VOLUME 10 • NUMBER 4 • WINTER 2010
At The Intersection Of Passion And Profit
A
mateurs do what they do for the love of it, while
professionals do it more so for the money. Social
entrepreneurism appears to meet at the intersection
of both these objectives.
Recently, I met with a roundtable group of marketing and
business professionals along with some intelligent big thinkers
from Babson College – a brilliant business and liberal arts school
which has staked a claim on producing best-of-breed global
entrepreneurs. This college has been able to corner a niche of
business education: training leaders (undergraduates and graduate
MBAs) who wish to change the world through self-made com-
panies with better products that serve a noble purpose, as well as
through organizations that are profitable and contribute to the
society at large. They aim to apply entrepreneurial thinking to
nonprofits and other deserving endeavors, wherever they may be in
the world.
Babson’s zeal is infectious. The school practices what it preaches;
professors urge graduates to align their actions and organizational
design with an overall strategy to “do good” by society, while
making a fair return for their shareholders. These are intentions
to which we all should aspire. Social entrepreneurs continue to
discover the ways and means that take us beyond zero sum gains.
Businesses can compete and be even more competitive by knowing
their customers’ highest ideals.
The roundtable group examined new digital methodologies that
enable marketers to ask any audience or individual consumer, for
instance, questions about their values, ethos and personal philoso-
phy. This information is then coupled with an examination of
their online buying habits and other third party data. By analyz-
ing this assemblage of information, marketers are able to better
understand what motivates people to enact certain selfless (and in
some cases, selfish) behaviors.
Now, here is the kicker. Enlightened marketers take this research
back to a paying client who is trying to determine which products
and services will sell and under what circumstances a customer
will buy, if the seller reflects or mirrors the customers’ values.
/ 2011
“W e’d like to extend
a special holiday thanks to our
readers: your loyal following and
valuable input allows us to refine and
So, in short form, the seller will improve The Mount Vernon Report.
reflect the buyer’s values. This, As a new year arrives, we look forward
in itself, may not be profound, to continuing the thought-provoking
dialogue that you make possible.
but the modern product is much
Happy New Year!”
more than just the tangible prod-
uct; it is an idea coupled with ideals.
Traditional marketers will develop a basic message that says our
green diapers keep the baby dry, while the new “digitally-astute”
marketer will focus on the higher order values of the mother –
“buy our diapers because your baby will be happier and better
adapted, and will lead a happier life in a secure, beautiful world.”
This is a real effort to understand people’s higher-order thinking
and ideals and then, as a marketer, match, foresee and fulfill those
expectations.
If this model works, customers will tell companies they want
them to do the right things and companies will be rewarded for
doing so. Doing good, to paraphrase Socrates, may indeed be its
own reward. This issue of The Mount Vernon Report aims to
enlighten us all a bit more about the growing corporate and
societal movement to profit by doing good – for its own sake and
for a better business model. Consumers and professionals unite.
You both can be right.
HAPPY H O L I DAY S
Peter Morrissey can be contacted at peter@morrisseyco.com
Reputation Excellence: www.morrisseyco.com/blog
The Fosbury Flop: http://thefosburyflop.com
Twitter: @Morrissey_Co
 Painting an Accurate CSR Portrait
“If you want to know your past – look into your present
conditions. If you want to know your future – look into your
present actions.”
This Chinese proverb provides the perfect illustration to explain
the importance of corporate social responsibility (CSR) to a
successful organization. As the prototypical business model shifts
from an exclusively profit-generating endeavor to one of corporate
citizenship, executives spend more and more time creating and
measuring their organizations’ CSR portfolios.
A clear commitment to CSR is an established requirement for
long-term reputational health and success. Now a norm in
European countries, this commitment to CSR is also a prerequi-
site for many business contracts.
Ultimately, market forces will challenge brands to become more
aware and involved corporate citizens.
