This week Newsweek’s cover story promotes an exclusive ranking of “The Greenest Big Companies in America”. This is an important moment in time. In 2006, Vanity Fair was among a few high profile publications to introduce entire annual issues to the green movement and their readership was reported to have been the lowest of the yearly issues.

Fast forward three years and six months later, the introduction of Newsweek’s list marks an important moment in time. Joining the annually released lists of the Best 100 Companies to Work For (Fortune), the 100 Best Global Brands (BusinessWeek) and The Largest 500 Companies (Fortune), the (presumably) annual list represents a palpable and permanent shift in business ethics and operations. Transparency is a leading value of those engaged in the green movement but it is still interesting to read that 70% of the companies participating voluntarily provided the data necessary to compile the list (otherwise utilizing publicly available information).

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The large gathering at HUB Bay Area’s pre-launch gathering last night at the Brower Center in Berkeley was impressive.

Within the short one hour window that I was there, I met someone from Global Issues Network – an organization dedicated to introducing youth to the power of networking and conversation to solve the world’s most pressing issues; from the Global Micro-Clinic Project – an organization helping economically depressed and conflict ridden areas form partnerships to prevent and manage disease; from Silicon Valley Bank – banking for innovative ideas; and from Solutions – an enterprising LEED certified collaboration of architects offering “new thinking” to help re-architect problems and find solutions.

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With an underwear expert on staff and Yves Behar on the team, mastermind of the Fuse Project a widely acclaimed  industrial design firm with products to its credit including One Laptop Per Child and the Jawbone headset,  PACT may have the product to back up its initial appeal.

A quick read of the web site reads like many start-ups - casual, fun, informative.  10% of each sales goes to non-profits.  And in a nod to the transparency indicative of the category, they tell you what they’ve figured out (just about everything) and what they haven’t (how to “recycle” the underwear when you’re done). They say there’s a video coming in September.  Watch for more revealing information on PACT underwear then.

image credit: PACT

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Set up as a “201″ panel discussion, the moderator asked the audience and participants to be honest, avoid soliloquys and “pitches” and stick to the business of user-worthy advice.  Matt Flannery, co-founder of Kiva.org, Steve Newcomb, co-founder of Virgance (new owners of this blog), and Ben Rattray founder of Change.org then answered questions designed to help fledgling business idealists through the realities of what it takes to rally social change.

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What he does “for fun” is use these same storytelling techniques to record history and facilitate conversation on the very real and complex issues of our day – struggles that have become storytelling lore but have real implications for inspiring change. He calls this experimental effort The Dilemmas Project, a multi-media platform for engaging citizen participation around the ongoing dilemmas ordinary people are facing every day.

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Last week, San Francisco’s Mayor Gavin Newsom passed into law an

Yes, joining other similar programs in Seattle, Boston, San Diego and Pittsburgh, residents will be required under threat of fine to contribute their yard waste and food scraps. The fines aren’t meant to aggravate, rather Mayor Newsom is interested in incentivizing compliance.

On the face of it, the composting effort seems a bit complex in its implementation and infrastructure. Or is it? In actuality it’s fairly straightforward, it simply requires a mindset shift with an extra few pieces of equipment at the homestead and office. Of course we all groan when we think we might have to throw our banana peels into a separate bin. But once we’re used to it, and our city is at 90% waste efficiency with community gardens, urban parks and micro-farms benefiting, what’s to deter us from making a little extra effort and re-train ourselves now?

Herein lies the challenge. The opportunity for San Francisco will be to imaginatively engage us in a herculean effort to educate AND motivate compliance.

The “Reduce Reuse Recycle” campaign has gained some strong ground, thanks not the least in part to its proficient use in elementary school these days (what parents have not heard their kid come home chanting this?). It’s a catchy phrase with an easy icon that we all recognize. And the three descriptive words help us understand at a base level both our actions and the big picture. No small feat.

And there have been other more entertaining efforts. The “Got Milk” campaign introduced by the California Milk Processor Board in 1993 has been credited with increasing milk sales nationwide. The San Francisco based ad agency Goodby Silverstein & Partners created that one. And remember the California Raisins? Introduced in 1986 by the California Raisin Advisory Board, another top agency Foote, Cone and Belding created that one.

This is not to say that all campaigns need professional-grade characters with narratives to entertain us. The digital world has actually provided us with a rich array of channels that may be employed. And companies like Virgance have shown us that there is no limit to creative methods of employing social activism.

San Francisco, like many cities, is not exactly rife with cash to employ a hot ad shop to devise its strategy, but hopefully this trend-setting city will get resourceful and seek creative solutions and partners for engaging and motivating positive behavior change.

