Social Enterprise →
- 24 Apr 2009
- Working Paper Summaries
Corporate Social Entrepreneurship
Accelerated organizational transformation faces a host of obstacles well-documented in the change management literature. Because corporate social entrepreneurship (CSE) expands the core purpose of corporations and their organizational values, it constitutes fundamental change that can be particularly threatening and resisted. Furthermore, it pushes the corporation's actions more broadly and deeply into the area of social value creation where the firm's experiences and skill sets are less developed. The disruptive social innovations intrinsic to the CSE approach amplify this zone of discomfort. Fortunately, the experiences of innovative companies such as Timberland and Starbucks show how these challenges may be overcome. Key concepts include: Values-based leadership, the synergistic generation of social and economic value, and strategic cross-sector alliances are key ingredients to achieving a sustainably successful business. For companies to move their corporate social responsibility (CSR) activities to the next level, they need to rethink their current approaches to CSR, tapping into the creativity of each individual. Like all entrepreneurship, CSE is about creating disruptive change in the pursuit of new opportunities. It combines the willingness and desire to create joint economic and social value with the entrepreneurial redesign, systems development, and action necessary to carry it out. Closed for comment; 0 Comments.
- 15 Dec 2008
- Research & Ideas
The Surprisingly Successful Marriages of Multinationals and Social Brands
What happens when small iconic brands associated with social values—think Ben & Jerry's—are acquired by large concerns—think Unilever? Can the marriage of a virtuous mouse and a wealthy elephant work to the benefit of both? Professors James E. Austin and Herman B. "Dutch" Leonard discuss their research. Closed for comment; 0 Comments.
- 27 Oct 2008
- Lessons from the Classroom
Achieving Excellence in Nonprofits
Nonprofit boards and executives are confronted by a confusing landscape of conflicting demands, rapidly evolving rules, and changing opportunities for finding resources. How can organizations stay focused? Harvard Business School professor Herman B. "Dutch" Leonard discusses today's challenges and his Executive Education program on Governing for Nonprofit Excellence. Key concepts include: The biggest challenge facing nonprofit boards is staying focused on key goals; developing a strategy for accomplishing them; and generating a set of tactics, operations, and actions that are aligned with producing them. In high-performing social-mission-driven organizations, the board and executive management team are in clear agreement on goals, strategy, and actions. Always involved in rapidly changing environments, nonprofits need to maintain "situational awareness," rethink their approaches, and implement change constantly. Closed for comment; 0 Comments.
- 15 Sep 2008
- Research & Ideas
The Coming Transformation of Social Enterprise
A new generation of business leaders and philanthropists is experimenting with hybrid forms of social enterprises while demanding more transparency and accountability from the organizations they are funding. Harvard Business School professor Kash Rangan discusses what he sees as a sector on the brink of transformation. From the HBS Alumni Bulletin. Key concepts include: Social enterprise as an entity is primarily in the business of creating social value, regardless of whether it's for-profit or nonprofit. Venture philanthropy has to come of age and reorient itself by defining what measures of social return it is looking for. Nonprofits creating for-profit enterprises could pose an unnecessary distraction. There may be some consolidation of nonprofits at the top, but the sector will be more vibrant with many new players and actors helping to facilitate the transformation. Closed for comment; 0 Comments.
- 08 Sep 2008
- HBS Case
The Value of Environmental Activists
With decidedly non-profit goals leading them on, how do environmental protection groups such as Greenpeace and World Wildlife Fund create value? Can it be measured? A Q&A with Harvard Business School professor Ramon Casadesus-Masanell and case writer Jordan Mitchell. Key concepts include: The challenge for a business student is how to put a quantifiable measure on whether Greenpeace and WWF are successful in reaching goals. WWF and Greenpeace create value by increasing the world's willingness-to-pay on environmental issues. Most scientists agree that the earth is deteriorating at a faster rate than during the 1960s and 1970s, but it would be worse off had it not been for the tireless campaigning of environmental NGOs. Closed for comment; 0 Comments.
