Helping others takes countless forms and springs from countless motivations, from deep-rooted empathy to a more calculated desire for public recognition. Social scientists have identified a host of ways in which charitable behavior can lead to benefits for the giver, whether economically via tax breaks, socially via signaling one's wealth or status, or psychologically via experiencing well-being from helping. Charitable organizations have traditionally capitalized on all of these motivations for giving, with a recently emerging focus on highlighting the mood benefits of giving—the feelings of empowerment, joy, and inspiration that giving engenders. Indeed, if giving feels good, why not advertise the benefits of "self-interested giving," allowing people to experience that good feeling while increasing contributions to charity at the same time? HBS doctoral candidate Lalin Anik, Professor Michael I. Norton, and coauthors explore whether organizations that seek to increase charitable giving by advertising the benefits of giving are making claims supported by empirical research and, most importantly, whether such claims actually increase donations.
Financial turmoil is not a reason to scale back on CSR programs—quite the opposite, says HBS professor V. Kasturi "Kash" Rangan. As a marketing scholar Rangan is optimistic about strategic CSR efforts that provide value in communities and society. Q&A
To make our cities and communities smarter, we must become a little smarter ourselves, seeking information and an agenda to forge connections enabling collaboration, according to HBS professor Rosabeth Moss Kanter and IBM's Stanley S. Litow. Their vision is that someday soon, leaders will combine technological capabilities and social innovation to help produce a smarter world. That world will be seen on the ground in smarter cities composed of smarter communities that support the well-being of all citizens. This paper outlines eight challenges facing cities and the communities they encompass, based on experience in the United States. Kanter and Litow provide examples of practices and programs led by both government and nonprofit organizations, many technology-enabled, that point the way to solutions, and they conclude with a call for leaders to embrace an agenda for change.
It is often difficult for donors to predict the value of charitable giving because they know little about the persons who receive their help. While there is substantial evidence that individuals use information about recipients to decide how generous a donation to make, we know surprisingly little about how much donors care to help their preferred types. To start closing this gap, HBS professor Felix Oberholzer-Gee and Carnegie Mellon University coauthor Christina Fong study transfers of income to real-world poor people in the context of experimental games. Their findings have implications for governments and nongovernmental organizations that seek to increase the financial and political support for wealth transfer programs.
Amid formidable barriers, a set of passionate social entrepreneurs are disrupting the status quo in education with innovative and effective approaches that are producing measurable results. The challenge now is to build support so these solutions can be applied elsewhere.
Accelerated organizational transformation faces a host of obstacles well-documented in the change management literature. Because corporate social entrepreneurship (CSE) expands the core purpose of corporations and their organizational values, it constitutes fundamental change that can be particularly threatening and resisted. Furthermore, it pushes the corporation's actions more broadly and deeply into the area of social value creation where the firm's experiences and skill sets are less developed. The disruptive social innovations intrinsic to the CSE approach amplify this zone of discomfort. Fortunately, the experiences of innovative companies such as Timberland and Starbucks show how these challenges may be overcome.
Published in 2008
What happens when small iconic brands associated with social values—think Ben & Jerry's—are acquired by large concerns—think Unilever? Can the marriage of a virtuous mouse and a wealthy elephant work to the benefit of both? Professors James E. Austin and Herman B. "Dutch" Leonard discuss their recent research.
Nonprofit boards and executives are confronted by a confusing landscape of conflicting demands, rapidly evolving rules, and changing opportunities for finding resources. How can organizations stay focused? Harvard Business School professor Herman B. "Dutch" Leonard discusses today's challenges and his Executive Education program on Governing for Nonprofit Excellence.
A new generation of business leaders and philanthropists is experimenting with hybrid forms of social enterprises while demanding more transparency and accountability from the organizations they are funding. Harvard Business School professor Kash Rangan discusses what he sees as a sector on the brink of transformation. From the HBS Alumni Bulletin.
