I was excited to hear on the news last week that Habitat for Humanity Riverside just built the country's first affordable solar-powered Habitat for Humanity "smart" house. Habitat is hoping that the home will be certified LEED Platinum by the USGBC. Not only is this good news for the environment, but also the family that will be living in the home can expect significantly lower energy bills. In fact, the home is expected to generate more energy than it will use. If you are interested in learning more, check out these webpages. Pretty neat!
http://www.habitatriverside.org/content/view/1/1/
http://www.pe.com/localnews/inland/stories/PE_News_Local_D_habitat14.22e793e.html
Saturday, May 31, 2008
Thursday, May 29, 2008
Dan Pallotta on Barack Obama's Speech
Barack Obama recently spoke at Wesleyan about the two paths: "the path to earn money and buy suits and cars and the other enticements of our "money culture," and the path to be of service to others, and he urged the graduates to follow the path of service."
Dan Pallotta has some interesting commentary on his blog, www.danpallotta.com, about the speech. It falls in line with what he talked about in class and in his upcoming book. This particular blog is dated 5/26/08.
I agree that the path of service and the path of earning money must not always be mutually exclusive, but he seems to miss the point again that intent and understanding all of the vested stakeholders are fundamental parts of this equation as well.
I'd be curious to see what he defines as 'good money.' I feel like many large scale and successful non-profits and foundations pay good money to their leadership team. Could his argument be more centered around a discussion of motivating factors for different groups of individuals? Are all individuals motivated by the same drivers? I'm not sure I buy the fact that people who are primarily incentivized by money would be drawn to the non-profit sector or if they would be effective in the space. Money as a driver is not the same as effectiveness or intent.
Dan Pallotta has some interesting commentary on his blog, www.danpallotta.com, about the speech. It falls in line with what he talked about in class and in his upcoming book. This particular blog is dated 5/26/08.
I agree that the path of service and the path of earning money must not always be mutually exclusive, but he seems to miss the point again that intent and understanding all of the vested stakeholders are fundamental parts of this equation as well.
I'd be curious to see what he defines as 'good money.' I feel like many large scale and successful non-profits and foundations pay good money to their leadership team. Could his argument be more centered around a discussion of motivating factors for different groups of individuals? Are all individuals motivated by the same drivers? I'm not sure I buy the fact that people who are primarily incentivized by money would be drawn to the non-profit sector or if they would be effective in the space. Money as a driver is not the same as effectiveness or intent.
Wednesday, May 28, 2008
Shareholders push for a socially responsible Chairman at ExxonMobil
The winds of change....
"Nineteen institutional investors, including some of ExxonMobil’s largest shareholders, have said they will support a resolution on Wednesday at the company’s annual meeting to split the posts of chairman and chief executive.
The shareholders want to appoint a chairman who will invest in technologies to combat climate change."
Green Rebellion at ExxonMobil
Monday, May 26, 2008
News You Can Use...
Apropos in this era of $4.00+ gasoline, I was listening to a radio spot about a fellow who has perfected a fuel-maximizing technique called "hypermiling". Legend has it he actually drove from Chicago to New York in his Prius on a single tank of gas. Some of his techniques are a little unorthodox (read: unsafe) -- for instance I wouldn't try "drafting" semis to reduce the wind resistance on your car, but some are very easily implementable with a little thought and effort. Try Googling the term "hypermiling" and you'll get links to a bunch of literature on the subject. Here's one story outlining some techniques that I hope you'll find useful...
http://www.wisebread.com/maximize-your-cars-efficiency-with-hypermiling
Just trying to assuage my guilt from watching hours of gratuitous gas consumption at the Indy 500 this weekend. Wait, those cars use ethanol now. Nevermind.
http://www.wisebread.com/maximize-your-cars-efficiency-with-hypermiling
Just trying to assuage my guilt from watching hours of gratuitous gas consumption at the Indy 500 this weekend. Wait, those cars use ethanol now. Nevermind.
What is the "common good"?
I asked Terry Mollner this question after his talk last week, and he answered, "It's whatever you want it to be." I could not help but feel skeptical. Aren't there tradeoffs? Isn't my definition of the "common good" different from your definition? What if I believe people are the most important priority and focusing on people means my focus on the environment goes to the backburner?
I told him I was skeptical that the movement he anticipates will actually be realized. He said, "What I am arguing is that people need to set priorities - this means it is possible to focus on social good while making a hefty profit." But I have been taught and have observed that people are self-seeking and lack the motivation to be concerned with the "common good."
This weekend, I came upon this article about Nicolas Berggruen, a billionaire who is now using his fortune for social ventures. Berggruen states: "Living in a grand environment to show myself and others that I have wealth has zero appeal," he says in an interview, standing in a hotel room in New York's Upper East Side. "Whatever I own is temporary, since we're only here for a short period of time. It's what we do and produce, it's our actions, that will last forever. That's real value."
Is this evidence that Terry may be right? I hope so...
I told him I was skeptical that the movement he anticipates will actually be realized. He said, "What I am arguing is that people need to set priorities - this means it is possible to focus on social good while making a hefty profit." But I have been taught and have observed that people are self-seeking and lack the motivation to be concerned with the "common good."
This weekend, I came upon this article about Nicolas Berggruen, a billionaire who is now using his fortune for social ventures. Berggruen states: "Living in a grand environment to show myself and others that I have wealth has zero appeal," he says in an interview, standing in a hotel room in New York's Upper East Side. "Whatever I own is temporary, since we're only here for a short period of time. It's what we do and produce, it's our actions, that will last forever. That's real value."
Is this evidence that Terry may be right? I hope so...
Saturday, May 24, 2008
justmeans social networking
I came across this social networking site that is described as a hybrid of facebook and craig's list for social responsibility. In addition to simply offering networking, the site includes numerous job postings within many of the categories we have discussed in class, including venture philanthropy, CSR, and social entrepreneurship. While there are a number of other sites already in this space (idealist.org, etc.) this site seems to already be moving more mainstream with its content and jobs (grew by 40% in March).
Give it a look and let me know what you think...
http://www.justmeans.com/index.php?action=about
Give it a look and let me know what you think...
http://www.justmeans.com/index.php?action=about
Wednesday, May 21, 2008
Provacateur Charney
Hey folks! I came across an interesting article in the June 2008 issue of Fast Company that I'd like to share as the topics covered by journalist Rob Walker, complement our class discussions fairly well.
In "Sex vs. Ethics at American Apparel," Walker interviews a "naked from the waist down" Dov Charney and attempts to unravel the rumors surrounding the American Apparel empire. Rather than getting bogged down by the sensationalism surrounding American Apparel's racy ad campaigns and Charney's reputation as a naughty employer, Walker chooses to focus on the actual business.
Points I found interesting:
1) Charney's insistence that if a business wants to sell something, ethical or otherwise, "Appeal to people's self-interest, not to their mercy." Walker ties in the issue of consumer ethics in support of Charney's point, and that which he unveils is incredibly interesting. Evidence shows that while a whopping majority of American shoppers may consider themselves environmentalists, according to the Journal of Industrial Ecology "only 10% to 12% actually go out of their way to purchases environmentally sound products." This stat brings to mind the downfall of eco-friendly apparel brand Nau. Where were all the environmentally conscious consumers when Nau was taking a hit? Did the folks at Nau fail to appeal to people's self-interest?
(2) Social cause is not always the best way for a firm to compete. Charney does hope that social consciouness will help American Apparel attract consumers. But he happens to know that sexed-up ads are hands-down more effective. He insists that the company's aggressively attention-getting image does not mean that Amreican Apparel has watered down its production practices. The company has simply made less of an effort to tell consumers about them. The benefits the company offers to its works have, in fact, increased. "It's not that he cares less about treating his workers ethically," it just that he doesn't think trumpeting work conditions will help him compete. Understood, but shouldn't Charney, as a market leader, take on the responsibility of educating the public about sweatshop-free manufacturing anyway?
Discuss.
