Social Innovation - A Travel Guide

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This book was conceived on a trip made by 34 students from the KaosPilots International in the spring of 2008. These 34 students, representing seven nationalities, travelled to the other side of the world with the purpose to explore the meaning of the term “social innovation”. After three months, these same students returned home to document their learnings in this book. I was one of them. Enjoy the reading..

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Social Innovation - A Travel Guide

  1. 1. SOCIAL INNOVATION a travel guide
  2. 2. 2 All revenue generated by this book will be used to promote initia- tives that are socially innovative or aim to create social innovation. This work is licensed under the Creative Commons ’Attribution-Share Alike 3.0 Unported’ license. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Except pictures of Dave Eggers and Muhammad Yunus which is li- censed under GNU Free Documentation License Picture page 57 Copyright © 2007 David Shankbone. Picture page 60 Copyright © Muhammad Yunus. Permission is granted to copy, distribute and/or modify this doc- ument under the terms of the GNU Free Documentation License, Version 1.2 or any later version published by the Free Software Foundation; with no Invariant Sections, no Front-Cover Texts, and no Back-Cover Texts.
  3. 3. 3 Social Innovation Co-editors a travel guide Amalie Villesen, Carl Johan- First edition – July 2008 nes Borris, Christian Stoltze, Fridda Flensted-Jensen, Hen- The Kaospilots International rique Vedana, November Sky Mejlgade 35 Freyss-Cole, Sara Wallén and 8000 Aarhus C Torben Brandt Denmark Graphic design and layout www.kaospilot.dk Anders Fredsø Olsen www.socialinnovation.biz Michelle Kertevig and Philip Hahn-Petersen A publication by Amalie Villesen, Anders Fred- Photographers sø Olsen, Anders Graae, An- Anders Fredsø Olsen, Camilla ders Toft, Anna Edwall, Bieke R. Misser, Jacob Klintrup, No- van Dijk, Camilla R. Misser, vember Sky Freyss-Cole, Philip Carl Johannes Borris, Chris- Hahn-Petersen, Søren Bo tian Stoltze, Daniel Seifter, Steendahl and Daniel Seifter Fridda Flensted-Jensen, Gregers Mærsk Møller, Hrafn- Illustrators hildur Heba Júlíusdóttir, Hedvig Anders Fredsø Olsen, Nanna Høysæter, Henrique Vedana, Wedendahl Frank, Nicklas Pe- Jacob Klintrup, Jakob Chris- ter Høg and Philip Hahn-Pe- tian Ipland, Karen Steinfeld, tersen Kristian Meiniche, Mark Hes- sellund Beanland, Mille Ob- We would like to thank el Høier, Nana G. Dall, Nanna Birgitte Fredsø Rasmussen, Wedendahl Frank, Nicklas Pe- Christer Lidzélius, Deborah ter Høg, November Sky Frey- Golblatt, Frederik B. Wulff, Ka- ss-Cole, Philip Hahn-Petersen, rin Barreth, Per Krull, Peter Pontus O. Bergqvist, Rune Liljeros, Simon Kavanagh, Fan- Barfred, Sara Skafsgaard Hjort, ny Posselt, Solveig Brun, Su- Sara Wallén, Søren Bo Steen- sanne Højlund, Tania Ellis and dahl, Thomas Gjerulff, Tone Ev- Thomas Hessellund Nielsen jan and Torben Brandt. The Kaospilots Team 13 A special thanks to Michelle Kertevig for giving us her lay- Chief editors out expertise, time, and ded- Anna Edwall and Mark Hessel- ication. lund Beanland
  4. 4. Index Introduction 6 Movement 68 Preface 6 Shedding light on social Foreword 8 innovation 70 Starting point 9 SI in action 72 Before take off 10 Social Innovation Innovation and in Action 72 social needs? 14 Starting with me 74 The story of Social Mapping out me 76 Innovation 16 Understanding the cultural On route to your destination18 context 78 The Need 82 The Map of SI 20 The need and the dream 84 Sectors 22 Target Group 86 Team and Resources 88 The Landscape 28 The Project 90 Corporate Social The Story 94 Responsibility 30 Corporate Social Innovation 34 Bon voyage 96 Public Innovation 35 Socially Responsible Glossary 98 Investing 37 Social Purpose Ventures 38 Sources 102 Is it the why or the what that maters 40 Non-Governmental Organizations 42 Social Entrepreneurship 44 Social Intrapreneurship 47 Before moving on 48 Famous Travellers 50 Table of do’ers 52 Muhammad Yunus 56 Dave Eggers 58 Marie So and Carol Chyau 62 Jimmy Donal "Jimbo" Wales 64 Natalie Killassy 66
  5. 5. Introduction Preface This book was conceived on a trip made by 34 students from the Ka- osPilots International in the spring of 2008. These 34 students, rep- resenting seven nationalities, travelled to the other side of the world with the purpose to explore the meaning of the term “social innova- tion”. After three months, these same students returned home to document their learnings in this book. Though Shanghai was our port social innovation was what we as- pired towards, digging it out of the concrete and steel of the hec- tic city. Only after returning home with the creation of this book did we find it. We found it through the sharing of knowledge that took place while we were working on the book and through the overview provided through the process of translating our findings into words. This is why the book you are about to read is in the format of a trav- el guide. It is our hope that it will make the journey into the abstract realm of social innovation easier for the travellers that follow in our footsteps, and that it will guide the traveller past dead ends of inac- tion in the labyrinthine jungle of theory where so many are lost, and into action; the place where we have come to believe social innova- tion reveals its true value. Our travels showed us that to embark on social innovation you need to embrace disorientation at first. Everywhere you look you find opposing views on what the term means and what it encom- passes. To us this confusion sparked both a need and an ambition: to bring social innovation out of the clouds and down to earth. It has not been our purpose to show the frustrations we went through on our path – though there were many – but through our findings to make it easier for coming travellers to navigate. Most important- ly, we felt a need to make the concept tangible to a reader in or- der to create a foundation for action. We are giving you as a reader the knowledge we would have liked to have had when we set off on our journey; how to be able to take action with a social purpose and spark innovations on your way. We have attempted to cut the path through the jungle bed. It is our hope that you will be inspired to walk it. Please forgive us any bushy parts you come across. As with any jungle, the shroud and veg- etation grows back in new ways on a daily basis and our method of cutting the bush might leave areas unexplored. Some of you may enjoy reading this book without wishing to em- bark on the journey like someone who enjoys browsing the pages of a travel catalogue. You are welcome readers. However, our intent
  6. 6. INTRODUCTION 7 was to write this as a guide to those of you who have a desire to go for a swing in the vines yourselves. Change is the only constant in the world and we hope that this book can help to unleash your potential and to guide this change in a positive direction. Finally, as you start to read, please keep in mind that the 34 trav- ellers who set off on this journey have also shared the task of writing about their experiences. Sometimes when some saw a lion others were sure they saw a kangaroo. Evidence of this phenomenon will be present as you scroll through the pages of this book. Please, we encourage you not to despair in the face of this diversity. At least, we have come to rest in the fact that our confusion around social in- novation seems simply to reflect that of the world.
  7. 7. 8 INTRODUCTION Foreword You can always count on the KaosPilots to take you exactly where you need to go—in this case on a journey to the future. Every where I travel these days I encounter people of all ages and all walks of life who share an idea: We need to make the world a better place, we need to find new approaches to solving old and troubling problems, we need to bring the spirit of innovation and entrepreneurship to so- cietal change. All over the world people are packing their bags to make the trip to the future, a future where we work together, innovate together, cel- ebrate together, and come together to find solutions that work. So- cial innovation and social entrepreneurship have been around as ideas for at least 30 years. But in the last decade these ideas have taken off. Young people would rather change the world and make a contribution to the future than just make a lot of money; older peo- ple want to leave a better world for their children. Because of this new consciousness we are witnessing an explosion of new ideas and new approaches to solving social problems around the world. Like Muhammad Yunus’ notion of a hybrid model—social business- es—there are new shapes to how change will happen and new ex- periments that give us new hope and teach us new lessons. This very creative book put together by a KaosPilots class is an im- portant part of our shared journey. They are teaching us what they themselves have learned, sharing the lessons they have benefited from. From them we see the varieties of shapes and forms that so- cial innovation takes; we learn the new tools, techniques, and tac- tics that we can all employ in our own journey; we learn how to speak the language of the future, what to look for, and how to travel faster, smarter, safer, and more effectively. Read this book and then pack your own bag for the journey of all our lives—the journey to create the future we all want to live in! See you up the road— Alan M. Webber Founding editor, Fast Company magazine
  8. 8. INTRODUCTION 9 Starting Point You are about to read about a realm that you may or may not al- ready know about and as with any travel guide you can go through it in the way that best fits your preferences. You can start at the end and backtrack, look up sections that relate to your personal inter- ests or read it cover to cover. These compiled contents should give you somewhat of an over- view. But within the book you will also find references to experts working more in-depth with the term. This is a starting point to dig further or to step directly into action. Our hope is that you do both.
