Moore’s Law, which predicts that processing power will double in power and halve in price every 18 months, is meeting Metcalfe’s Law, which states that the usefulness of a network grows exponentially with arithmetic increases in numbers of users. These laws enable big corporations just as they do small NGOs, but the latter gain greater advantage because these new technologies amplify smallness more effectively than largeness. Large organizations don’t need networks; small ones thrive on them. Webs are complex systems of interconnected elements that link individual actions to larger grids of knowledge and movement. Web sites link to other sites with more links to other sites ad infinitum, creating a critical, fluid mass of information that evolves and grows as needed—very much like the response of our immune systems. At the heart of all of this is not technology but relationships, tens of millions of people working toward restoration and social justice.
From the book Blessed Unrest: How the Largest Movement in the World Came Into Being and Why No One Saw It Coming (Viking). Paul Hawken is the head of the Natural Capital Institute, and author of The Ecology of Commerce, Natural Capitalism (with Amory Lovins) and other books. taken from the article: The instinct to save the planet, appeared in Ode issue: 43
“Entrepreneurs create their businesses for a diversity of reasons. However, I believe that most of the greatest companies in the world also have great purposes which were discovered and/or created by their original founders and which still remain at the core of their business models. Having a deeper, more transcendent purpose is highly energizing for all of the various interdependent stakeholders, including the customers, employees, investors, suppliers, and the larger communities in which the business participates. While these deeper, more transcendent purposes have unique expressions at each business they also can be grouped into certain well known and timeless categories. Philosophy dates back to Plato; the timeless ideals of “The Good”, “The True”, and “The Beautiful” that humanity has been seeking to create, discover, and express for thousands of years. If we add the ideal of “The Heroic” to the above three we have the framework of higher ideals which most great businesses seek to express in some form or fashion.”
Yunus affirms business schools should start turning out social-business MBAs trained in creating social returns: "People say, 'Don't be stupid.' I say there are a lot of stupid people like me. I don't want to make money. Lots of young people don't want to make money, because their mother, their father made so much money. They don't know what to do with their lives. There are many such kids in the U.S. They don't have any challenge left. Give them the challenge: Fix the world. Create a social business enterprise."
"The new wave in business is, forget corporate social responsibility and philanthropy - how do you integrate this into your core business?" says Yunus.
"The idea Danone has of creating a social dividend for shareholders - that's cutting-edge. No one else has come up with this interesting a model. It supports your brand, returns your capital, you're not going to lose money and you give your shareholders a vision of doing something good." he says.
In the fall of 2005, Yunus invited Danone CEO Franck Riboud to come to Bangladesh and build his first social business enterprise. Riboud listened, then agreed. The yogurt Danone would make would be fortified to help curb malnutrition and priced (at 7 cents a cup) to be affordable. All revenue from the joint venture with Grameen would be reinvested, with Danone (Charts) taking out only its initial cost of capital, about $500,000, after three years.
"I am destroying the culture, yes," Yunus says, beaming mischievously at the thought. "Culture is a dynamic thing. If you stay with the same old thing over and over, you don't get anywhere."
The same applies to Yunus's concept of microcredit. Sticking with the same old idea over and over only gets you so far. To really get somewhere, Yunus says ... well, there's this Big New Idea.
Wal-Mart, the greatest supermarket chain in the world, announced its commitment to the environment. Muhammad Yunus, the economist who created the first bank for the poor, received the Nobel Peace Prize. The giant Google acquired YouTube, a website whose only assets are millions of homemade videos uploaded by users.
These and other events that took place towards the end of 2006 are signs of three powerful forces that are changing the world: sustainable human development, the revolution of the social sector, and the boom of the participatory media.
Sustainable human development is a group of concepts and practices that allow us to consider what kind of world we shall bequeath to our children and the children of our children. It represents a profound change vis-à-vis the industrial model that was established in the Western world in the eighteenth century. This current implies a different look on our planet, companies and governments, and our way of producing, consuming, and living.