In "Sex vs. Ethics at American Apparel," Walker interviews a "naked from the waist down" Dov Charney and attempts to unravel the rumors surrounding the American Apparel empire. Rather than getting bogged down by the sensationalism surrounding American Apparel's racy ad campaigns and Charney's reputation as a naughty employer, Walker chooses to focus on the actual business.
Points I found interesting:
1) Charney's insistence that if a business wants to sell something, ethical or otherwise, "Appeal to people's self-interest, not to their mercy." Walker ties in the issue of consumer ethics in support of Charney's point, and that which he unveils is incredibly interesting. Evidence shows that while a whopping majority of American shoppers may consider themselves environmentalists, according to the Journal of Industrial Ecology "only 10% to 12% actually go out of their way to purchases environmentally sound products." This stat brings to mind the downfall of eco-friendly apparel brand Nau. Where were all the environmentally conscious consumers when Nau was taking a hit? Did the folks at Nau fail to appeal to people's self-interest?
(2) Social cause is not always the best way for a firm to compete. Charney does hope that social consciouness will help American Apparel attract consumers. But he happens to know that sexed-up ads are hands-down more effective. He insists that the company's aggressively attention-getting image does not mean that Amreican Apparel has watered down its production practices. The company has simply made less of an effort to tell consumers about them. The benefits the company offers to its works have, in fact, increased. "It's not that he cares less about treating his workers ethically," it just that he doesn't think trumpeting work conditions will help him compete. Understood, but shouldn't Charney, as a market leader, take on the responsibility of educating the public about sweatshop-free manufacturing anyway?
Discuss.
Gates Foundation
Interesting bit of news about a leadership transition at the Gates Foundation...they definitely chose someone with substantial business and management experience, but who also has experience with foundations, having founded one in his own name in 1992.
Read the Washington Post article here.
Read the Washington Post article here.
Monday, May 19, 2008
Ethics and complexity of pricing
One of the topics that continuously comes to my mind during this course is the complexity of pricing that socially responsible companies have to deal with is much higher than that for traditional businesses. This issue is twofold:
1)While the profit-maximising theory suggests to exploit the customer's willingness to pay, i wonder if there's upper bounds to this argument for companies that adhere to a socially responsible mission. In other words, is there an ethics of pricing that social enterprises should explore by the virtue of being ethical businesses?
2) Another decision to be made is how much premium can you expect your customers to pay? Analysis of competitors pricing can be one's starting point, but arriving at the optimal pricing level seems like a very complex task. A recent article in MIT Sloan Management Innovation review that talks about different tests that were taken to assess consumers willingness to pay for "ethical" products:
http://sloanreview.mit.edu/x/?url=http://sloanreview.mit.edu//wsj/insight/brand/2008/05/12/&type=email2friend&title=Does+Being+Ethical+Pay%3F%2C+By+Remi+Trudel+and+June+Cotte+-+MIT+Sloan+Management+Review&src=text
3) Thirdly, is there a balance between fulfilling a social mission and running inefficient businesses? For instance, if Amerian Apparel pays premium wages to workers in the US as opposed to outsourcing labor to lower cost geographies, thus acting against market forces, does it make it an ethical business? and as consumers, should we be paying for potential inefficiencies of these business decisions?
1)While the profit-maximising theory suggests to exploit the customer's willingness to pay, i wonder if there's upper bounds to this argument for companies that adhere to a socially responsible mission. In other words, is there an ethics of pricing that social enterprises should explore by the virtue of being ethical businesses?
2) Another decision to be made is how much premium can you expect your customers to pay? Analysis of competitors pricing can be one's starting point, but arriving at the optimal pricing level seems like a very complex task. A recent article in MIT Sloan Management Innovation review that talks about different tests that were taken to assess consumers willingness to pay for "ethical" products:
http://sloanreview.mit.edu/x/?url=http://sloanreview.mit.edu//wsj/insight/brand/2008/05/12/&type=email2friend&title=Does+Being+Ethical+Pay%3F%2C+By+Remi+Trudel+and+June+Cotte+-+MIT+Sloan+Management+Review&src=text
3) Thirdly, is there a balance between fulfilling a social mission and running inefficient businesses? For instance, if Amerian Apparel pays premium wages to workers in the US as opposed to outsourcing labor to lower cost geographies, thus acting against market forces, does it make it an ethical business? and as consumers, should we be paying for potential inefficiencies of these business decisions?
Franchising Microfinance
The Bradach article discusses franchising as one potential way to assist social entrepreneurs in successfully replicating their businesses. In that vein, I'm posting a link to a recent paper on franchising microfinance that was co-authored by UCLA's own Bhagwan Chowdhry.
As many of you know, Professor Chowdry is a recognized authority on the subject of microfinance, and in this paper he offers one solution -- franchising -- to the problem of borrowers defaulting on their microloans.
Essentially the argument states that, due to a proliferation of microlenders in many areas, borrowers can simply obtain a loan, default, and then hop to the next lender for additional credit. Because there isn't a standard, widely available "credit bureau" or similar metric available to vet potential borrowers, most lenders are unable to ascertain a particular borrower's repayment history.
Franchising -- essentially forming a lender alliance -- the paper posits, could assist lenders by facilitating communication among members and preventing delinquent borrowers from obtaining additional credit elsewhere. The article is a bit "quant-heavy", but it's interesting and worth a read. Here's the link:
http://www.isb.edu/faculty/Working_Papers_pdfs/Franchising_Microfinance.pdf
As many of you know, Professor Chowdry is a recognized authority on the subject of microfinance, and in this paper he offers one solution -- franchising -- to the problem of borrowers defaulting on their microloans.
Essentially the argument states that, due to a proliferation of microlenders in many areas, borrowers can simply obtain a loan, default, and then hop to the next lender for additional credit. Because there isn't a standard, widely available "credit bureau" or similar metric available to vet potential borrowers, most lenders are unable to ascertain a particular borrower's repayment history.
Franchising -- essentially forming a lender alliance -- the paper posits, could assist lenders by facilitating communication among members and preventing delinquent borrowers from obtaining additional credit elsewhere. The article is a bit "quant-heavy", but it's interesting and worth a read. Here's the link:
http://www.isb.edu/faculty/Working_Papers_pdfs/Franchising_Microfinance.pdf
Sunday, May 18, 2008
Article to Discuss During Our Next Session
Hi class
I wanted to address a few things on the blog
1. Crazy Email Flooding: I apologize for this. My outlook was behaving funny. I have since fixed the problem so that should not happen again
2. Burts Bees: I have gotten questions from a number of you as it relates to question 3. You do not need to know anything about Don Knauss to answer this question. Use what you have learned about Burt's Bees through the case to determine which philosophy someone who acquires Burt's Bees might subscribe to.
3. Below is a link to an article that Jonathan wanted me to send around for you all to read before class.
Have a great Sunday and see you all tomorrow
Michelle
http://www.worldchanging.com/archives//005150.html
I wanted to address a few things on the blog
1. Crazy Email Flooding: I apologize for this. My outlook was behaving funny. I have since fixed the problem so that should not happen again
2. Burts Bees: I have gotten questions from a number of you as it relates to question 3. You do not need to know anything about Don Knauss to answer this question. Use what you have learned about Burt's Bees through the case to determine which philosophy someone who acquires Burt's Bees might subscribe to.
3. Below is a link to an article that Jonathan wanted me to send around for you all to read before class.
Have a great Sunday and see you all tomorrow
Michelle
http://www.worldchanging.com/archives//005150.html
"Our Sustainability Goals Are Audacious"
...John Replogle, Burt's Bees at the Net Impact conference in Nov 2007, right when it was announced that Clorox was acquiring his company.
http://youtube.com/watch?v=Qimwa0mVz2g&feature=related
Even though this is a really long video (68 min), it was very thought-provoking to watch.
