Profit & Purpose: How Social Innovation Is Transforming Business for Good (Wiley Nonprofit Authority)

Why has Warby Parker been able to make such dramatic inroads against the behemoths in the long established eyeglass market? How has Method revolutionized the soap aisle? Amid the cacophony of online retailers, why has Etsy seen such explosive growth, with 2013 annual sales north of $1 billion? These companies all have been disruptive because they are operating from a strong social/environmental purpose. They are proving a counterintuitive truth – purpose can drive profits. But it’s not just innovative startups that are getting in on the action. Blue chip companies such as Nike, Coca-Cola and IBM are innovating within their organization to create a positive social and environmental impact globally. This is not a trend. It’s the future of business. Based on in-depth interviews with founders, Profit & Purpose profiles a number of the most successful pioneers of this new way forward, telling the stories of thirteen social enterprises ranging from non-profits like Charity:Water and DonorsChoose.org, to for-profits, like Method and Burts Bees; from startups like Etsy and Warby Parker, to multinational corporations with market capitalizations in the hundreds of billions, like Coca-Cola, IBM and Nike. Kyle Westaway digs beneath the public stories of these organizations’ success to reveal how they have harness the power of purpose. Taking readers behind the scenes, he shows how these leading social enterprises progressed from concept to scale, how they overcame common pitfalls, and how they managed to find an optimal balance between their mission and their business mandates. Westaway reveals that though there is no magic bullet formula that guarantees success, there are seven core practices that distinguish these market leaders from the pack of contenders. They are: DISCOVER THROUGH CURIOSITY // Finding the right opportunity catalyzes impact. DESIGN WITH HUMILTY // Prioritizing users creates killer products. BUILD THROUGH HUSTLE // Rallying people creates critical momentum for launch. FUND BY COMMITMENT // Aligning funders around a vision creates true partnerships. CONNECT WITH AUTHENTICITY // Authentic connection builds a movement. SCALE THROUGH COMMUNITY // Focusing on culture ensures smart growth. EVALUATE WITH HONESTY // Honest measurement ensures continual improvement. Profit & Purpose takes the literature on social entrepreneurship an important step forward, providing the practical tools for turning good intentions into breakaway success. Content: Profit & Purpose: How Social Innovation Is Transforming Business for Good Contents Acknowledgments Introduction Moving Beyond Shareholder Value Moving Beyond Giving A Better Way Forward Can I Really Do Well and Do Good? How Social Enterprises Are Leading the Way What Sets These Social Enterprises Apart? Behind the Scenes 1 Discover Through Curiosity Identifying the Problem of Eyeglasses Learning at the ScoJo Foundation What Are the Stars Wearing? Is There a Better Way for the Glasses Industry to Operate? Recognizing the Right Problem for You The Real Challenge. Success Without PurposeThe Spark Had Been Ignited The Problem Comes Into Focus A New Kind of Marketplace Method to Their Madness Inspiration at a Sleepy Roadside Stand Innovation from Within Waste Is Only Waste If You Waste It The Bumpy Path to Innovation Africa's Moonshot Key Takeaways 1. Specify the Problem 2. Leverage Cultural Shifts 3. Build on Talent 2 Design with Humility Bringing Brilliant Design to the Poor Letting the Users Guide You Discovering You Need to Pivot Don't Underestimate the Challenges of Distribution You Don't Need to be an Expert Embracing Challenges. User Testing Has Many BenefitsKnowing What to Outsource Finding Early Adopters Takes Work Creating Demand Good News Travels Slow Key Takeaways 1. Listen 2. Build 3. Iterate 3 Build with Hustle The Intuitive Hustle The Strategic Hustle Best Laid Plans Beating the Burn Rate Simple and Sincere Can Work Wonders Key Takeaways 1. Sell the Vision 2. Invite Co-Creators 4 Fund Through Commitment Promoting a New Version of Capitalism When Profit Trumps Purpose The Benefits of the Benefit Corporation The True Cost of Free Money Smart Crowdfunding Kickstart Follow-On Funding. Going to the WellEmbrace 2.0 Vision Capital Not Having to Ask for Money Again Investing in the Ecosystem Key Takeaways 1. Align 2. Close 5 Connect with Authenticity Values Drive the Brand Establishing the Brand Hierarchy Aesthetic Price Customer Experience/Quality Social Good What's in a Name? Give Them a Delightful Experience Reworking One for One Offer Delightful Experiences Selective Partnerships Hit the Road Jack The Marketing Method to the Madness Don't Talk at Your Customers, Listen to Them Building a Community Press Coverage Trumps Ads. Build Momentum with a Pre-Launch CampaignKey Takeaways 1. Experience over Advertising 2. Honesty over Perfection 6 Scale Through Community Making a Mission Truly Meaningful Keeping on Top of Employee Engagement Wild Growth Keeping the Magic Alive The Limits of Hustle-Tough Decisions Selling Doesn't Necessarily Mean Selling Out A Road-Side Startup Goes Corporate Dumpster Diving A More Sustainable Supply Chain Learning from the Big Guys Becoming More Innovative Sticking with Strengths The Challenges of a New Location.

