The best kept secret in the world of corporate social responsibility (CSR) is that CSR is an inside job. Many people who are heading up CSR departments (or are the CSR department) at their companies, were once regular employees who one day decided to start recycling at the office or organize volunteer days. What resulted was a snowball effect. Management saw the benefits of sustainability, clients became interested and engaged, the company re-branded and marketed its efforts, and these employees continued to develop more and more socially responsible initiatives. A new way of doing business had been born and a new social champion had arrived: the social intrapreneur.

For the full article go here.

And a shout out to the members of the NYWSE crew (specifically Shari Aaron, Ashby Andrews, Natalia Oberti Noguera, & Stephanie Niloff) who are hard at work getting this amazing program off the ground!

There was, however, a recurring theme that I noticed in many of my conversations: franchising, financing, and technology.

But let me back up a bit…the night before I attended a panel discussion at The Foundation Center on donor management systems. As some of the organizations I am working with are revving up for full-on fund development, implementing an affordable donor management program seems like a good part of the plan. I was a little shocked when I arrived that probably 80% of the attendees were twice my age. I got up and asked a question regarding options for donor management systems that would work for organizations with staff who telecommute and lack a brick-and-mortar base of operations. The question was confused people–both in the audience and in the panel–but I got a helpful answer in the end. However, the answer suited my question by accident–these traditional programs aren’t being designed with 21st century social entrepreneurs in mind, they just may work out unintentionally.

The demographic of The Feast was a stark contrast. It was packed with social-media savvy social entrepreneurs, many of whom were connecting for the first-time in person after months of communicating via Twitter, blogs, or email. For these social innovators, both the presenters and the audience, there were three things that kept coming up: franchising, financing, and technology.

Franchising: Social innovators are continuing to apply business methods to social ventures. Many organizations (like SHEnterprises (who presented at The Feast), The Unreasonable Institute, and The Ayllu Initiative) have incorporated franchising or model duplication as part of their strategy in order to implement successful programs on a large-scale. The organizations plan to make necessary tweaks to variables–like geographic location, population, materials, etc.–and roll out easily replicable programs that will yield high social impact.

Financing: Each start-up social venture must decide early on whether or not it is going to be for-profit or nonprofit.  Many incubator programs, like Echoing Green, don’t “discriminate” between nonprofit and for-profit ventures and encourage both structures as a means for social innovation. The decision between  nonprofit and for-profit, for many entrepreneurs, may be based on practicality, organizational mission, or structure. For many young social entrepreneurs, a for-profit social venture is an exciting opportunity to prove that socially-minded business can be financially sustainable.  However, when it comes down to it–the lack of flexibility between the two legal structures and the type of financing available, has many would-be for-profit social entrepreneurs turning to the 501(c)3.  The new L3C  (Low-Profit Limited Liability Company) is a new option that addresses this issue, but many feel like it is not fully developed yet.

While turning to nonprofit status may seem like the only viable option for start-ups seeking seed funding, the next step is communicating with foundations and individual donors about social entrepreneurship–a still relatively new field that is experiencing high-growth.  Finding, and then competing, for these funds is another challenge.

Technology: Someone at The Feast asked, “Where did all of these people come from?” My thought, “The internet.” Over 1,000 tweets were posted during The Feast (here’s the twitter feed)…and I haven’t even gotten around to checking out all the amazing blog posts about it. So #1) These social innovators are connecting via social media to keep the conversation going, network, and problem solve. #2) These leaders are also utilizing technology to implement their programs. Charity:water (who presented at The Feast), in an effort to increase transparency in the organization, is geo-tagging digital photographs of their projects around the world. (I mean seriously, check this out.) Another organization, Frontline SMS (who also presented), is using text messaging solutions for nonprofits…because, guess what? Most of the people in the world do not have internet access. So technology doesn’t just mean using the best technology available in the world, but using the best technology available for a given situation to solve the world’s problems.