  9. 9. Before take off Are You Curious about Social Innovation? This section of the travel guide will get you ready to explore.
  10. 10. BEFORE TAKE OFF 11
  11. 11. 12 BEFORE TAKE OFF . sent e pre ? in th t ur e (SI) is fu th e vation in linno tio n so cia va hat no w l in xp lore cia st e So ’s fir Let What is social in novation compo Wh sed of? W yc om ha bin es t is oci al w so ith cia inn ova l in tion ? no va tio n? Below we have outlined the components of social innovation to an- swer these questions. This is the foundation on which the book is built. As illustrated on the following page there are many views on the words within as well as the concept of social innovation. In this book we will not highlight a specific definition as more relevant or bet- ter than others. The bright minds that have created definitions be- fore us have done a good job and we have found inspiration in all of them. We encourage you to do the same. What we found lack- ing, however, was a way to bridge them. In our perception, for it to best serve its purpose – to improve the conditions for life – one must seek to create it at every turn of the road. It is our goal to make you feel that this is not such an amazing task but something we can all contribute to, first and foremost by trying.
  12. 12. BEFORE TAKE OFF 13 Social is relating to human society and its members. (www.wordreference.com People using new knowledge to experiment with new possibilities in order to implement new concepts that create new value. (www.businessweek.com) Of or relating to society or its organisation. (Oxford American dictionary) The act of starting something for the first time; introducing something new. (www.thinksmart.typepad.com) Social + Innovation Social Innovation New ideas that work to meet pressing unmet needs and improve people´s lives. (The Young Foundation) New ideas that resolve existing challenges for the benefit of people and planet. (Center for social innovation) New strategies, concepts, ideas in organisaions that meet social needs. It can be used to refer to social processes of innovation, alternatively to desribe innovations which have a social purpose. (wikipedia)
  13. 13. 14 BEFORE TAKE OFF Innovation and Social Needs? Looking at society as a whole, solving a need sometimes involves shifting limited resources from one area to another. This is often an unsustainable short-term solution satisfying pressing needs but as new needs arise old ones are likely to remain; hence, we need to take hold of the root of the problems causing these needs. Einstein once said, “No problem can be solved from the same level of consciousness that created it”1. This involves embodying the knowledge that has evolved in society and applying it in the creation of new solutions – of social innovations. Innovations tar- geted to meet social needs aim to “permanently alter the percep- tions, behaviours and structures that previously gave rise to these challenges”2. Simply put, social innovations aim to obtain the tri- ple bottom line (measured on the satisfaction of both people, planet and profit) and be “an idea that works for the public good”3. The more new concepts, thoughts, and actions that take place on a local and global level, the more innovations will occur and spark possibilities for socially innovative solutions.
  14. 14. BEFORE TAKE OFF 15 Planet Profit People THE TRIPLE BOTTOMLINE
  15. 15. 16 BEFORE TAKE OFF The Story of Social Innovation Though social innovation has occured throughout the history of mankind, there has not been enough interest to trigger the map- ping out of the occurrence of social innovation or how the phrase has evolved in modern times. Our offset was that though social in- novations are not new to the world, an increased amount of people, institutions, and companies around the world are starting to look for ways to become more sustainable towards the environment and/ or their stakeholders. Without knowing it, these initiatives that arise under titles like social entrepreneurship, user-driven innovation or corporate social responsibility are in truth aiming towards creating social innovation. Understanding the concept of SI and actively using the term can give social action and contribution more power. It can help create a larger awareness in society around imbalances and challenges that need to be dealt with and it can work as a trigger for more people to strive for creating positive change. In order to further understand what SI can be see the outline of past innovations on the next page. They are listed according to: *Innovation *Time of origin *Initial place of origin In order for it to be socially innovative rather than merely innovative it needs to answer a need or create new value in society so we en- courage you to think about the need, if any, these innovations re- spond to. Which of these things do you take for granted in your everyday life?
  16. 16. BEFORE TAKE OFF 17 Past innovations Bank, Genova, Italy 1406 Insurance, London, UK 1680 Kindergarten, Germany 1840 Subway, London, UK 1860 Welfare State, Germany 1870 National Health Service, UK 1948 The Open University, UK 1969 Grameen Bank, Bangladesh 1976 Cell Phone, USA 1983 Internet, USA 1983
  17. 17. 18 BEFORE TAKE OFF On Route to Your Destination Now that you have packed your bags we would like to forward some of our learning from the land of SI to you. They are excerpts from our own experiences and the conclusions we drew from them. It is important to understand the context from which the need emerges before you address it. Some aspects relating to this As human beings we stand on a platform composed of opinions and perceived truths. We bring this with us wherever we go. When working with SI in a context outside of our own it can be fruitful to re- flect on our own platform and what we bring into the new context – our worldview, assumptions, prejudices, and frames of reference. We cannot impose our worldview onto others. We can, however, indulge in theirs. This boils down to one thing: Engage in dialogue with the experts – the locals – and explore their perspectives. The common mistake made when meeting another perspective than your own is to engage in a discussion to attempt to persuade the counterpart that your viewpoint is more valid. This approach only leaves room for one winner. The object of a dialogue is to increase the understanding on both sides. This way everyone can learn from the outcome and knowledge and understanding can be co-devel- oped and lifted to another level. “People become aware of their culture when they stand at its boundaries; when they encounter other cultures, or when they be- come aware of other ways of doing things”4 Anthony P. Cohen
  18. 18. BEFORE TAKE OFF 19 There are different social needs in different places and there are dif- ferent demands in different places; hence, different innovative ac- tions. Social innovation is context related and it is important to understand the context from which the need emerges before you address it. In doing this, some of the clouds we en- courage you to grab are...
  19. 19. The Map of SI Take a close look at the map and try to get acquainted with the different areas. In the following chapter we will try to give you as much gener- al insight as possible into the differ- ent sectors within our society as well as the landscape of social innovation with all its different areas, branches, and strange hybrids.
  20. 20. THE MAP OF SI 21
  21. 21. 22 THE MAP OF SI Sectors Three sectors dominate most societies. The public sector, the pri- vate sector, and the civil sector. Due to changes in society and the arrival of new social needs, a “new sector” or more accurately a number of alternative practices has emerged as a kind of cross sec- tor between the already existing sectors. A common term for this phenomenon is the fourth sector. The Public Sector The role and responsibilities of the public sector varies greatly from country to country based on the community it represents and the values of the respective governmental institutions it consists of. Its responsibilities can span areas such as the development and maintenance of infrastructure, providing of education, healthcare and eldercare, and the creation of laws and legislation. The income comes from taxes paid by individuals, the private sector, and often from publicly owned companies. The Private Sector The role of the private sector as a whole could be viewed as the responsibility to ensure economic growth in society as well as to provide jobs and the production of goods and commodities. The private sector is based on the freedom to engage in commercial ac- tivities and trade and it is influenced by supply and demand in so- ciety. The Civil Sector Traditionally, the civil sector relies on volunteer work and on do- nations from the private sector as well as contributions from indi- vidual people who believe the cause to be worthwhile. These or- ganizations are known as non-governmental organizations (NGO), non-profit organizations (NPO) or voluntary organizations. Initiatives in the civil sector are based on several different foun- dations, the most usual being dissatisfaction with the actions of the private or the public sector (Green Peace is an example of this) or simply a shared passion for a specific activity (e.g. a sailing club). Their overall role and responsibility can be seen as that of defend- ing the rights of the civil society. Read more about this in the section “Non-governmental organizations” in “the Landscape” on page 40.
