n n gncn n gn.
T gn n nkng n c
ng vn n c nvnn
v, g n n xnng nv
k.
Impact Evaluation. O EEU CEO n ,
vng c c. M g
vn ncng cv , n
-c n, n c c
g v n n v . T EEU cn
cc nvnn c g c vn
cn n n/n, n nc /cc
n nv cn. Ang x:
Kryometrix Systems v n cn-
n ng ngng ---
ngn cn - cAccng CEO Gg Rc, Kx n c
ng, CB, vnz
: CB g
n cn , c c xng
c 9, n n c nvn
n n.
F, CEO n Mngng Dc Redwood
Rubber, cn n vcnzn
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Balancing Markets and Valu
Energy, Environmental Technology and Utilities
ncng c v n n ncn-
n c ccng c nc g
v c. T c n vgn
nc , c n,
n v ng cnn n n
c--c cc. H c cn n v n n n
CO .
Accng EEU CEO, v-
n c n vc. Exn n
c n cn cng k n-
c n n x n g gn-
cn n.
FINANCIAL VALUE
EEU 2003 Revenues by Company Age [n=36]
Figure 19
Performance. Rvn n q
n gn. T n cn vn
v $ n n 3 n $, x
v .
Financing. Eq n n nng
gn, c cn
v. EEU cn nq, v, n
v g n-q n gn. T gn
nq n nng c
ncc gn, c vn c
, nn n NGO.
Exit Plans. A 9 EEU cn nn
g c vn cn g ng n
v; g n gng c
k. Cnng, nn
ng cn gng c n k
cn v. A j ng n c k g n x n kng n
nvnn vn, n vc
. F x, Fnk Z, CEO n
C-Fn Rentricity, n ng n n
ng cn n NYC n 3, cn
kng n g, n k
ng c c n.
Fnng n gn n: 9
cn n gn n n n
g ng nv, DBL n, n c gn. O , 3 k $ n
3 $ n $ n, n 3 $
n $3 n.
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FINANCIAL, CONSULTINGAND SERVICES
OVERVIEW
T Fnnc, Cnng n Svc (FCS) gncn cn nkng, nnc nnng,
c n nvng, n cn n-
n vc cnng n v nc-
ng n/c n, n, n
nng.
Summary. FCS cn n c
n N. T c v q
g n c n nnc g. T
v c k n- c
v, n v cc.T g v cn n cvn
c c, n 9 cv n
g c vc. W
vn n g g n g-
n, FCS CEO c n gng
nn nvn. M n cn
v n .
Number of Companies in Sample:
Average Age:
Headquarters Location
Northeast 4%
West 28%
South 20%
Midwest 10%
Staff Size
25 or fewer full-time employees: 8%
Aboe 500 employees: %
2003 RevenuesNumber of Compaies Reporti Reeues: 24
No Reeues 8%
0-10 millio 8%
Aboe 10 millio 8%
FCS Company Growth 2002-2003 [n=17]
Figure 20
Type Breakdown
Activists53%
Market Pioneers11%
Change Agents18%
Market Inuencers18%
Figure 21
Top 10 FCS Companies by 2003 Revenues
. SBnk Ccg, IL, 9
. Px W Mngn C. N Yk, NY, 999
3. Vg R E Svc Nv, N, 99
. M Wck & Ac, Inc. Bk, CA, 99
. CS LP P, PA, 99
. N C N Yk, NY, 999
. T Svc Wk Cn P, PA, 99. C.c R C, CA, 99
9. Dv Eng G Dv, CA, 9
. McM Mnn, MN, 99
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Balancing Markets and Valu
Financial, Consulting and Services
COMPANY CULTURE
Social-Financial Balance. Wn k -
nc n nnc n c g,
gn c/nvnn n nnc
v q g, c g ng
gn n v. On , v, g ng
cn c n c ng c nnvnn c.
Labels. T cn nq n
n-, n-c vn, n
n . Sx cn v ng c
n cc.
One can arbitrage the dis-efciencies ofthe mainstream to benet the disadvan-taged who are motivated to grow. Onemust be aggressive in selling the notion
that a for-prot organization is both appro-priate and ideal for empowering [the disad-vantaged] to make prots for themselves.There is boundless wealth locked up in thecapacities of individuals and families oursociety has not cultivated appropriately,for a variety of reasons.