This goes back to my experience at The Foundation Center. We may need to re-design and re-think some of the traditional nonprofit tools, resources, and structures.  “Accidental” tools are probably not the best, and assuming that these tools will have multiplier effects across the world (either multiplying efficiency or inefficiency)–it probably makes sense to design these tools with intention. What technologies would help a virtual nonprofit office? What are easily replicable best-practices for start-up social ventures? (These best practices, arguably will be easy to communicate and transfer due to this population’s heavy use of social media.) How can we duplicate not just our programs, but our start-up structures, procedures, methods for transparency and accountability? How can we increase access to financing and encourage faith in social enterprise amongst investors ?

What do I see happening next? Well, The Feast did an amazing job connecting like-minded social innovators and continuing to inspire them to action. Now, the next step is finding out what are the limiting factors for development of start-up social ventures. The innovation is happening faster than the infrastructure supporting it can catch up. The good news: the hard part is over. Entrepreneurship is notoriously difficult to teach–they’ve got the goods, let’s give them the tools to succeed.

Elizabeth Scharpf, Chief Instigating Officer at Sustainable Health Enterprises (SHE)
Katie Orenstein, Founder and Director at The Op-Ed Project
Amini Kajunju, CEO/COO at the and Executive Committee member at Angel Africa

They are the big-wigs at their respective organizations and have each made great strides in addressing social issues, but these three women were also honest, funny, and down-to-earth about life as a woman social entrepreneur. Elizabeth Scharpf spoke about her “tipping point” that guided her down a different path. She had been working at an INGO in Mozambique, and had spoken with some young children about what they wanted to be when the grew up. One child answered: “I want to work for a big international development organization, because I want to be rich.” Hmmm. That wasn’t exactly the motivation for involvement in the social sector that she (or really anyone else for that matter) wanted to hear. What resulted was Elizabeth’s pursuit of an alternative path that led her to start SHE.

Amini took an existing nonprofit organization (now in its 4th decade) and turned it around. When she arrived the organization had $30,000 in the bank and she had to fundraise her own salary. Now the organization has a $600,000 annual operating budget and is licensing its 16-week mini-MBA to organizations across the country. All three women pointed out what a large role volunteers played in not only keeping these organizations afloat, but more importantly in moving them forward. At Amini’s organization, WIBO, 35% of their volunteers have been with the organization for 10 years or more. She should definitely be writing a book on volunteer retention!!

Katie was the reluctant social entrepreneur. A professional journalist, Katie had no interest in running a nonprofit or social venture, but statistics about the representation of women writers on Op-Ed pages sent her down a different path. Currently about 15% of Op-Ed pieces are written by women–and apparently this statistic is “bizarrely consistent” throughout television, congress, and NYT Best Sellers. BUT…apparently while about 85% of Op-Ed pieces are by male writers, apparently about 90% of submissions are by men as well. Hmmm. It’s not that pieces by women aren’t being selected, it’s that they aren’t being submitted.

Katie’s mission, however, is not specifically about Op-Ed pages. It’s about “thought leadership” and making sure that women’s perspectives are being heard across the board. The Op-Ed Project was born since its a tangible concept with measurable outcomes (Please take notes budding social entrepreneurs.) She made a very deliberate choice regarding her branding, message, and mission.

I’d recommend setting aside a time to listen to these women speak, or take advantage of the programs they offer.

Say “Hi” to Amini this Friday and Saturday at the Angel Africa Enterprise Conference (Currently a buy 1 get 1 free on tickets!!)

Catch Elizabeth next week at The Feast.

or,  Sign Up for one of The Op-Ed Project’s Upcoming Seminars.

Event 1: BRAC’s Friendraiser

Last Wednesday I headed over to BRAC’s Friendraiser at the Edwynn Houk Gallery. I was invited to the event by my friend Laina–who is always up to good. My hat goes off to the BRAC Host Committee, who organized the free event, as it was truly a great way to introduce new “friends” to the organization’s mission and activities. There were a bunch of things about the event’s structure itself that I really appreciated. Some Friendraising tips to consider for your organization’s next Friendraiser:

Price: The event was free. While fundraising and/or off-setting costs are definitely important and events can be a great opportunity for such a thing, free events are a great way to encourage new attendees. In NYC especially, everything seems to have a dollar sign attached to it.