- 20 Aug 2008
- Op-Ed
The Time is Right for Creative Capitalism
Bill Gates has it right. Business is the most powerful force for change in the world right now and gives the idea of creative capitalism real power, writes Harvard Business School Professor Nancy F. Koehn. Open for comment; 0 Comments.
- 14 Jul 2008
- Research & Ideas
HBS Cases: Reforming New Orleans Schools After Katrina
The New Orleans public school system, ravaged by Hurricane Katrina in 2005, is now getting a boost from charter schools—today about half of the city's 80 schools are charter schools, says HBS lecturer and senior researcher Stacey M. Childress. She explains what New Orleans represents for entrepreneurial opportunities in U.S. public education. Key concepts include: Charter schools are public schools of choice that operate outside the governance and policies of their local school districts. Prior to the hurricane, the New Orleans school district was one of the worst in the country. Today no other large school district in the United States has such a high percentage of charter schools as does New Orleans. The organization New Schools for New Orleans (NSNO), the subject of an HBS case study, aims to create networks of schools to receive shared support services while avoiding the dysfunctions of a large urban district. NSNO developed a strategy to focus on a subset of charter schools that it believed could be helped most. Was it the right strategy? Or should NSNO support all schools, not just charter schools? Closed for comment; 0 Comments.
- 03 Jul 2008
- Working Paper Summaries
The Future of Social Enterprise
This paper considers the confluence of forces that is shaping the field of social enterprise, changing the way that funders, practitioners, scholars, and organizations measure performance. The authors trace a growing pool of potential funding sources to solve social problems, much of it stemming from an intergenerational transfer of wealth and new wealth from financial and high-tech entrepreneurs. They further examine how these organizations can best access the untapped resources by demonstrating mission performance, and then propose three potential scenarios, outlined below, for how this sector might evolve. Key concepts include: Consolidation: In this scenario of sector evolution, funding will keep growing in a gradual, linear fashion, and organizations will compete for resources by demonstrating performance, with a focus on efficiency. The sector will consolidate. Entrepreneurial: In a more optimistic future, existing and new enterprises will apply strategies to achieve and demonstrate performance, improving efficiency and effectiveness and attracting new funding sources. Expressive: Rather than focusing exclusively on performance, funders and organizations may view their investment as an expressive civic activity. Closed for comment; 0 Comments.
- 04 Feb 2008
- Research & Ideas
Putting Entrepreneurship in the Social Sector
Despite the best of intentions and trillions of dollars worth of assets, nonprofits have been unable to solve many of society's worst ills. A new casebook by 4 Harvard Business School professors argues that the social sector should take an entrepreneurial approach. Q&A with coauthor Jane C. Wei-Skillern. Key concepts include: Societal problems are increasingly large and complex, taxing the ability of nonprofit organizations to solve them. A new model for the social sector based on entrepreneurship would allow organizations to create more value with their limited resources and tap additional resources not directly under their control. MBA students are increasingly interested in courses and careers related to social enterprise. Closed for comment; 0 Comments.
- 25 Jan 2008
- Working Paper Summaries
What Do Non-Governmental Organizations Do?
Non-governmental organizations play an increasingly important role in international development. They serve as a funnel for development funds both from individual donors in wealthy countries and from bilateral aid agencies. At the same time, NGOs are frequently idealized as organizations committed to "doing good" while setting aside profit or politics—a romantic view that is too starry-eyed. Development-oriented NGOs, which have existed for centuries, have played a growing role in development since the end of World War II; there are currently 20,000 international NGOs. This paper argues that the strengths of NGOs and their weaknesses easily fit into economists' conceptualization of not-for-profit contractors. Key concepts include: Strengths of the NGO model produce corresponding weaknesses in agenda-setting, decision-making, and resource allocation. The increased presence of NGOs can be explained by 3 factors: a trend to outsource government services; new ventures by would-be not-for-profit "entrepreneurs"; and the increasing professionalization of existing NGOs. As NGOs increasingly produce their own funding and develop their own professionalized class, it is appropriate to expose them to greater market forces beyond donor preferences. The use of aid vouchers allowing beneficiaries to purchase private goods and services is one tool for introducing more market forces. Closed for comment; 0 Comments.
