1. FOR-PROFIT SOCIAL VENTURES WHAT ARE THEY – HOW DO THEY CREATE SOCIAL VALUE?

2. WHAT IS A FOR-PROFIT SOCIAL VENTURE? Social Venture For- Profit Venture Social Venture: Organization designed to create positive environmental or social value for a community. For-Profit Venture: Organization designed to create financial value for its shareholders and owners. For-Profit Social Venture: Organization designed to create positive environmental or social value for a community while creating financial value for its shareholders and owners

3. COMMON FEATURES OF FPSVS -Firm is designed to create a specific social or environmental benefit/value -Firm leverages specific operational practices to create social value -Firm adheres to double or triple bottom line in decision making -Firm measures success in terms of social value creation as well as financial valuation using explicit metrics -Firm defines social/environmental aims in fundamental documents -Firm cultivates a culture of social priorities

4. VARIETIES OF FPSVS Activist Firm uses its brand to promote a social cause and is driven primarily by social value creation Social Value DrivenFinancial Value Driven Promotes Social Value to relevant actors ActivistMarket Pioneers Does not promote social value to relevant actors Change AgentsMarket Influencers Change Agent Firm is focused on creating a social/environmental benefit but doesn’t use its brand to promote the cause Market Pioneer Firm is driven by financial incentives but promotes a social cause through business dealings or “corporate responsibility” leadership Market Influencer Firm is primarily financially oriented and doesn’t explicitly promote a cause but generally adheres to strong social or environmental standards and practices

5. TERMINOLOGY B-Corp: Benefit Corporation - FPSV Social Enterprise*: Social Venture - FPSV and SV 501(c)3: Legal Non-Profit - SV LLC: Limited Liability Corporation or C-Corp - FPV L3C: Limited Liability Low-Profit Corporation – FPV and FPSV Hybrid Venture: combination of for-profit and social venture – FPSV

6. CREATING SOCIAL AND ENVIRONMENTAL VALUE -Product or Service is intrinsically beneficial -Supply Chain Interventions -Internal Operations -Advocacy and Philanthropy -Ethics

7. PRODUCT OR SERVICE The product or service offered by the company is intrinsically beneficial to the community

8. SUPPLY CHAIN -Selecting Vendors by social/environmental value -Encouraging lower prices to reach underserved communities -Establishing relationships with minority or women-owned vendors and suppliers -Using purchasing power to encourage social values in suppliers and vendors

9. INTERNAL OPERATIONS -Encouraging pro-social company management (women or minority management) -Encouraging pro-social employment -Engaging pro-social employment -Encouraging pro-social company location -Paying living wages

10. ADVOCACY AND PHILANTHROPY -Using company brand and advertising space to promote a cause -Management spearheading social cause -Use corporate profits to make philanthropic donations -Use corporate foundation to make regular philanthropic donations -Encouraging a culture of volunteerism and philanthropy amongst employees

11. ETHICS -Creating statements, committees or policies to articulate and act upon ethical behavior -Creating an internal culture of ethical standards by engaging in regular discussion with employees and management

12. FOR-PROFIT SOCIAL VENTURES WHAT ARE THEY – HOW DO THEY CREATE SOCIAL VALUE? Sources: RiseProject.org “For-Profit Social Entrepreneur Report.” Clark, Catherine: Ucak, Selen. March 2006 Cause Capitalism “15 Social Venture Capital Firms That You Should Know About.” April 2010 “For-Profit Social Ventures” Dees, Gregory: Andreson, Beth; Social Entrepreneurship. 2003