  22. 22. THE MAP OF SI 23 The Hybrid No sectors on their own have managed to encompass the com- plete foundations of a society. With societies around the world un- dergoing constant change the cross- or fourth sector can be viewed as all the initiatives that arise outside the confounds of the tradition- al sectors to address needs and issues that are not covered by the three sectors or could be covered in a more effective way. The last 15 years, especially, have seen the emergence of new business ar- eas and of organizations that work across the sectors. Such organ- izations within the fourth sector are numerous and the sheer quanti- ty of names given to them gives an impression of their scope. They include; high purpose companies; double bottom line businesses; affirmative businesses; values driven enterprises; for-benefit organ- izations; civic entrepreneurs; social purpose ventures; socially re- sponsible businesses; sustainable businesses, social enterprises, and social entrepreneurialism (see more under “Social Entrepre- neurs” in the section “the Landscape” on page 44). Public sector The 4th sector Private Civil sector sector
  23. 23. 24 THE MAP OF SI The Connection to Social Innovation It is important to know that the defined responsibilities of the three sectors vary from country to country. In the US, for example, the pri- vate and the civil sectors have a large influence on social initiatives compared to many European countries where social responsibilities traditionally lie within the public and civil sectors. In China, social in- itiatives are officially considered a responsibility of the government only and many civil initiatives related to social issues are classified as illegal. On top of the variations in political systems and traditions for gov- erning, the sectors are also blurred as private companies focus more and more on social issues, NGOs start working more towards generating their own profit, and public institutions start co-operat- ing with volunteer work and management models inspired by pri- vate companies. Social innovation can happen within or across the sectors. In fact, SI does not seem to care about sectors but about ideas, the use of knowledge, networks, and competences. Change? As food for thought we note that China is experimenting with ways of governing that all stem from a one-party system. And that with- in this system certain provinces are encouraged to try out new ways of governing that break with traditional thinking. In the words of the British foreign policy thinker and author Mark Leonard, the leftist po- litical thinkers in the Chinese communist party believe in “a philos- ophy of perpetual innovation – developing new kinds of companies and social institutions that marry competition and co-operation”5. What few people outside China care to consider is that examples like this one, of willingness to experiment along with the inherent na- ture of social innovation, of changing the way we work and think, may make many of our current definitions obsolete.
  24. 24. THE MAP OF SI 25
  25. 25. 26 THE MAP OF SI Travelling Together A way to work with social challenges is to use the competencies of all three sectors: Public (Governments), Private (Businesses) and Civil (NGO/NPO) in order to see perspectives and business models that can solve our current and future social challenges and unmet needs. In Northern America and Europe there is a lot of talk about cross sector collaboration and initiatives. However, many of the so- cially innovative projects are not based on a strong collaboration and we see a potential for this collaboration and shift in mindset to grow to new heights and become more beneficiary for all parties. NGO NGOs have the knowledge of social needs and the voluntary la- bour force, engaged and committed to act on it but they often lack the money to carry out their ideas and make them sustainable. Business Businesses have the money and the experience within commerce to carry out large projects and ideas but they often lack knowl- edge, motivation, and experience within the social needs of socie- ty to act on it. Governments Governments have the overview of the needs and challenges of the entire country and they provide stability and a long-term perspec- tive. However, they often lack efficiency, employee ownership, and the ability to make money. Challenges of Travelling Together When talking about SI, companies, NGOs, and the public sec- tors very often move within a grey area where the responsibilities of business and civil society blur. We see new ways of thinking about the relationships and partnerships between the sectors as impor- tant. It is not about businesses handing a check to an NGO or the public sector economically supporting business. It is about getting the three parties to sit down together at the table and strategically shape projects, specific products, or wider processes.
  26. 26. THE MAP OF SI 27 Dong Tan An example of a cross-sector project is the Chinese eco-vil- lage Dong Tan which is placed on Chong Ming Island near Shanghai and planned to be one of the first fully sustainable cities in the world along with two other eco-cities in China. Dong Tan is planned by the Shanghai City Council as part of the Carbon Neutral Urban Development Plan where Dong Tan is meant to be a counterweight to the less sustainable Shang- hai and at the same time reveal China as a player in the field of sustainability. The Chinese government decided to hire Arup, a British company that specialises in green urban planning, to provide the necessary knowledge for the creation of Dong Tan. Also William McDonough and Michael Braungart, the authors of the groundbreaking book on sustainability “Cradle to Cradle”6, have been hired to help designing China’s coming eco-cities. Dong Tan is an example of how the public sector in one country uses the knowledge from a company from the private sector in another country to create something new that will benefit society and the environment.
  27. 27. The Landscape You will come across many terms when you move around in the land of social innovation and without proper guidance these may be difficult to distinguish from one another. You can use the glossa- ry in the back of this book to assist you on your way but the list be- low further explains some of the most important of these terms and can be used as a work of reference. All the different areas do not have to be explored fully before you start your journey but we be- lieve that you will find the descriptions useful as your desire to dig deeper evolves.
  28. 28. THE LANDSCAPE 29
  29. 29. 30 THE LANDSCAPE Corporate Social Responsibility Corporate Social Responsibility, or CSR, is “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”7 – the stakeholders being those who are im- pacted positively or negatively by their activities. Some background information is necessary in order to understand the term: It is often argued that for some companies the motivation for en- gaging in CSR stems from marketing concerns and is applied as make-up with little genuine impact on the business. This debate about sincerity or the lack of it comes from the definition and pur- pose of business. While some argue that “the business of business is business”8, i.e. maximizing profit, others have a broader under- standing that includes a concern for the business’ environmental and social footprint. With businesses having grown in importance and influence over the last 200 years, now representing more than half of the world’s biggest financial powers9, they become key driv- ers for change - positive or negative. Regardless of the critics, “cor- porate” refers to business where money is a key measure for recog- nition and growth. Any criticism can be generalized and in order to avoid that we see a need to differentiate between three levels of CSR10. First level: Corporate philanthropy Companies give back to communities, charities, and non-govern- mental organizations and develop internal projects that aim to sup- port people in less privileged positions. Some companies involve their employees in such projects in exchange for their motivation and commitment (corporate volunteerism). Second level: Risk management / reputation As a response to pressure from stakeholders, non-governmental campaigners or regulatory bodies companies may see their reputa- tion being affected positively or negatively based on their actions (or people's perceptions of said actions). Third level: Business case / value creation This is the first and only proactive approach where business lead- ers see value in practicing social responsibility as an investment that brings about financial return in the long run despite the short term costs.
  30. 30. THE LANDSCAPE 31
  31. 31. 32 THE LANDSCAPE UN Global Compact - Ten Principles Human Rights Principle 1: Businesses should support and respect the pro- tection of internationally proclaimed human rights. Principle 2: Businesses should make sure that they are not complicit in human rights abuses. Labour Standards Principle 3: Businesses should uphold the freedom of associ- ation and the effective recognition of the right to collective bar- gaining. Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour. Principle 5: Businesses should uphold the effective abolition of child labour. Principle 6: Businesses should uphold the elimination of dis- crimination in employment and occupation. Environment Principle 7: Businesses should support a precautionary ap- proach to environmental challenges. Principle 8: Businesses should undertake initiatives to pro- mote environmental responsibility. Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies. Anti-Corruption Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery. The Global Compact was initiated by the United Nations’ Sec- retary-General Kofi Annan in the year 2000. It is a voluntary network aiming to mainstream 10 universal principals for so- cially responsible business. Today, it includes over 3000 com- panies from all around the world and another 1000 civil and la- bour organizations.
  32. 32. THE LANDSCAPE 33 From Financial Reporting to Sustainability Reporting11 Financial reporting, today a standard requirement for com- panies to operate and be trusted by governments and share- holders, only became mandatory after the stock exchange crisis of 1929. The internationally recognized standards on ac- countancy were developed mainly in the 1930s. Nowadays, the pressure from stakeholders is requesting organizations to become more transparent in the way they manage their busi- ness and the impact they cause on society and environment, not only their financial statements. Since the early 90s, many organizations have started publishing social and environmen- tal reports, citizenship or sustainability reports, mostly on a vol- untary basis. The Global Reporting Initiative (GRI) was creat- ed in 1999 and today its guidelines for sustainability reporting are being used by thousands of companies, many of the larg- est corporations in the world and are fast becoming a “de fac- to” standard. The Swedish government has also mandated state-owned companies to report in accordance to the GRI’s guidelines. The International Standards Organization (ISO) is now developing its own standards for social accountability and both GRI and ISO are aligning themselves with other initia- tives such as UN Millennium Development Goals and UN Glo- bal Compact.
  33. 33. 34 THE LANDSCAPE Corporate Social Innovation Corporate social innovation, or CSI, happens when social solutions are the core of the business. This standard covers companies that either remade or created a company based on a social need. These companies are the vanguard of the new business logic; they view community needs as opportunities to develop ideas and demonstrate business technologies, to find and serve new mar- kets, and to solve long-standing social problems. They focus their efforts on inventing sophisticated solutions in close collaboration with their stakeholders. Handling social sector problems often forces companies to stretch their capabilities to produce innovations that have business as well as community payoffs. When companies approach social needs in this way they have a stake in the problems and they treat the effort the way they would treat any other project central to the company's operations. They use their best people and their core skills. This is not charity; it is a strategic business investment.12
  34. 34. THE LANDSCAPE 35 Public Innovation Public innovation, or public sector innovation, concerns ways of im- proving performance and outcome through innovations within the public sector, e.g. in healthcare, social welfare or criminal justice. An initiative that exemplifies public innovation with a social angle can be taken from the Belgian Federal Police who hired blind peo- ple to get more out of their wiretap recordings in criminal investiga- tions. The UK business school for government National School of Gov- ernment, together with the Young Foundation and NESTA also set up a Public Innovation Conference. “The aim was to generate an awareness of public service innovations and to discuss the role of government in diffusing innovative practice.”13 The same trio has al- so drawn up a case study report on the subject “Creating the Con- ditions for Public Innovation” in the year 2007.