Measuring “State of Play”
Before charting a course forward, organizations must assess
current CSR initiatives. (To move on without this foundational
knowledge demonstrates a lack of genuineness and telegraphs as
much to stakeholder audiences). Constructing a credible CSR
platform begins by establishing benchmarks and setting measur-
able program goals. Organizations can determine benchmarks
through an auditing process tailored to their enterprise.
Audit methodologies can vary greatly, ranging from simple inter-
nal reviews to multi-faceted assessments coordinated by external
consultancies. One size does not fit all; however, a handful of core
elements should be components of any audit regardless of scope.
• C
 orporate Philanthropy: Philanthropy is no longer the sum of
a CSR platform, but still a very important part of the social re-
sponsibility equation. Many leading brands maintain charitable
foundations that issue grants related to their value proposition.
Corporate Philanthropy picks: Boston Red Sox,
GlaxoSmithKline and Qualcomm
• W
 orkplace Conduct: An organization’s treatment of its
employees provides substantial insight into its character; this
category is as much about action as it is policy. Adopting best
practices to cultivate a healthy, inclusive and diverse work envi-
ronment demonstrates a responsible organizational culture.
“Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to
do or because people are forcing us to do it... because it is good for our business.”
- Niall FitzGerald, Former CEO, Unilever
2

Workplace Conduct picks: Johnson & Johnson, Microsoft
and Southwest Airlines
• M
 arketplace Behavior: After the Enron Era – now clearly in
the rearview mirror – ethical behavior in business remains a
lightning-rod issue. An organization should have sound gover-
nance, principles and practices in place for conducting external
affairs. For example, supplier relations should exhibit diversity
and inclusion.
Marketplace Behavior picks: The Walt Disney Company,
Kraft Foods Inc. and UPS
• E
 nvironmental Stewardship: “Green” efforts often provide a
double benefit to organizations; reducing environmental impact
not only has clear ecological benefits, it can also reduce the cost
of waste and other operational inefficiencies.
Environmental Stewardship picks: Dell, Hewlett-Packard and
IBM
• C
 ommunity Involvement: From employee volunteerism to
corporate participation in community concerns, proactive
participation in its communities is the hallmark of a good
corporate citizen.
Community Involvement picks: Green Mountain Coffee,
SC Johnson and Caterpillar
• T
 hird Party Engagement: At the end of the day, most CSR
activities relate back to stakeholders – employees, customers,
investors, etc. Organizational thought leaders engage interested
third parties as part of their CSR platforms. For example, many
organizations now collaborate with non-governmental organiza-
tions to develop corporate programs and policies.
Third Party Engagement picks: General Motors, Allstate and
Credit Suisse
All Together Now
Pursuing a CSR platform expresses a clear intent to conduct
business with a more holistic view. CSR audits reveal the real
opportunities for improvement and organizational change.
However, many audits also yield the surprise of just how much
CSR is already a part of an organization’s daily operations.
Since CSR has become such an important element in corporate
reputation, many of the measures above also double as diagnostic
indicators for sound reputational health.
~ Sean Findlen
 The Future of Social Entrepreneurship:
An Interview with Cheryl Kiser of Babson College
Long regarded as a top-notch business school with an
entrepreneurial focus, Babson College is actively bringing social
entrepreneurship resources into its classrooms and culture.
In large part, this push is fueled by a $10.8M grant from the
Lewis Charitable Foundation, a gift that funded Babson’s
ambitious Lewis Institute, announced in 2008. The Institute
“connects resources, relationships, networks, and thought leaders
to further the Babson mission of incorporating sustainability and
responsibility – social, environmental, and economic – into how
we teach, how we act, and how we influence.”
Here we talk with Cheryl Kiser, managing director of the
Lewis Institute, about Babson’s program and the future of social
entrepreneurship. Kiser has developed a roadmap for social
innovation at Babson that incorporates various curricular, research,
and co-curricular elements, as well as expanded partnerships and
collaborations.
MVR: How do you define social entrepreneurship?
Kiser: Social entrepreneurship is when an individual sees a social
problem and uses the tools of entrepreneurship to innovate,
organize, create, and manage a venture to achieve social change.
A social entrepreneur focuses on creating social capital in order
to further social and environmental goals.