What is most striking about the times we live in is the sensation that the future is already here. In the last days of 2006, economist Thomas L. Friedman wrote: “We reached a tipping point this year — where living, acting, designing, investing and manufacturing green came to be understood by a critical mass of citizens, entrepreneurs and officials as the most patriotic, capitalistic, geopolitical, healthy and competitive thing they could do…”
The recent world release of the movie An Inconvenient Truth, starring Al Gore, established the problem of global warming once and for all as a current reality, no longer the paranoia of a few scientists and activists. In California, the State has sued six big automobile manufacturers for their liability with regard to global warming. Wal-Mart has announced its commitment to sustainability and, in so doing, has become the world’s greatest organic cotton buyer. It has started a plan aimed at having several of its suppliers sell it products manufactured through sustainable practices, in a term of three years. In consequence, some 40,000 companies are adapting their manufacturing methods to satisfy this giant that has resolved to change the habits of the more than a hundred million clients it welcomes every week.
Everything indicates that the “tipping point” (a term coined by Malcom Gladwell to define the moment when something unique and unusual becomes normal) is very near.
For more than 20 years, another powerful force has grown at a rate between two and three times higher than that of the private area’s economy. It is the global associative revolution: the rise of millions of organized citizens who are working to find answers for mankind’s most urgent problems.
The Nobel Peace Prize awarded to Muhammad Yunus is powerful proof that mankind is accepting social change ideas which –just like microcredit- have little to do with the traditional concept of charity and philanthropy. Through his Grameen Bank, founded in Bangladesh in 1976, Yunus demonstrated that offering trust and responsibility to loan recipients is an efficient way of solving the problem of poverty and of building peace from a community’s foundations. Thanks to this financial system, among many other positive consequences, eight million Bangladeshi people earning less than a dollar a day obtained access to cell phones, which allowed them to be better communicated from their rural villages and to improve their employment possibilities.
Yunus is no longer alone. According to Johns Hopkins University, the total contribution of Civil Society Organizations (CSOs) makes them the seventh largest economy on the planet. They are true armies of people connected between themselves, whose aims are to protect the environment, to fight poverty, to defend human rights, and democracy.
Google’s acquisition of YouTube made headlines worldwide. This union marked the peak of a third phenomenon with the power to accelerate the process of the other two currents: the rise of the participatory media, which for the first time in history allow common citizens to be heard in the world stage. The tool is the Web 2.0. The platform is the Internet.
Time magazine has just chosen as “person of the year” the Web user, the one who, through his or her participation in blogs and sites such as YouTube, MySpace and Flickr, is generating unprecedented economic, social and political changes. In this new model, a Shanghai corporate secretary’s blog can have the same relevance as an Oxford professor’s. The decision as to what is worth one’s while is in the hands of the people.
Internet natives, teenagers between the ages of 12 and 18, participate in social networks such as MySpace and Fotolog, very popular in Argentina; Orkut, with a big following in Brazil; and Facebook, the favorite of American university students. Meanwhile, citizens of all ages are making their own news through blogs or sites such as Crónicas Móviles (“Mobile Chronicles”), where anyone can upload videos filmed with cell phones, showing –for instance- what is going on in the city: from Daniel Barenboim’s concert to the Gay Pride parade.
The advertising industry is already reacting to this change. Companies such as Unilever (Dove), Chevrolet, and Converse have understood the phenomenon: the massive audience that passively received “buy” messages is on its way to extinction. In the year 2006, Dove Canada –through Ogilvy Toronto agency- launched on the web a video entitled “Evolution”, which shows all the steps cosmetics advertisers follow in order to transform an ordinary girl into an artificial beauty for an ad. It is estimated that over three million people saw this campaign of viral marketing through the brand’s official site or social sites such as YouTube and Daily Motion.