William Kirksey, Chairman and CEO, HEED,a provider of mortgage offerings combin-ing housing and enterprise development
Commitment and Achievement. O FCS CEO, c v v g cn kng -
v c n/ nvnn c, n
c/nvnn c v g g.
Explicitness. Gvn v c
vn, FCS CEO g xc
v k c/nvnn -
n.
SOCIAL VALUE
Missions. T cn n FCS gn
n cn vn ()
n n n n (33 c). T
gncn g n n v . Env-
nn n ng c
v cn, c g n cnng cn.
Vehicles. T gn ng vc c
v cn, xcn c, g
n v . A cn
c vc.
Pc/vc n cn k
c/nvnn c: 9 FCS CEO
cv n vng c
vc nnc n c n/ nv
n. Nn FCS CEO c n n
cn n vc.
Impact Evaluation. C v ,
FCS gn z qnv n jcv
v c, ncng cv
, n-c n, SROI (c n n nv-
n), c , n cng.
In n x c, HEED W Kk
ng c v g n n
.CircleLendingCEO A Avn c
n c n $ n n n v
nv cn n v 3 . I c
gncn gnzn n c-nnc n.
T n n c vn FCS c
n cn cn c n
n v SG&A n vn v
v . T c v-
n, c 9 FCS CEO cng k
n c , c gncn g n v . T xn
v g cng Acv CEO3n F
gn.
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|Financial, Consulting and Services
FINANCIAL VALUE
Performance. Rvn FCS CEO v
. Sv cn 3 vn
n $ n n , n $ n. T
. Ag j ( cn)
n , 3 cn 3 v $ -
n.
FCS 2003 Revenues by Company Age [n=24]
Figure 22
P g FCS gn g n
v : 3 cn v g
n 3 v 3 cn n .
S, FCS cn xnc v
vn g n 3, c v
.
Financing. Eq nng
gn, c n n. D c
nncng n gn, c n cng n v .
There is a dearth of risk capital. Very fewcapital providers with vision and experi-ence exist in this space. We need to betterlegitimize the idea that a for-prot vehiclecan achieve greater social impact in somesituations. We need an accepted mecha-nism for showing that the company iscommitted to social aims (i.e., x% of protsbeing used for social causes, or some other
standard indicators). We need to makesure that people who do this get adequatenancial returns; otherwise only a few fa-natically committed people will do it - andthats not enough to have the impact weare looking for.
Dennis Whittle, CEO, GlobalGiving, anonline marketplace that connects donorsdirectly to social, environmental, and
economic development projects aroundthe world.
Exit Plans. C v , v
g n cn (3) n nnng
n. T nn ng g cn cn g g ng ng -
n v c c. T
gnc g g n nng n n
cn v n . T FC
gn ng gn v n
n n nng /n.
My top three lessons are:1. Leadership succession. Management isrelatively easy to replace, but leadershippresents a challenge. Finding a successor
for the founder (me) who will advance thecompanys mission is a problem I haventyet solved.2.Growing the business beyond my span ofcontrol without diluting the mission or thevalues.3. Legal and regulatory constraints thatimpose a counterproductive structure anddistract us from serving our clients.
Mal Warwick, Chairman and CEO,Mal Warwick & Associates, Inc., a full-ser-
vice fundraising rm for nonprots
Everything takes longer to change thanyou think it will. Conventional, mainstreambusiness issues of the times take up a lot ofones energy day to day. Still, the mission isthe most important factor that keeps every-one motivated.
Diane Keefe, Portfolio Manager Pax WorldHigh Yield Fund, Pax World ManagementCorp., a socially responsible mutual fund
company
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Balancing Markets and Valu
Manufacturing, Construction and Transportation
MANUFACTURING,CONSTRUCTION ANDTRANSPORTATION
OVERVIEWT Mncng, Cncn n nn
(MC) gn cn cn c v-
c cc n n ,
cn c n vc -
ng ng-cn nn n n
n n ng n.