- 14 Jan 2008
- Research & Ideas
Mapping Polluters, Encouraging Protectors
Where are the biggest polluters? And what is your company doing to protect the environment? A new Web site—both a public service and a research tool—posts managers' data in real time, allowing a balanced view of industrial environmental performance. HBS professor Michael W. Toffel and senior research fellow Andrew A. King explain. Key concepts include: The Web project was started to get around an information bottleneck. Users of MapEcos can easily find detailed information on the environmental performance of facilities across the United States. Managers can monitor peer companies' environmental information as well as disclose information about their own facilities. The scholars use the site to examine what industrial facilities do and what the public at large is concerned about. Closed for comment; 0 Comments.
- 10 Dec 2007
- HBS Case
One Laptop per Child
The One Laptop per Child initiative wants to develop and distribute $100 laptops to poor children around the world. Despite eager observers and exciting breakthroughs technologically, it has found the path to customers more rocky than anticipated. Marketing has some answers, as a new case study details. Q&A with HBS professor John Quelch. Key concepts include: The XO laptop is a rugged little computer designed to help kids learn and play collaboratively. Some of its features raise the bar in the computer industry as a whole. Competitors are moving into the same market space to make low-cost laptops. However, the One Laptop per Child initiative is nonprofit. Despite some success, one of the biggest hurdles has been signing up governments to purchase the computer for their country's children. Closed for comment; 0 Comments.
- 13 Nov 2007
- Research & Ideas
Six Steps for Reinvigorating America
In the early stages of the 21st century, America has lost its way both at home and in the world, argues Harvard Business School professor Rosabeth Moss Kanter. In her new book, America the Principled, she details 6 opportunities for America to boost its economic vitality and democratic ideals. Q&A plus excerpt. Key concepts include: America at the start of the 21st century has lost its way both as a beacon to the world and as a can-do nation. Six opportunities should be pursued that widen prosperity, creates fair and flexible workplaces, motivates values-based capitalism, restores trust in government, empowers "citizen diplomats", and develops an ethos of community. Closed for comment; 0 Comments.
- 01 Aug 2007
- Op-Ed
Company Town: Fixing Corrupt Governments
Too many democracies are ruled by corrupt leaders, says HBS professor Eric Werker. So how about letting good corporate citizens run for elected office in Third World regions? Key concepts include: Corporations should be allowed to run for office in corrupt Third World governments. Companies and nonprofits have stronger incentives than do individuals to steer clear of bribes and kickbacks. Voters might look favorably on a foreign "mayor" because it might be viewed as the only credible option to escape the corruption rut, and their taxes would fund good government. Closed for comment; 0 Comments.
- 25 May 2007
- Working Paper Summaries
Self-Regulatory Institutions for Solving Environmental Problems: Perspectives and Contributions from the Management Literature
What role can business managers play in protecting the natural environment? Academic research on when it might "pay to be green" has advanced understanding of how and when firms achieve sustained competitive advantage. The focus of such research, however, has begun to change in light of limits to available "win-win" opportunities and to gaps in regulation. This paper, intended as a book chapter, reviews current literature and explores the potential of self-regulatory institutions to solve environmental problems. Key concepts include: Firms have created self-regulatory institutions to mitigate the risk of common sanctions and to address information asymmetries regarding production and employment practices. Some self-regulatory institutions appear to reduce asymmetries in information, others to facilitate coordinated investment in solutions to common problems. Future research needs to identify the factors that lead some, but not all, self-regulatory institutions to be effective routes to solving environmental problems. The literature reviewed here is proving valuable to scholars who study the self-regulation of standards, knowledge sharing, and open-source software development. Closed for comment; 0 Comments.