Why has Warby Parker been able to make such dramatic inroads against the behemoths in the long established eyeglass market? How has Method revolutionized the soap aisle? Amid the cacophony of online retailers, why has Etsy seen such explosive growth, with 2013 annual sales north of $1 billion?

These companies all have been disruptive because they are operating from a strong social/environmental purpose. They are proving a counterintuitive truth – purpose can drive profits. But it's not just innovative startups that are getting in on the action. Blue chip companies such as Nike, Coca-Cola and IBM are innovating within their organization to create a positive social and environmental impact globally.

This is not a trend. It's the future of business.
Based on in-depth interviews with founders, Profit & Purpose profiles a number of the most successful pioneers of this new way forward, telling the stories of thirteen social enterprises ranging from non-profits like Charity:Water and D onorsChoose.org, to for-profits, like Method and Burts Bees; from startups like Etsy and Warby Parker, to multinational corporations with market capitalizations in the hundreds of billions, like Coca-Cola, IBM and Nike. Kyle Westaway digs beneath the public stories of these organizations' success to reveal how they have harness the power of purpose.

Taking readers behind the scenes, he shows how these leading social enterprises progressed from concept to scale, how they overcame common pitfalls, and how they managed to find an optimal balance between their mission and their business mandates. Westaway reveals that though there is no magic bullet formula that guarantees success, there are seven core practices that distinguish these market leaders from the pack of contenders. They are:

• DISCOVER THROUGH CURIOSITY // Finding the right opportunity catalyzes impact.
• DESIGN WITH HUMILTY // Prioritizing users creates killer products.
• BUILD THROUGH HUSTLE // Rallying people creates critical momentum for launch.
• FUND BY COMMITMENT // Aligning funders around a vision creates true partnerships.
• CONNECT WITH AUTHENTICITY // Authentic connection builds a movement.
• SCALE THROUGH COMMUNITY // Focusing on culture ensures smart growth.
• EVALUATE WITH HONESTY // Honest measurement ensures continual improvement.

Profit & Purpose takes the literature on social entrepreneurship an important step forward, providing the practical tools for turning good intentions into breakaway success.

World-changing ideas become reality with practical, effective planning"Profit ] Purpose: Tools to Structure, Fund, and Run a Social Enterprise" is a practical step-by step guide to creating a successful socially-oriented business venture. With practical, actionable guidance for all stages of social entrepreneurship, the book provides a roadmap from concept, through implementation, to measurement. The companion website includes video to complement the text, as well as sample legal forms, documents, and business plans, to provide readers with the essential catalyst that helps transform world-changing dreams into reality.Some of the hottest, most innovative companies in the modern marketplace are changing the face of business by explicitly operating as much for social and environmental impact as for profit. "Profit + Purpose" highlights this changing dynamic within the global economy by providing a behind-the-scenes look at the journey from idea to successful business. By following successful social entrepreneurs through their challenges, successes, missed opportunities, hard work, and big breaks, readers gain valuable insight into the real-world process of social enterprise. Topics include: Structure create synergy by putting the right people in the right placesFunding expand opportunities with smart money moves and financial savvyRunning ensure sustainability with effective operations and accurate measurementExperience gain the insight of those who have been there and have come out on topThe companion website also features interviews with CEOs of successful socially-oriented companies like Warby-Parker Eyewear, Etsy, Patagonia, Unilever, and more, providing readers with real-world examples of successful organizations that effectively blend profit and purpose. For those searching for tools and resources to implement social entrepreneurship within an existing company or a new venture, "Profit + Purpose: Tools to Structure, Fund, and Run a Social Enterprise" is the comprehensive guide to making it work." Social entrepreneurs believe business is part of the solution to some of the worlds greatest challenges, rather than the cause. In recent years, the field of social enterprise has exploded, giving rise to a number of successful companies. Furthermore, some of the worlds largest companies such as Unilever, Wal-Mart, Nike, Pepsi and Puma are embracing the principles of social entrepreneurship in their global operations through the ambitious efforts of social intrapreneurs. This book will highlight successful social entrepreneurs that are blending profit and purpose and give a behind-the-scenes look at how they went from idea to successful business. The reader will follow their journey along their formative path and hear the challenges, successes, missed opportunities, hard work and big breaks that lead to their success. The book is broken down into three main sections: structure, fund, and run. World-changing ideas become reality with practical, effective planning Profit + Purpose: Tools to Structure, Fund, and Run a Social Enterprise is a practical step-by step guide to creating a successful socially-oriented business venture. With practical, actionable guidance for all stages of social entrepreneurship, the book provides a roadmap from concept, through implementation, to measurement. The companion website includes video to complement the text, as well as sample legal forms, documents, and business plans, to provide readers with the essential catalyst that helps tran