Free for all: Rather than having a panel or guest speaker discuss the organization’s community development work around the world, guests were encourage to mingle and visit informational stations throughout the venue. There are obviously pros and cons to either a formal speaking event or an informal mingle event, but its a good idea to keep in mind the other types of engagements your audience is likely participating in…an over-indulgence in either type of event can be a little daunting.

Creative: BRAC’s Host Committee definitely gets kudos for being creative and fun. Guests were given a “passport”–a booklet with information about BRAC–and asked to visit “countries” (high tables with laptops displaying powerpoint presentations) scattered throughout the gallery space. At each “country” you were able to learn more about BRAC’s involvement in that region as well as receive a “passport stamp”–a sticker with more facts about BRAC’s work. Friendraisers are a great way to show people what awesome things your organization is up to, but it’s good to keep in mind that the way you present your information can impact people’s perceptions. Being innovative in your presentation shows people you are innovative!

Friends: The best part about a Friendraiser is the friends part. While I wasn’t particularly familiar with BRAC before receiving an invitation to the event, I respect and admire the people I know who are involved with or connected to BRAC (in addition to being very impressed with those Host Committee members and staff that I met at the event)–which, by default leads me to respect and admire an organization they believe in.  Friends of your organization are a great resource as they can advocate in meaningful ways on your behalf…remember to cultivate these relationships!

All in all, it was a creative and fun environment to learn more about a great organization that has a lot of  advocates within the NYC community.

• Early Earners – Online education destination for youth and families promoting positive financial habits

• Girl Guides USA – Outdoor program that develops girls’ environmentalism, leadership and teamwork

• Illume – Online mentoring and career resource for young women from illiterate families in India

• Out Against Abuse – Online resource to stop domestic violence in the South Asian community

• Public Stuff – Software to connect government and citizens to improve services and community life

• Start Your Engine – Exercise, nutrition, stress and time management program for low-income women

The event featured a keynote speech by Diana Ayton-Shenker, Founder & CEO of Fast Forward Fund (FFF), a youth-investing-in-youth social venture fund, who spoke the importance of investing in young social entrepreneurs who will become tomorrow’s leaders.

The venue was a-buzz with interesting conversations and was a great opportunity to meet other faces in the world of NYC social entrepreneurship. And, in addition to the great company, the Bowery Wine Company staff were fabulous!

I had the pleasure of helping organize the event and had the opportunity to work with some really fabulous women including Natalia Oberti Noguera (NYWSE Director) and Melissa Osborne (who is off to graduate school this fall! Congrats!).  If you are a woman interested in social entrepreneurship, I highly recommend checking out NYWSE–they have an ever growing community and lots of thoughtful resources for women social entrepreneurs.

If you are considering applying for next year’s Friendraiser, check the NYWSE website for the 2010 Program Applications.

If you don’t already know, social entrepreneurship is definitely a jargon-y, buzzword whose definition is sometimes hard to pin down. A quick Google search for “social entrepreneurship” puts Wikipedia (of course!) at the top of the list. Wikipedia defines social entrepreneurship as “the work of a social entrepreneur. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change.”

After perusing through a couple of the top Google search hits for definitions of social entrepreneurship, four main elements began to appear. While there is no hard and fast definition, social entrepreneurs tend to be described as individuals who are  (1) innovative problem solvers, (2) very committed to their work, (3) addressing large scale issues, and (4) contrasted with business entrepreneurs.

• Social entrepreneurs are innovative problem solvers

Rather than leaving societal needs to the government or business sectors, social entrepreneurs find what is not working and solve the problem by changing the system, spreading the solution, and persuading entire societies to take new leaps. –ASHOKA

The job of a social entrepreneur is to recognize when a part of society is stuck and to provide new ways to get it unstuck. He or she finds what is not working and solves the problem by changing the system, spreading the solution and persuading entire societies to take new leaps.–PBS: The New Heroes

Social entrepreneurs pioneer innovative and systemic approaches for meeting the needs of the marginalized, the disadvantaged and the disenfranchised – populations that lack the financial means or political clout to achieve lasting benefit on their own.–Skoll Foundation