Summary. In W C-n MC gn,
v CEO xc c
n. T gn n Cng Agn n g n Acv g-
n. T , gn xc n
gn k n c. A
gncn cng SROI c c,
k nng n c vn . Ag
MC CEO g c, cn n
g , kng ng- c.
Number of Companies in Sample:
Average Age:
Headquarters Location
West 41%
Northeast 2%
South 18%
Midwest 12%
Staff Size
25 or fewer full-time employees 88%
Aboe 75 employees 0%
2003 RevenuesNumber of Compaies Reporti Reeues: 11
No Reeues 45%
0-5 millio 54%
Aboe 5 millio 0%
MCT Company Growth 2002-2003 [n=6]
Figure 23
Type Breakdown
Activists57%
Market Pioneers21%
Change Agents7%
Market Inuencers14%
Figure 24
Top 10 MCT Companies by 2003 Revenues
. NOVA G Vnn, NY, 9
. Gnc Hng Cn Wc, MA,
3. On W Pjc Inc. Bv, NY, 993
. Xcc Inc. Nv C, CA, 99
. Ic Vg Inc. Bk, CA,
. IcSn LLC Bkn, NY, 3
. x Cn Mnn, MN, 93
. PYRAMOD Innn Inc.G V, CA, 9939. S Ic Cn Ann, MD, 99
. Dn Dnc B, MD,
. E P & P Lgg, CA,
____________________
n c
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|Manufacturing, Construction and Transportation
COMPANY CULTURE
Social-Financial Balance. N MC CEO
n zng nnc n c g
q, nnc g . O c-
n nnc n c g ng
xc c c n . A CEO n
gn v ng cvn cn c n c ng c n
nvnn c.
A for-prot social venture must outdo itscompetition and sustain long-term protswithout relying on its status as a socialventure.
Cate Han, Business Development,Differential Dynamics, a producer of low-emissions transmission systems
Labels. MC CEO n n c
c n n nvnn n.
F-n cn nn v ng
c n cc.
Though labeling ourselves as a triple-bot-tom line organization has its merits in andof itself, truly following that path takesresourcefulness, ingenuity, and follow-through. Additionally, running a sociallymotivated organization requires even more
business acumen in a lot of ways and thenuts and bolt of the organization must bein solid shape to meet margins.
Brad Knop, CEO,Xtracycle, a sport utilitybicycle company
Commitment and Achievement. Nn- cn
MC ng c v v g cn
kng v c n/ nvnn c,
g ng gn n v. Hv,
cn vng cv n c
c.
Explicitness. C , CEO n
gn n xc , n,
n c/nvnn n.
SOCIAL VALUE
Missions. Cn n gn
nvnn (c ),
cn vn (), ng (),
n (3). O n nc g
ng n vn, n cnc q.
Vehicles. MC cn ng n vc
c c v, nn n, vcc
n g n v .
Impact Measurement. O CEO n gn,
vng c, nng n
SG&A n vn. Unk gn, MC
cn x qv n qn-
v . A gncn cng SROI, c
nq c gn n ,
n n z g nc
ng nc cc, c n c
P vn xn n n
n, ncng ngn n vng c
n. Ex nc:
Xtracycle c cc (SUB)
n cn c (.g., gc
ng) cc . B K
cn v k v c n
nvnn c n n c
gn. I cn gn n cn
ng c n nvnn. Ccng SUn g n
, Xcc jc cv c n n
nvn $ n .
Rubbersidewalks v
cc Cn , c v -
n cnc n nvv n cnc
k. A , ccng Pn n CEO
Ln S, Rk c v
n kng n n vn
ng nnng n n.
Mk F. Rnn, CEO Icosa Village
cn c v, nxnv
c PO c n n
g n, , n n c.
ng c nc PO
ng, cn c cng
n n ngn c g
cn.
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Balancing Markets and Valu
Manufacturing, Construction and Transportation
FINANCIAL VALUE
MCT 2003 Revenues by Company Age [n=11]
Figure 25
Performance. MC n gn n
n vn n . T 3 vn
$, n cn n
. On cn v vn $-
n.
Financing. Eq n n c nng
MC cn. MC cn n n
q vc k cnv ng, cc
gn n PRI x . A n
cn v n j n nng
nv c, ncng gvnn, nn,
NGO, n vn c.
