Chapter 11: Nonprofits and Corporate Social Responsibility

Business entity spectrum: Traditional nonprofit Nonprofit with income-generating activities Social enterprise Socially responsible business Corporation practicing social responsibility Traditional for-profit

Nonprofit-social enterprise= mission motive, stakeholder accountability, income invested in social programs For-profit-socially responsible business= profit making motive, shareholder accountability, profit redistributed to shareholders

There are also a host of external certifications that corporations can seek out to showcase and validate their CSR efforts. What is one example of a certification for this purpose?

One such certification that most are familiar with is Leadership in Energy and Environmental Design (LEED), which is a green building certification program that is used worldwide. Our own Ohio Union building this highly esteemed designation.

Goodwill and other non-profits

-$7. 41 Billion dollars in revenues compared to Chipotle at $3.9 billion dollars. Under armor at $2.8 billion and the vitamin shoppe at $1.2 billion. -It is true that Goodwill does a lot to enhance and improve the environment, but this is not their mission. Goodwill's mission is all about employability, especially for disabled people. Goodwill does a lot more than just thrift stores, the main library here at the Ohio State university is cleaned by Goodwill staff. -The vast majority of employees working for goodwill have a disability. Goodwill seeks out opportunities for disabled people to have a job. -Their brick and mortar stores also employ a lot of people with disabilities. -If you go to Goodwill's headquarters at their Grandview location, you'll find so many opportunities goodwill has for people that aren't able to work. -They actually have a daycare center where people go every single day of the week and goodwill provides so many services, not just health care, but services to make these people happy and feel like they have something to do every single day. -Other organizations in the nonprofit world, Catholic Charities ($4.4 billion), the United Way($4.2 billion), The Salvation Army($4.0 billion), and Feeding America( $1.5 billion), all multi-billion-dollar organizations.

This mix of where these dollars are going is changing over time:

-70s and 80s most charitable contributions were going to religious institutions, now today that number continues to decline to the count of about ⅓. -What is driving donations to go up, but the amount of money going to religious organizations as a percentage is going down? We as a country are becoming more secular and there's a lot more non-profits today that didn't exist in the 70s and 80s and they are doing a lot of the work churches and religious institutions used to do.

Why do corporations give so little?

-A big reason is their fiduciary responsibility to their shareholders. -Corporations here in the US are taxed significantly more than other countries around the world.

How do these non-profits run?

-A component of it is through charitable organizations -The United States is the Most philanthropic country in the whole world. -In 2017, was the first time that the US crossed the 400 billion dollar mark in terms of charitable organizations. -70% of this money is coming from individuals, then 16% is from foundations, 9% is by request, and 5% is through corporations. -Where is all this money going? Primary area is religion and counts for about a third of all charitable donations. Just under that is education. Human services. Foundations. Health. Public-Society benefit, Arts culture and humanities, international affairs, environment/animals, individuals.

Measuring CSR Efforts

-A hotly debated topic. -While many organizations determine how they will measure their own CSR efforts, there are also entities that provide guidance. -Measurements typically include both qualitative and quantitative indicators and will be dictated by the impact area. -While there is no standardized approach, there are best practices that entail self-report, third-party certifications and more to communicate what a corporation is doing to drive progress in their impact areas of choice.

Why are we as a country the most giving in the whole world?

-A lot of it has to do with taxes -As individuals we pay far less taxes than any other country in the world. Because of those high tax rates around the world, the government is expected to do a lot more in terms of charity for their citizens. Here in the US, we do rely on the government to do some, but we will also rely on the nonprofit sector to do a lot. SO, that's why we as individuals give so much.

What is an example of another certification for CSR?

-Another external certification is Fair Trade. -Fair trade is a certification system that aims to promote more equitable and sustainable trading practices between producers in developing countries and consumers in developed countries. -The system seeks to address power imbalances so that producers receive fair compensation for their labor. -When a product is deemed as "fair trade," it oftentimes is slightly more expensive because it is a result of principles that stand for positive working conditions. - By patronizing these products, you are supporting fair trade and empowering producers and reducing poverty.