With decidedly non-profit goals leading them on, how do environmental protection groups such as Greenpeace and World Wildlife Fund create value? Can it be measured? A Q&A with Harvard Business School professor Ramon Casadesus-Masanell and case writer Jordan Mitchell.
Bill Gates has it right. Business is the most powerful force for change in the world right now and gives the idea of creative capitalism real power, writes Harvard Business School professor Nancy F. Koehn.
The New Orleans public school system, ravaged by Hurricane Katrina in 2005, is now getting a boost from charter schools—today about half of the city's 80 schools are charter schools, says HBS lecturer and senior researcher Stacey M. Childress. She explains what New Orleans represents for entrepreneurial opportunities in U.S. public education.
This paper considers the confluence of forces that is shaping the field of social enterprise, changing the way that funders, practitioners, scholars, and organizations measure performance. The authors trace a growing pool of potential funding sources to solve social problems, much of it stemming from an intergenerational transfer of wealth and new wealth from financial and high-tech entrepreneurs. They further examine how these organizations can best access the untapped resources by demonstrating mission performance, and then propose three potential scenarios, outlined below, for how this sector might evolve.
Despite the best of intentions and trillions of dollars worth of assets, nonprofits have been unable to solve many of society's worst ills. A new casebook by 4 Harvard Business School professors argues that the social sector should take an entrepreneurial approach. Q&A with coauthor Jane C. Wei-Skillern.
Non-governmental organizations play an increasingly important role in international development. They serve as a funnel for development funds both from individual donors in wealthy countries and from bilateral aid agencies. At the same time, NGOs are frequently idealized as organizations committed to "doing good" while setting aside profit or politics—a romantic view that is too starry-eyed. Development-oriented NGOs, which have existed for centuries, have played a growing role in development since the end of World War II; there are currently 20,000 international NGOs. This paper argues that the strengths of NGOs and their weaknesses easily fit into economists' conceptualization of not-for-profit contractors.
Where are the biggest polluters? And what is your company doing to protect the environment? A new Web site—both a public service and a research tool—posts managers' data in real time, allowing a balanced view of industrial environmental performance. HBS professor Michael W. Toffel and senior research fellow Andrew A. King explain.
Published in 2007
The One Laptop per Child initiative wants to develop and distribute $100 laptops to poor children around the world. Despite eager observers and exciting breakthroughs technologically, it has found the path to customers more rocky than anticipated. Marketing has some answers, as a new case study details. Q&A with HBS professor John Quelch.
In the early stages of the 21st century, America has lost its way both at home and in the world, argues Harvard Business School professor Rosabeth Moss Kanter. In her new book, America the Principled, she details 6 opportunities for America to boost its economic vitality and democratic ideals. Q&A plus excerpt.
Too many democracies are ruled by corrupt leaders, says HBS professor Eric Werker. So how about letting good corporate citizens run for elected office in Third World regions?
What role can business managers play in protecting the natural environment? Academic research on when it might "pay to be green" has advanced understanding of how and when firms achieve sustained competitive advantage. The focus of such research, however, has begun to change in light of limits to available "win-win" opportunities and to gaps in regulation. This paper, intended as a book chapter, reviews current literature and explores the potential of self-regulatory institutions to solve environmental problems.
Self-regulation has been all over the news, but are firms that adopt such programs already better on important measures like labor and quality practices? Does adopting a program help companies improve faster? In this Q&A, HBS professor Michael Toffel gives a reality check and discusses the trends for managers.
Ratings of corporations' environmental activities and capabilities influence billions of dollars of "socially responsible" investments as well as consumers, activists, and potential employees. But how well do these ratings predict socially responsible outcomes such as superior environmental performance? Companies can enhance their environmental image in one of two ways: by reducing or minimizing their impact on the environment, or by merely appearing to do so via marketing efforts or "greenwashing." This study evaluates the predictive validity of environmental ratings produced by Kinder, Lydenberg, Domini Research & Analytics (KLD), and tests whether companies that score high on KLD ratings generate superior environmental performance or whether highly rated firms are simply superior marketers of the factors that these rating agencies purport to measure. The data analysis examines all 588 large, publicly-owned companies in the United States that were both regulated by the U.S. Environmental Protection Agency and whose social performance was rated by KLD at least once during 1991-2003. This paper may be the first to examine the predictive validity of social or environmental ratings.