Social entrepreneurs drive social innovation and transformation in various fields including education, health, environment and enterprise development. –Schwab Foundation for Social Entrepreneurship

• Social Entrepreneurs are committed to their work

Social entrepreneurs often seem to be possessed by their ideas, committing their lives to changing the direction of their field. They are both visionaries and ultimate realists, concerned with the practical implementation of their vision above all else.–ASHOKA

Identifying and solving large-scale social problems requires a committed person with a vision and determination to persist in the face of daunting odds.–PBS: The New Heroes

[Social entrepreneurs] recognize the extraordinary potential in the billions of poor people who inhabit the planet, and they are absolutely committed to helping them use their talents and abilities to achieve their potential.–Skoll Foundation

• Social entrepreneurs address large scale issues

[S]ocial entrepreneurs are solution-minded pragmatists who are not afraid to tackle some of the world’s biggest problems.–Skoll Foundation

Identifying and solving large-scale social problems requires a committed person with a vision and determination to persist in the face of daunting odds.–PBS: The New Heroes

[A social entrepreneur] achieves large scale, systemic and sustainable social change through a new invention, a different approach, a more rigorous application of known technologies or strategies, or a combination of these.–Schwab Foundation for Social Entrepreneurship

• Social entrepreneurs are contrasted with businesses entrepreneurs

Whereas a business entrepreneur typically measures performance in profit and return, a social entrepreneur assesses success in terms of the impact s/he has on society. –Wikipedia, “social entrepreneurship”

Unlike traditional business entrepreneurs, social entrepreneurs primarily seek to generate “social value” rather than profits. And unlike the majority of non-profit organizations, their work is targeted not only towards immediate, small-scale effects, but sweeping, long-term change.–PBS: The New Heroes

Distinct from a business entrepreneur who sees value in the creation of new markets, the social entrepreneur aims for value in the form of transformational change that will benefit disadvantaged communities and ultimately society at large.–Skoll Foundation

They pursue poverty alleviation goals with entrepreneurial zeal, business methods and the courage to innovate and overcome traditional practices. A social entrepreneur, similar to a business entrepreneur, builds strong and sustainable organizations, which are either set up as not-for-profits or companies.–Schwab Foundation for Social Entrepreneurship

And a quick commentary:

It’s easy to envision social entrepreneurs as innovators, but I think it is very interesting that so many organizations have also chosen to define social entrepreneurs as “very committed” –not that I do not think social entreprenuers are committed to the causes they support, but rather that commitment has become part of the definition. There is the implication that social entrepreneurship involves blood, sweat, and tears and involves a holistic value system that guides a social entrepreneurs life’s work.  For social entrepreneurs, work isn’t just a job–it’s a way of life.

The third characteristic–that social entrepreneurs address large scale issues–I also think perhaps narrows social entrepreneurship unfairly. I am sure that many of the larger organizations working in social entrepreneurship focus on large issues such as global climate change, world hunger, poverty, and education–but I imagine that the most successful social ventures operate at the grassroots level, addressing the specific elements of an issue and applying targeted solutions. The ability to yield greater impact and effectiveness is likely linked to the scale of the project….and I would assume that the closer you are to the ground, and the smaller the scale of your project, the more effective and successful it will be. Maybe it’s just semantics…or maybe it is just a different way of framing the issue.

Lastly, I want to address the tendency to describe social entrepreneurs as being distinct from business entrepreneurs. I understand, and totally agree with, the distinctions made between social and business entrepreneurs. But! I would add a bit of caution to the severity of that line. While some organizations contrast social entrepreneurs with business entrepreneurs, others compare them and emphasize as well as celebrate the use of business principles and private sector strategies by social entrepreneurs. As things continue to shift and the social sector continues to grow, I think that line will become more undefined. For example, while public policy graduate programs exist all around the country (See Public Policy School?), many business schools now offer social entrepreneurship and nonprofit specialties, conferences, and fellowships.

Check out: U.S. News & World Report’s MBA Nonprofit Specialty rankings, Harvard University’s Social Enterprise Initiative, Duke University’s Fuqua School of Business’ Center for Advancement of Social Entrepreneurship, and Net Impact —just to name a few.