Archive for July 28th, 2006

Combining Philanthropic Programs — Unilever brings Children to National Parks

Friday, July 28th, 2006

Unilever announced a new program to bring 3000 children to summer classrooms in US National Parks. As part of its 15 year ‘America’s Best Classroom’ (ABC) program, disadvantaged children across the country will be able to participate in youth education and service programs in 14 parks. Unilever has been involved with both the National Park Foundation and the Boys and Girls Clubs of America for many years, and the ‘summer to remember’ bridges these organizations. Unilever took the interesting approach of combining two philanthropic programs to fit its goal to help educate youth by finding the common ground in the mission of the two nonprofits: to link kids to the environment. CEO of the National Park Foundation, Vin Cipolla, stressed in the CSR Wire release that this program is especially important as it helps to ensure that future generations are good stewards of the parks. Unilever is a top consumer products company, and with many family and child oriented products this program is loosely tied to their customer base. The Boys and Girls Clubs of America is instrumental in linking the company initiative to these disadvantaged children as it has nearly 4,000 locations across America. For more information please visit the CSR press releases at: http://www.csrwire.com/PressRelease.php?id=5961 Unilever website: http://www.unileverusa.com/ Boys and Girls Clubs of America: http://www.bgca.org/ National Park Foundation: http://www.nationalparks.org/Home.asp

Capital One and Junior Achievement Education Partnership

Friday, July 28th, 2006

Capital One Financial Corporation and Junior Achievement (JA) have partnered to launch two new education programs aimed at teaching underprivileged kids financial necessities for the future. One program aims to educate 1,000 Virginia kids using an interactive ‘Finance Park.’ The other, ‘Sliding into Succe$$’ teaches up to 1,000 DC area kids financial management by simulating the creation and management of a baseball team. Capital One has donated both financial support and intellectual support to the Virginia initiative, with $1 million and 200 trained employee volunteers for the park. In this case, Capital One is helping JA expand the successful ‘JA Finance Park’ program, which already operates in 8 US cities, to new areas that need help. The program focuses on experiential learning for middle school students, as the park simulates a real city. ‘Sliding into Succe$$,’ by contrast, is a new program, and has the additional help of Washington National’s Chad Cordero. It aims to combine the resources of the three organizations to reach previously un-reachable kids and increase their financial literacy. It also focuses on requiring that students work both independently and as part of a team, a necessary skill for the ‘real world’. JA is a non-profit that reaches about 7 million children a year, with the aim to create a ‘bridge between education and business.’ In this pursuit, it is especially enthusiastic regarding partnerships with businesses to bring real-world know-how to children. More examples of corporate partnerships can be found on their website listed below. Capital One is involved in other community education programs as well, which appears to be a theme in their community involvement and philanthropic programs. Another example is the alliance with non-profit Heart of America to provide educational books to underprivileged children. Over the past four years this initiative has distributed over $3.5 million in new books to approximately 300,000 to at-risk students. As part of this program, employees of Capital One also volunteer books and time to read and mentor children during the Capital One Literacy Celebration and book drive. For more information please visit the CSR press releases at: http://www.csrwire.com/article.cgi/5776.html and http://www.csrwire.com/article.cgi/5766.html and http://www.csrwire.com/PressRelease.php?id=5871 Capital One homepage: http://www.capitalone.com/ Junior Achievement homepage: http://www.ja.org/ Heart of America homepage: www.heartofamerica.org

Pura Vida Coffee: a cut-throat non-profit?

Friday, July 28th, 2006

Pura Vida Coffee is the subsidiary of a charity targeted at helping children in coffee-growing communities break the cycle of poverty. As the subsidiary of a charitable umbrella organization, all of its profits go to the charitable endeavors of the non-profit. Yet this hasn’t stopped the company from rapid expansion: Pura Vida Coffee has become one of the largest distributors of fair trade organic coffee and sustainable beverages, and is penetrating college campus coffee shops across the country.