Published in 2005
Harvard's schools of Business and Education are bringing management skills to nine school districts across the country—and positive results are starting to show.
Where a company is headquartered influences the types of social programs it supports, such as housing assistance, disease research, and the arts, according to new research by professor Christopher Marquis and his coauthors. Is social spending too confined by geography?
Does it make legal, ethical, or economic sense for companies to participate in environmental corporate social responsibility programs? A new book from HBS professor Richard Vietor and colleagues Bruce Hay and Robert N. Stavins attempts to separate fact from fiction on the debate.
Public school districts are difficult to lead and manage, and the idea of applying business principles to school reform is popular. But is it practical? This paper describes the work of Harvard's Public Education Leadership Program as it helps school districts grapple with performance challenges, including student achievement that compares unfavorably with other countries, and a significant performance gap between white and minority students. Complicating the picture: The concept of managing for accountability is new in education. The authors studied the effects of improved management on public school student performance by comparing fifteen large urban school districts with similar peer districts.
A study of smart practices by social and business organizations in Iberoamerica. Research by HBS professor James Austin, HBS senior researcher Ezequiel A. Reficco, and UNIANDES professor Roberto Gutiérrez.
How can a nonprofit increase its social impact? Many would say it needs to grow big to be strong. Instead, says HBS professor Jane Wei-Skillern, the answer could be in the power of strategic networks.
Coca-Cola, move over. Many of the world's best-known brands belong to nonprofits, but the brand management issues these organizations face can be quite different. A conversation with professor John A. Quelch and collaborator Nathalie Laidler-Kylander.
Corporate partnering with social organizations is beneficial for both, as seen in fruitful relationships built in the Americas. But first you must understand the motives of each party.
Published in 2004
Microfinance is not a magic ticket out of poverty, but it can help both the loan receiver as well as the loan giver, says Harvard Business School’s Michael Chu.
What can business do to improve social welfare? In fact, we don’t know because too little study has been given the issue, argues HBS professor Joshua Margolis and colleagues.
On the eve of the Social Enterprise Initiative’s 10th anniversary, HBS professor James E. Austin talks about bringing social enterprise to the forefront of business education.
Moving from theory to practice: Former HBS professor Jeff Bradach shares practical advice on how nonprofits can improve their strategy and produce measurable results for their cause and donors.
Expectations are changing on the role multinational corporations play in improving the Asian communities in which they serve.
Published in 2003
The field of social-purpose investing is growing and becoming more sophisticated. Should investors expect lower returns to benefit society? A new Harvard Business School study examines the question.
To branch or affiliate? Different organizational structures have different strategic implications for nonprofit expansion, say HBS’s Jane Wei-Skillern and Duke-based colleague Beth Battle Anderson.
Partnerships among business, government, and advocacy groups are crucial to halting AIDS. A report from an influential conference at Harvard Business School.
You may not enjoy being targeted by a non-governmental organization, but you better learn how to manage that relationship, say HBS professor Debora Spar and Lane LaMure.
A surprising entity has emerged to protect the interests of open source software developers: the non-profit foundation. HBS professor Siobhán O'Mahony discusses this emerging organizational model.
Multi-site nonprofit organizations shouldn’t be run like companies that make money, say HBS professors Allen Grossman and V. Kasturi Rangan. The key for nonprofit managers is to embrace a balance between affiliation and autonomy.
Gyaana means "knowledge" in Sanskrit—a fitting name for a business that aims to fight the 50 percent dropout rate in India by offering microfinance loans to families.
The tragedy of AIDS has the potential to decimate society—and of course workforces, too. African-based experts in health care and the pharmaceutical industry traded ideas for alleviating this scourge in a session moderated by Harvard Business School Professor Debora L. Spar.