  35. 35. 36 THE LANDSCAPE #0.075 #0.075€ == (97) 41% ±56 25% m ‰ (97) 7657 41% 25% moms7657 ‡ € 25% + ‡ 0.075 moms$ ‰ $== + $ 75% ‰ % 25% moms - % 25% moms Hip-Hop and the Danish Ministry of Taxation “What is the most important essentials / conclusions of our conversation? The creative process is long...innovation takes time (contrary to the romantic vision of “the lightning bolt strikes and innova- tion happens”). The creative process is based on the multitude of micro-innovations that occur in everyday life. From the mi- cro-innovations, a new culture grows. The producers or creative catalysts are needed to collect or catch the innovations and bring them into the world. The inno- vative process requires time/patience, an open environment where ideas can be safely expressed, and enough resources to allow the innovative process to grow. Strong leadership and recognition are basic requirements for fertilizing the ground for innovation. Keepin’ it real – we deal with real people acting in the real world.”14 The text above is taken from a debate on the question “What can we learn from hip-hop – keeping it real” among Danish offi- cials from the Ministry of Taxation at a workshop on public sec- tor innovation in 2007.
  36. 36. THE LANDSCAPE 37 Socially Responsible Investing Some say that the history of Socially Responsible Investing, or SRI, goes back to the Quakers (Religious Society of Friends in the US). In 1758, the Quaker Philadelphia Yearly Meeting prohibited members from participating in the slave trade of buying or selling humans. One of the most articulate early adopters of SRI was John Wesley (1703-1791), one of the founders of Methodism. Wesley's sermon "The Use of Money" outlined his basic tenets of social investing - i.e. not to harm your neighbour through your business practices and to avoid industries like tanning and chemical production which can harm the health of workers. The present view on SRI kicked off during the Vietnam War with a picture of a girl running towards the photographer with her back burning from the napalm that was dropped on her village. This led to wide demonstrations against companies profiting from the Viet- nam War, and people began to be more aware of how companies invested and made money. As an example, pension funds are becoming increasingly aware of the target of their investments after the exposures of several pen- sion funds investing in the arms trade. Another trend is found in people who are investing their mon- ey in win-win-win projects such as environmentally friendly bonds, stocks in windmills, CO2 quotas or micro-financing. Domini - Social Investments “The way you invest matters. Be part of the solution”15 It is stated on the website of the Domini Funds that as a share- holder, “you make a difference in the world, engaging compa- nies on global warming, sweatshop labour, and product safety, revitalizing distressed communities, bringing new voices to the table and helping redefining corporate America’s bottom line”. They outline their investment strategy as determined by stakeholders such as communities, customers, ecosystems, employees, investors, and suppliers. Domini Social Investments won the “Social Capitalist” Award from Fastcompany Magazine and Monitor Group in 2008.
  37. 37. 38 THE LANDSCAPE Social Purpose Ventures If we take a deeper look into the vast ocean of social innovation we will find one of the more rare species called Social Purpose Ven- tures (SPVs). "The world today is awash with spectacularly talented, hopeful, and creative social entrepreneurs who offer important solutions to our social and environmental challenges. But there's a shortage of cap- ital and support to nourish entrepreneurs' visions through the ear- ly stages. GSVC offers access to such capital, along with solid and grounded advice and a network that reminds entrepreneurs they are not alone in their pathological optimism."16 Global Social Venture Competition In more tangible words: Social refers to meeting the needs of people, profit or planet through what you do. Purpose is why you do it. Venture means involving considerable risk. The risk is of course connected to the capital involved. In most SPVs the capital comes from philanthropists. People who give money without any expectations of getting them back. An in- creased number of venture capitalists (VCs) seem to find interest within this field. VCs invest in companies in which they see a high potential for growth. They are a group of wealthy investors, invest- ment banks or other financial institutions that pool their funds to- gether. In return for the investment the VCs usually demand a say in the company decisions as well as a portion of the turnover. To bottomline it: SPVs invest in social enterprises/entrepreneurs to get their say as well and a part of the turnover.
  38. 38. THE LANDSCAPE 39 Profit Social impact
  39. 39. Is it the why or the Reflections by Daniel Seifter, The today have a more central role KaosPilots International, in people’s individual lives as Team 13 well as the society they oper- ate within and a question has In the second issue of the arisen as to whether they have newsletter CHANGE from a responsibility in regard to sus- 2008, distributed by myC4 (a tainability and social needs be- platform for supporting social cause of their strong position in enterprise in Africa), a head- the world. Looking at the mar- line reads: “Sometimes, it ket and society as a whole, this falls upon a generation to be definitely seems to be the sit- great”17. Apart from the feel- uation. The market is putting ing of being overwhelmed higher demands on products with responsibility, the head- (environmentally-friendly, sus- line inspires to look more tainable solutions, fair trade deeply into how social inno- etc.) and companies in turn are vation can create new op- required to take more respon- portunities to solve world sibility on a social level (both in problems. How do we as rep- regard to its employees, supply resentatives of this genera- chain, and society overall). tion meet the yet unmet social Professor Bradley Googins at needs? the Boston College, Centre of Corporate Citizenship describes “You never change things by what he calls: “The 5 stages of fighting the existing reality. To Corporate Citizenship”20 as: change something, build a new model that makes the existing 1. Compliant (Do what is expect- model obsolete.”18 These words ed due to laws and regulations). by Buckminster Fuller open up 2. Engaged (Working with a CSR to the phenomena of social in- profile to contribute). novation by inviting new initia- 3. Innovative (Finding new so- tives to create social change. lutions within their structure to Fuller, who among other oc- create a greater effect on social cupations was a visionary au- needs). thor and inventor, was through- 4. Integrative (Integrating social out his life concerned with the innovations in the corporate sys- question “Does humanity have tem). a chance to survive lasting- 5. Transformative (Changing the ly and successfully on planet Game. Make it a natural way of Earth, and if so, how?”19 running a business). Companies and entrepreneurs
  40. 40. what that matters? a strategic way, CSR could be- By creating a CSR profile a come part of a company's com- company displays that it takes petitive advantage. Could these some sort of social responsibil- strategic plans be an example ity whether connected to envi- of such innovative capitalism? ronmental sustainability or more Is it socially innovative although direct social needs. It brings the priority is profit and not so- credibilit y and strengthens the cial needs? brand in the eyes of the market Whether the initiative comes which is beneficial to the cus- from the heart (social innovation tomer, the company, and soci- in this text) or from the head (in- ety. A survey made by the con- novative capitalism according sultancy firm McKinsey in 2007 to the above) does it matter in revealed that 95% of CEOs said the end? When a company im- that society now has higher ex- proves its social responsibili- pectations of business taking on ty as a part of a strategic plan public responsibilities than it did to increase their turnover, it still five years ago21. Therefore, it is improves society. A company no surprise that social and envi- which produces more sustaina- ronmental issues are becoming ble and environmentally friend- business drivers. ly products due to market de- mands might boost its profit Innovative Capitalism? and be seen as a more respon- At first glance the term inno- sible company, yet it also con- vative capitalism seems only tributes to a healthier world. to awake associations to new Whichever motivation the ini- ways of making more money tiatives stem from I feel inspired but what if the new ways of in- by the words of his holiness the creasing profit, that stem from a Dalai Lama. “Rather give with demand in the market, result in an un-clean heart, than not give increased social responsibility? at all”. The Committee Encouraging Corporate Philanthropy (a New York based business associ- ation) reports that the share of corporate “giving” with a stra- tegic motivation jumped from 38% in 2004 to 48% in 2006. Also, in 2006, The Harvard Business Review published a paper on how, if approached in
  41. 41. 42 THE LANDSCAPE Non-Governmental Organizations In a definition from 1945 Non-Governmental Organizations (or NGOs) are defined as organizations that are not controlled by gov- ernments; organizations that exist to defend the rights of the civil society but are independent from the state. NGOs also differentiate from private companies as they do not pursue a profit. There are many forms of NGOs and many alternative terms to cover it. Independent sector, volunteer sector, civil society, grass- roots organizations, transnational social movement organiza- tions, private voluntary organizations, self-help organizations, and non-state actors. In World Bank typology NGOs are categorized as either operational or advocacy NGOs. The primary purpose of an operational NGO is the design and implementation of develop- ment-related projects whereas advocacy NGOs defend or promote a specific cause. Many international NGOs have a consultative status with United Nations agencies relevant to their area of work. As an example, the Third World Network has a consultative status with the UN Confer- ence on Trade and Development. Large NGOs may have annual budgets in the hundreds of millions or billions of dollars. Funding such large budgets demands signifi- cant fundraising efforts on the part of most NGOs. Major sources of NGO funding include membership dues, the sale of goods and services, grants from international institutions or national govern- ments, and private donations. Several EU-grants provide funds ac- cessible to NGOs. Some organizations resembling NGOs are starting to put more emphasis on generating their own profit fuelled by a need to free themselves from the dependency of donations. Many social enter- prises surfacing in China are examples of this due to the tight re- strictions towards donations that exist in China.