Some of the highlights of the video:
Business Mission: Consumers, Communities and Environment
Cultural Mission: "We care"
The company's business model has 2 rings: The outer ring focuses on Health and natural products, humanitarian well-being and environmental sustainability
"If we want a new social contract, we need new leadership"
Regarding the Clorox acquisition:
http://youtube.com/watch?v=Qimwa0mVz2g&feature=related
Even though this is a really long video (68 min), it was very thought-provoking to watch.
Some of the highlights of the video:
Business Mission: Consumers, Communities and Environment
Cultural Mission: "We care"
The company's business model has 2 rings: The outer ring focuses on Health and natural products, humanitarian well-being and environmental sustainability
By 2020, their goal is to become the greenest personal care company on earth.
Achievement of this goal starts with the engagement of all the employees – everyone has to take action by the ways they live at home and at work.
The company has to take a "Cradle to Cradle" approach to the way they make their products – should be 100% natural and packaging should be post consumer biodegradable
Their goal is to be Carbon free - 100% renewable energy
Their goal is to have 0% waste to landfill by 2010 and cutting the amount of waste water per unit by 50%
They want to be a green building company
"If we want a new social contract, we need new leadership"
Regarding the Clorox acquisition:
Clorox is valuing Burt's Bees not just for the company , growth and profits but also for its intellectual capital, to help them solve the sustainability issue
Burt's Bees is moving from a $160 million company in U.S. with 385 employees to $4.5 billion in 100 markets and 7000 employees – make a difference
Wednesday, May 14, 2008
Renault eyes world's cheapest car
I found this article on the BBC. It is surprising to see that Nissan at the same time wants to achieve “zero-emission-vehicle leadership”, when they are working on a joint venture to develop the world's cheapest car which will increase the levels of pollution in countries like China and India in the long run.
***************
Renault-Nissan has announced a joint venture with Indian firm Bajaj to produce a $2,500 (£1,276) car.
The vehicle, so far known only as Codename ULC, will cost about the same as Tata Motors' Nano - which it has claimed is the world's cheapest car.
India will be the ULC car's main market with 400,000 to be made each year in a factory in Chakan, Maharashtra state in the west of the country.
Bajaj is the second-biggest maker of motorbikes in the country.
No details of the new car have been released, though production is expected to begin in 2011.
Environmental worry
The Nano has captured the imagination of many people in India - making it a realistic prospect for some people who had previously not been able to afford to buy a car.
The four-door five-seater car, which goes on sale later this year, has a 33bhp, 624cc, engine at the rear.
It has no air conditioning, no electric windows and no power steering, but two deluxe models will be on offer.
India's domestic car market is predicted to boom in the coming years on the back of the country's fast-growing economy and increased consumer wealth.
Indian car sales are predicted to more than quadruple to $145bn by 2016.
However environmental critics have said that the car will lead to mounting air and pollution problems on India's already clogged roads.
http://news.bbc.co.uk/2/hi/business/7395643.stm
Monday, May 12, 2008
Nissan Jumps Into the Green Car Market
Story out of the NYT today about how Nissan will introduce an electric vehicle in the US in 2010.
I personally enjoyed this line in the story: “It wasn’t long ago that Carlos Ghosn was a big naysayer about the role of electric vehicles,” said John O'Dell, senior editor at the auto Web site GreenCarAdvisor.com. “Obviously, something has opened his eyes.”
I guess Nissan's research has shown that there is a market for this product and that this line, given the state of the world, will be profitable.
Given the recent history of the electric car in the US, what do people think? Are the conditions different this time around? Will the electric car be a viable competitor to other 'green' autos? standard vehicles? More importantly, can Nissan, a recently financially stable company that produces significantly fewer cars than the big three, lead the charge on the electric car movement?
+++++++++
I personally enjoyed this line in the story: “It wasn’t long ago that Carlos Ghosn was a big naysayer about the role of electric vehicles,” said John O'Dell, senior editor at the auto Web site GreenCarAdvisor.com. “Obviously, something has opened his eyes.”
I guess Nissan's research has shown that there is a market for this product and that this line, given the state of the world, will be profitable.
Given the recent history of the electric car in the US, what do people think? Are the conditions different this time around? Will the electric car be a viable competitor to other 'green' autos? standard vehicles? More importantly, can Nissan, a recently financially stable company that produces significantly fewer cars than the big three, lead the charge on the electric car movement?
+++++++++
Nissan Plans Electric Car in U.S. by ’10
DETROIT — The Nissan Motor Company plans to sell an electric car in the United States and Japan by 2010, raising the stakes in the race to develop environmentally friendly vehicles.
The commitment — expected to be announced Tuesday by Nissan’s chief executive, Carlos Ghosn — will be the first by a major automaker to bring a zero-emission vehicle to the American market. Nissan also expects to sell a lineup of electric vehicles globally by 2012.
In an interview Monday, Mr. Ghosn said Nissan decided to accelerate development of battery-powered vehicles because of high gasoline prices and environmental concerns, not just because of the need to meet stricter fuel-economy standards.
“What we are seeing is that the shifts coming from the markets are more powerful than what regulators are doing,” he said.
Mr. Ghosn said Nissan envisioned a broad range of electric vehicles, starting with small cars, and added: “It’s not only about a small city car or a small minivan. It can also be about a small commercial vehicle and a small crossover.”
Mr. Ghosn was not always enthusiastic about alternative-fuel technology. In a 2005 speech to the National Automobile Dealers Association, he called gas-electric hybrids “niche products” useful only to meet strict fuel-economy and emission standards in states like California.
“It wasn’t long ago that Carlos Ghosn was a big naysayer about the role of electric vehicles,” said John O’Dell, senior editor at the auto Web site GreenCarAdvisor.com. “Obviously, something has opened his eyes.”
Other automakers like Mitsubishi Motors and Fuji Heavy Industries are testing versions of electric cars, and General Motors and Toyota are working on battery-powered vehicles that have small gasoline engines for recharging. G.M. plans to start producing the Chevrolet Volt in 2010, while Toyota expects to offer a similar so-called “plug in” hybrid around the same time.
But Nissan, which a decade ago was on the brink of bankruptcy, is the first manufacturer to say it will sell mass-market all-electric vehicles worldwide. The zero emissions refers to those from the car’s tailpipe and not those from the production of electricity used to power the car.
Still, Mr. O’Dell said: “Nissan is upping the ante tremendously. They are the first to put it on the line and say we’re going to have an all-electric vehicle for a certain market by a certain date.”
Mr. Ghosn declined to disclose details of the electric products and said initial quantities would be small. “We’re talking about hundreds of vehicles first,” he said.
But he said that the company was determined to achieve “zero-emission-vehicle leadership.”
With customers in emerging markets like China and India clamoring for cars, the industry has a responsibility to invest in the cleanest vehicles possible, he said, adding, “The question is how we participate in the growth of emerging markets, while doing it in a way that is not in contradiction with the fact that a lot of people are sensitive to the emission levels and the preservation of the planet.”
Early this year, Nissan and its French alliance partner, Renault, signed a deal with the California-based Project Better Place to produce electric cars for sale in Israel and Denmark.
Renault will provide the cars and Nissan will supply lithium-ion battery packs. Mr. Ghosn, who also serves as chief executive of Renault, said the Israeli government would encourage sales of electric cars by sharply cutting taxes to levels below those on gasoline-powered vehicles.
“We would never have done this if the Israeli government was not encouraging it,” he said. “Whoever puts the most incentive on the table is going to get the technology first.”
The goal to sell electric vehicles is part of a new five-year business plan, called Nissan GT 2012, also to be announced Tuesday. It contains goals that are among the most ambitious set by Mr. Ghosn since he took the reins at Nissan in 1999.
In previous plans, Mr. Ghosn set strict targets for cost cuts, profit and return on investments to turn around the company’s lagging fortunes.
But now Nissan is healthier. It is expected to report a profit in the most recent fiscal year of $4.1 billion.
The next five years, Mr. Ghosn said, would focus on growth and trust. “Trust is about sustainability,” he said. “It’s about return; it’s about loyalty. In our industry, the companies that are performing best are the ones that have established a high level of trust with the different stakeholders.”