It may seem idealistic or even naïve for students to be taking this unsanctioned oath yet, 8 years after Enron kicked off a two-year run on accounting and financial fraud (WorldCom, Adelphia, Tyco, Global Crossing), we seem surprised that financial fraud has brought the global economy to it’s knees.  Our infrastructure is begging for systemic changes and the principles of capitalism are being challenged, yet perhaps it’s simply our moral compass that needs re-setting?

When President Obama took office, he asked us to be virtuous.  He asked business to make decisions on not just whether it was profitable, but to ask the question “is it right?”

Fareed Zakaria suggested in Newsweek’s The Capitalist Manifesto: Greed is Good (to a point) this week, that no system can work without a “sense of ethics and and values at its core.”  No matter what reforms get put in place, no matter what systemic shifts we make, unless common sense, judgment and an ethical standard are in place, future innovations in business will result in the same excess and collapse.

And at TED Talks in February, Barry Schwartz,  a psychologist from Swarthmore who studies economics and psychology, spoke about the loss of practical wisdom in business.   Incentives have driven out moral will.  Rules have created an over-reliance on whether or not they exist. Instead of nurturing decision-making capabilities and moral character, a “solution” based on pay-offs has been implemented.

So maybe the students from Harvard, Oxford and Stanford aren’t so idealistic after all.  Across the spectrum, leaders and pundits are calling on a return to old-fashioned notions of virtue, nobility and the ability to distinguish between right and wrong.  As the next generation of business leaders emerges into the worst job market in decades, perhaps this re-focus will not only serve to raise our expectations (and hopes) for future business leaders, but will be a call to action for the current management profession as a whole.

image credit: JordanH at Creative Commons

In 2009 it is expected that 1 billion cell phones will be sold worldwide.  Asia Pacific will increase its uptake from 1 in 4 to 1 in 3.  The New York Times recently reported that India adds more cellphone connections than any place in the world with 15.6 million added in March alone.

Cell phones are a hidden indicator of emerging market performance.  They open new markets by reducing distances and by increasing access to information.  This in turn stimulates efficiencies in productivity and amplifies commerce which improves local economies.  Increased wealth creates independence and leads to a more educated population which in turn, drives market-driven policy making and other reforms.

In 2005, the Grameen Foundation set the stage for emerging market cell phone adoption and launched the the “Village Phone” business in rural Bangladesh, publishing a how-to manual and setting up micro-finance loans to villagers in towns that had no access to telecommunications.   Four years later, entrepreneurs have finally caught on and despite the downturn, the last 6 months has shed light on a few innovative initiatives that have been announced in a variety of sectors around the world.

In February, the Gates Foundation in partnership with a worldwide consortium of mobile industries teamed up to announce the Mobile Money for the Unbanked (MMU) initiative.  With a goal of supplying 20 million people with mobile financial services by 2012, this program will enable those in developing countries to carry out mobile banking from their phones in order to protect and grow their money.

Several new projects in the area of HIV/AIDS education have also been announced recently.  Several providers are developing text messaging services to deliver HIV/AIDS health management services (medication regimens, appointments, advice/consultations).   And Project Masiluleke, borne of the social incubator Pop!Tech, will begin its first phase with 1,000,000 broadcast text messages to the general South African public on both HIV/AIDS and TB for a year. Metropolitan Life, an insurance company in South Africa has partnered with CellBook to provide an information booklet on HIV/AIDS that can be downloaded onto the cellphone.

The future of well-designed social innovation programs should take a look at the realities and economics of what is driving health and welfare in emerging markets.  Cell phones are a truly universal technology platform that will provide critical resources to populations of all class and trade.  Hopefully, the iPhone Labs aren’t the only place smart developers are spending their time in.

image credit: marceloconsultario on creative commons

As a brand marketer, I was disappointed at how little we’ve progressed in the last year in terms of being able to move mainstream market behavior towards more responsible product and services adoption.  But the first rule of marketing is to demonstrate authenticity and we all know that marketing is not a cover for product value.   So besides the Clorox Green Works and Sun Chips story, I’m going to give us collective group of marketers a hall-pass this year.

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The 2009 Sustainability Conference kicked off last night in Monterey, CA with opening remarks from among others, Owen Rogers, Partner and Experience Design Lead of IDEO.   A self-described non-expert in sustainability none-the-less first laid out five principals on branding then asked whether sustainability could be a brand?

Whether there is sound reasoning or “the answer” to how brands can change the world to positive effect is not the point.  Owen, Duke Stump, Chief Architect of North Star Manifesto, and a few others’ who spoke, gave the audience hope that indeed this conference will bear out its reputation for evolving the discussion on how brands can effect positive change in the world.