  42. 42. THE LANDSCAPE 43 Springboard Innovation22 Springboard Innovation emphasizes the aspect of profit by calling themselves a “social profit” organization. Springboard Innovation is passionately enabling youth and adults to solve local challenges with sustainable, innovative solutions. They believe that the key to increased capacity is education and engagement with the community and their ed- ucational material and training programs are customized to fit any learner or context. One example is a program called Lo- cal Agenda that helps people create positive and sustain- able change — in their own communities. Their approach is to share knowledge on problem identification, problem solv- ing, leadership, and planning with community members who are passionate about changing the future but lack the skills Springboard can provide. The organization looks at innovation as a process that can be learned and put into practice to create lasting change, and Local Agenda is just one great example of that. They have a very humble approach towards learning and believe that with a little education on innovation you can, as a community mem- ber, create the sustainable change YOU want!
  43. 43. 44 THE LANDSCAPE Social Entrepreneurship A social entrepreneur works to address social needs and problems in innovative ways by viewing challenges in society as a platform for idea generation. She differentiates herself from a conventional entrepreneur by focusing on the financial aspects as a means to an end rather than an end in itself. She measures the success of her endeavour on it’s positive impact on society as a whole. It is a Baisikeli* Bikes for a Better Future – the Work of a Social Entrepreneur. The idea of Baisikeli is to ship used bicycles to Africa where they are repaired or rebuilt and sold and where the profit forms the foundation for the creation of a sustainable bicycle industry in Af- rica. - A commodity that has no value in one place may have great value in another - The idea comes from a need for quality bi- cycles in Tanzania where most bicycles are of mediocre standard and are sold at an extremely high price. While there is a high de- mand for used bicycles in Africa – 400,000 bikes are scraped an- nually in Denmark. Many of these can be used in Africa. We strive to make bicycles accessible in the poorest areas of the world where the bicycle can be a means out of poverty. We have designed bicycles that meet the needs of the poorest so that we can: Increase the income of farmers by more than 100% Create healthcare accessibility Increase the attendance to primary schools All of the above are considered key factors in reducing extreme poverty and meeting the Millennium Development Goals. “My definition of social innovation is to activate unexploited re- sources. To take something that has no value at one place, acti- vate it, and thereby impart value into it.” Henrik Smedegaard Mortensen, founder of Baisikeli www.baisikeli.dk *Baisikeli means Bicycle in Swahili
  44. 44. THE LANDSCAPE 45 common misunderstanding that profit is unimportant for a social entrepreneur but in fact the ability to self-sustain by generating prof- it often determines the viability of the ideas or projects of social en- trepreneurs. By breaking with established structures, logic or con- victions, they pave the way for new practices and social innovations that benefit both the economy as well as people (See page 21).23
  45. 45. 46 THE LANDSCAPE The Specialists In 2008, a Danish IT company called “The Specialists”26 re- ceived the international IT award for “most unusual entrepre- neurship” and it is a good example of an initiative with a triple bottom line (people, planet, and profit). The Specialists are known for primarily employing people with autistic behaviour to work with quality checking software thus acknowledging that they are some of the best in the field. In a simple and beautiful way, the Specialists tell the good story of how IT businesses can be a constructive engine to change the world and improve people’s lives. Not only do the people employed as a result of this initiative benefit but so does the computer industry itself through the employees’ highly devel- oped skills within repetitive quality control. Usually the IT award goes to millionaires who have been in the industry for a long time but for the first time, thanks to the Specialists, a social company has received this award. This is something that creates an echo among autistic people, rela- tives, and therapists in the entire world as a new world in which autistic people are actually the best within their field is opening up in front of them. Among young people with autism this initiative gives new hope of entering the job market.
  46. 46. THE LANDSCAPE 47 Social Intrapreneurship Social intrapreneurs, also known as corporate changemakers, rep- resent many of the same values as social entrepreneurs but func- tion within corporations and companies. Social intrapreneurship is becoming increasingly common and has the potential of being a driving force within corporations or companies towards more sus- tainable business. “The greatest agents for sustainable change are unlikely to be [so- cial entrepreneurs], interesting though they are… They are much more likely to be the entirely reasonable people, often working for large companies, who see ways to create better products or reach new markets, and have the resources to do so.”24 The social intrapreneur acts “behind the scenes” of large corpora- tions, developing tools and methods that push businesses in a so- cially responsible direction. Provided with economic and adminis- trative support from the company itself, he/she is allowed to focus on the entrepreneurial idea alone. Often the challenges of social in- trapreneurs lie within the organizations, e.g. through internal resist- ance to change.25 In an interview, Win Sakdinan of Proctor & Gamble compared cor- porations to “elephants, as they take time to change directions, but when they do, they bring lots of weight or positive leverage.” Social intrapreneurs may represent strong drivers of positive change. They function from within already financially strong entities with a wide reach and can benefit from the knowledge and skills al- ready present within the organization.
  47. 47. 48 THE LANDSCAPE Before Moving On Different readers may find themselves connecting only to some of the areas above. However, understanding the landscape will hope- fully present a glimpse into the endless possibilities you are faced with when looking for ways to engage in the creation of socially in- novative solutions. Where common sense normally refers to logical thinking you could also see it as the sense made up of a collective mind. The gather- ing of different competencies, mindsets, and knowledge. Important change does not have to be difficult and it can often come simply by creating the arena for such common sense to be played out. A socially innovative initiative can also consist of setting up a con- nection between two parties that can benefit from one another but who were unaware of each other’s existence. Creating such a con- nection can be as easy as a few conversations or phone calls and setting up the right connection can mean a difference to a lot of people. For those of you who wish to make the trip, don’t hesitate to bring people together.
  48. 48. THE LANDSCAPE 49
  49. 49. Famous Travellers Famous Travellers What does it take to do good while doing well? We would like to highlight some of the successful doers that have al- ready travelled the path to social innovation. Read about where they came from, what they brought with them, and what they strived to- wards in their endeavours. Innovations like theirs have gone beyond their creators and rev- olutionized the world we live in. They stand as a testament to the power of open eyes, minds, and hearts, and the willingness to de- fy the risk of failure. In all of the examples shown, the people behind went forward because of a belief in the need for their idea. They in- spired others to join them in their efforts (individuals, organizations, and networks) and by combining skills they reached the peaks of their ambition.27 Other people travelling the world of social innovation are the ex- perts, the researchers, the students, educators, and explorers who tell the story of this age-old phenomenon. They are change-makers that shed light on creating social change through passion, dedica- tion, and alternative channels in our societies. Let yourself be inspired. What would it take for you to become a social innovator? If you already feel like getting started, sneak a peak at the tem- plate “starting with me” on page 74. Do what you love Love what you do
  50. 50. FAMOUS TRAVELLERS 51
  51. 51. 52 FAMOUS TRAVELLERS Table of do’ers Who, where, when? Their Innovative The Need Solution Robert Owen He is considered one He was upset with the Wales, of the founding fathers living conditions in his United Kingdom of the cooperative community, especial- Early 1800’s movement. ly the way that the mill workers were being treated and he was determined to make a change – alleviating www.robert-owen.mid- poverty through so- wales.com cialism. Florence Nightengale She was a pioneer Through a rebellion to- Europe of modern nursing wards her family and Mid 1800’s through compassion, status, she chose to commitment to pa- become a nurse which tient care, and diligent was considered a job and thoughtful hospi- for the poor. Her work tal administration. during the Crimean War made her fight to better the standards of hygiene as many www.florence-nightin- soldiers died from in- gale.co.uk fections. Saul David Alinsky He was a main fig- As a slum kid raised in Chicago, USA ure of community or- Chicago he decided to The 1930’s ganizing. He led new make a change in his ways to organize the own backyard, begin- poor and powerless ning locally. Through and created a back- creating neighbour- yard revolution in cities hood communities, he across America. realized that the citi- zens could stand up for themselves and http://en.wikipedia.org/ gain better living con- wiki/Saul_Alinsky ditions.