The goals also call for Nissan to match the best industry standards in vehicle quality and to increase its revenue by an average of 5 percent each year.
The company plans to introduce 60 models worldwide by 2012. Several new products are planned for the United States market, including a new Maxima sedan, the Cube small car and a new version of the Z-family sports cars.
Renault and Nissan have also joined with an Indian carmaker, Bajaj Auto, to produce a $2,500 car by 2011.
The new business plan and electric-car pledge represent a comeback effort of sorts for Mr. Ghosn, whose status as an industry superstar was tarnished in an aborted effort to extend the Nissan-Renault alliance to General Motors in 2006.
The alliance talks were spurred by the investor Kirk Kerkorian, who was then a major G.M. shareholder. Though Mr. Ghosn was willing to conclude a deal, G.M. management rebuffed him.
Nissan recently struck joint ventures with Chrysler, which is now private, to build vehicles in each other’s plants, but Mr. Ghosn played down the chances of bringing the American automaker as a full partner into the Nissan-Renault alliance.
“We’re not in a hurry,” he said, “but if we feel there is a good opportunity for us to add a North American partner, we need to take it seriously. For now, we have to be very cautious.”
But Nissan is being more aggressive about its electric-car efforts. Mr. Ghosn declined to say how much electric vehicles would cost, but stressed that they would be affordable and comparable with other vehicles in the marketplace.
“We are not interested in some ‘Stars Wars’ prototype,” he said, “but in really bringing a mass- market product that everybody can buy. It’s really a new chapter in the life of this industry.”
He said that as many as 10 million of the 69 million vehicles produced each year worldwide could ultimately be electric-powered, with a concentration in urban areas. “We think that cars sold in cities are the obvious first starting point,” he said.
Electric cars are typically recharged by plugging the vehicle into an electrical outlet at home or elsewhere overnight. But previous attempts at electric vehicles were hampered by the length of time needed to recharge the battery, and the limited distances the cars could travel on a single charge.
How customers will respond to a mass-market electric car is still unknown, Mr. O’Dell said. Concerns about driving range and reliability, he said, would generate a “healthy skepticism.”
New Customers vs. Loyal Customers as Advocates
At the end of class tonight, Prof Greenblatt talked about having advocates at the end of the purchasing funnel.
During my interview process for my summer job, an issue came up of the difficulty in introducing new products for companies in the healthy foods space. Notably, there is an inherent tension for focused companies between introducing products that are slightly farther from the mission to draw in new customers Vs. potentially alienating your most loyal advocates who may stop evangelising your brand to their friends if they no longer want to live every aspect of your brand.
It seems like a company with a specific social focus may not be able to grow aggressively (and keep up with shareholder, investor or parent company growth expectations) while maintaining the passionate advocates.
What are the solutions to this? Partnering with another company perhaps? Will the increase in modern viral marketing make it more beneficial for companies to NOT introduce new products?
During my interview process for my summer job, an issue came up of the difficulty in introducing new products for companies in the healthy foods space. Notably, there is an inherent tension for focused companies between introducing products that are slightly farther from the mission to draw in new customers Vs. potentially alienating your most loyal advocates who may stop evangelising your brand to their friends if they no longer want to live every aspect of your brand.
It seems like a company with a specific social focus may not be able to grow aggressively (and keep up with shareholder, investor or parent company growth expectations) while maintaining the passionate advocates.
What are the solutions to this? Partnering with another company perhaps? Will the increase in modern viral marketing make it more beneficial for companies to NOT introduce new products?
New CA Legislation Proposed Regarding Foundations' Reporting Requirements
This morning Larry Mantle (on KPCC) was discussing new CA legislation that would require foundations to report their board and staff diversity as well as their grantees'.
Here is more info from Project Vote Smart's website:
_________________________________________________________________
PVS' Synopsis:
Vote to pass a bill that requires private, public, and corporate foundations with assets over $250 million to report on the demographic composition of their board of directors and staff, and provide details of the diversity of organizations to which the foundation awarded grants and business contracts.
Requires specified foundations to collect race, gender-related and sexual orientation-related data and post this information on their Web sites. Specifically, this bill :
1)Requires every private, corporate and public operating foundation with assets over $250 million to collect, among other things, the following information:
- Requires foundations to report the number of grants awarded to organizations serving social minorities and those comprised of more than 50 percent ethnic minorities, and lesbian, gay, bisexual, and transgender employees [sec. 1 (a) (8-13)].
- Requires foundations to report the percentage of business contracts awarded to businesses owned by African-Americans, Asian-Americans, Pacific Islanders, Caucasians, Latinos, Native Americans, Alaskan Natives, and lesbian, gay, bisexual, or transgender people [sec. 1 (a) (7)].
__________________________________________________________________
They said on the radio show this morning that the gender and sexual orientation language has since been removed from the bill's language.
One of the organization's pushing for the legislation, Greenlining, has published a one page overview of the bill:
greenlining.org/documents/view/183
Greenlining's main argument is that since foundations receive "public funding" (i.e. function under the IRS 501c3 status and receive preferential tax treatment), they are subject to the same requirements to encourage diversity as other state institutions.
Here is more info from Project Vote Smart's website:
_________________________________________________________________
PVS' Synopsis:
Vote to pass a bill that requires private, public, and corporate foundations with assets over $250 million to report on the demographic composition of their board of directors and staff, and provide details of the diversity of organizations to which the foundation awarded grants and business contracts.
Official Synopsis:
Requires specified foundations to collect race, gender-related and sexual orientation-related data and post this information on their Web sites. Specifically, this bill :
1)Requires every private, corporate and public operating foundation with assets over $250 million to collect, among other things, the following information:
- a) The racial, gender and sexual orientation composition of its board of directors;
b) The racial, gender and sexual orientation composition of the private foundation's staff;
c) The percentage of business contracts awarded to businesses owned by specified groups;
d) The number of grants and percentage of grant dollars awarded to organizations serving specified communities; and,
e) The number of grants and percentage of grant dollars awarded to organizations where the grantee's board of directors and/or staff are members of specified groups.
Highlights:
- Requires foundations to report the number of grants awarded to organizations serving social minorities and those comprised of more than 50 percent ethnic minorities, and lesbian, gay, bisexual, and transgender employees [sec. 1 (a) (8-13)].
- Requires foundations to report the percentage of business contracts awarded to businesses owned by African-Americans, Asian-Americans, Pacific Islanders, Caucasians, Latinos, Native Americans, Alaskan Natives, and lesbian, gay, bisexual, or transgender people [sec. 1 (a) (7)].
__________________________________________________________________
They said on the radio show this morning that the gender and sexual orientation language has since been removed from the bill's language.
One of the organization's pushing for the legislation, Greenlining, has published a one page overview of the bill:
greenlining.org/documents/view/183
Greenlining's main argument is that since foundations receive "public funding" (i.e. function under the IRS 501c3 status and receive preferential tax treatment), they are subject to the same requirements to encourage diversity as other state institutions.
Hispanic Business Going Green - May 2008 Issue
One more thing, I currently subscribe to Hispanic Business and this month's issue is all about Going Green
http://www.hispanicbusiness.com/magazine/
There's some pretty interesting articles you can access from the website above. I'll bring the issue tomorrow in case anyone wants to take a look at it. I particularly liked the article about Hispanics in Philanthropy. It touches upon the issue of smaller, niche-focus non-profits that have trouble getting philanthropic dollars (the article is specific to hispanic non-profits, but I'm sure other similarly niche-focused orgs experience the same difficulties). In this case, HIP (Hispanics in Philanthropy), an SF based philanthropic org was created to fix that problem.
There's other great articles too about green building and green investing.
http://www.hispanicbusiness.com/magazine/
There's some pretty interesting articles you can access from the website above. I'll bring the issue tomorrow in case anyone wants to take a look at it. I particularly liked the article about Hispanics in Philanthropy. It touches upon the issue of smaller, niche-focus non-profits that have trouble getting philanthropic dollars (the article is specific to hispanic non-profits, but I'm sure other similarly niche-focused orgs experience the same difficulties). In this case, HIP (Hispanics in Philanthropy), an SF based philanthropic org was created to fix that problem.