Dodge vs Ford case (1919):

-At this time, Henry Ford was producing Model Ts so quickly and he wanted to drive down the price of the Model T so that everyone in the US could afford to buy one, in addition to that he wanted to pay his employees significantly more. -However, at this time in 1919 the Dodge brothers had 10% equity in the company, they said "nope you need to return those profits to us as shareholders". -They sued and this case went all the way to the Supreme Court. What the supreme court ultimately decided is that while management rights were expansive, if you wanted to operate as a for profit organization you need to focus on your shareholders and that lives true today. -So, when we are thinking about these different business entities that we can operate as, again if you want to certify as a for profit company, your focus needs to be on your shareholders.

Corporate Social Responsibility (Slides)

-Business takes responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities, and other stakeholders as well as the environment. -Now, most organizations here in the US have what is known as a CSR report that can be accessed from their company websites. As you are preparing for interviews and different networking calls, Ty highly encourages you to read this report in advance. -Easily digestible 5-20 pages with a lot of images, graphics, and charts. When reading these reports you need to be very CRITICAL of them, these are marketing tools and they're ultimately written by the organization. -This is the company's opportunity to showcase all of the great things they're doing for all their different stakeholders, the primary one here is the community.

Dan Pallotta Ted talk:

-Entrepreneur, author, and humanitarian, Dan Pallotta, makes a compelling case that there needs to be a shift in mindset on how nonprofits are viewed. -Pallotta argues that there are two different playbooks that we apply: one for nonprofits, and a different one for for-profit organizations. Some of the key points that Pallotta makes are as follows (the challenges facing the non-profit sector is the following flashcard)

Featuring a local nonprofit: A Kid Again

-Founded in 1995 in Columbus, Ohio, A Kid Again is dedicated to providing children with life-threatening illnesses and their families with joyful experiences that they can share together (think Make-A-Wish but for large groups). -These experiences are designed to create moments of happiness and respite for children who face daily challenges due to their medical conditions. -The organization takes a holistic approach that includes the families in these experiences because they recognize that the entire family is going through the difficulty as a unit. -Bringing hundreds, if not thousands of families together who are facing similar challenges creates an avenue for friendships and alliances so that families do not feel that they are alone. -To offer year-round events that allow children to experience the joys of childhood, the organization creates alliances with local businesses, volunteers, and sponsors. -One such experience is an annual trip to Cedar Point. Cedar Fair, the owner of Cedar Point, generously donates tickets, parking vouchers and even food vouchers for all the kids and their families.

One external entity devoted to measurement of CSR efforts is the Global Reporting Initiative (GRI).

-Headquartered in Amsterdam, Netherlands, this international organization helps businesses and governments understand and communicate the impact they are having on the issues that they are tackling. - In many ways, GRI standards represent global best practices for reporting impact on a range of issues including economic, environmental, and social. -Furthermore, having a standard helps organizations compare their efforts with others so that they can understand how they are performing. -This type of transparency between organizations means that they can learn from one another and improve in order to solve some of society's most pressing challenges.

History of CSR (Tophat) Howard Bowen

-Howard Bowen, often referred to as the "father of corporate social responsibility," coined the term back in the 1950's when he published an influential book called, "Social Responsibilities of a Businessman." - In his text, he explored the moral and ethical obligations of corporations to society. He argued that if corporations are to draw on the resources and human capital of society, then they should emphasize the importance of social and environmental considerations alongside financial performance. -Bowen's work laid the foundation for how we view CSR today, which has evolved a great deal since the 1950's.

Hypothetical organization:

-I'm starting a company and need an initial investment of $1,000,000 - I get 250 shareholders in this room to give me $4,000 - In the first year, we make $500,000 and return $2,000 to each shareholder - In the second year, we make $500,000 and I request that $250,000 go to better employee benefits and $250,000 for charitable donations -How would you feel if I brought that proposal to you as an initial investor? Would you be okay with the distribution of those profits? -This actually happened in 1919 in the Dodge vs Ford case.

History of CSR reporting (slides)

-In 1953, Howard Bowen published a book, Social Responsibilities of the Businessmen, and it is largely credited with coining the phrase, "corporate social responsibility" -In the 60s and 70s, the civil rights movement, consumerism, and environmentalism affected society's expectations of business -In the 90s, CSR was an accepted part of the business world with new models including business ethics and corporate citizenship Verbally said in presentation: -Howard Bowen- who coined the term corporate social responsibility. -It was back in the 50s and 60s where it was really Bowen who introduced this concept that it would add long term shareholder value by focusing on all stakeholders. -It is not only a long-term shareholder value thing, it's a huge thing for recruitment purposes.