  52. 52. FAMOUS TRAVELLERS 53 Who, where, when? Their Innovative The Need Solution Wangari Maathai She is an environmen- As the daughter of Kenya tal and political ac- farmers in the high- Since 1970’s tivist. She founded lands of Mount Kenya the Green Belt Move- she became inspired ment which has now by her surroundings to planted over 40 million use her passion for the trees across Kenya to environment and fe- prevent soil erosion, male empowerment. especially focusing on www.greenbeltmove- mobilizing women in ment.org poverty. Ray Anderson He is the founder and When he read a book Texas, USA chairman of Interface by Paul Hawken en- Since 1994 Inc. (floor manufactur- titled The Ecology of er). He is committed Commerce which ar- to reducing and later gues that the industri- eliminating petroleum al system is destroy- from the company’s ing the planet, he was manufacturing proc- immediately moved to esses. The compa- make a drastic change ny uses waste prod- in the way his compa- ucts to produce floor ny impacted the envi- tiles. Furthermore, ronment. they strive for 0-nega- tive environmental im- www.interfaceflor.com pact in 2020.
  53. 53. 54 FAMOUS TRAVELLERS Who, where, when? Their Innovative The Need Solution Cecilia Zanotti Co-founded an Projecto Bagagem Brazil NGO called Projeto gives tourists an in- Since 2003 Bagagem which is sight into local Brazil- a community based ian communities and eco-friendly tourism their traditions. The network. communities gain funds to maintain their www.projetobagagem. culture and raise their org living standards. Peggy Liu She founded JUCC- “The world is at war China CE (Joint US-China with energy and China Since 2007 Cooperation on Clean is our common battle- Energy). A Non-profit field”. China is becom- organization aimed at ing the world’s larg- helping China acceler- est consumer of fossil ate 30 years of world fuels. The impact on experience and devel- the environment will opment into 10 years. be dramatic if China evolves as the west- ern countries have. www.juccce.com
  54. 54. FAMOUS TRAVELLERS 55
  55. 55. 56 FAMOUS TRAVELLERS Muhammad Yunus Founder of Grameen Bank and author of “Banker to the Poor: Mi- cro-lending and the Battle Against World Poverty" This is the story of Bangladesh's Muhammad Yunus, Nobel Peace Prize winner and the founder of Grameen Bank. Yunus created a new category of banking by granting millions of small loans to poor people with no collateral thus helping to establish the microcredit movement across the developing world. After studying economics in the United States, Muhammad Yu- nus went home to Bangladesh to help the rehabilitation after the lib- eration of the country. A shift occurred at a point when he did not feel that the under- standing and knowledge of economics from the university course he was teaching was applicable to Bangladesh, which at the time was rated as the poorest country in the world. Yunus did not feel he was making a difference. "The least I as a human being can do is to help just one single per- son, every single day"28 Outside the university campus in Jobra, Muhammad Yunus discov- ered that very small loans could make a disproportionate difference to a poor person. Jobra women who made bamboo furniture had to take out unmanageable loans for buying bamboo to pay their prof- its to the moneylenders. The first loan Yunus gave out (USD 27.00 from his own pocket) was given to 42 women in the village. The women in turn made a net profit of USD 0.02 each on the loan. While traditional banks were not interested in making tiny loans at reasonable interest rates to the poor due to high repayment risks, Yunus believed that given the chance the poor would repay the bor- rowed money and hence microcredit could be a viable business model. This idea proved to be a good one. Grameen Bank was born and has since its start in 1976 provided 4.7 billion USD to 4.4 million families in Bangladesh. (Equivalent to each family getting $1000. Paying back $10 at an interest rate at 1%) Muhammad Yunus' actions and successes with Grameen Bank have since inspired others to do the same and the economic tool of micro financing has proven to be one of the strongest in the battle against poverty around the World.
  56. 56. FAMOUS TRAVELLERS 57 "Credit should be accepted as a human right”29 According to Muhammad Yunus the reason why microfinance is so powerful is the ownership and empowerment created when you see possibilities and show trust to even the poorest of the world. He believes that everyone rich and poor has the same capabilities and should have the same possibilities for creating a living on their own. Muhammad Yunus is a great example of a man that made it far by believing and by following up on his ideas and dreams. He is a do'er and he dares to do.
  57. 57. 58 FAMOUS TRAVELLERS Dave Eggers Founder of 826 Valencia "Many writers, having written a first best-seller, might see it as a nice way to start a career. He started a movement instead."30 826 TIME Magazine VA L E N C I A As a founder of the San Francisco-based tutoring centre 826 Va- lencia, Dave Eggers has brought together community members to help young people excel in their writing and believe in themselves in a way they never had before. Dave is a writer, editor, publisher and an inspiring social innovator of our time. Here is someone who dropped a pebble in the ocean and created a tidal wave. Dave is a spring chicken (born in 1970) but already has a wealth of experience under his belt. He has written a memoir, multiple nov- els and pieces of non-fiction as well as founded an independent publishing company and given birth to a brilliant tutoring centre concept (which he describes as a "weird happy accident"…we will explain that later). In 2005 he was named one of Time Magazine's "World's 100 Most Influential People". He has been given $250,000 by the Heinz Foundations and most recently he was the recipient of TEDPrize 2008. But the reason we highlight Dave Eggers in this guide is not be- cause of his long list of titles, awards, and accomplishments. We share his story with you because it is about taking action on a street level and making a beautiful difference in the world by embodying your true passion in life. Back in 2000, Dave was living in New York. He was writing his first book "A Heartbreaking Work of Staggering Genius"31. It was at this time that a social need became very apparent to him. It was not until he moved back to San Francisco and gathered together old friends and new friends that his idea on how to face this need took flight.
  58. 58. FAMOUS TRAVELLERS 59 The Challenge Many students at city schools are not able to keep up with their classes. The Influences English is not spoken as a first language in many households, some children have learning disabilities, the schools are understaffed and under-funded, the teachers are overworked and have little time on their hands and no opportunity to spend one-on-one time with their students. Dave's Inspiration His mom was a teacher, his sister became a teacher, and he had many friends who were teachers. He heard a lot about the strug- gles they were dealing with and knew first hand that they were hard- working and inspiring people. The Thought Paving the Way to the Solution Teachers can't give the students the attention they need. But writ- ers (like Dave and his friends) work flexible hours and often have lit- tle to do during the day. They have the time that the teachers lack. The Innovative Solution 826 Valencia- A tutoring lab, a pirate supply store (yes, pirate, no spelling errors here, ed.) and a publishing company, all in one - A place where writers, publishers and students can work together un- der the same roof. Then and Now At first 826 Valencia had 12 volunteers. Today the organization calls upon more than 1400 volunteers to tutor at the centre and in class- rooms of local schools. In the beginning, the pirate supply store in the front of the building was created simply because the location was zoned for retail, so by law they had to sell something. However, it turned out that the eye patches, peg legs etc. have been selling and the profits now pay the rent for 826 Valencia location. Some of the students involved with what has now become Na- tional 826 have had their work published. In addition to the original San Francisco centre, the organization now has chapters in Brook- lyn, Ann Arbor, Los Angeles, Seattle, Boston and Chicago.
  59. 59. 60 FAMOUS TRAVELLERS Dave is a man of words but he is also a man of action. It is because of this combination that his initiative has been so widely successful. The tutoring project has shed light on many lives but because the story is being told, many other similar projects are springing up as a result of it. With community support a website has now been creat- ed for this purpose of sharing stories and inspiring others. Check it out and join the vision!32 "The schools need you. The teachers need you. The students and parents need you. They need your actual person, your physical per- sonhood and your open minds and open ears and boundless com- passion sitting next to them, listening and nodding and asking ques- tions for hours at a time. Some of these kids just don't plain know how good they are, how smart and how much they have to say. You can tell them. You can shine that light on them one human interac- tion at a time. So we hope you'll join us."33 Dave Eggers
  60. 60. FAMOUS TRAVELLERS 61
  61. 61. 62 FAMOUS TRAVELLERS Marie So and Carol Chyau34 Founders of Shokay Marie So and Carol Chyau are two examples of social innovators,who started a company called Shokay, in China. Marie was born in Hong Kong and Carol in Taiwan. They both hold a number of degrees and have worked in both the private and public sectors (UN). The company was born while they attended Harvard Universi- ty. In the process of studying International Development, Marie and Carol brainstormed on ways to utilize their education and talents to build businesses that could impact poor regions. Both of them hav- ing spent most of their lives in Asia the natural choice was China, a country with increasingly severe income disparity where many in- land regions suffer from poverty and lack of access to markets. During their winter break, Carol and Marie travelled to Western re- gions of China to investigate the needs and resources of the people living there and look for ways to help. They found an abundant resource of yaks and a NGO partner China Exploration and Research Society. This is what they did: Shokay is a social enterprise started with one cause; "To identify the right opportunities that could impact impoverished regions in Chi- na…" The opportunity presented itself in a thick coat of hair, the fur of the massive Tibetan Yak, which is an outstanding resource for fabrics and yarn that equals the quality of cashmere and mohair. Now, Shokay, the Tibetan word for Yak, sells luxury fibre collected in the inlands by local nomadic herders and processed by a number of hand knitters near Shanghai. The philosophy of Shokay is to acknowledge the producing com- munities by reinvesting parts of the profit in the local community. As the company grows, the funds that they reinvest grow equally. The funds ensure the development of the communities. By reinvesting in the communities Shokay not only ensures a sustainable living for the herders but also creates a platform that enables the communi- ties to break free from poverty. The second step in the supply chain of Shokay is the knitting of the products which is based on an island close to Shanghai. The fe- male knitters are all local and work in near proximity of their homes. To increase the empowerment of the people in the remote re- gions of West China, Shokay works to promote wool from the Yak
  62. 62. FAMOUS TRAVELLERS 63 as a luxury fabric on the international scene to quality stamp and brand the material, thereby increasing market value and securing the herders an even better price. The more Shokay grows the more the conditions of the financially disadvantaged communities improve.