But, besides revolutionizing advertising, journalism, and communications in general, Internet users are transforming the concept of citizenship. Chilean students –a mass of half a million youths united through the Web- have used social networks, chatting and SMS to empty all the schools in their country in their demand for a reform of the education system. They put into practice the phenomenon some call “glocalization”, that is, the Web’s aptitude to widen the social worlds of people who are physically far apart (global level) while also connecting them more deeply with the place they live in (local level).
Notwithstanding this, users’ interests are not circumscribed to the public sphere — they are also looking closely at corporate practices. There are a number of consumers who look for corporate information online, conversing among themselves about the products they consume and the history behind them, and reading corporate blogs. In 2005, a blog informed that motorcycle padlocks manufactured by Kryptonite, a leader company in the market, could be pried open with a pen. A few days later, a user uploaded a video to show that the padlocks were really “made of butter”. The company ignored these comments. Days later, the news appeared in The New York Times and an estimated five million people learned about the incident. Kryptonite had to announce that it would change all of its padlocks, at a cost of ten million dollars.
According to a recent Ipsos research, presented in Madrid in November 2006, 39 million Europeans have refused to buy a product after reading a negative opinion in a blog. What will happen with the civil society’s power of action after it has massively adopted these new communication tools? What will the corporations that don’t progressively adopt sustainable practices do to stop the wave of citizens-turned-activists, informed through the new media?
The tools are out there, within everyone’s reach. 25% of Internet users participate in online communities. Solutions for the future lie in the weaving of virtual networks, united by values such as social inclusion, responsible citizenship, and sustainable human development. The world is moving in that direction faster than we can perceive. The change is here and people are talking about it — online, of course.
Social entrepreneurs are essentially individuals who have decided to face by themselves the answers to problems afflicting their communities, and to do so by applying the same vision and determination for achieving goals that characterize businessmen and –women.
Bill Drayton has accurately defined those people as “persons possessed by an idea, who, by means of unquenchable determination and revolutionary ideas, are solving problems around the globe.” Like himself. Like Rodrigo Baggio, Iqbal Quadir and Fabián Ferraro, who transformed football into a tool for the social inclusion of kids from low-income neighborhoods.
Bill Drayton: “The most radical change”
“How do you intend to put your initiative into effect? How will you manage to make others join you? How will you do it?” How, how and how. The kind of question theorists hate, but which obsesses Bill Drayton and all entrepreneurs of his kind.
Drayton, an American, studied in Harvard, Oxford and Yale and was a member of President Carter’s administration in the EPA. Almost thirty years ago, influenced by Gandhi, the American civil rights movements, and his own travels in India, Indonesia, and Venezuela, he reached the firm conclusion that everywhere in the planet there were people who thought that their ideas could improve the world significantly. It was the passion and enthusiasm expressed by those people that persuaded Drayton that every one of them was a social entrepreneur, a catalyst for large-scale social transformations. And this is what he had in mind when in 1980 he revolutionized philanthropy by eliminating the words “non-profit” and “donations” from its vocabulary and creating Ashoka, the organization of which he is both president and CEO.
During its twenty-five years’ existence, Ashoka has supported 1,700 people in 62 countries – people Drayton defines as social entrepreneurs, using the latter word to signify their ambitious, competitive characters, which one would rather expect to find in the business world than in this area.
“Magical opportunities are out there for everyone willing to face the challenge and go for a social solution,” he affirms, adding that “if we allow people the deep satisfaction of being able to contribute, of feeling they are total citizens, they will love it, because it’s contagious. We are nearing that end: if we multiply the number of change-makers from 1% to 20% in the next fifteen years, that will be the most radical change ever witnessed since the agricultural revolution.”
Rodrigo Baggio: Everything started with a dream
A dream in which slum kids transformed their reality by means of informatics. The year 1993 was drawing to a close and the dreamer was Rodrigo Baggio, at the time an employee of IBM and bound to be featured a couple of years later on the cover of Time magazine as one of 50 youths likely to change the world in the Third Millennium.
Baggio created the Committee for the Democratization of Informatics (CDI), an entity that currently has branches in 10 countries and has already introduced more than 500,000 youths to the use of new technologies.