The unique company/charity was founded by two long-time friends and business school colleagues with the primary goal of making profits to support cofounder Chris Dearnley’s charitable programs in Costa Rica.

On top of incremental economic benefit that comes from purchasing high grade and premium priced Fair Trade Coffee from communities, Pura Vida Partners (the parent non-profit) now operates multiple after-school programs and soup kitchens. In the city of San Jose it serves meals to 500 kids six days a week, and it is expanding to Ethiopia as sales and the popularity of programs grow.

Pura Vida Partners focuses on using local groups and pre-existing infrastructure to develop regional programs rather than importing its own systems. In order to do this, it generally tries to find a separate native organization to help with each of the three pillars of community transformation: physical health & well-being, education, and strength of spirit & character. This fusion of grassroots organizations and corporate funding is ultimately what stands out about Pura Vida.

The official mission of the Coffee company is to: “create good by using capitalism to empower producers, motivate consumers, inspire business leaders, and ultimately serve the poor.” The combination of business strategy and philanthropic and community goals led them to the tag line: ‘tough minded, tender hearted’ and won them a Better Business Bureau award for Philanthropy.

This philanthropic mission has also earned Pura Vida a very loyal customer base. Sales have spread predominantly by mouth, and the company has counted on devoted customers who are willing to go out of their way to buy sustainable and responsible products. Coffee must be ordered online, and customers often donate directly to the charity when ordering coffee. This is the kind of commitment that can be especially hard to find in the convenience-oriented beverage market. One of the most loyal customer segments has naturally been the college community, and as such Pura Vida Coffee is aggressively searching deals to serve coffee on college campuses.

Cofounder John Sage attributes much of this loyal customer base to the emotional connection between coffee growers and coffee consumers, as Pura Vida Coffee links these two communities. It goes beyond monetarily and emotionally linking them, Pura Vida also runs volunteer programs. The programs bring consumers and other willing volunteers, whether they be children, families, or adults, to the communities it serves.

As for the challenges of marrying a business and non-profit, there are certainly plenty. The two greatest obstacles for Pura Vida have been at the intersection of the ‘tough mind’ and ‘tender heart,’ where approaches and perspectives clash.

There are often significant cultural differences when operating between different countries and between businesses and non-profits. For Pura Vida this has manifested itself in the disparity between stories and data. The Coffee company is often most interested in numbers — how many people they are serving, meals provided, programs started, impact per dollar, etc. Yet the Partners charity can be more focused on stories of individuals who have benefited, and who cannot be quantified. Respecting the merits of each approach to evaluation can be one of the hardest tasks for organizations embarking on partnerships, and one which John Sage is still struggling with.

The second main obstacle has been that of risk. Sage explains that non-profits are often very risk-averse because of their mission and funding sources. However in order to raise capital and expand it is necessary to take risks and try new programs. By operating as the subsidiary of the charity, Pura Vida Coffee can take on more of the risk that accompanies aggressive expansion. Yet the Pura Vida Partners also takes risk, both in trusting the company to be a steady financial support and in expanding projects from Central America to Africa.

John Sage summarized the struggles and rewards for the company: “it has been a challenge for us to finance the growth with the commitments we’ve made&my encouragement would be for business leaders to think very boldly, rather than compartmentalizing their social activism&it really is about ‘how can you bake social commitment into every aspect of what you do?’

By Louise Doyle

Based on interview with John Sage, Cofounder Pura Vida Coffee, conducted by Susan Hyatt.