  63. 63. 64 FAMOUS TRAVELLERS Jimmy Donal "Jimbo" Wales Founder of Wikipedia We have decided to highlight Jimmy Wales as one of the biggest socially innovative Internet entrepreneurs who has made a huge im- pact in the field of knowledge sharing. Jimmy Wales is the co-founder and brain behind Wikipedia. Wiki- pedia was created in 2001 and is a free, open-content encyclope- dia. It is now the largest encyclopedia in the world. His influence has helped popularize a trend in web development, also called Web 2.0. His aim is to facilitate creativity, collaboration, and sharing among users. Time Magazine named him one of the world's most influential people in 2006 because of his massive glo- bal impact. Jimmy Wales was born August 7, 1966 in America. He grew up in Huntsville, Alabama, and he received his early education from a small pri- vate school run by his mother and grandmother. Education was one of the key values in his upbringing because of the teacher aspect within the fami- ly. In an interview he has formulated it this way: "Education was always a passion in my household…you know, the traditional approach to knowledge and learning and establishing that as a base for a good life"35. Jimmy has always had a great interest in finance and he has a Bachelor's Degree in finance from Auburn University. Furthermore, he has a PhD in a finance program at Alabama University. You may ask yourself, Why is he a social innovator? One of his fa- mous punch lines is: "Imagine a world in which every single person on the planet is given free access to the sum of all human knowledge. That's what we're doing!" The perspective - to share and educate everyone for free - is in- novative in itself. The free licensing of Wikipedia content means that it is free to copy, free to modify, free to redistribute, and free to redis- tribute in modified forms, with attribution links. People from all over the world are using this source because Wikipedia is a platform for information and collaboration between people. It is flexible, adopta- ble and easy to access - it is technology based social innovation.
  64. 64. FAMOUS TRAVELLERS 65 The name “Wikipedia” is a combination of “wiki” and “encyclo- pedia”. Wiki is a term that describes an online tool for collabo- rative authoring. Software programmer Ward Cunningham was the first to use this term which he got from Hawaiian wiki-wiki, which means ‘quick-quick’. “Encyclopedia” derives from the Latin word “enkuklopaideia” and it means “all-around education”. When Wikipedia was created in 2001 all of its technology and software elements had been around since 1995. Its innovation was entirely social - free licensing of content, neutral point of view, and total openness to participants, especially new ones. As a result the core engine of Wikipedia is "a community of thoughtful users, a few hundred volunteers who know each other and work to guarantee the quality and integrity of the work." Wikipedia is a growing organism and will continue to accelerate its growth. It is one of the top 20 websites with 5 billion page views monthly. And through this Jimmy Wales has made himself a legend of our time.
  65. 65. 66 FAMOUS TRAVELLERS Natalie Killassy Founder of Stitch Wise "Our business is our vision at work!"36 Real change occurs when the mechanisms in society are shifted to support a need that is yet unmet. Natalie Killassy of South Africa used the channel of business to make a difference in her local com- munity. Natalie grew up in a mining town. In this African nation, the mining industry has been the main driving force behind the develop- ment of the economy. Due to poor working conditions many injuries and deaths occur each year. Inspired by her environment, the reality she witnessed every day, Natalie decided to do some research in the mines in order to learn first hand about the safety conditions of the miners. What she discovered led her to start up the social enterprise Stitch Wise in 1997. This innovative business employs paraplegics injured in the mines to make products that make working in the mines much saf- er. In making this connection, Stitch Wise is having a win-win-win impact. "What most businesses don't realize is that you just need to make a few changes to be able to employ disabled people, and through that process you can harness a huge pool of skills and opportuni- ties for your business."37 Although her products are innovative, it is Natalie's holistic ap- proach to entrepreneurship that is the real gem of her story. Of her 128 employees, 50% are "differently abled". Stitch Wise holds train- ing and empowerment programs (in the areas of personal develop- ment, adult education, health education, and computer skills devel- opment) and contributes greatly to the advancement of its nation's economy. Surely, Natalie came across challenges along the way but her process was somewhat simple: She saw a need. She felt her role. She acted.
  66. 66. FAMOUS TRAVELLERS 67 My integrity is nonnegotiable, My pride and enthusiasm unsurpassed… Our differences are celebrated, I work at Stich Wise.”
  67. 67. Movement Movement The stories we have highlighted are people we have met on our path or been inspired by in our own work. They show how individ- uals can influence their surroundings by seeing their role in solv- ing the social needs affecting their communities. What is perhaps even more interesting is to see these cases in a broader context. All over the world people are working to combat issues such as cli- mate change, population growth, lack of resources, and violations of human rights. Due to an increase in transnational companies and internet com- munication our world seems so much smaller these days. For some this is a negative phenomenon, however, there are many possibili- ties that come as a result of this trend. What is happening is that more and more people are waking up to the fact that as humans on this planet our lives are not isolat- ed. Our actions and inactions affect one another. Whether it is our trade policies or our innovative projects everything is connected. For some it takes a shorter time to come to this understanding than for others. What is exciting is to see when people come together to create something greater than themselves in order to have a positive im- pact in the world. This is largely happening with the support of valu- able connections created in networks and communities of practice. The Berkana Institute38, founded by the author and consultant Margaret Wheatley, is an organization working with fostering these relationships around the world. “They learn how local social innovation can be taken to scale and provide solutions to many of the world’s most intractable issues— such as community health, ecological sustainability and econom- ic self-reliance. The Exchange connects leadership learning centres around the globe in such places as Brazil, Canada, India, Mexico, Pakistan, South Africa, the United States and Zimbabwe”39 Global learning networks like Berkana and Pioneers of Change40 are supporting entrepreneurs around the world, however, there are other channels at work fostering social innovation. Using education as a tool for creating the world we want to live in we can have an in- credible impact.
  68. 68. MOVEMENT 69 The way in which educational programs are structured greatly in- fluences which mindsets are present in a society. Recent decades have seen a rise in social entrepreneurial programs, highlighting the need for people to go into the world of business with not only the goal of making a profit but with larger visions including people and the planet. An example of these educational programs is the KaosPilots. This is a school focusing on enabling the students to act in an ever changing world through utilizing learning in real world projects and personal leadership etc. Other programs include the Stanford Graduate School of Busi- ness’ Center for Social Innovation41 where they aim to strengthen the capacity of individuals and organizations to develop innovative solutions to social problems, as well as the Youth Social Enterprise Initiative (YSEI)42; a social venture program based in Thailand for emerging young social entrepreneurs in developing countries. As time passes and the world evolves many new efforts and in- itiatives confirm the thought that as individuals we can impact the world but we can create so much more when we work together with a common vision.
  69. 69. 70 MOVEMENT Shedding light on social innovation SIX: Social Innovation Exchange www.socialinnovationexchange.org  Young Foundation Center for Social Innovation London, United Kingdom www.youngfoundation.org.uk  United Nations Global Compact www.unglobalcompact.org Tania Ellis De Nye Pionerer www.taniaellis.dk Denmark World Business Council for Sustainable Development www.wbcsd.org Center for Social Innovation Toronto, Canada www.socialinnovation.ca  ESADE Ramon Llull University Institute for Social Innovation Barcelona, Spain  www.esade.edu/research/socialinnovation/about
  70. 70. MOVEMENT 71 The Skoll Foundation www.skollfoundation.org Stanford Center for Social Innovation at Stanford University Graduate School of Business www.gsb.stanford.edu/csi The Schwab Foundation for Social Entrepreneurship www.schwabfoundation.org NESTA National Endowment for Science Technology and the Arts www.nesta.org.uk global:ideas:bank www.globalideasbank.org Bigger Thinking www.biggerthinking.com The KaosPilots International www.kaospilots.dk CSR Wire The Corporate Social Responsibility Newswire www.csrwire.com If you want to take action, check out the SociaI Innovation in Action chapter on page 72.