Exit Plans. F MC nn g
c vn cn g ng n v.
T gn n n ng ng vn v . W n n g c
n, n xc n ; 33
nk gng c k. Nn- cn
cn nnng n n,
c gn, ng nv n DBL
nng n q.
Our top three challenges are:1. Generating sufcient prots for bothoverhead costs and social projects.
2. Managing the excessive workload with asmall staff3. Helping third-world artisans and pro-ducers comply with the expectations anddemands of the U.S. market.
Phil Smith, President, One World Projects,a craft and commodity importer, distribu-tor and wholesaler
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|Media, Education and Communications
MEDIA, EDUCATION ANDCOMMUNICATIONS
OVERVIEW
T M, Ecn n Cncn (MEC)gn cn cn v n k
cn c (c, cnng n nng)
n v , ncng ngg ncn, cg
n, c vn n nng
, c n n n v-
n vc, c n n v
-n, n n .
Summary. T gn n q g n
E n W C U.S. On CEO
xc c c n, n gn vn xc k. T
gn cnn g cng Mk Innc-
() gn. I cn
n cvn v c c n
gn. A , MEC CEO n n
c vn n n gn, nj cc
nn, nn n gvnn nng, n
g g n v g vn
. T Innc- CEO n
n nn n n -
n jcv. On g n g c n x g.
Number of Companies in Sample:
Average Age:
Headquarters Location
West 8%
Northeast 8%
South 12%
Midwest 12%Staff Size
25 or fewer full-time employees 88%
Aboe 100 employees 0%
2003 Revenues
Number of Compaies Reporti Reeues: 18
No Reeues 6%
2003 Revenues (cont.)
0-5 millio 4%
Aboe 5 millio 0%
MEC Company Growth 2002-2003 [n=11]
Figure 26
Type Breakdown
Activists50%
Market Pioneers17%
Change Agents8%
Market Inuencers25%
Figure 27
Top 10 MEC Companies by 2003 Revenues
. W Gnn N Yk, NY,
. Bn & Cn Dgn P, NH, 99
3. T Cng An, X,
. T Inn Rccng Nk Inc.Cnc, NH, 99
. Vn H Cnc Gn, NY,
. Fck M Bn, MA, 99
. ASc Inc. Okn, CA, 99. KDPn & Pn LLC D, NH,
9. GB Inc. Ok H, VA, 993
. F LLC Ccg, IL,
. T Pc Cn B, V,
____________________
n c
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Balancing Markets and Valu
Media, Education and Communications
COMPANY CULTURE
Social-Financial Balance. T MEC gn
n CEO nc n n
z nnc n v c n.
ng nc nnc g, n
MEC CEO g ng cn c n c
ng c n nvnn c, v n v .
Labels. MEC CEO ng c
c/nvnn g, n c c-
n v . F- cn
nn v -
n cc. On v gnz
n c v .
O nn, n n z
nnc n/ nc -
nc n ng . M W, CEO n FnGoBabies, n nn- c vng
n , c nn: L n
k nc n . I g,
n nn c k -
nc.
Commitment and Achievement. On MEC
CEO c v v g cn kng
v c n/ nvnn c, c
n v . T v c
c cv MEC cn n
v .
Explicitness. MEC CEO ng xc n
gn c/nvnn n,
n c nv.
SOCIAL VALUE
Missions. T CEO n gn ng
cn () n g
(3), cn vn (3) n
(). D, c, n c ng
c v cn MEC CEO.
Vehicles. Pc/vc n c vc
c v cn gn. MEC cn
nn n, cn, n vcc g
n gn .
We try to sensitize our vendors and clientsto the possibilities for sustainable practice.We do not ask our vendors to drop theirprices in the interest of our values. We cre-ate goals for avoiding vendors who do notfeel the same way about protecting natural
resources, but do not discriminate. We aremore likely to gently show our associatesoptions in a joyful way, than cram it downtheir throats. We try to avoid companiesthat dont pay a fair wage, due to self-inter-est.
Martha Shaw, Creative Director, eFlicksMedia, an advertising and public relationsrm specializing in passion branding
Impact Measurement. O MEC CEO,
cn v c/nvnn cT ng
c n vc: v 9 v .