Shareholder theory

-Milton Friedman, world renowned economist, known for coining the term shareholder theory. -If you are going to operate as a for profit business, your primary fiduciary duty is that of your shareholders, in other words, it is your role to maximize shareholder return. -Milton Friedman believed that the overriding purpose of a corporation was to "maximize shareholder wealth" -Sharing internal profits is a waste of shareholder's money and potentially immoral because of stealing from owners. -Business operates in a "free market" and has no obligation to support socialism.

Type of Social enterprise: Benefit Corporations or B CorpsPurpose public benefit Accountability shareholders Transparency Benefit Report TAXESS??

-Mix of a non-profit and a for-profit coming together - In the United States, a benefit corporation is a type of for-profit corporate entity, authorized by 35 U.S. states and the District of Columbia that includes positive impact on society, workers, the community and the environment in addition to profit as its legally defined goals. - Benefit corporations differ from traditional C corporations in purpose, accountability, and transparency, but not in taxation Purpose • B Corporations have the right to name specific public benefit purposes (e.g. 50% profits to charity) Accountability • Directors and officers shall consider the effect of decisions on shareholders and employees, suppliers, community, environment. (together the "stakeholders") Transparency • Must publish an annual Benefit Report in accordance with recognized third party standards • Benefit Reports must be delivered to: 1) all shareholders; and 2) public website with exclusion of Structure • Benefit corporations are treated like all other corporations for tax purposes

Entrepreneur vs "social entrepreneur"

-Most entrepreneurs would say that they create social value because they make people's lives better and easier in some way. They like to achieve financial success AND make social impact. -Social entrepreneurs are different in that they achieve financial success BY making a social impact. It isn't so much a choice between the two because they are interlinked and one is not achieved without the other.

Nonprofit industry metrics:

-Nonprofits accounted for 9.2% of all wages and salaries paid in the United States. (almost 10%) -Nonprofit share of GDP was 5.5% -Public charities reported over $1.51 trillion in total revenues and $145 trillion in total expenses. -Nonprofit industry employs about 10% of Americans -There are over 60 types of 501(c) non profit organizations -501(c)(3): religious, educational, charitable, scientific, literary, hospitals. -If you qualify as a 501(c)(3) there are a lot of tax benefits associated with that.

FedEx- doing a lot in the CSR space:

-Partnered with a non-profit known as Orbis: -Cataract, Childhood blindness, diabetic retinopathy, trachoma, retinopathy of prematurity, glaucoma, where there is no vision, the people perish. -ORBIS- the world's only airborne eye training and surgical center. -James R. Parker Executive VP Air operations: "Our employees want to be engaged in humanitarian efforts and look for ways to volunteer to help and give back to the world. It's a corporate responsibility as well. Fedex delivers medical supplies to their clinics all over the world. Fedex has taken that one step further and donated an MD 10 (airplane) to Orbis that's going to become the next generation flying Eye Hospital." -Fedex has partnered with Orbis to literally save the vision of hundreds of thousands of people. -70% of all forms of blindness are preventable if there's early intervention. -Orbis and Fedex partnership is the single most important collaboration of a corporation and a non-profit in the history of the world of visual loss. -Fedex is very proud to help support Orbis's global mission and help in saving sight world wide. (Orbis Mission) -Shows how a for profit business and a non-profit business can find some value alignment and extract value from that relationship all while helping others

Social enterprise: There are two key characteristics that distinguish a social enterprise from other types of businesses, nonprofits, and government agencies:

-Social enterprises deploy innovative business skills, pursue unique sources of capital and leverage a variety of professional talents to alleviate some of society's most pressing poverty-related issues. -There are two key characteristics that distinguish a social enterprise from other types of businesses, nonprofits, and government agencies: 1. A social enterprise directly addresses an intractable social need: hunger, poverty, education. 2. A social enterprise is a profitable commercial activity (commercial and sustainable activity) -Non-profits are moving to become social enterprises, because you can no longer rely on charitable donations. If the economy tanks and you don't have any donations, nonprofits are screwed, while social enterprises can continue to survive.