There's other great articles too about green building and green investing.
This Week's Readings - Fitting Topic for White Paper
So, my white paper group had a conference call last week with the CEO of TAP (Tax Assistance Program) in Chicago to discuss hybrid-revenue models that might work for this organization, an NPO dedicated to providing innovative and free financial services to hardworking, low-income families. (See http://www.taxassistance.org/ for more info). They're currently reliant solely on grant money and one of the ideas that came up in our group de-brief of the conversation was partnering with H&R Block or other similar tax services. While we haven't quite figured out yet how the partnership might work, I think it's a great idea and hopefully we can flesh something out. Of course, the CEO might be a tough sell on this since he's very passionate about the cause and is not in the market for backlash from his clients or volunteers. Nevertheless, I think that if we carefully weighed the pro's and con's, we should be able to come up w/a model that will help TAP be more self-sufficient and thus, sustainable.
Sunday, May 11, 2008
Example of a For-Profit & NPO Relationship
Hi all,
Came across an example of a cause marketing relationship tonight, and thought I would share:
"21st Century Insurance has partnered with The National Arbor Day Foundation, America's largest non-profit tree planting organization, to create this very special opportunity.
It is simple. Get an auto insurance quote from 21st right now, and we will plant a tree in your name."
One tree per customer, please.
http://lp.21st.com/tree/
*As an interesting aside, maybe relevant maybe not, 21st Century just got bought by AIG.
Came across an example of a cause marketing relationship tonight, and thought I would share:
"21st Century Insurance has partnered with The National Arbor Day Foundation, America's largest non-profit tree planting organization, to create this very special opportunity.
It is simple. Get an auto insurance quote from 21st right now, and we will plant a tree in your name."
One tree per customer, please.
http://lp.21st.com/tree/
*As an interesting aside, maybe relevant maybe not, 21st Century just got bought by AIG.
Personality - Cause Marketing
Here's a link to a local cause marketing firm in LA called Personality. They have some white papers that go through basics of cause marketing and metrics companies can use to measure success.
http://www.thinkpersonality.com/downloads.htm
I met the Founder/President Brad Abare at the Business as Mission event on campus last Thursday. If you guys want to get in contact with him, I can send along his contact information. I think it might be good to have him as a guest speaker next year.
http://www.thinkpersonality.com/downloads.htm
I met the Founder/President Brad Abare at the Business as Mission event on campus last Thursday. If you guys want to get in contact with him, I can send along his contact information. I think it might be good to have him as a guest speaker next year.
Saturday, May 10, 2008
Google Earth & Myanmar Donation Matching
I am sure everyone who has attempted a Google Search recently has seen that they have posted a link to donate to the Myanmar cyclone crisis. Furthermore, they are willing to match donations up to $1M which fits in with the 'corporate matching' conversation we were having last class. They also built NASA satellite pictures into Google Earth, and the Google Earth & Maps team issued a statement, claiming: "We hope these updates raise awareness about the impact of this cyclone and the devastation it has caused, and will help aid workers in their recovery efforts."
Google Grants (the non-profit side) is also getting heavily involved, which ties into our discussion about for profit-non profit hybrids. More info can be found here: http://googlegrants.blogspot.com/2008/05/grant-recipients-helping-victims-of.html
The statement can be found here: http://google-latlong.blogspot.com/2008/05/imagery-for-myanmar-burma.html
My questions are: What are the reactions to the fact that both google's for profit and google's non-profit are both involving themselves in the relief efforts? what is everyone's reaction to the $1M cap in relation to Google's annual revenue? Is this truly social philanthropy or partly marketing/brand investment? What about the fact that google has been strongly trying to grow international presence in this part of the world?
Google Grants (the non-profit side) is also getting heavily involved, which ties into our discussion about for profit-non profit hybrids. More info can be found here: http://googlegrants.blogspot.com/2008/05/grant-recipients-helping-victims-of.html
The statement can be found here: http://google-latlong.blogspot.com/2008/05/imagery-for-myanmar-burma.html
My questions are: What are the reactions to the fact that both google's for profit and google's non-profit are both involving themselves in the relief efforts? what is everyone's reaction to the $1M cap in relation to Google's annual revenue? Is this truly social philanthropy or partly marketing/brand investment? What about the fact that google has been strongly trying to grow international presence in this part of the world?
Clorox + Sierra Club = ?
Since we've discussed both Clorox Green Works and the Sierra Club in recent weeks, I thought I'd post the link to an interesting article I read in Time magazine:
http://www.time.com/time/magazine/article/0,9171,1722260,00.html
In addition to discussing Clorox's widely publicized foray into the natural cleaning supplies market, the article also mentions that Green Works products will carry the Sierra Club logo in an effort to bolster Clorox's "eco-cred." In return, the Sierra Club will receive a portion of Green Works' sales and, per the Gourville & Rangan article, presumably some second-order benefits (increased exposure and public awareness of environmental issues) as well.
First Wal-Mart, now Clorox. The Sierra Club continues to jump into bed with Corporate America in an effort to advance its cause. It will be interesting to see if the benefits accrued from this latest CRM marketing partnership with Clorox will outweigh the inevitable backlash the Sierra Club will get from certain members of its constituency.
http://www.time.com/time/magazine/article/0,9171,1722260,00.html
In addition to discussing Clorox's widely publicized foray into the natural cleaning supplies market, the article also mentions that Green Works products will carry the Sierra Club logo in an effort to bolster Clorox's "eco-cred." In return, the Sierra Club will receive a portion of Green Works' sales and, per the Gourville & Rangan article, presumably some second-order benefits (increased exposure and public awareness of environmental issues) as well.
First Wal-Mart, now Clorox. The Sierra Club continues to jump into bed with Corporate America in an effort to advance its cause. It will be interesting to see if the benefits accrued from this latest CRM marketing partnership with Clorox will outweigh the inevitable backlash the Sierra Club will get from certain members of its constituency.
Thursday, May 8, 2008
Sustainability Rankings for Business Schools
Building on Ryan's post, I wanted to show you guys an article on sustainability rankings for business schools. Anderson ranks #93.
Sustainability Rankings for Business Schools
We've already made great strides the past year by strengthening the Leaders in Sustainability certificate program. If we are to stay competitive as a top business school, we need to continue improving our programs at Anderson.
Let me know if you guys have any ideas for next year!
Sustainability Rankings for Business Schools
We've already made great strides the past year by strengthening the Leaders in Sustainability certificate program. If we are to stay competitive as a top business school, we need to continue improving our programs at Anderson.
Let me know if you guys have any ideas for next year!
Wednesday, May 7, 2008
Executive Perspective of Sustainability
For anyone who hasn't seen this study, McKinsey released a survey of executives and their insight on which societal issues will have the greatest impact on shareholder returns. Not surprisingly, the environment and climate change tops the list for 2007, overtaking outsourcing and job loss, which was the tops in 2005. The survey also provides an overview on how executives believe companies incur costs and benefits to society.
http://www.mckinseyquarterly.com/article_print.aspx?L2=21&L3=114&ar=2077
Also, the survey was referenced by the dean of the Darden School of Business, who posted an extremely comprehensive blog about the impact of sustainability. He set specific goals for "greening" their school, as well as how it will affect recruiting if business students are not armed with this knowledge and skillset. I know we are making great strides at UCLA, but we should continually benchmark other schools and share ideas of how we can continue to try and be a leader in this space.
http://www.darden.edu/html/DeansBlog.aspx?blogday=1&blogmonth=12&blogyear=2006
http://www.mckinseyquarterly.com/article_print.aspx?L2=21&L3=114&ar=2077
Also, the survey was referenced by the dean of the Darden School of Business, who posted an extremely comprehensive blog about the impact of sustainability. He set specific goals for "greening" their school, as well as how it will affect recruiting if business students are not armed with this knowledge and skillset. I know we are making great strides at UCLA, but we should continually benchmark other schools and share ideas of how we can continue to try and be a leader in this space.
http://www.darden.edu/html/DeansBlog.aspx?blogday=1&blogmonth=12&blogyear=2006
Study Questions (Week 7)
Hi class
As some of you may have realized, last week's study questions only covered session 5 (NGO's) and did not include questions regarding the supply chain discussion. Rather than live in the past, I am posting questions for the session 7 readings only.