Ag n ng n n
n gncn n n vn: n
- SG&A xn n vn c
v . Ex nc:
Rn W, Pn n CEO Ascribe, c
n g c cnc n
n nn gnzn n nc
n n j n c. Ac c ng c jn n n gn
n g ---n n c-c n
nnn-c nn.
InterSchola Fn n Pn, M Rc,
cn K- c n c c cv
ng cn . B ng B
nn cn , cn K- c
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gn n vn, c vng n n cn-
c, ncng c n g c, j-n-
cng n n nv c.
B Wc, CEO, BrainOxygen nn
cn, nn nng, n kng ngn
vc gnzn n Ac c
n c cng c, ncng -
cv, n cng gn g n. H
ng cn nn ng
Unv S P c CO n
v n n c .
GoBabies v c, nn n n-
nn g Inn n nn n
. Fn n CEO M W c
cn v c:
Our launch of the GoBabies, Inc. Alpha-bet Road video series is aimed at helpingyoung children learn critical languageskills through a multi-sensory format. Ourrst program, F is for Farm was the rstchildrens program aired in Afghanistan,and was heralded as the very type of pro-gram the country needs to help its popula-tion develop and grow. As our companygrows, we will continue to use part of ourproceeds to help educate and heal young
children.
FINANCIAL VALUE
MEC 2003 Revenues by Company Age [n=18]
Figure 28
Performance. T gn cn
cn, vn n $, n
I nc cn 3 vn $
n.
Cnng, : cn n gn n $, n n 3.
Financing. Eq n n n
n nng gn. A
, ng vng cc v
n c nng n v . C
n, gvnn, n vn vn n
nn ng nng c, g
v n nng cn.
Exit Plans. A MEC nn g
c vn cn g ng n v; g n gng c k.
Y nn ng c
n, n n g c. O cn n
n gn, nnng n
n n nx , g q ng nv
, n n , c gn DBL nv
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Software and Information Technology
SOFTWARE ANDINFORMATIONTECHNOLOGY
OVERVIEWT S n Inn cng (SI) gn
cn I cnng cn n cn
v n k cn n n/cn/
vn ngn nn, n, c-
n, n gnzn cvn.
Summary. T SI gn vn
ggc, g cng cn c
n W, N n S. N 3 CEO
xc c n, n n Mk Innc n g. T g -
c n n
. T g xc c n
n c k. T v-
n n n gn, cnq
nc n qnv, n n n
c n n vn . T cn
ng n g g g, v
nn-nn nv . T j SI
CEO cn cqn x cn.
Number of Companies in Sample:
Average Age:
Headquarters Location
West 5%
Northeast 0%
South 25%
Midwest 10%
Staff Size
25 or fewer full-time employees 0%More tha 75 employees 0%
2003 Revenues
Number of Compaies Reporti Reeues: 15
No Reeues 20%
0-1millio 80%
Aboe 1millio 0%
Size
9 - ; nn v .
SIT Company Growth 2002-2003 [n=10]
Figure 29
Type Breakdown
Activists44%
Market Pioneers39%
Change Agents17%
Market Inuencers0%
Figure 30
Top 10 SIT Companies by 2003 Revenues
. R Ec Sn Fncc, CA, 99
. Annx Inc. Sv Sng, MD, 999
3. BC Pn LLC Nk, NJ,
. I C, NC,
. Qn Inc Inc. B Ck, CA, . S Bn Nk, DE, 99
. Pn cng N Yk, NY,
. nk Inc. Mnn, MN, 99
9. AQSn N Hvn, C, 999
. AngPn Inc. M V, CA,
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COMPANY CULTURE
Our top three challenges are:1. Potential investors do not know how toevaluate our market or viability. There isno rational capital market out there; evenwith companies and angels that say they
invest in social ventures.2. There is distrust in the nonprot eld offor-prot companies.3. The industry is young so there are veryfew outlets to discuss life as a social entre-preneur and very few ways to utilize ourpurchasing power.
Marlowe Greenberg, CEO, Foothold Tech-nology, a provider of case managementand client tracking software for humanservice agencies
Social-Financial Balance. Wn k nc n
cn v, SI CEO zng
c n nnc n q. On
nnc n n c n cn. A
, c n
n n k n n, v v
. In n, 3 CEO g ng
cn c n c ng c n nvn-
n c, n n v .