MVR: Why are we hearing this term so often lately?
Kiser: Things are very different now than three years ago when
we received the Lewis Charitable Foundation grant. Students are
coming to us much differently oriented and motivated. Yes, they
want to make a profit but they also want a purposeful life and do
not want to create one at the expense of the other. At Babson,
we are clear that making a profit and being socially responsible or
purposeful is not a linear process. One doesn’t make money and
then do good things. They learn how to create economic and
social value as part of the total value proposition. There are so
many problems that we face as a global community. We know
that the tools of entrepreneurship and business can address some
of the world’s toughest challenges with new models. We have
observed that students don’t want to wait until they’ve made it
economically before they can start addressing these tough
challenges; they are motivated to do something now.
MVR: Can you tell us a bit about the initiatives Babson is
undertaking?
Kiser: The Lewis’ vision is that every student should be intro-
duced to the notion and practice of social entrepreneurship.
Using Babson’s core competency in this area, we are introducing
this concept to all students, letting them know that they don’t
have to first make a profit and then give back. They don’t have to
make choice between two.
This concept has expanded to both curricular and co-curricular
activities. There isn’t a day when there isn’t something happen-
ing on campus related to green tech, clean tech, organics, poverty,
water, etc. Students, faculty and businesses are seeing that, using
business strategy, we really can solve the world’s toughest
problems.
3
MVR: Tell me about Ashoka Changemaker U and Babson’s
work with the organization.
Kiser: Two years ago Babson was invited to be an Ashoka
Changemaker Campus. Ashoka is the world’s leading network
of social entrepreneurs. Ashoka U is a program of Ashoka:
Innovators for the Public. Ashoka U envisions a world where
colleges and universities everywhere serve as an enabling environ-
ment for social entrepreneurship, providing individuals with access
to the resources, role models, learning opportunities, and peers
needed to actualize their full potential as social entrepreneurs
and changemakers. Ashoka U’s mission is to foster and accelerate
teaching, research, and action in social entrepreneurship, seeking
to set a new standard of excellence in the field.
Launched in 2008, the Changemaker Campus consortium
currently consists of nine colleges and universities in the U.S., and
will grow to a total of 30 campuses by 2015. After establishing
an institutional partnership with select universities, Ashoka works
with teams of entrepreneurial students and faculty to accelerate
their growth as hubs of social innovation. Changemaker Cam-
puses include: Babson College, College of the Atlantic, Cornell
University, George Mason University, Johns Hopkins University,
The New School, Tulane University, University of Colorado at
Boulder, and University of Maryland.
MVR: What’s next for Babson?
Kiser: The task ahead is to expand the community’s concept of
the “social entrepreneur” to include not only those who found
NGOs or pursue economic development work or social
businesses, but also the social “intrapreneur” within an established
company – the manager who incorporates sustainable practices or
the individual who starts a social business within an established
product line.
MVR: What unique challenges do social entrepreneurs and
social entrepreneurial businesses face?
Kiser: At the end of the day, the challenges of social entrepre-
neurship are somewhat similar to any other form of entrepre-
neurship – challenges of mobilizing resources, attracting talent,
measuring impact, creating a sustainable business model, and
creating economic and social values. It can be difficult to mobilize
resources. You must collaborate with the right partners and know
what you are aiming for. At Babson we address entrepreneurship
of all kinds whether not-for-profit, profit, government or social
business. They all have idiosyncrasies depending on the context,
but what we do know is that entrepreneurship is the most
powerful tool to address social issues.
MVR: Can you give us an example of a successful program
or project being undertaken by Babson that highlights the
best of social entrepreneurship?
Kiser: We have a few successful projects that we are excited
about. We are working cooperatively with faculty to create more
opportunities for curriculum related to social entrepreneurship/
social innovation. We have created an alumni network for social
entrepreneurs that have recently graduated either undergraduate or
graduate to receive a year-long coaching program to ensure greater
success as social innovators and entrepreneurs. This is an action-
learning research project that will inform our teaching and our
future shaping of social entrepreneurs. We have a Lewis Institute
CONTINUED ON BACK COVER
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C O N T I N U E D F R O M PA G E 3
Conversation with Social Entrepreneurs series where we bring in
social entrepreneurs to talk about their projects and challenges.