Why certify as a B corp?

-The first and the primary reason is to gain access to the capital markets. One of the disadvantages of being a non-profit is you can't have any investors, but there are a lot of investors today known as social impact investors, people who do want to be philanthropic with their dollars, but wouldn't it be nice to get a small return on that investment. -As a B corporation, you can gain access to the capital markets and these social impact investors who will give you money to expand and grow in your mission. -With that extra funds, you are going to be able to invest it into the organization, into your employees' higher wages and compete with a lot of for- profit organizations. -Ty's prediction is that B corps are going to exist here in the state of Ohio in the next couple of years as they are becoming more common in the US

Corporate Social Responsibility

-This is a company's attempt at operating in an ethical and socially responsible manner in the communities in which they operate -CSR can take on many forms, including, but not limited to environmental, sustainability, employee well-being, community engagement, and philanthropy. -Ultimately, CSR initiatives aim to address societal needs that align with the organization's values. -Some experts argue that corporations are best positioned to have the greatest impact on society's most pressing needs while pushing progress forward, even more of an impact than the nonprofit sector and governments.

Stakeholder theory

-Very different from the shareholder theory, where the priority is on that of the investors of the organization. -Theory of organizational management and business ethics that addresses morals and values in managing an organization and how they interact with internal and external parties. -For the long term gain of an organization, we need to be thinking about more than just the individual shareholders, for example: customers, employees, the community, the environment. -All of these matters and we have a focus on all of them, it is going to return long-term profits for our organization. -If you believe this to be true, you are going to be focusing on what we know today as Corporate Social Responsibility.

Nonprofit

-While profit is the primary goal for most businesses, nonprofits are focused on serving society. - Because far less taxes are paid by individuals to the federal government than many other countries around the world, many of the causes that nonprofits seek to address in the United States are addressed by the federal governments in foreign countries, thus creating a robust nonprofit sector in America. -Non-profits are tax-exempt and operate in a myriad of sectors including, but not limited to healthcare, education, environment, human rights, and social services - Non-profits take a mission-driven approach to serve a need as opposed to generating profits or serving shareholders. -Non-profits are allowed to make income and some nonprofits make much more income than many businesses.

Challenges facing the nonprofit sector 1. Compensation 2. Advertising and marketing 3.Taking risk 4. Time 5. Lack of ability to attract capital

1. Compensation: Pallotta argues that the nonprofit sector's restriction on offering competitive compensation compared to the for-profit sector hinders their ability to attract top talent (this is one of the reasons that we do not see many Fisher graduates going into the nonprofit sector) 2. Advertising and marketing: Pallotta argues that the nonprofit sector faces significant limitations in advertising spend because society expects all of their resources to go directly to the cause. This leads to a lack of public awareness for the cause, which hinders the organization from growing. 3. Taking risk: Pallotta argues how nonprofits are discouraged from taking risks and investing in long-term projects due to a fear of creating a negative public perception and donor backlash. In the absence or risk, progress is significantly slowed to make an impact on these important causes they are seeking to address. 4. Time: Pallotta argues that there is a pressure to demonstrate immediate results that is not as prominent in the for-profit world where some organizations can go years without turning a profit (it took Amazon nine years after being founded and seven years after going public to become profitable). He advocates for patience in allowing nonprofits to invest in sustainable solutions that will not necessarily have an impact overnight. 5. Lack of ability to attract capital: Pallotta argues that the nonprofit sector's inability to generate profits while providing a financial return to investors restricts their ability to the capital markets (why we see many B Corporations being formed in the last decade to circumvent this disadvantage)

Four main categories of nonprofits for 2292:

1. Education ex: Ohio State 2. Medical ex: Hospital, Nursing Home 3. Religious Institutions: ex: Church, Mosque, Synagogues 4. Charitable services/ organizations: ex: United Way

Benefits of CSR 1. Enhancement of your reputation: 2. Improved stakeholder engagement: 3. Mitigation of risk: 4. Superior employee attraction and retention:

1. Enhancement of your reputation: an organization's brand image can lead to increased customer loyalty and trust 2. Improved stakeholder engagement: by addressing societal challenges, organizations can foster goodwill and loyalty among key stakeholders 3. Mitigation of risk: minimizing environmental impacts, avoiding legal and regulatory issues and reducing reputational risks is critical for organizations sustainability 4. Superior employee attraction and retention: organizations that prioritize CSR often attract and retain top talent.