Labels. Bn-c vn, c n n
c vn gn n
cn qn n v . n-
v cn nn, v, v ng
c gnz n, c
v . Papilia CEO N Dgn-
vc cncn gnzng c:
The idea that the only measure of successought to be nancial is an antiquatedconcept that is no longer adequate for ourworld today and is actually quite narrow-
minded and dangerous. [And yet,] makinga separate category for social ventures,rather than advocating their principles forall companies, can alienate us from thebest of the business world and the nan-cial resources that support them. That said,being a social venture can help attract thebest talent to the company and can auto-matically lter supporters to the company.
Commitment and Achievement. Wn k
c/nvnn c, SI CEO
vng v g cn kng v c
n/ nvnn c n c v
c cv v g.
Explicitness. SI CEO g xc
c/nvnn n. T n
, nv, n, n cn,
gncn n c () n
c k ().
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Software and Information Technology
SOCIAL VALUE
Missions. SI CEO c c v n n-
, c cn kng n . v
3.3 v . c cn, n-
, cn vn, n . A nn
n vn, jvn jc,
cnn, , n ngn c n cn. O cn n SI
gn, 9 v nn n cn c v
cn cn k. C
Hnn, CEO The databank Inc., c v c-
ng n nn gnzn, cn-
cn n cn n. S,
B ck, C Kng Oc I, c
x nng ngn nn,
v cn c c v n
cc ng nn.
Vehicles. W xcn vcc n n-
, SI cn v vc xn
cn v. Sv cn n
nn ng z vc
c v cn.
Impact Measurement. O SI cn, v
c c 9 v ,
ng c n vc.
T gn qn , n n
v n n n c n vn. O
cn ck vn xn, n
n SG&A v n v .
T v cnng x. Ripple Effects,
c v-nng c, gg
c g c ncng
c , nc, ggn n g
g, n cc nnc cn c
c n cnc c v.
Cnng, CEO Ac R cn
n n SG&A n vn.
FINANCIAL VALUE
Performance. T SI gn n
v v n vn, n cn v
$ n n vn n 3. I ng n
gn. P vn , cn
ng 3 n $,. T SI
cn , v, vng n g cn: cn xnc n vn g n
3 n cn, n 3.
SIT 2003 Revenues by Company Age [n=15]
Figure 31
Financing. SI CEO nncng
n q n, c g, n gn
N-q vc c cnv n c-
n n v , n n
nng gn. SI cn c
nng n n, n n , n
gvnn gn. Ang nv cn -
gncn.
Exit Plans. A SI nn g (9ng) c vn cn g ng -
n v, n 3 g n
gng c k. M nn
cn, n nx , n
n k g c. Eg-g cn
cn n n gn n
n n nx . T SI nn n DBL
n nv, n n , n c gn
cv c .
The most important form of support wecould have received was a moderate loan($50,000 to $100,000) at the seed stage toget our company off the ground. We wereunable to do so despite the strength of ourconcept and management team and, there-fore, had to fund the company through acombination of limited personal funds,credit card debt and re-investment of whatlittle prots we could amass. In my opinion,
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this was the most difcult path we couldhave chosen, but we had no choice.
We were further hindered in that many ofthe socially-minded investors that wouldeven entertain us were averse to our sec-tortechnology. They were seeking tra-ditional, long-standing industries such asmanufacturing. There are plenty of socialentrepreneurs that nd themselves in asimilar position, that is, without family andfriends to jumpstart their operations andwith very few to no for-prot, social inves-tors to turn to as well. Consequently, whileit is least favored, bootstrapping becomesthe only option or bust.
Dr. Randal Pinkett, President and CEO, BCTPartners, a management, technology andpolicy consulting services rm
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Endnotes
Endnotes
S www.investorscircle.net.
S www.svn.org.
S www.socialvc.net .
Snc v, J cn gn c, n c n Hgn Cn (HYDG), q n Cvn, OH, n ncng
n V, PA. F , v, ng n c n , -
ng v 3 . N n n
v n Sc Vn n CEO c, www.riseproject.org.
