Capitaltruism: Merging idealism with making money
There’s a movement afoot in corporate America that doesn’t get enough attention but is gaining traction and could be a game changer. This movement is about inculcating social, environmental and health concerns into the sale of goods and services: call it Capitaltruism, where traditional capitalism meets idealistic altruism. And nowhere is it being embraced more heartily than by Millennials, who may feel that—since neither the government nor corporate America by itself is tackling important issues—it’s up to them.
Two recent developments illustrate this movement. The first is reflected by the rise of the “B Corporation.” The “B” stands for “beneficial.” A B Corporation is “a for-profit company committed to social or environmental goals in addition to its financial obligations.” That’s according to this article in the San Francisco Chronicle that describes how such corporations try “to benefit not [just their] shareholders, but also society.”
Millennials in particular are “drawn to firms that do good.” B Corps are certified by a third party, B Corporation, that claims to have registered 1,247 companies in 38 countries, across 121 industries, including wine. A Brookings Institution study found that the “desire on the part of Millennials for their daily work to reflect and be a part of their social concerns” is a chief factor in their choice of careers—and in their purchasing decisions.
The second development, reported courtesy of the Wall Street Journal, is of two California restaurateurs, Daniel Patterson (of Michelon-starred Coi in San Francisco but also of Plum Bar in Oakland) and Roy Choi, who got his start with L.A. food trucks. The pair have started up a company, Loco’l, whose aim is to replace the dismal diet of unhealthy fast food that now dominates less affluent neighborhoods with what Patterson calls a “natural, cooked-with-integrity alternative.” The first two Loco’ls will open in San Francisco’s Tenderloin and in Los Angeles’ Watts district. The foods will cost between 99 cents and $6 and will include things like a “Burg”: a beef-grain-garum [fish sauce] patty with Awesome Sauce, Jack cheese, grilled scallion and lime relish, on a Tartine Bakery bun. Sounds good, doesn’t it?
What do these two initiatives have in common? For one thing, both the Loco’l people and the B Corp people want to make money. But they want to do so in a way that addresses serious social concerns that, frankly, are not yet being addressed adequately. Both ventures are fueled by idealism and creativity, and both fill an important niche in a consumer market that’s been waiting for somebody to give them something worth spending their money on. What a fabulous idea!
Have a great weekend!
The concept is related to:
“philanthrocapitalism”
“capitalist philanthropy”
“creative capitalism”
Excerpt from BusinessWeek “Philanthropy Special Report” Section
(December 8, 2008, Page 048ff):
“Capitalism With A Human Face;
Social entrepreneurs tackle the world’s problems
in the face of a global downturn”
Link: http://www.bloomberg.com/bw/stories/2008-11-24/social-entrepreneurs-turn-business-sense-to-good
By Steve Hamm
. . .
Social entrepreneurs are being backed in part by a new generation of super-aggressive philanthropists and social investors, including Microsoft co-founder Bill Gates and former eBay executives Pierre M. Omidyar and Jeffrey Skoll. These guys expect results from their social investments and grants. Say Gates in an interview with BusinessWeek: “Nonprofits are applying what we’ve typically thought of as business strategies for better outcomes, and businesses are beginning to apply what I call creative capitalism strategies to increase the positive social impact of their work.”