- 09 Apr 2007
- Research & Ideas
Industry Self-Regulation: What’s Working (and What’s Not)?
Self-regulation has been all over the news, but are firms that adopt such programs already better on important measures like labor and quality practices? Does adopting a program help companies improve faster? In this Q&A, HBS professor Michael Toffel gives a reality check and discusses the trends for managers. Key concepts include: Many more of these programs are targeted at business customers than at end consumers. Most studies that have examined industry-initiated programs have found that, at the time of adoption, participants are no better than others. The results of government-initiated programs, however, are more ambiguous. Managers increasingly realize that some so-called voluntary programs are actually not very voluntary. In order to really deliver on the promise of these programs, third-party verification will become increasingly important. Closed for comment; 0 Comments.
- 09 Feb 2007
- Working Paper Summaries
Do Corporate Social Responsibility Ratings Predict Corporate Social Performance?
Ratings of corporations' environmental activities and capabilities influence billions of dollars of "socially responsible" investments as well as consumers, activists, and potential employees. But how well do these ratings predict socially responsible outcomes such as superior environmental performance? Companies can enhance their environmental image in one of two ways: by reducing or minimizing their impact on the environment, or by merely appearing to do so via marketing efforts or "greenwashing." This study evaluates the predictive validity of environmental ratings produced by Kinder, Lydenberg, Domini Research & Analytics (KLD), and tests whether companies that score high on KLD ratings generate superior environmental performance or whether highly rated firms are simply superior marketers of the factors that these rating agencies purport to measure. The data analysis examines all 588 large, publicly-owned companies in the United States that were both regulated by the U.S. Environmental Protection Agency and whose social performance was rated by KLD at least once during 1991-2003. This paper may be the first to examine the predictive validity of social or environmental ratings. Key concepts include: KLD ratings for environmental "concerns," such as hazardous waste and regulatory problems, have small but statistically significant effects in predicting future emissions and regulatory violations. KLD ratings for environmental "strengths," such as environmentally beneficial products or pollution prevention, do not predict future environmental outcomes. Most, but not all, of the predictive power of KLD ratings is due to the fact that lagged emissions and regulatory violations predict both lagged KLD ratings and future emissions and regulatory violations. KLD expends substantial resources attempting to measure the quality of companies' environmental management systems. The results suggest that this measurement is difficult to do well. Closed for comment; 0 Comments.
- 05 Jul 2006
- Working Paper Summaries
Promoting a Management Revolution in Public Education
Public school districts are difficult to lead and manage, and the idea of applying business principles to school reform is popular. But is it practical? This paper describes the work of Harvard's Public Education Leadership Program as it helps school districts grapple with performance challenges, including student achievement that compares unfavorably with other countries, and a significant performance gap between white and minority students. Complicating the picture: The concept of managing for accountability is new in education. The authors studied the effects of improved management on public school student performance by comparing fifteen large urban school districts with similar peer districts. Key concepts include: There is a connection between improved management and better educational outcomes. Districts that organized activities more coherently and focused efforts on the "core business" of student performance and classroom instruction outperformed other school districts suffering similar constraints. Closed for comment; 0 Comments.
- 19 Dec 2005
- Research & Ideas
Public Education Goes to School
Harvard's schools of Business and Education are bringing management skills to nine school districts across the country—and positive results are starting to show. Closed for comment; 0 Comments.
Business Summit: The Role of Social Entrepreneurship in Transforming American Public Education
Amid formidable barriers, a set of passionate social entrepreneurs are disrupting the status quo in education with innovative and effective approaches that are producing measurable results. The challenge now is to build support so these solutions can be applied elsewhere. Closed for comment; 0 Comments.