  71. 71. SI in action Social Innovation in Action You are approaching your destination. Your bags are packed and you have prepared yourself for an adventurous journey into the field of social innovation. In reading this first part of the travel guide, you have experienced many perspectives that have probably inspired you to think about what kind of actions you could take to create social innovation in your community. We will now present some tools to be utilized to gain clarity, provide inspiration, and raise questions that will help you in your pursuit of this goal. This will be done in a playful manner. Although the great social innovators have surely overcome incred- ible challenges, they have also been passionate about their work and have experienced great joy along the way. Pioneering in the field of social innovation is meaningful and therefore quite exciting.
  72. 72. SI IN ACTION 73 The structure of this chapter will be formed around a few suggest- ed areas to explore when kicking off a socially innovative project. It is important to emphasize that the tools provided are not to be used in any particular order. It is up to you to follow your motivation and need and work with what you feel for at the given moment. Remem- ber, use them while taking action and not as an excuse to post- pone it! In each section, a template will be provided to visualize a certain aspect of your project. Each template will be accompanied with in- structions on how it can be used as well as tips to support you in your work. As a general rule these tools and tips are meant as sug- gestions and can be altered or built upon as needed. The visual tools are printed in a small format in this book. You can scale them up by drawing them yourself on a piece of paper or you can download larger versions for printing from our website: www.socialinnovation.biz “Creativity is allowing yourself to make mistakes – Art is knowing which ones to keep”43 Scott Adams
  73. 73. 74 SI IN ACTION Starting With Me Look at what you do and in which areas you have experience and talent and ask: How can society benefit from my skills? You do not have to reinvent the wheel to create social innovation and apply- ing your skills and knowledge in new ways can be the decisive first step. Use the templates in the order that comes naturally to you. Start with what you have and build on it from there. Don’t force it. Find out what you are passionate about and let it flow naturally. Passion is the strongest driver for action. Popular TV-chef Jamie Oliver is a good example of this; he went from cooking delicious food in restaurants to bringing his business into the school kitchens of Britain, revolutionizing the traditional meal plans and giving children healthier eating habits. Change starts with oneself. It is not the challenges that are too few but the practice of seeing possibilities for oneself. The first tem- plate is one for mapping out where you come from and how you can contribute in a new way. "Nothing splendid has ever been achieved except by those who dared believe that something inside them was superior to circum- stances."44 Bruce Barton
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  75. 75. 76 SI IN ACTION Mapping Out Me Your experiences: Describe some of the things you have done in the past. Focus on some of the accomplishments that you are proud of and write it in the suitcase on the chart. Passion: What do you love doing? Write down what you feel pas- sionate about in the balloon. Skills: What are your competencies? Describe what you are good at in the body. Values: What are your personal values? Values can be non-negotia- ble ideals you seek out or believe in. Write down your values as the ground you stand on. Direction: Where do you want to go from here? Having reflected on your experiences, passion, skills, and values, write down in what ways you see yourself impacting society inside the compass in the upper right corner.
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  77. 77. 78 SI IN ACTION Understanding the Cultural Context To make a sustainable project that covers the intended need it is im- portant to understand the cultural context in which you are shaping it. You have to go beyond assumptions and look for patterns, hab- its, customs, and norms to see how people act and then attempt to decipher what this means. Whether it is the culture of a foreign country or a familiar neighbourhood it is important to look at it with a curious mind. To understand a culture different to your own you must be aware of which filters you possess. This means that you have to find out which culture you yourself come from and be aware of your own frames of reference. This also means stepping back to see which segment or group in society you belong to in order to both under- stand your own perspectives as well as to avoid taking for grant- ed things based on your own experiences that do not apply to per- sons from another background. The better you understand your own cultural background the better you will understand the context in which you want to operate which in turn will make it easier to find viable solutions and cover actual needs. As part of a culture we often take for granted the customs, habits, and rules that are unspoken and this can make them almost invis- ible to us. It can even be surprising to hear our own culture voiced. When observing a culture different to our own, however, things that are unusual to us stand out clearly. Because of this it may prove easier to understand and question a culture when observing it from a distance. Whether in our own or a foreign culture, however, these unspoken customs, habits or rules often prove to be some of the strongest guides to a deeper understanding. Make this your start- ing point and work on finding out why you find certain things or be- haviours noteworthy.
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  79. 79. 80 SI IN ACTION Understanding the Cultural Context We recommend that you fill in two templates45. One for your own cultural background and one for the target culture. This is to gain a deeper understanding of how they influence one another. When you do this you may find links between the “mapping out me” tem- plate and the mapping out of your own culture as well as links be- tween “the target group” template and the mapping out of your tar- get culture. Target culture: Write a headline that sums up the culture you are ob- serving in the sign. Distinguishing features: What stands out and why? Note things that have triggered you in a good or a bad way. These are often things that are different from what you know. Ask yourself; “what has made me intrigued, annoyed, surprised or frustrated?”. Write it in the sun and the cloud. Remember to find out why you had these reactions. Taken for granted: What is taken for granted and why? Some peo- ple expect there to be food on the table every day while others do not. Try to find out what is taken for granted and why by asking or observing and write it in the airwaves. Community: What creates a sense of community? What links peo- ple together? What makes them belong to their culture and how is this acted out? What would people in a certain culture collectively defend if they were put under pressure? Write your findings in the body of the group of people. New insights: In the globe where the group is standing, list your key learning and new insights based on all the observations you have just listed. “Make the Known Unknown and the Unknown Known”
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  81. 81. 82 The Need The incentive to embark on social innovation often stems from a motivation to answer an unmet social need. Whether the need is the foundation for a whole project or the social aspect is an add-on to an already existing business is up to you. Either way, putting em- phasis on the need may help to optimize your outcome. For inspiration as to where to make a difference you need only look at your own neighbourhood. There is no need to travel around the world looking for places to make social innovations happen. The best place to start is often in your own backyard. How to spot opportunities for Social Innovation To help you meet the world with an open mind for spotting po- tential social innovations, we have designed a pair of glasses that provide you with a filter or guidelines to challenge the way you look at the world. The new perspectives can enable you to see alternative and socially responsible solutions for creating change, starting in your own backyard. Warning: The glasses may turn things upside down causing new insights and wearing them for a longer period of time can potentially result in a shift of mindset! Guidelines for How to Use the Glasses to Gain New Insights - Cut out the glasses from the template in this book. - Depending on individual style and change in fashion, you can also create your own. - Put them on. - Take a stroll in society, starting in your own neighbourhood and use the filters described to the right:
  82. 82. 83 1. Frustrations What frustrates you in society? Use it as a driving force as the founder of the Live Aid concerts, Bob Geldof did as a response to his frustration with the catas- trophe in Ethiopia in 1979. 2. Think globally - act locally What inequalities exist in your own backyard? You are an expert on your own society; use it to create change most effectively. 3. Ask Other people have different perspectives than your own. Ask for their opinions and talk about what needs they see that might inspire you. 4. Imagine We often tend to focus on problem-solving. Shift your lenses and start visualizing the world you want to live in. What does it take to get there?
  83. 83. 84 SI IN ACTION The Need and the Dream Need: What is the need you want to put emphasis on? Explain what it is in the building. Geographical and societal context: In which context do you find the social need you are highlighting? Describe the geographical loca- tion and the characteristics of the society where the need exists in the square inside the globe. Dream scenario: What change does the execution of your project create? Describe the dream scenario in the rainbow. Solutions: What are the possible solutions to resolve this need? Write down these in the roof of the building.
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  85. 85. 86 SI IN ACTION Target Group Consider who benefits from your initiative and actions. Society over- all is a large target group, especially seen in a global perspective so map out the specific beneficiaries of your project. They are the real, immediate aim: the people who can move forward are empowered or successful where they otherwise failed as a result of your work. The Target Group (external stakeholders) Target Group: Whose needs are you meeting? Who are you creat- ing value for? The people in the wagon represent the people who will benefit from the project. Map out the target group of your work in the wagon. Supporters: Who will support the project? The characters behind the wagon represent the people who consciously or unknowingly help and support the initiative (volunteers, consumers etc.). Wins: Who are the winners at the end of the day? You are doing something which has a positive impact on society. Map out all the winners/beneficiaries in the trophies along with a description of what they win.
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