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Westaway - Profit & purpose : how social innovation is transforming business for good

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Profit & purpose : how social innovation is transforming business for good: summary, description and annotation

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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 its 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. Its 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.

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Cover design Brendon Manwaringwwwbrendonmanwaringcom Copyright 2014 by Kyle - photo 1

Cover design: Brendon Manwaring/www.brendonmanwaring.com

Copyright 2014 by Kyle Westaway. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.

Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data:

Westaway, Kyle.

Profit & purpose: how social innovation is transforming business for good/Kyle Westaway.

1 online resource.

Includes index.

Description based on print version record and CIP data provided by publisher; resource not viewed.

ISBN 978-1-118-70855-2 (ePub) ISBN 978-1-118-70856-9 (Adobe PDF) ISBN 978-1-118-70861-3 (cloth) 1. Social entrepreneurship. 2. New business enterprises. I. Title.

HD60

658.408dc23

2014013895

Acknowledgments

None of us create in a vacuum. We are all products of our communities. I am profoundly grateful for my community. Without them, there's no chance this book would have been written.

Mom and Dad, I've never doubted that I was loved. That has given me the freedom and audacity to dream big. But you also instilled in me a strong work ethic (scrubbing floors, mowing lawns, etc.) that equipped me with the work ethic to make those dreams to come to fruition. Katharine, you live from an uncompromising sense of justice and challenge me to do the same. Kristen and David, your interest and support in my work have been unquestioning, even when I don't follow the traditional path. Karoline, you have taught me about the importance of getting the details right. You make me better.

To my friends: Sean, Blair, Malik, Stef, Phil, and Rich. Your friendship and support has allowed me to endure through the process, and your feedback has sharpened the concepts in this book.

I am convinced that the best way to learn about social entrepreneurship is by doing it. I'm so thankful for Jess, Anthony, Sean, Annie, P' Wen, and the rest of the Biographe team. I've grown and learned so much from working alongside you. To all my clients, you inspire me, motivate me, and teach me more than you'll ever know. I consider myself incredibly blessed to be able to wake up every day and advise brilliant people dead set on creating a better world. Your lessons are all over the pages of this book.

Suzanne, thank you for believing in me and teaching me how to teach. Dean Minow and Dean Claypoole, thank you for your support of the social entrepreneurship movement at HLS. My students give me hope for the future of this movement.

To my friends in Nairobi: John, Alan, Prina, Charlene, Chrissie, Patricia, Heidi, Matt, Grant, Adam, Emma, Will, Laura, Sham, Tristan, and countless others. You made Nairobi feel like home while I was so far from home. To the team at Artcaffe, thank you for letting me sit for hours sipping coffee while I was typing away. To Elvis: thanks for allowing me to walk in Memphis every Wednesday night.

A big thanks to Brendon for creating the brand, to Emily for tirelessly working with me to edit my thoughts into something readable, to Nadia for running my life across multiple time zones, to Isaac and his team for their transcription, and to everybody at Wiley that believed this book needed to be written.

Summit Series and Catalyst friendsespecially my CVO North Starthank you for teaching me to make no small plans. To my community at TGCespecially Jon and Michaelyou continue to inspire me to work together toward the renewal of all things. On earth as it is in heaven.

Introduction

Fluorescent bulbs buzzed overhead in the second-story room on a small side street in the notorious Nana red light district of Bangkok. A handful of us sat on plastic chairs around a fold-out table. A mere four feet separated us, but a gulf of life experience lay between us.

My friend Sean and I were on one side of the table. Two young professionals from New York City, we had the good fortune of growing up in middle-class American suburbs. Our parents sat down for dinner with us every night and ensured we were well equipped to succeed in life. We both had the opportunity to attend great schools and pursue the careers of our choosing.

Four Thai women sat on the other side of the table. They grew up in extreme poverty in northeast Thailand and had little education. More often than not their parents weren't able to feed all the mouths in their families. With only a few years of education they were forced, coerced, or tricked into moving to Bangkok to work and send money back to their families.

Upon arriving in the capital they discovered that the work they left home for was not in the restaurants or shops, as they had been promised, but in the bars and brothels of Bangkok's red light districts. They were horrified when they realized their fates. They had suffered from the oppressive rule of the brothel owners, the nightly rapes, the stinging shame of social scorn, and the battering of abusive boyfriends. Their families had rejected them. By anyone's estimation, these women were victims.

But that's not how they saw themselves. They considered themselves survivors.

They were full of personality and their eyes sparkled when they laughed. They loved joking around, even across the language barrier. And as they told us their stories, they expressed hope. They were the most resilient and powerful women I've ever had the privilege of meeting. They were meeting with us because they had escaped the bars and brothels and they were determined to make the most of the rest of their lives.

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