RAUW energy

Contents of RauwLetter March 2010

1. Social Entrepreneurship – Changing the Way We Do Business
2. Shirley’s Sheep
3. Recycling – Good for You and the Earth
4. What Do All Those Stickers on our Fruit Actually Mean?
5. Learn to Love Your Building's Boiler – Romance in the Boiler Room
6. Fuel Prices
7. Events

Social Entrepreneurship – Changing the Way We Do Business

“Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it's the only thing that ever has.”

Margaret Mead

The idea of entrepreneurship has been associated with business for a very long time. Entrepreneurs are the creative, risk takers who, if successful, reap the benefits of their gumption. Well known entrepreneurs such as Bill Gates, Henry Ford, and McDonald's originator, Ray Kroc, dreamt big and acted on those dreams resulting in financial success and a prominent place in society. Similar to traditional definitions of entrepreneurship, social entrepreneurs have bottom lines that embrace financial profit but in this case, those bottom lines incorporate measurable gains on social issues. Social Entrepreneurship is a relatively new and somewhat unheard of idea. It's the theory that social consciousness and profitable business practices can work hand in hand. It is doing well by doing good.

Organizations such as the Delancey Street Foundation based in San Francisco provide innovative ways of addressing social needs. Delancey Street is a for-profit enterprise providing skills and life changing education to ex drug addicts and ex criminals. Delancey Street is 65% self-funded by operating more than 20 businesses in New York, New Mexico, North Carolina and Los Angeles. The founder, Mimi Silbert, had a vision and developed creative ways to help at-risk people and train them to become constructive members of society. Through its restaurants and moving companies, the clients of the Delancey Street Foundation develop skills that ready them for jobs outside the organization.

Another organization generating profits for good is Newman's Own Foundation. The mission of Newman's Own explains, “Paul Newman was committed to helping make the world a better place. To carry on his philanthropic legacy, Newman's Own Foundation donates all net royalties and profits after taxes it receives from the sale of Newman's Own products to charities worldwide. Paul Newman and Newman's Own Foundation have donated more than $285 million to thousands of charities around the world.”

Begun in 1982 with salad dressing in a wine bottle, the company has grown dramatically and now offers foods as diverse as lemonade, pasta sauces, popcorn, frozen pizza, wine, steak sauce and, of course, salad dressing. In fact, Newman's Own is the “exclusive salad dressing served with McDonald's premium salads.”

The Patagonia Outdoor Clothing Company chooses a similar, yet different approach to its social consciousness. It's founder, Yvon Chouinard, began his career as a mountain climber in California and, in 1965, formed Chouinard Equipment selling climbing hardware. When Chouinard and his partner recognized the environmental damage pitons were making on the landscape, they made the decision to replace the highly popular pitons with aluminum chocks, a much less damaging product. This risky business decision paid off and chocks became the new mainstay. Since the piton decision, Patagonia has considered its impacts on the environment every step of the way.

Besides searching for sustainable fibers for their clothing such as polyester made from recycled soda bottles, synchilla made from recycled polyester, hemp and organic cotton, Patagonia puts its money where its mouth is. The company donates 1% of sales or 10% of profits, whichever is greater, to small groups working to save or restore habitat.

The Patagonia catalog has been printed on recycled-content paper since the mid 1980's. The company undertakes major educational campaigns on environmental issues. As well, Patagonia is in the process of drastically reducing its carbon footprint, “Our distribution center in Reno, opened in 1996, achieved a 60% reduction in energy use through solar-tracking skylights and radiant heating; we used recycled content for everything from rebar to carpet to the partitions between urinals.”

Socially minded or social entrepreneurship? Whatever the label, Patagonia takes its responsibilities seriously, “...we cannot avert our eyes from the harm done, by all of us, to our one and only home.” www.patagonia.com