HOW TO CHANGE THE WORLD

ENGINEERING SOCIAL INNOVATION

“Have you ever wondered what would happen, if all the geniuses, the artists, the scientists, the smartest, most creative people in the world decided to actually change it? Where, where could they even do such a thing? They’d need a place free from politics and bureaucracy, distractions, greed — a secret place where they could build whatever they were crazy enough to imagine.” Hugo
“Shared Value: addressing a social issue with a business model” Michael Porter

FACILITATING CHANGE

Social Value + Economic Value

The forces of globalization and technology have complicated the competitive arena, creating a need for leaders who can respond differently to a changing world. It’s not about profit alone any more, but how executives can create organizations that are economically, ethically, and socially sustainable. Link

Social entrepreneurship is the use of the techniques by start up companies and other entrepreneurs to develop, fund and implement solutions to social, cultural, or environmental issues. This concept may be applied to a variety of organizations with different sizes, aims, and beliefs. For-profit entrepreneurs typically measure performance using business metrics like profit, revenues and increases in stock prices, but social entrepreneurs are either non-profits or blend for-profit goals with generating a positive “return to society” and therefore must use different metrics. Social entrepreneurship typically attempts to further broad social, cultural, and environmental goals often associated with the voluntary sector in areas such as poverty alleviation, health care and community development.

1 — Collective Impact

What might social change look like if funders, nonprofits, government officials, civic leaders, and business executives embraced collective impact? Recent events at Strive provide an exciting indication of what might be possible.

Collective Impact SSIR

2 — Benefit Corporation

Hero Company: In the United States, a benefit corporation is a type of for-profit corporate entity, authorized by 30 U.S. states and the District of Columbia that includes positive impact on society, workers, the community and the environment in addition to profit as its legally defined goals. Benefit corporations differ from traditional C corporations in purpose, accountability, and transparency, but not in taxation.

3 — L3C

Hero Company: A low-profit limited liability company (L3C) is a legal form of business entity in the United States that was created to bridge the gap between non-profit and for-profit investing by providing a structure that facilitates investments in socially beneficial, for-profit ventures by simplifying compliance with Internal Revenue Service rules for program-related investments, a type of investment that private foundations are allowed to make

4 — Nonprofit

A nonprofit organization, also known as a non-business entity is an organization that has been formed by a group of people in order “to pursue a common not-for-profit goal”, that is, to pursue the stated goal expressly without the intention of distributing excess revenue (i.e. profit) to members or leaders.

5 — Crowdfunding

Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people. Crowdfunding is a form of crowdsourcing and of alternative finance. In 2015, it was estimated that worldwide over US$34 billion was raised this way.

6 — Social Impact Fund

Impact investing refers to investments “made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return”.

“Impact investments can be made in both emerging and developed markets, and target a range of returns from below-market to above-market rates, depending upon the circumstances.” Impact investing tends to have roots in either social issues or environmental issues, and has been contrasted with microfinance. Impact investors actively seek to place capital in businesses, nonprofits, and funds that can harness the positive power of enterprise. Impact investing occurs across asset classes; for example, private equity/venture capital, debt, and fixed income.

7 — Social Impact Bond

A Social impact bond, also known as “Pay for Success Financing”, a Pay for Success Bond or a Social Benefit Bond or simply a Social Bond, is a contract with the public sector in which a commitment is made to pay for improved social outcomes that result in public sector savings.

8 — Donor Advised Fund

In the United States, a donor-advised fund is a charitable giving vehicle administered by a public charity created to manage charitable donations on behalf of organizations, families, or individuals. To participate in a donor-advised fund, a donating individual or organization opens an account in the fund and deposits cash, securities, or other financial instruments. They surrender ownership of anything they put in the fund, but retain advisory privileges over how their account is invested, and how it distributes money to charities.

9 — EB-5 Visa

The EB-5 visa, employment-based fifth preference category[1] or EB-5 Immigrant Investor Visa Program, created in 1990 by the Immigration Act of 1990, provides a method for eligible Immigrant Investors to obtain United States visas as a path to permanent residence — informally known as the green card — by investing at least $1,000,000 to finance a business in the United States that will “eventually employ — directly or indirectly — at least 10 American workers.”

10 — Program Related Investment

Program-related investments (PRIs) are investments made by foundations to support charitable activities that involve the potential return of capital within an established time frame. PRIs include financing methods commonly associated with banks or other private investors, such as loans, loan guarantees, linked deposits, and even equity investments in charitable organizations or in commercial ventures for charitable purposes.

11 — Probono Strategic Impact

Strategic Community Impact Pro bono publico (English: for the public good; usually shortened to pro bono) is a Latin phrase for professional work undertaken voluntarily and without payment. Unlike traditional volunteerism, it is service that uses the specific skills of professionals to provide services to those who are unable to afford them. Applies to the private sector where professionals like lawyers and bankers offer their specialist skills for the benefit of the community or NGOs.