Much has happened in the last year, for better and worse.  And while Jez Frampton, Group CEO of Interbrand spoke of the ever-present adoption barrior that marketers need to make it easier for consumers to choose more sustainable products, Duke Stump pointed out that there are still indicators that change is in the works.  He cited that volunteering is up and crime is down in NYC.  He noted that the Acumen Fund, a global venture fund using entrepreneurial solutions to end global poverty, received 700 applications for 10 internships.   And he proposed the analogy of “brand as bonfire” – a mechanism for engaging conversations and developing relationships.

There are four solid days of workshops and speakers lined up for this year’s sold-out conference.  And there are architects, investors, scientists, technology experts and of course, lots and lots of marketers here to discuss how branding can change the world.  Sustainability is the current platform for evolving this discussion on more responsible products, consumer behaviors and operating mechanisms.  Stay tuned for more…

Yesterday the White House announced President Obama’s 2010 request to Congress for $50 million to set up a Social Innovation Fund with the goal of identifying the most promising results-oriented non-profit programs in order to expand their reach throughout the country.

Taking a page from his grass-roots leadership style, Obama’s announcement of the request continues to drive home a message that change will come from the individuals who make up the communities they live in.  The request for seed capital to identify and foster those efforts will come in parallel to an administration re-looking at policy areas to enable new approaches.

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Which came first, the chicken or the egg?  In the case of St. Thomas 7-Hot Pepper Sauce, it was definitely the chicken.  Without the chicken, there wouldn’t be the fertilizer to grow the hot peppers to make the hot sauce that the sent kids from the St. Thomas projects in New Orleans Lower Garden District off to college.

And without the chickens, Derek Hoeferlin and his architectural students from Washington University would not have had reason to take interest in this little community garden which has begun to harbor interest for it’s uniquely designed “urban chicken coop”, the story of its recovery post-Katrina and the sustainability recipe it holds for other communities across America.

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Good ideas have a life of their own.  That’s what Paul Baricos, Executive Director of the Hollygrove Growers Market and Farm (HGMF) in New Orleans is learning two years after the Carrolton-Hollygrove Community Development Center (CHCDC) set out to figure out how to bring fresh produce to a neighborhood with no real access to affordable food.

The result of this initial vision, and perhaps ten iterations later, is a one-of-a-kind one-acre urban produce and garden center located in the New Orleans community of Carrolton-Hollygrove.  Initiated just two short years ago in partnership with the New Orleans Food & Farm Network, the site is in its fledgling stages of a well mapped out multi-use center.  “We began this journey simply trying to figure out how to bring fresh produce to an under-served community. What has evolved is a vision for this center to be a resource for urban gardening that delivers fresh produce”, relayed Paul.

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Three and a half years ago, not many would have suspected that New Orleans would ever recover, let alone demonstrate the promise of prosperity after Hurricane Katrina wiped out an already fragile economy.  At the time the levee broke, New Orleans was already suffering from an exodus initiated in the late 80’s when the oil industry began its regional decline.  But the very characteristics that have given New Orleans its unique disposition are those contributing to its stealth recovery.

Communities that support successful entrepreneurship exhibit a similar range of traits.  Not surprisingly, many of them are emotional qualities bred by circumstance and history.   New Orleans was a late addition to the United States, acquired as part of the Louisiana Purchase in 1803.  Literally separated by swamps and rivers, New Orleans benefited from both a distance and unique geographic location.  In combination with its very European roots, quite literally the city enjoyed a more laissez-faire approach to development which lent itself to a certain type of creativity and openness.

This same bayou location plus southern gulf weather has also not been kind to it, which has bred another entrepreneurial quality, emotional fortitude.   One could argue that this is an innate quality but New Orleans has an extra high concentration of this, born of survivor-ship.  From this comes a kind of optimism and resiliency that drives entrepreneurs ever forward.

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New Orleans has produced its share of celebrities over the years but since Hurricane Katrina, musicians and celebrities have been keen to give something back to a city that has given and lost so much. Taking their personal passions to a new level, these celebrities are lending their name and fundraising support to create safe and affordable communities with a long-term view of economic redevelopment and poverty eradication.

New housing programs target specific populations or neighborhoods that have been dislocated by the sequence of events initiated by Hurricane Katrina and which are critical to getting the New Orleans economy thriving again.  This article looks at three different visionary approaches to re-building neighborhoods filled with newly empowered home-owners educated and dedicated to preserving a safe and healthy environment for their children.

Keeping the city safe

In 1980, Dan Aykroyd turned his love for blues music into the cult comedy “The Blues Brothers”.  And now, nearly 30 years later, he is lending his financial and fundraising support to get first-responders back into the city that created the blues.