1. There are three readings to prepare for session 7 that focus on "cause marketing". Compare and contrast the authors frameworks and point of view's.
2. Use the cause marketing framework from the Gourville andRangan article to analyze GAP's red campaign.
3. Using the Gourville and Rangan article, compare and contrast the simple v. the complex view of Cause marketing. Can you provide an example of each?
4. Discuss the ethical issues related to cause marketing as presented in the Berglind and Nakata reading.
5. Use the cause marketing frameworks (your choice) to evaluate Patagonia.
See you all next week.
Michelle
As some of you may have realized, last week's study questions only covered session 5 (NGO's) and did not include questions regarding the supply chain discussion. Rather than live in the past, I am posting questions for the session 7 readings only.
1. There are three readings to prepare for session 7 that focus on "cause marketing". Compare and contrast the authors frameworks and point of view's.
2. Use the cause marketing framework from the Gourville andRangan article to analyze GAP's red campaign.
3. Using the Gourville and Rangan article, compare and contrast the simple v. the complex view of Cause marketing. Can you provide an example of each?
4. Discuss the ethical issues related to cause marketing as presented in the Berglind and Nakata reading.
5. Use the cause marketing frameworks (your choice) to evaluate Patagonia.
See you all next week.
Michelle
Tuesday, May 6, 2008
Plastic Roads!
Check out this unique use of plastic (in my hometown).
http://edition.cnn.com/2007/TECH/09/07/allabout.plastic/index.html
http://edition.cnn.com/2007/TECH/09/07/allabout.plastic/index.html
Monday, May 5, 2008
Reusable Bags
reusablebags.com is the site that I mentioned in today's class. The company's mission is to spread the word and stop the overconsumption of plastic bags.
For instance, the following product is made up of used juice containers. The company thus not only helps the environment but is also bettering the lives of poor women entrepreneurs.
http://www.reusablebags.com/store/basura-bags-small-insulated-lunch-p-649.html
Here is an excerpt from the description that follows:
About Basura Bags
Basura Bags come from a women’s co-op in the Philippines that set up a Livelihood Project assisted by the local village council. With almost no capital, the women found a very clever way to support themselves.
Every day, children from the local schools collect over 50,000 used drink containers, called doy packs, then sell them to the co-op. The bags are sanitized and the women sew them together into attractive, durable bags.
Unlike most third world factory workers toiling away in sweatshops, these women are entrepreneurs and shareholders. They work for themselves and have a positive impact on their community and, at the same time, they encourage environmentalism.
It's estimated that millions of juice containers get thrown in the trash everyday in the Philippines.
For instance, the following product is made up of used juice containers. The company thus not only helps the environment but is also bettering the lives of poor women entrepreneurs.
http://www.reusablebags.com/store/basura-bags-small-insulated-lunch-p-649.html
Here is an excerpt from the description that follows:
About Basura Bags
Basura Bags come from a women’s co-op in the Philippines that set up a Livelihood Project assisted by the local village council. With almost no capital, the women found a very clever way to support themselves.
Every day, children from the local schools collect over 50,000 used drink containers, called doy packs, then sell them to the co-op. The bags are sanitized and the women sew them together into attractive, durable bags.
Unlike most third world factory workers toiling away in sweatshops, these women are entrepreneurs and shareholders. They work for themselves and have a positive impact on their community and, at the same time, they encourage environmentalism.
It's estimated that millions of juice containers get thrown in the trash everyday in the Philippines.
FIJI Green
"Bottled water is not green, you ship this from the Pacific Ocean.
You don’t get increased productivity when it comes to water and sunshine, so how is this comparison apt?
No one is buying into your sham argument.
You’re still filling up landfills and the Pacific Ocean with plastic carcasses…"
This is not from some environmentalist's site but rather the on FIJI Water's blog. The company has chosen to leave comments open and respond to such criticism instead of ignoring it.
FIJI Green is an initiative to power 50% of the FIJI Water corporation with renewable Energy, reduce Carbon Footprint by 25% and offset the remaining emissions by 120%. This would make FIJI the only carbon negative bottled water. Responsive CSR? Perhaps... But hearing Roll International (parent of FIJI Water) owner Stuart Resnick talk about ethical responsibilities in business convinced me that the company is doing it because it is the right thing to do.
Website and blog http://www.fijigreen.com
Organics from Large Food Companies
There was an interesting article in the NY Times today that reported an interesting chart from Good Magazine that pertains to show the organic lines made from large food producers:
http://awesome.goodmagazine.com/features/009/009buyingorganic.html
http://awesome.goodmagazine.com/features/009/009buyingorganic.html
Increasing NonProfit Impact Through Social Networking
I came across Firstgiving which is a web-based company that enables individuals to raise money for any 501(c)(3) certified nonprofit using social networking concepts. It is currently working with 12000 different non profit organizations and has 15,000 individual active fundraiser pages at a time, each raising about $400 per organization. Obviously the sky is the limit. One fund raising page has raised over $85,000 for the World Food program.
The concept is simple: An individual creates a personalized fund raising page and promotes it to friends and relatives using widgets or a badge in blogs, social networking sites etc. Interested readers can then donate using this page. The page gets updated with amount donated, comments etc. The money then gets sent to the non profit once a month. There is also the option of being part of a team of fund raisers for the same organization.
http://www.firstgiving.com/design/1/about_us.asp
The selected nonprofit business thus succeeds in spreading the word about its cause and generating funds through their evangelists using a common social portal.
Looks like the concept of using the trend of social networking to increase impact is definitely something that all non profit businesses should look into, if not already doing so.
The concept is simple: An individual creates a personalized fund raising page and promotes it to friends and relatives using widgets or a badge in blogs, social networking sites etc. Interested readers can then donate using this page. The page gets updated with amount donated, comments etc. The money then gets sent to the non profit once a month. There is also the option of being part of a team of fund raisers for the same organization.
http://www.firstgiving.com/design/1/about_us.asp
The selected nonprofit business thus succeeds in spreading the word about its cause and generating funds through their evangelists using a common social portal.
Looks like the concept of using the trend of social networking to increase impact is definitely something that all non profit businesses should look into, if not already doing so.
The New York Times Magazine's Green Issue
I'm a bit late posting this--the issue arrived on my doorstep a couple of weeks ago--but I just now noticed that it's available online, and in a very readable format:
http://www.nytimes.com/indexes/2008/04/19/magazine/index.html
There are some interesting articles herein, with contributions by Michael Pollan, and on such topics as The Greener Gadgets Conference and overfishing.
Wal-Mart expands its low-price drug program
Hi All,
Saw this article about Wal-Mart expanding its low-price drug program. I think I mentioned this during our class discussion about Wal-Mart, but since about one in six Americans are estimated to not have health insurance, I am psyched about this program - even if it is not perfect. The best part? The article mentions that some of Wal-Mart's competitors have started to copy the program. Check it out.
http://news.yahoo.com/s/ap/20080505/ap_on_bi_ge/wal_mart_prescription_program
Saw this article about Wal-Mart expanding its low-price drug program. I think I mentioned this during our class discussion about Wal-Mart, but since about one in six Americans are estimated to not have health insurance, I am psyched about this program - even if it is not perfect. The best part? The article mentions that some of Wal-Mart's competitors have started to copy the program. Check it out.
http://news.yahoo.com/s/ap/20080505/ap_on_bi_ge/wal_mart_prescription_program
HP, Supply Chain and Steps to an Ethical Brand
From the readings I expect this week we will discuss product development, supply chain, how businesses are redesigning these processes to be more environmentally sustainable and how to define what sustainable is within various context.