Also, there are many clubs and organizations to amplify their
social and environmental impact. We are building a large portfolio
of social entrepreneurship teaching cases. If you want to teach
business students new ways of thinking about issues and business
problems, we need to create cases that ask different questions and
showcase different models of business activity, whether for-profit
or not-for-profit.
R E P U TA T I O N A D V I S O R
Beyond Philanthropy: The Socially Responsible Business Model
For business leaders of the past, philanthropy and stewardship were the primary
means of giving back to the community. Think of the famous magnates whose
names adorn universities, charitable foundations, buildings, and programs:
Andrew Carnegie, Henry Ford, John D. Rockefeller and more recently, Bill and
Melinda Gates. Today, many corporations go beyond the traditional idea of
philanthropy and embrace socially and environmentally-responsible business
practices. For example, companies like New Balance source from mostly local
vendors that maintain good labor practices, while green-focused companies like
Boho Magazine make it a policy to use only 100 percent recycled and renewable
materials in their products.
The most recent phase in corporate social responsibility (CSR) is characterized
by management practices that consider social and environmental concerns at
every level of the business, when possible. These business models emphasize
stakeholders (that is, all parties affected by the actions of the business) as much
as shareholders. Socially-responsible business models recognize the long-term
value of investment in the communities where they operate, on our planet, and in
society as a whole. This approach to CSR requires top-level strategy and
consistent performance, rather than sporadic, uncoordinated forays into
community involvement practices.
The following are key concepts which can guide companies striving for cohesive,
socially-responsible business models that are both ethical and profitable.
Corporate Citizenship
Good corporate citizenship means exactly what it sounds like – being a positive
contributor to society. A company’s social and environmental stewardship should
be strategic and targeted, and focused when possible on goals pertaining to the
company’s goods, services, and location. Recognizing the need for corporate
citizenship is the first step toward building a socially-responsible business model.
MVR: What is the future of social entrepreneurship?
Kiser:The future is bright. More and more businesses, NGO’s,
and governments are recognizing that entrepreneurship of all
kinds will be the driver of economic and social value creation and
ultimately the enabler of world peace. The future is about using
the power of entrepreneurship within institutions, new ventures,
collaboration and engaged civil society to move the needle on
social problems.
~ Lauren DiGeronimo
Recognizing Stakeholder Value
Traditionally, a corporation’s only real obligation is maximize value for its
shareholders. However, more and more businesses are recognizing that they
have a broader responsibility to all stakeholders, internal and external, private
and public alike. Sometimes this involves managing or mediating stockholder and
stakeholder interests to ensure the most favorable outcome for everyone involved.
Enlightened Self-Interest
This is the principle that good corporate citizenship paired with socially-
responsible business practices will yield the best long-term results for a
business. Businesses with an enlightened self-interest invest in the communities
and environments in which they operate because they recognize how they
indirectly benefit from both. By ensuring the longevity and well-being of the soci-
ety on which it is dependent, a corporation ensures its own long-term success.
The Triple Bottom Line
Financial, Social, Ecological. These are the values used to determine the true cost
of a good or service. This means taking into account not just financial capital, but
also ecological and social capital. Balancing these concerns helps organizations
become more reputable and can increase consumer and investor confidence in a
business. Some companies, such as Xcel Energy, even release triple bottom line
reports annually summarizing their ecological and social impacts as well as their
financial performance.
The above are basic building blocks for developing a socially-responsible
business model, but there is no one-size-fits-all strategy. Tailored strategies must
be developed by senior-level managers, taking into account the size and nature
of their business. Ideally, business leaders will seek guidance from academics,
government officials, and other experts when developing their socially-responsible
business plan. As social responsibility continues to grow in importance, its impact
on an organization’s reputation will continue to increase, as well.
~ Doug Flora