Drawbacks of CSR 1. Financial costs: 2. Greenwashing and public skepticism: 3. Accountability:

1. Financial costs: Investment in sustainable practices, community development, and other CSR initiatives come at a cost. These initiatives also can take a considerable amount of time from employees. As discussed earlier, it is difficult to quantify the return on investment of several of these initiatives but there has been more and more data coming out in support of organizations who give their attention to the triple bottom line. 2. Greenwashing and public skepticism: some CSR efforts can be superficial and disingenuous designed to improve their public image without actually addressing the issues. 3. Accountability: determining the scope of an organization's CSR efforts is subjective and there are likely many stakeholders addressing the societal need. As a result, there is a lack of accountability in terms of who is ultimately responsible

Nonprofit funding models 1. Individual donations 2. Grants and Foundations 3. Income generating social enterprises

1. Individual donations: fundraising efforts can be the most significant source of income for many nonprofits. This particular model involves identifying and cultivating donor prospects and converting those prospects into donors. For nonprofits that rely solely on donors, it can be difficult to go back to many of the same donors every year and continue to ask for support. Additionally, in hard economic times, nonprofits might have more difficulty convincing people to make a gift. 2. Grants and Foundations: in this model, nonprofits seek out grants from corporations (through corporate social responsibility, which we will talk about later), private foundations, and government agencies. This could entail submitting a proposal and application that details your goals and expected outcomes based on how much money you are seeking. 3. Income generating social enterprises: many nonprofits are moving in the direction to generate revenue by offering a product or service that is related to their mission. This enables the nonprofit to be more sustainable and less susceptible to downturns in donations and/or grants. This model is much more entrepreneurial in nature and requires the ability to balance financial sustainability with social impact. -These funding models are not always mutually exclusive. Many nonprofits will utilize a combination of these strategies in order to diversity their revenue streams -Other nonprofits even consider membership fees, in-kind donations, corporate sponsorships, and much more

Why are so many organizations pivoting away from the shareholder theory to the stakeholder theory and acting more as corporate citizens? Influencers of CSR: 1. Power of the brand 2. Flow of information 3. Globalization 4. Environment

1. Power of the brand: perception of the corporation impacts revenue, attracting employees, overall reputation and consumer purchasing attitude. From a consumer standpoint, we are more likely to buy a product from an ethical organization that has a significant component in their local communities. 2. Flow of information: accessible and affordable communication technologies have increased transparency of a corporation's actions. These positive community actions get marketed out through our CSR report, through local news, maybe even national or global news. 3. Globalization: Increased wealth and expansion of multinational corporations has led to questions on cultural differences and acceptable behaviors and ethics. In today's environment, we are working with countries and businesses from all around the world, when we are evaluating CSR we need to look at the entire supply chain, not just what operations we have here in the United States. 4. Environment: Concerns over pollution, waste, natural resource depletion, and climate change. What is an organization's impact on the environment, negative or positive?

Non-profit world can be called many things: 1. Third sector: 2. CSOs: 3. NGOs: 4. NPOS: 5. Charities:

1. Third sector: "third" after business and government 2. CSOs: Civil Society Organizations 3. NGOs: Non-governmental organizations (often referring to international aid and development groups that are primarily supported in one country and operate- non-governmentally in another) 4. NPOS: abbreviations for nonprofit organizations 5. Charities: term used to refer to all nonprofits, though legally and importantly there are lots nonprofits that are non in any sense charitable (business leagues, social clubs, etc.).

Similarities and Differences between nonprofits and for-profits: Both nonprofits and for-profits: board of directors, profit, IRS tax return. Uniqueness of nonprofits: owned by the community, profit cannot be returned to people, tax exempt, tax deduction to donors.

Both nonprofits and for-profits: -Governed by the board of directors (non-profit board member= significant donor, for profit board member, getting paid a lot of money: compensation of these roles are very different) -Allowed to make a profit -Required to file an annual IRS tax return (IRS wants to hold non-profit accountable for what they are expected to do from an operational standpoint, to show where the money's going) Uniqueness of nonprofits: -No equity or shareholders to the corporation, owned by the community -Profits can not be distributed to any person, profit cannot be returned to people. -Not required to pay taxes, they are exempt. -Could provide a tax deduction to anyone who donates money -Tax exemption on income and corporate property.