As such this article just hit greenbiz.com tonight about HP's big step forward to be more transparent with their global supply chain.
http://www.greenbiz.com/feature/2008/04/28/transparent-supply-chain-sends-a-clear-message
HP is clear in their actions that this is both a play to open their supply chain to sustainability debates and improvement they are equally clear that they are doing this with the hopes of improving operational efficiency and cost of their global logistics. They are also playing an active role beyond their own CSR by helping to define standards for environmental supply chain management through the Electronic Industry Code of Conduct (EICC). This is analgous to what Whole Foods did with the FDA to define organic standards. I think it's a really good example of social intrapreneurial leadership as defined by Hollender.
As such this article just hit greenbiz.com tonight about HP's big step forward to be more transparent with their global supply chain.
http://www.greenbiz.com/feature/2008/04/28/transparent-supply-chain-sends-a-clear-message
HP is clear in their actions that this is both a play to open their supply chain to sustainability debates and improvement they are equally clear that they are doing this with the hopes of improving operational efficiency and cost of their global logistics. They are also playing an active role beyond their own CSR by helping to define standards for environmental supply chain management through the Electronic Industry Code of Conduct (EICC). This is analgous to what Whole Foods did with the FDA to define organic standards. I think it's a really good example of social intrapreneurial leadership as defined by Hollender.
Sunday, May 4, 2008
Canned Drinking Water
Just a little something I'm trying to wrap my brain around at 11:30 on a Sunday night: Why isn't there more canned drinking water out there?
I'm certainly no expert on the subject, but it seems to me there is a great deal of debate and discussion surrounding ways to minimize the carbon footprint created by transporting water from its source to the eventual bottlers and distributors, while relatively little is said about the packaging itself (at least in terms of the material used).
It is widely known that plastic literally takes hundreds of years to degrade in a landfill, and 97% of all plastic products end up in one. Moreover, in the spirit of Unruh's "Biosphere Rules", most recycled plastic is "downcycled" into less valuable products before its ultimate demise.
In contrast, aluminum cans are cheap, lightweight and easy to recycle. And the old metal from recycled cans is usually made into new aluminum cans. I read that old containers can be recycled and put back onto store shelves within 60 days, and making cans from recycled aluminum consumes only 4% of the energy used in manufacturing cans from scratch. Pretty impressive. Add to this the fact that aluminum cans don't use the petroleum input that plastic bottles do and it seems to me we've got ourselves a better mousetrap here.
So why don't companies use cans more often for packaging filtered drinking water? Deja Blue offers canned water, but I can't find any other brands that have followed suit. Can it all be attributed to the mental hurdle of drinking a "still" beverage out of a metal can? We do it with juice all the time on airplanes. Why not water?
I'm certainly no expert on the subject, but it seems to me there is a great deal of debate and discussion surrounding ways to minimize the carbon footprint created by transporting water from its source to the eventual bottlers and distributors, while relatively little is said about the packaging itself (at least in terms of the material used).
It is widely known that plastic literally takes hundreds of years to degrade in a landfill, and 97% of all plastic products end up in one. Moreover, in the spirit of Unruh's "Biosphere Rules", most recycled plastic is "downcycled" into less valuable products before its ultimate demise.
In contrast, aluminum cans are cheap, lightweight and easy to recycle. And the old metal from recycled cans is usually made into new aluminum cans. I read that old containers can be recycled and put back onto store shelves within 60 days, and making cans from recycled aluminum consumes only 4% of the energy used in manufacturing cans from scratch. Pretty impressive. Add to this the fact that aluminum cans don't use the petroleum input that plastic bottles do and it seems to me we've got ourselves a better mousetrap here.
So why don't companies use cans more often for packaging filtered drinking water? Deja Blue offers canned water, but I can't find any other brands that have followed suit. Can it all be attributed to the mental hurdle of drinking a "still" beverage out of a metal can? We do it with juice all the time on airplanes. Why not water?
Partners in Health
60 Minutes aired an interesting story tonight on an organization called Partners in Health, which provides healthcare services and training to individuals in developing countries such as Haiti. Partners in Health employs a "comprehensive and community based approach" that embodies many of the catalytic social entrepreneurship concepts we have been discussing in class. PIH has worked to prove that previously "untreatable" illnesses can in fact be treated, even in some of the world's most impoverished regions. Some of the unique program characteristics discussed in the 60 Minutes segment include: 1) employment of local doctors so the program can be more self-sustaining, 2) getting prescription drugs cheaper by finding companies in places like India that are able to manufacture generics at a fraction of the cost, and 3) making sure people actually take their medications as prescribed by sending community health workers out to visit sick patients every day. The organization has been so successful that certain elements have been adopted by other programs and countries around the globe. For example, the idea of sending out local community health workers to check on patients is currently being used in the United States by Prevention and Access to Care and Treatment (PACT) -- an organization that serves the sickest and most marginalized HIV patients in Boston.
Here is the 60 minutes segment if you're interested, as well as the Partners in Health website link. Very inspiring!
http://www.cbsnews.com/stories/2008/05/01/60minutes/main4063191.shtml
http://www.pih.org//home.html
Here is the 60 minutes segment if you're interested, as well as the Partners in Health website link. Very inspiring!
http://www.cbsnews.com/stories/2008/05/01/60minutes/main4063191.shtml
http://www.pih.org//home.html
Last week's Nau presentation
The presentation by Nau Vice President of Brand Communication, Ian Yolles, was probably one of the best I've been to so far at Anderson and addressed some of the major issues we have discussed in class. In fact, one of the first issue he raised dealt with Milton Friedman's view of social responsibility. Nau has a decidely different outlook: the key to profitability, he remarked, is addressing the interests of civil society. As we discussed in class, Nau, is a B-corp.
In Hollender-esque fashion, Yolles admitted that Nau is not a sustainable company. That said, they have taken some major steps to reduce their environmental footprint.
As I was writing this I decided to visit their homepage to share some of the steps they've taken and discovered that they are going out of business due to the dry up in the capital markets. Having been truly impressed by Nau, I find this news remarkably disappointing. I have included the link to their homepage for those who want to learn more about Nau's farewell (or get 50% of their collection).
https://www.nau.com/homepage/index.jsp#/homepage/index
In Hollender-esque fashion, Yolles admitted that Nau is not a sustainable company. That said, they have taken some major steps to reduce their environmental footprint.
As I was writing this I decided to visit their homepage to share some of the steps they've taken and discovered that they are going out of business due to the dry up in the capital markets. Having been truly impressed by Nau, I find this news remarkably disappointing. I have included the link to their homepage for those who want to learn more about Nau's farewell (or get 50% of their collection).
https://www.nau.com/homepage/index.jsp#/homepage/index
Green Makeover TV Show Seeks Participants (from UCLA Film Student)
Someone in this class should participate!
Hi everyone, I'm a grad film student at UCLA and I'm making a short
documentary for Current TV called "Green Makeover". I'm looking for one or
two people who want to get a "green" lifestyle makeover which they will
follow for 7 days straight.
If you've ever been interested in becoming more environmentally
conscious, this is a perfect opportunity for you.
You do not have to have any experience, just be willing to try. The show
will be 5-10 minutes long and will air on Current TV, the network Al Gore
started, which reaches over 50 million homes in the US and UK.
If you're interested in participating, please reply with your picture and
a short blurb about yourself.
Sincerely,
Julie Soller
julie@juliesoller.com
310-479-6785
4th year grad student, Directing program at TFT
Student Executive Producer, Current TV
www.current.com/people/Julie_Soller
Hi everyone, I'm a grad film student at UCLA and I'm making a short
documentary for Current TV called "Green Makeover". I'm looking for one or
two people who want to get a "green" lifestyle makeover which they will
follow for 7 days straight.
If you've ever been interested in becoming more environmentally
conscious, this is a perfect opportunity for you.
You do not have to have any experience, just be willing to try. The show
will be 5-10 minutes long and will air on Current TV, the network Al Gore
started, which reaches over 50 million homes in the US and UK.