In a panel discussion on current and future business opportunities in the American education market, four entrepreneurs hashed out the pros and cons of entering this tricky sector. There are opportunities—for the daring and undaunted. HBS professor Alan MacCormack moderated this panel at the Conference on Social Enterprise held recently at Harvard Business School.
Published in 2002
Managerial capitalism is hanging on by its fingertips, say James Maxmin and HBS professor Shoshana Zuboff. In this e-mail interview with HBS Working Knowledge and in an excerpt from their new book, The Support Economy, the authors lay out the problem and offer savvy solutions for business and consumers.
Can an international alliance of global corporations win a war on poverty? Yes, if such an alliance is well planned and formed soon, according to HBS professor emeritus George C. Lodge.
"Profit" need not be a dirty word at a nonprofit organization. In a discussion led by HBS professor James E. Austin, three experienced managers discuss the advantages and pitfalls of building a for-profit unit within a nonprofit.
It's a crucial question: How can this country's poor build up their assets and jump out of the spiral of poverty? The challenge is to create asset-building programs that go beyond savings, expanding into other financial services with higher return rates and greater opportunities, with a big assist from technology, argues Harvard Business School professor Peter Tufano.
Institutions, such as a competent judiciary, an efficient civil service, and a good highway system, are all important for African countries. But who creates them? And what should be the role of business in the mix? At an Africa Business Conference panel session called "Institutional Foundations," five experts weighed in.
Published in 2001
Nonprofits and business have a long history of collaboration, and the benefits run both ways. In this excerpt from HBS professor James Austin's latest working paper, three levels of collaboration are detailed. Plus: Austin Q&A.
Video Presentation: Want a glimpse into the HBS classroom experience? Das Narayandas, associate professor of marketing, introduces the school's teaching methods to students' parents—and provides his own thoughts on business education.
Is there a relationship between a company's social performance and its financial performance? HBS associate professor Joshua D. Margolis and University of Michigan colleague James P. Walsh make the connection in their latest working paper. PLUS: Margolis Q&A.
Collaborative relationships between nonprofits and corporations working together to contribute to society is the wave of the future—and makes excellent strategic sense. HBS Professor James E. Austin explains why in The Collaboration Challenge.
Published in 2000
Alliances between for-profit and nonprofit organizations are evolving from arms-length relationships into strategic partnerships. A study of the collaboration between the Clark Foundation and Pfizer, Inc. reveals what it takes to make them work.
The disorderliness and complexity of the existing philanthropic environment distract nonprofit management, says HBS Professor Allen Grossman, shifting focus away from organizational performance and putting nonprofits at a competitive disadvantage.
Affordable housing is a bottom-line issue, one that American business ignores at its own peril. New research and initiatives of HBS Professors William J. Poorvu and Michael A. Wheeler and others show why business needs to take a more provocative stance to assure that moderate- and low- income workers can afford to live near where they work.
Money given away to nonprofit organizations used to be considered "charity." No longer. Donations to nonprofits are increasingly viewed as capital investments of precious resources. HBS faculty members Jed Emerson and Allen Grossman have launched an interdisciplinary effort to study and understand these "Social Capital Markets."
Businesses and nonprofit organizations are joining together in alliances to create value for themselves and society that far surpass the sum of their parts. HBS Professor James Austin studies these new alliances and sees mutual benefits and a new business-nonprofit relationship emerging.
Published in 1999
U.S. companies have too often viewed the social sector as a dumping ground for their spare cash, obsolete equipment, and tired executives, but that mind-set, says HBS Professor Rosabeth Moss Kanter, has hardly created lasting change. In this excerpt from an article in the Harvard Business Review, she issues a call for corporate social innovation, an approach, says Kanter, that's more R&D than it is charity.
Does it pay to be green? When it comes to questions about business and the environment, says HBS Professor Forest L. Reinhardt, there are no simple yes-or-no answers. In this excerpt from his article in the Harvard Business Review, Reinhardt stresses the importance of applying traditional business principles to environmental issues.
