social innovation as a sustainable business model
DESCRIPTION
Can Social Innovation be a sustainable business model? Nowadays, we do not simply rely on the government or NGOs for solving social problems. What can be done by a start-up enterprise or multinational corporation? How can Social Innovation be incorporated into their business practices? In this session, we looked at Social Enterprise in Asia, the opportunities and hurdles that exist, and the scalability of various businessesTRANSCRIPT
Beyond Business as Usual- Social Innovation as a Sustainable Business Model
Richard BrubakerOctober 2012
Business As Usual Defined
1. Growth is the goal2. Economic and Business Model are heavily subsidized3. Externalities of models are someone else’s problem4. Responsibility and Accountability are mutually
independent
The Reality
Economic Performance
Environmental Performance
SocialPerformance
Sustainability Gap
Increased Tangibility of Externalities
illegal Bad Sustainability
Shifting of Business as Usual
B.A.U. CSRNew B.A.U Sustainable
LeadersOld B.A.U
product/ service revenue model
Event/ grant/ fundraising
revenue model
Social Impact
Profit
Recalibrating Social Innovation
product/ service revenue model
Event/ grant/ fundraising
revenue model
Social Impact
Profit
Traditional Definition of Social Entrepreneurship
Where Things Get Interesting
product/ service revenue model
Event/ grant/ fundraising
revenue model
Social Impact
Profit
Core Characteristics:• Exist because an issue of society, environment, or
economy exists
• Primary stakeholders include founders, investors, clients and society• Clients may be society
• Secondary stakeholders are partners, government agencies, and media
• Has a for profit business model
• High percentage of profits are traditionally plowed back into organization
• Founders / Investors CAN take dividends
For Profit Social Enterprise?
product/ service revenue model
Event/ grant/ fundraising
revenue model
Social Impact
Profit
Core Characteristics:
• Exist because a market opportunity exists• Primary stakeholders include founders, investors,
and clients• Clients may be society
• Secondary stakeholders are partners, government agencies, and media
• Has a for profit business model
• Profits and assets can be distributed • Firm must create profits to sustain itself
• Legal and accounting regulations are clear• Tax benefit only enjoyed through external
donations
Corporate With A Conscience
Social ImpactProfit
1. What will this picture look like in 5 years? 10 years?
2. What firms / industry are going to see greatest pressure to change?
3. What forces (internal and external) will drive the change?
4. What will be the opportunities for niche players to scale?
5. What will be the opportunities for “traditional” firms to recalibrate?
?
“In the end, environmental, social and economic sustainability cannot be separated. A sustainable planet must include a sustainable human civilization – resilient human systems that respect the complicated relationships among poverty, human rights, economic development, environmental health, and human success” - Institute for the Future, 2008
Richard Brubaker [email protected]@ChinaCSR