If you're interested in participating, please reply with your picture and
a short blurb about yourself.
Sincerely,
Julie Soller
julie@juliesoller.com
310-479-6785
4th year grad student, Directing program at TFT
Student Executive Producer, Current TV
www.current.com/people/Julie_Soller
Don Grossman, I feel your pain. I grapple with some level of discomfort regarding compensation and the degree to which I truly want to better the world. As an entrepreneur or a CEO we [will, or do] expose ourselves to being judged by two disparate and excruciating audiences.
I have to commend Seth Goldman for allowing himself to be raked over the coals with respect to the $43 MM deal with Coca-Cola (NYSE: KO). There is an excellent article in the latest Inc. Magazine (http://www.inc.com/magazine/20080501/did-seth-go-to-the-dark-side.html). For those too lazy to read the article, just note the name of the article, "Did Seth Go to the Dark Side?" Jeffrey Hollender adds, "[t]he club of people who haven't sold their business is getting smaller... What I worry about is bolting on a green, natural, responsible business to a larger company that is fraught with problems... the best you can hope for is that the larger company doesn't screw the smaller one up." It was suggested that Coke might substitute organic ingredients with cheaper ingredients in an offer to reduce costs of Honest Tea.
Goldman further opens himself up to criticism in an Inc.com blog (http://blog.inc.com/the-mission-driven-business/). He responds to many of the respondents (mostly unhappy with the buyout) with patience mostly, but at times he just points to arguments he made elsewhere. Renee, on March 31st wrote: "Coke is Coke is Coke, but Honest Tea wasn't. Now it is. " While I've heard more eloquent arguments before; hers is quite pungent.
Overall, I am pleased with this dialogue. The big buyouts are another capitalistic incentive for us to champion a mission driven enterprise. Goldman is a young guy. He's not going to take his big piece of the pie and retire. He is pushing the envelope by moderating the Inc.com blog and he'll probably move on to start another mission driven enterprise. That's the story of the entrepreneur. Rarely do entrepreneurs make great managers once a company reaches a plateau. Coca-Cola's bottling and distribution network achieve far better economies of scale. Maybe it's easier for Coca-Cola to adopt some measure of corporate responsibility as the result of an acquisition. Could this be seen as a disruptive innovation from the inside-out? Like a green trojan horse? These answers remain to be seen.
I have to commend Seth Goldman for allowing himself to be raked over the coals with respect to the $43 MM deal with Coca-Cola (NYSE: KO). There is an excellent article in the latest Inc. Magazine (http://www.inc.com/magazine/20080501/did-seth-go-to-the-dark-side.html). For those too lazy to read the article, just note the name of the article, "Did Seth Go to the Dark Side?" Jeffrey Hollender adds, "[t]he club of people who haven't sold their business is getting smaller... What I worry about is bolting on a green, natural, responsible business to a larger company that is fraught with problems... the best you can hope for is that the larger company doesn't screw the smaller one up." It was suggested that Coke might substitute organic ingredients with cheaper ingredients in an offer to reduce costs of Honest Tea.
Goldman further opens himself up to criticism in an Inc.com blog (http://blog.inc.com/the-mission-driven-business/). He responds to many of the respondents (mostly unhappy with the buyout) with patience mostly, but at times he just points to arguments he made elsewhere. Renee, on March 31st wrote: "Coke is Coke is Coke, but Honest Tea wasn't. Now it is. " While I've heard more eloquent arguments before; hers is quite pungent.
Overall, I am pleased with this dialogue. The big buyouts are another capitalistic incentive for us to champion a mission driven enterprise. Goldman is a young guy. He's not going to take his big piece of the pie and retire. He is pushing the envelope by moderating the Inc.com blog and he'll probably move on to start another mission driven enterprise. That's the story of the entrepreneur. Rarely do entrepreneurs make great managers once a company reaches a plateau. Coca-Cola's bottling and distribution network achieve far better economies of scale. Maybe it's easier for Coca-Cola to adopt some measure of corporate responsibility as the result of an acquisition. Could this be seen as a disruptive innovation from the inside-out? Like a green trojan horse? These answers remain to be seen.
Thursday, May 1, 2008
KKR: Socially Responsible Buyout Firm?
I suppose if they can cut cash flow waste by laying people off they can also apply their analytical skills to cutting environmental waste. This could make quite an impact if other buyout/private equity firms follow KKR's lead.
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Environmental Defense Fund (EDF) and Kohlberg Kravis Roberts & Co. L.P. (KKR) today announced a "Green Portfolio" partnership to measure and improve the environmental performance of companies within KKR's U.S. portfolio. Building on their successful collaboration in the 2007 acquisition of TXU Corporation, the partnership is the first of its kind between a private equity firm and an environmental organization.
KKR has committed to work with EDF to develop a set of analytic tools by which companies can assess and track improvements on a series of environmental metrics. These tools will enable managers to cost-effectively improve efficiency, reduce waste and address environmental impacts, such as greenhouse gas emissions, the use of toxic substances, waste generation or water consumption.
KKR and EDF expect that these actions will offer companies financial benefits, as well as improved environmental performance. To prove this concept, over the next three to six months, EDF and KKR will conduct pilot projects within the KKR portfolio to develop analytic tools that can then be applied across a broader range of KKR portfolio companies over the next year. Results will be made public at the end of both phases. Once developed, EDF and KKR will make the processes, tools and results of their joint effort publicly available, with the mutual goal of having these tools implemented by other companies around the world.
Concurrently, KKR has committed to improving the energy efficiency of its own office operations, including by participating in EDF's Climate Corps Program. As part of this commitment, KKR will undergo an energy audit of its offices, analyze the financial and environmental benefits of available energy efficiency improvements and implement those that are most cost-effective.
"The private equity industry is known for its focus on improving business performance and for the rigorous process it uses to set goals and track improvement in portfolio companies," said Gwen Ruta, Vice President of Corporate Partnerships for EDF. "This groundbreaking new partnership between KKR and EDF will use the transformational power of private equity to achieve environmental goals. In addition, KKR's commitment to EDF's Climate Corps Program indicates their willingness to 'walk the talk' when it comes to their own environmental footprint."
________________________________________________________________
Environmental Defense Fund (EDF) and Kohlberg Kravis Roberts & Co. L.P. (KKR) today announced a "Green Portfolio" partnership to measure and improve the environmental performance of companies within KKR's U.S. portfolio. Building on their successful collaboration in the 2007 acquisition of TXU Corporation, the partnership is the first of its kind between a private equity firm and an environmental organization.
KKR has committed to work with EDF to develop a set of analytic tools by which companies can assess and track improvements on a series of environmental metrics. These tools will enable managers to cost-effectively improve efficiency, reduce waste and address environmental impacts, such as greenhouse gas emissions, the use of toxic substances, waste generation or water consumption.
KKR and EDF expect that these actions will offer companies financial benefits, as well as improved environmental performance. To prove this concept, over the next three to six months, EDF and KKR will conduct pilot projects within the KKR portfolio to develop analytic tools that can then be applied across a broader range of KKR portfolio companies over the next year. Results will be made public at the end of both phases. Once developed, EDF and KKR will make the processes, tools and results of their joint effort publicly available, with the mutual goal of having these tools implemented by other companies around the world.
Concurrently, KKR has committed to improving the energy efficiency of its own office operations, including by participating in EDF's Climate Corps Program. As part of this commitment, KKR will undergo an energy audit of its offices, analyze the financial and environmental benefits of available energy efficiency improvements and implement those that are most cost-effective.
"The private equity industry is known for its focus on improving business performance and for the rigorous process it uses to set goals and track improvement in portfolio companies," said Gwen Ruta, Vice President of Corporate Partnerships for EDF. "This groundbreaking new partnership between KKR and EDF will use the transformational power of private equity to achieve environmental goals. In addition, KKR's commitment to EDF's Climate Corps Program indicates their willingness to 'walk the talk' when it comes to their own environmental footprint."
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