12 — Corporate Social Responsibility/Citizenry

Corporate citizenship involves the social responsibility of businesses and the extent to which they meet legal, ethical and economic responsibilities, as established by shareholders. The goal is to produce higher standards of living and quality of life for the communities that surround them and still maintain profitability for stakeholders. The demand for socially responsible corporations continues to grow, encouraging investors, consumers and employees to use their individual power to create change.

13 — Conscious Capitalism

“Business is good because it creates value, it is ethical because it is based on voluntary exchange, it is noble because it can elevate our existence and it is heroic because it lifts people out of poverty and creates prosperity. Free enterprise capitalism is the most powerful system for social cooperation and human progress ever conceived. It is one of the most compelling ideas we humans have ever had. But we can aspire to even more.”

Toms

14 — Conscious Consumerism

Socially conscious consumerism can be defined as consumers ―voting with their dollars‖ — by purchasing products and services produced responsibly. Responsible production can encompass a range of social and environmental factors, such as ensuring labour practices are fair or that products are produced with the aim of minimizing environmental impacts. Consumers reward socially responsible firms through higher sales and punish other firms through boycotts and protests. PDF Research Report

15 — Cause Marketing

Cause marketing or cause-related marketing refers to a type of marketing involving the cooperative efforts of a for-profit business and a non-profit organization for mutual benefit. The term is sometimes used more broadly and generally to refer to any type of marketing effort for social and other charitable causes, including in-house marketing efforts by non-profit organizations. Cause marketing differs from corporate giving (philanthropy), as the latter generally involves a specific donation that is tax-deductible, while cause marketing is a marketing relationship not necessarily based on a donation.

16 — Affiliate Marketing

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.

17 — Think Tank

A think tank or policy institute, research institute, etc. is an organization that performs research and advocacy concerning topics such as social policy, political strategy, economics, military, technology, and culture. Most policy institutes are non-profit organizations, which some countries such as the United States and Canada provide with tax exempt status. Other think tanks are funded by governments, advocacy groups, or businesses, or derive revenue from consulting or research work related to their projects. There are more than 6,800 think tanks worldwide.

18 — Makerspace

In general, makerspaces and hackerspaces function as centers for peer learning and knowledge sharing, in the form of workshops, presentations, and lectures. They usually also offer social activities for their members, such as game nights and parties. Hackerspaces can be viewed as open community labs incorporating elements of machine shops, workshops, and/or studios where hackers can come together to share resources and knowledge to build and make things.

Many hackerspaces participate in the use and development of free software, open hardware, and alternative media. They are often physically located in info shops, social centers, adult education centers, public schools, public libraries, or on university campuses, but may relocate to industrial or warehouse space when they need more room.

19 — Collaborative Working Environment

Working practices in a collaborative working environment evolved from the traditional or geographical co-location paradigm. In a CWE, professionals work together regardless of their geographical location. In this context, e-professionals use a collaborative working environment to provide and share information and exchange views in order to reach a common understanding. Such practices enable an effective and efficient collaboration among different proficiencies.

20 — Business Incubator

A business incubator is a company that helps new and startup companies to develop by providing services such as management training or office space. The National Business Incubation Association (NBIA) defines business incubators as a catalyst tool for either regional or national economic development. NBIA categorizes their members’ incubators by the following five incubator types: academic institutions; non-profit development corporations; for-profit property development ventures; venture capital firms, and combination of the above

21 — Educational Innovation Lab

22 — Free Space

The [freespace] movement is an experiment in what is possible when a community shares the gift of physical space. A [freespace] is a gathering place for people to come together, to create, teach, learn, and share the things which they are truly passionate about, and strengthen connections between individuals as well as communities through art, events, and long term projects.

Freespace

23 — Civic Innovation Center

Mayor’s Office of Civic Innovation

24 — Civic Accelerator

25 — Idea Challenges

26 — Sharing Economy

Sharing economy is an umbrella term with a range of meanings, often used to describe economic activity involving online transactions.Originally growing out of the open-source community to refer to peer-to-peer based sharing of access to goods and services,the term is now sometimes used in a broader sense to describe any sales transactions that are done via online market places, even ones that are business to business (B2B), rather than peer-to-peer.

27 — Crowdsourcing

Crowdsourcing is a specific sourcing mode.

28 — Social Impact Events

People and cultures can only create sustainable change by accepting and moving forward with it on physical, mental, emotional and spiritual levels.

29 — Social Impact Organizations

30 — Community Development Projects

31 — Think Space

32 — Block Chain

A blockchain originally block chain, is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, blockchains are inherently resistant to modification of the data. Harvard Business Review describes it as “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.”

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