S www.blendedvalue.org n www.redf.org.
Sc Vn Nk n kng Sn Unv An Cnng G
c cc n c n n. SVN kng n k
c n nn, n .
In nn n gvnn c, n-c n cn ng $, v
n . S Ck, Rnzg, Lng n On, Double Bottom Line Methods
Catalog,www.riseproject.org.
In c CEO n cn c n gn, c n
gn c gn n n nnc c n
cnn k. F x, c cn v cnng nc-
ng cn n nnc, cnng n vc gn. I x c n
g n c c cnng cn, n n c n -
n cnng (FCS) gn n cn n ncng
(MC) gn.
1.
2.
3.
4.
5.
6.
7.
8.
http://www.investorscircle.net/http://www.svn.org/http://www.socialvc.net/http://www.riseproject.org/http://www.blendedvalue.org/http://www.redf.org/http://www.riseproject.org/http://www.riseproject.org/http://www.riseproject.org/http://www.redf.org/http://www.blendedvalue.org/http://www.riseproject.org/http://www.socialvc.net/http://www.svn.org/http://www.investorscircle.net/8/8/2019 For Profit Social Entrepreneurs Report RISE
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SocialVenture
Name
SurveyRespondent
Name
Title
Arts
CommunityDevelopment
Education
Energy
Environment
Health
InternationalDevelopment
Media
Minorities
Women
Other
Agriculture,Health,Food(AHF)
LieHealthCare
TomasLee
President
X
AgraQuest
MichaelJ.Miille
CEO
Agres,Inc.
AaronLewis
CEO
XX
AsiaFoods,LLC
JasonWong
CEO
X
AthenaFeminineechnologies,Inc
BarbaraSarkis
CIO
X
X
Biosyn
Anne-MarieCorner
President&CEO
X
CareguideSystems,Inc.
SylviaAruo
President
X
CityFreshFoods
GlynnLloyd
CEO
X
X
ContraVac,Inc.
JohnChristianHerr
CEO
X
X
EarthboundFarm
MyraGoodman
ExecutiveVicePresident
XX
EcoFish,Inc.
HenryLovejoy
President
X
XX
FrogRanchFoods
CraigE.Cornett
Owner
X
X
GaiaHerbs,Inc.
GregCumberord
VicePresident,S
trategicInitiatives
X
X
XX
GoddessGranola,Inc.
AndreaLyons
ChieExecutiveGoddess
X
ImmaculateBakingCompany
ScottBlackwell
President&CEO
X
X
X
X
IntelligenceEnterprises
DavidEller
Founder
X
X
XX
X
LaGrayChemicalCompany
AlexandraGrahamPhD
MBA
COO
X
X
X
X
LieWave,Inc
Johnupin
Dir.oBus.Dev.
X
LowCostEyeglasses,Inc.
NeilHoughton
Founder
X
X
MandalMed,Inc.
ConstanceM.John
President
X
MedioodsLLC
JoelJavitt
President
X
MicroGREENPolymers,Inc.
KrishnaNadella
Co-Founder&D
irectoroech.
X
XX
NimanRanch
MichaelMcConnell
CEO
X
XX
X
ONaturals
JayFriedlander
COO
X
X
X
OrganicEssentials,Inc.
LaRheaPepper
President
X
XX
X
PlantHealthCare,plc
JohnBrady
CEO&Presiden
t
X
XX
X
SevenOaksRanch
RinaldoS.Brutoco
Chairman&CE
O
X
X
X
X
XX
X
X
X
X
ppendix A:ocial Venture Directory, by Industry Segment and Social Area
2 |Appendix A: Social Venture Directory, by Industry Segment and Social Area
Note:Companynamesandtitlesarereportedastheywereinoursurvey,
completedinJune
2004.
Updatescanbefoundonline,
atwww.r
isepro
ject.o
rg.
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SocialVenture
Name
SurveyRespondent
Name
Title
Arts
CommunityDevelopment
Education
Energy
Environment
Health
InternationalDevelopment
Media
Minorities
Women
Other
StonyeldFarm,Inc.
GaryHirshberg
President&CEO
X
X
X
X
X
X
eachown
SvenLiden
VicePresident,BusinessDevelop-