Carroll's Pyramid of CSR ( on learning assessment 2) 1. Economic responsibility 2. Legal responsibility: 3. Ethical responsibility: 4. Philanthropic responsibilities:

Bottom: We've got to start at the bottom as a company and we have to focus on that before we can work our way up the pyramid. 1. Economic responsibility- be profitable. The foundation upon which all others rest. if we cannot be a profitable organization, we won't be able to get to the top of the pyramid. 2. Legal responsibility: Obey the law. Law is society's codification of right and wrong. Play by the rules of the game. We have to be acting responsibility and abiding by the law. 3. Ethical responsibility: Be ethical. Obligation to do what is right, just, and fair. Avoid harm. Legality is the BASEMENT of ethics, which is why ethics is above legal. We have to be responsible citizens and act in an ethical manner. 4. FINALLY, if we accomplish the three objectives below we can start to give back to our communities. Philanthropic responsibilities: Be a good corporate citizen. Contribute resources to the community; improve quality of life. TOP

Skills required to work in the nonprofit sector 1. Communication 2. Sales + Fundraising 3. Leadership and teamwork 4. Finance 5. Public policy 6. Project Management 7. Technical skills 8. Problem solving

Communication skills: engagement with fellow employees, donors, volunteers, beneficiaries and other stakeholders is crucial in helping drive the organization's mission forward. Sales / Fundraising: many nonprofits rely heavily on fundraising to sustain their operations and expand their impact. This skill set involves activities like grant writing, event planning, donor cultivation, and nurturing relationships in order to secure financial support and resources. Leadership and teamwork: the ability to inspire and motivate others, resolve conflict, set strategy, and collaborate are critical in moving a nonprofits mission forward. Finance: nonprofits operate with limited resources, and someone must maintain and coordinate these resources to ensure they are having the biggest impact possible. Similar to for profit businesses, nonprofits must be transparent and accountable to their stakeholders if they plan to last for years to come. Public policy: in order to influence chance, an understanding of the legislative process and the ecosystem surrounding the cause is imperative. Project management: ensures the successful implementation and completion of projects on time, at budget and fulfilling the desired goals and outcomes of the project. Cultural competence: understanding and respecting different cultures, perspectives, and experiences to foster inclusivity. Technical skills: conducting data analysis on results to evaluate programs, social media management and marketing, website development. Problem solving: the ability to face dynamic environments with unique and nuanced challenges while thinking critically in order to creatively solve problems. The nonprofit sector is constantly evolving.

1. Individual donations example

Example: Charity: Water is a nonprofit with a mission to "help bring clean and safe water to every person on the planet." The organization utilizes private donors to cover their operating costs and they do this by launching campaigns to engage supporters.

3. Income generating social enterprises example

Example: Khan Academy is a nonprofit educational organization headquartered in Mountain View, California and was founded by Sal Khan in 2006. Its mission is "to provide a free, world-class education for anyone, anywhere." While the majority of their content is free, the organization also offers premium features for purchase, such as test preparation materials, learning tools and even a subscription service. The revenue generated from these endeavors supports their mission to provide free education to all.

2. Grants and Foundations example

Example: The Nature Conservancy is a nonprofit dedicated to making "the highest possible impact on the climate and biodiversity crisis between now and 2030." They do this by influencing policy on a local and national level all around the world. To enable their work, the nonprofit pursues grants from foundations and government agencies.

Most nonprofit CEOs will tell you that their biggest hurdle in expanding their mission is having enough _____________ resources to do so.

Financial

-Example of a social enterprise:

Hot Chicken Takeover: CEO is a Buckeye Joe Deloss -By selling chicken they have a steady revenue stream, but on the intractable social need it's all about employability. Joe Deloss has focused his mission around employees formerly incarcerated individuals. A lot of the people Joe Deloss employs are formerly incarcerated individuals.

When evaluating an organization's CSR efforts, we should always be ______________, especially if the report is written by them. After all, these can and are used as marketing tools.

