Work in progress -defining the core framework for a market and investment led transformation of capitalism to focus on innovation and societal outcomes (instead of transfer of costs to society through externalities).

1. Capital Driven Transformation
George A. Polisner
Work in Progress –April 21, 2013

2. Capital Driven Transformation
 Leverage the flow of Investment AND Market Demand (consumers,
institutional procurement)
 Improve Societal Outcomes
 Momentum for visionary CEO’s and leadership
 Mitigate externalities
 Allow market to lead through innovation not transfer of costs to society

3. Economic Transformation Framework
 Economic Transformation Framework (ETF)
 Comprehensive view of loosely-coupled entities focused on Corporate Social Behavior
(CSB)
 For Profit, Not for Profit, For Benefit entities
 Resources are imperative
 Identify all actors
 Identify sequencing and critical path
 Organized, intelligent approach to capital lowers overall funding risk and transactional
costs
 Bring Foundations, VC, Angels and Exchanges together and align with ETF entities

4. Economic Transformation Framework
 “The Social Responsibility of Business is to Maximize Profits” –Milton
Friedman
 How?
 Leadership and Innovation (Creation of value)
 Efficiency (Lower costs)
 Transfer (Externalize Costs) to Society

5. Economic Transformation Framework
 Transfer (Externalize Costs) to Society
 Air/Water Pollution
 Destruction of Commons (mining, extraction)
 Safety standards for products and employees
 Compensation/Benefit Costs of Employees
 Tax Avoidance
 Infrastructure (roads, highways)
 Societal health
Obesity (fast food), Cancer/Lung (tobacco)

6.  Government Regulation and Enforcement
 Ebbs and Flows
 Citizens’ United decision will continue to severely weaken societal protection through
government
 Leverage the “Market” to create sustainable and meaningful growth/margin
incentives
 Focus on innovation and value creation.

7. Economic Transformation Framework
 Economic Transformation Framework
 Leverage market demand and socially responsible/impact investment
 Identify industry sector leadership in Corporate Social Behavior

8. Economic Transformation Framework
 Media (educate and inform)
 Corporate Social Behavior(CSB) Data Providers (inform purchases and
investment)
 Retail, Banking, Finance, Insurance (Certified entities)
 “Green” centers in major urban areas –major online presence
 Unions
 Consumers
 Investors
 Non-profits and NGO’s (Environmental, Labor, Policy, Education, Media)

9. Economic Transformation Framework
Materials
Data/Certify
Retail
Logistics/
SupplyManufacturing
Consumer
Consumers
Investors
Manufacturing Packaging
Warehouse
Suppliers
CSR/Ratings CSR/Ratings CSR/Ratings
$
Banks/Financial Institutions
Retail Stores
Shipping
Online Shopping with
Ratings/Certified
Retail Malls
Media/Film/Print/Broadcast
Educate/Inform
Certifications Auditors
Quality Assurance
Distribution

10. Economic Transformation Framework
 Retail Layer
 Good Bank, Community Credit Unions, Financial Institutions and Insurance entities that are “SR-
centric”
 Costco, Local Community Economy Stores, B Corp.
 Online shopping from SR-evolved entities
 Media –Educate, Inform and Activate
 Films
 Broadcast
 Web
 Textbooks
 Games

11. Economic Transformation Framework
 Clean Transportation
 Electric/Hybrid
 Other Safe, Clean Energy Alternatives
 Fuel Efficiency
 Intelligent Logistics (minimize transport through grouping)

12. Economic Transformation Framework
 Manufacturing Layer
 Minimize environmental footprint
 Worker health, safety and wages

13. Economic Transformation Framework
 Materials Layer
 Raw Materials
Minimize environmental footprint
Natural resource conservation
 Energy Portfolio
Conservation
Clean, Safe Renewable portfolio (non-nuclear, non-fossil)

14. Economic Transformation Framework
 Data and Certification Layer
 Corporate Social Behavior Data
Aggregation
Normalization
 Ratings and Analysis
 Certification, Compliance and Validation
 Audit/compliance function
 Licensing and Revenue Sharing Agreements