“How can we use information technology as a means for transforming our society into a more just, equitable, and free one?” he asked himself at the beginning. In 1994 he started the first computer-donation campaign Latin America had ever seen. “We received the computers from companies and delivered them to low-income neighborhoods in Rio de Janeiro. But then I started thinking about a model school of informatics and civil education.”
What Rodrigo immediately realized was that, in order to make a real change, he needed to replicate the school he had created in one Rio de Janeiro neighborhood in the hundreds of other slums or low-income areas of the region. Aware that he clearly couldn’t do it on his own, he decided to work jointly with the communities, creating a simple franchising system that could be autonomously developed in different parts of Brazil. It was then that he made the fundamental decision of trusting this project in the poorest areas of his country and gave local leaders the responsibility of making the schools work.
“We believe that through our schools we help young people help themselves,” Baggio says.
Meet Rodrigo Baggio
Iqbal Quadir: “Connectivity is productivity”
Thus the motto of this entrepreneur who grew up in the rural areas of Bangladesh. A motto that in 1997 led him to seek answers for the telecommunications problem of his country, where one had to wait over ten years to have a phone installed, and that at a cost of USD 450, one of the highest in the world.
Combining state-of-the-art digital wireless technology and the Grameen Bank’s experience in granting micro-loans, Quadir created Grameen Phone and launched the Village Phone program. His aim: to increase the non-urban, low-income population’s access to communications, by means of the introduction of mobile phone terminals managed by rural operators, preferably women.
Community telephones have been installed in 40,000 villages since the program’s inception, which means that 50 million peasants are connected.
Telephones are used, among other purposes, to exchange information about health issues and product prices. “Not only is the program socially beneficial, it is profitable as well. It has also represented a significant increase in the Bangladeshi communities’ economic activities, promoted commercial exchange, and created new sources of income,” Quadir explains, adding that “the economic impact is also relevant with regard to the person managing the telephone service: rural operators are usually women who, thanks to their jobs, can be the source of about 25% of their homes’ income.”
Fabián Ferraro: “The wonderful thing is to see the changes”
“… and see how kids start changing their personal appearance, their way of acting, their vocabulary – how they respect each other, want to improve their lives and start having hopes. It is with these kids that we have to work, because it’s them who are going to make the changes,” says Fabián Ferraro, who lives in Chaco Chico, a densely populated neighborhood in the Buenos Aires suburbia where many of the 6,500 residents are unemployed. Like many Argentinean young men, Fabián had played football since he was a kid, and soon after started playing it professionally. It was around this time that he began working with street kids. And then, convinced that football could be a powerful tool for social change, he decided to quit professional playing and create the Asociación Civil Defensores del Chaco (“Chaco Defenders”) club.
Says Fabián, “in 1996 we formed a team and started working with fourteen youths. As the club started growing, we began teaching the older ones how to train the younger.” Like Rodrigo Baggio, Ferraro had also grasped that giving responsibility-involving tasks to young people who grew up marginalized and undervalued by their environment could have a real impact on their personal development.
The organization Fabián leads uses street football as a method for social inclusion, violence prevention and informal education for youths in “risk situations”. For some 1,500 children and teenagers, its offices have become a space for having non-competitive fun, for teamwork and collective construction.
Meet Fabian Ferraro
In the words of its founder: “Defensores is no longer a dumping ground. These sports fields and this club that we built jointly with lots of entrepreneurs are a school without walls. This is a space for education, where human values are intensely transmitted.”
Ideas in action
The sheer variety and quantity of social organizations formed by these and other entrepreneurs is glaring evidence of how far these people are from traditional relief organizations focusing on charity: they have new, distinct work methodologies, new concepts – they develop a management style in accordance with their aims and their members are people with very different qualifications and profiles. They are joined by a central idea: that solidarity is not enunciated but practiced; that one must not give away the fish, but teach how to cast the nets; that the common good is everyone’s good and we have to act now.