Skeptical

A closer look at a nonprofit: Feeding America 1. Food programs 2. Food rescue 3. Disaster response 4. Hunger research

The #4 revenue generating nonprofit -Feeding America is the largest nonprofit organization in the United States that is devoted to ending hunger. - They work with food banks across the nation to give people who are hungry access to a meal. They structure their organization into four main categories: 1. Food programs: includes a variety of mobile and drive-thru pantries, summer meal programs, kid's cafes, school programs, Supplemental Nutrition Assistance Program (SNAP) application assistance, and much more 2. Food rescue: dedicated to reducing food waste by partnering with food manufacturers, grocery stores, farmers, and restaurants. In the United States, we have more than enough food to eat with over 100 billion pounds of food being wasted each year - nearly 40% of all food! The primary goal of this pillar for Feeding America is to reduce this waste and divert any waste to local food banks to serve the community. 3. Disaster response: providing emergency food supplies to areas that have suffered a natural disaster. 4. Hunger research: an annual report that looks at overall hunger and breaks it down by geography, age, ethnicity, and race. Feeding America believes that to effectively address the problem, they must have a thorough understanding of it.

Ben and Jerry's and GreyStone Bakery:

The two have partnered together to help formerly incarcerated individuals. -For 30 years, Greystone has been a leading social enterprise combining contract manufacturing baking with a social justice program based around open hiring, which means anyone that walks in the front door of their bakery, they offer a job. -They provide about 300 units of affordable housing in Yonkers in the surrounding area, they have a childcare center. They have a guards program, they have a program to service people with HIV and aids, and they have a workforce development program to help train people for jobs other than in their bakery. -Greyston bakes the brownies put in Ben and Jerry's ice cream: chocolate fudge brownie. -Equal opportunity place -It's not judging people on their past performance, but it's looking at what they are capable of in the future. -They are trying to see how business can create social good. -Greystone has taken a page out of Ben and Jerry's playbook which is linked prosperity: you create benefits out of the business decisions you make, so that along the value chain, there's a sense of prosperity and grace and there's a wonderful model for that. -Looking to create social good, environmental good, economic good. -As a consumer, are we buying products in organizations that we believe in, are we looking at their espoused and lived values, are our dollars going to positive causes?

Mission Money Matrix

Top left = nonprofit Top Right = Social Enterprise Bottom Left = Avoid Bottom Right = Cash Cow -We have mission fulfillment on one axis and money makers and money losers on the other axis. -So traditionally, when looking at this mission money matrix, a traditional non-profit is a money loser, but they are achieving high mission fulfillment. -Obviously as we move south, if you're losing money and not fulfilling your mission, you want to AVOID that altogether. -But what nonprofits are doing today is moving to the right, where they are still achieving that high mission fulfillment, but they are also making money. -This is an example of a social enterprise. -The last thing is an organization that makes a lot of money, but has low mission fulfillment, that is an example of a Cash Cow.

Do non-profits make income?

Yes. Nonprofit Total Revenue 1. YMCA $7.44 billion 2. Goodwill $7.41 billion 3.Salvation Army $5.79 billion 4. Feeding America $4.21 billion 5. United Way $3.89 billion

Cash cow

organization that makes a lot of money and the non-profit is able to take that money and funnel it back into the organization to fulfill some type of mission. EX: Columbus Zoo, is all about the environment and animal conservation, so what is Zoombezi, a water park, has nothing to do with the environment or conservation. However, it brings in thousands of people every summer and they're spending a lot of money to visit that water park. Columbus Zoo pumps this money right back into the zoo. Another example is the Safari Golf Course, they are able to have the benefits of tax exemption by being a non-profit and take the earnings from the golf course and pump it right back into the Zoo. This allows non-profits to think more creatively, how can we become a social enterprise or can we become a cash cow to take those funds and pump them right back into the organization.

There is significant ____________ between the nonprofit and the for-profit world.

overlap

-Many organizations call CSR the _______ _________ ______, a concept that states that firms should commit to measuring their social and environmental impact in addition to their financial performance.

triple bottom line -This is considered a stakeholder approach as opposed to a shareholder approach when you are only focused on financial performance. -Today, many corporations view CSR as a business imperative and an opportunity to create a sustained competitive advantage. -From reducing carbon emissions to promoting diversity and inclusion to supporting local communities and everything in between, organizations are stepping up and trying to help