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Jazzfest kicked off its 40th year anniversary this weekend under beautiful breezy blue skies.   Despite the global economic mood, the festival goers seemed more  upbeat this year as programs to rebuild the New Orleans economy are slowly taking root and beginning to yield visible results.

At the round table hosted by the Louisiana Office of Tourism on Saturday at the fairgrounds, Lt. Governor Mitch Landrieu led a group of local culture entrepreneurs and artists in a discussion for the vision of re-invigorating the economy through New Orleans rich heritage.    “We have our priorities right here in Louisiana, we treasure the arts. Our friends and family come first.  We have a shared sense of stewardship to the community”, he said.

As Seth Harvey put it, also from the state’s Office of Tourism, “We have a lot of very different assets here in Louisiana.  50% of our revenue used to come from the oil industry, now that is down to 20% but revenue from the film industry is up to $800 million (up from $25 million in 2002)”.     Louisiana has re-looked at cultural preservation and initiated the groundwork to re-build an economy that leverages its unique heritage.  From reaching out to Hollywood to create the first ever Cajun and Zydeco music category in the Grammys (2008), to fostering international interest in Louisiana’s rich culinary traditions, New Orleans is building bridges back into the state through the promotion of culture not found elsewhere.

In an era dubbed “the creative economy”, Louisiana is an interesting example of innovation. By creating tax incentives for film production to passing legislation to help create districts or cultural hubs within the city, commerce is facilitated at a very grass roots level.  Block by block, business is developing, not from harnessing the internet or technology but from the firsthand understanding of needs and limited available resources.     By tapping into the population that was born and raised in Louisiana and providing them training and guidance, Louisiana is an example of bottom-up development instead of top-down governance, a recipe for resilience.

In fact, the festival itself is a mark of the type of grass roots success that the region seems to feel at home with. The first New Orleans Jazz and Heritage Festival was originally started to celebrate the indigenous music and culture of the region.  40 years later, the festival is expected to attract over 400,000 guests, 40% of which are expected to be from outside the state.  In a down economy, this is a cultural success story.

In celebration of  Jazzfest, this series of stories will focus on why and how NOLA is a hotbed of social enterprise, a check-in on the different housing re-build efforts 3 years after the storm, and a review of some of the unique sustainable community projects that just may have scalable applications.  Stay tuned.

What do CarrotMobs and sugar cubes have in common?   Other than finding their way into your Easter basket, they are the businesses and tools developed by Virgance to create change through consumer organizing.

Thus far, businesses dedicated to “doing good” have been the purview and passion of big names and big businesses.  Bono launched DATA and (RED).  Bill Gates started the Gates Foundation and Home Depot has become synonymous with Habitat for Humanity.   However this past Tuesday Virgance, a San Francisco start-up, threw a little party to celebrate the next stage of their Activism 2.0 model, the acquisition of Green Options Media Network.

Virgance was founded in San Francisco by two business partners interested in elevating activist efforts by connecting them with social networking tools and access to funding.    Not convinced that “for good” had to mean not-for-profit, President and serial entrepreneur, Steve Newcomb began “looking at activism as a potential start-up industry” because he wanted to do more than just start another technology company.

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Van Jones is a rising star in the green economy.  As the founding President of Green for All, he is a doer.  As the author of  “The Green Collar Economy” he is a spokesperson and advocate.  But he is actually much more than that. He’s actually Innovation 3.0.

Nancy Pelosi calls him a “magnificent disrupter”.   If she means that he eloquently navigates new paths (job creation) and connects new ideas (environmental consideration) to age-old issues (populations in poverty), then she is right.

In a recent interview with David Gottfriend, CEO of Regenerative Ventures, Van spoke of the need to revision the way we do things.  He spoke of soul level redemption.  And he spoke of the need for human recovery.    Listening to him you can’t help but be caught up in his articulate passion and belief that there is a better way out of this mess we’re in.

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Yesterday however, a New York Times article covered yet another strategy that they are pursuing, collaborative message placement in mainstream television programming.   These are not your average PSA’s (public-service-announcements) donated by networks but rather longer-term initiatives that strive to create plot lines that will  disseminate accurate information on topics that are widely misunderstood.  The objective is to use entertainment content as a vehicle for educating mainstream audiences on topics such as HIV/AIDS and education in the hopes of influencing public views and behaviors.

One of these initiatives, Get Schooled, is a partnership with Viacom that will weave education-themed story lines into existing shows or create new shows centered on education.   While some groups like the Kaiser Foundation have been doing this in some form for years, this approach is vital and new because programming content will get paid for - thus get done well and not simply under advisement.

The business of pop culture should not be treated as a separate entity from the real social issues we face, rather social issues should be treated as content that can prove to be both a valuable business avenue with a worthwhile upside.

What’s next…video games?

photo credit: Kalos2007 on Creative Commons