More information on Pura Vida Coffee can be found at: http://www.puravidacoffee.com/

PeaceKeeper: Using Make-Up to Empower Women

Friday, July 28th, 2006

PeaceKeeper is using the traditionally materialistic and aesthetic industry of cosmetics to propel women’s empowerment and to fund women’s advocacy and human rights issues. The for-benefit company was founded just over three years ago, and while it does not yet turn a profit, it is dedicated to women’s issues and has already donated money to these causes. Until becoming profitable, the company will donate one half of one percent of revenues to these causes. PeaceKeeper is part of a small — about 15 companies according to founder Jody Weiss — but growing community of for-benefit companies. These companies give 100% of profits after taxes, expenses, and modest reinvestment to charity. This structure was pioneered by Newman’s Own. The cosmetics company’s profits benefit 16 different charities: eight women’s health advocacy groups and eight human rights advocacy groups. Individual causes range from breast cancer and depression to the female sex slave trade and honor crimes. It has also launched a cause-related product called PeaceKeeper Unifem Gloss. 24% of the wholesale price of these PeaceKeeper Causemetics glosses is donated to the United Nations Development Fund for Women. It has been featured in various stores and magazines, and Weiss is proud to say that Nordstrom’s now offers the product. The gloss is also used as a tool to educate women, with pamphlets and information provided with the product and on the displays. The focus on women’s related causes is a way of aligning the PeaceKeeper customers and causes. Weiss emphasizes that women can ‘vote with their dollars,’ and must unite to have a stronger voice in society. This make-up line provides a forum for women to do this. The company also makes sure to address the perceived disconnect between women’s empowerment and pricey beauty products: “we paint ourselves not for approval from others but to celebrate our own beauty.” Individual colors are named after characteristics that women might find desirable, such as ‘Paint Me Loving’ and ‘Paint Me Wise’ in order to emphasize make-up as a way to accentuate a woman’s best qualities. Products come with a pocket guide to conflict resolution, and the website has a tutorial in expressing opinions without provoking conflict. A trademark of Wisdom Says, Inc. PeaceKeeper products are so named because “the very act of buying a product for which ALL profits support women’s health advocacy and urgent human rights issues transforms the buyer into a peacekeeper herself.” In addition to competing with cause, PeaceKeeper also uses more natural ingredients than more popular brands. No hazardous chemicals are used and colors come from minerals. It provides ingredient lists that are actually legible (for the lip gloss and lip paint at least), claiming ‘No Nasty Anything!’ With the slogan ‘Look good, Feel good, Do good,’ PeaceKeeper aims to provide more privileged women a way to help less privileged women in the world meanwhile satisfying their own beauty needs. Weiss strongly encourages other entrepreneurs to start for-benefit companies, emphasizing that the movement is gaining power. One of the most helpful resources for PeaceKeeper and Weiss has been joining community groups where fellow entrepreneurs and for-benefit companies can share ideas and experiences with each other. These groups and forums have provided tangible aid and social support to those involved. By Louise Doyle Based on interview with Jody Weiss, Founder and President of PeaceKeeper, conducted by Susan Hyatt. More information on PeaceKeeper can be found at: http://www.iamapeacekeeper.com/

Zhena Gypsy Tea — Integrated Community Involvement

Friday, July 28th, 2006

Through Zhena Gypsy Tea (ZGT), Zhena Muzyka has created a company with an integrated approach to community involvement, personal fulfillment, and product success. ZGT has a strong community involvement program, composed of a three-pronged initiative: ‘organic harvested tea that gives back to the planet, fair trade tea that gives back to the people harvesting the tea, and community support to ensure long-term sustainability of the business and community.’ This threefold objective is implemented through a diverse set of programs.

Both the organic and fair trade requirements help ZGT to fulfill its mission to end poverty in the communities from which it buys raw materials. This means not only buying the fair trade tea at a price premium, but also looking at what and how communities are using funds to improve. Zhena focuses on fair trade because workers are given health benefits, paid fairly, and no child labor is permitted. Even the tins holding the tea are made in China under Fair labor requirements.

Community involvement is also central to the company, where giving started before ZGT ever met its bottom line. Zhena insists that starting the giving from the beginning is crucial, as it integrates this mindset into the business as a whole and ensures that it grows out of sustainability. She even introduced a ‘tithing system that takes out the bottom line automatically.’

The company Credo serves to tie these programs together, solidify the threefold approach to improving the community, and guide who & how to support. The credo requires that all teas benefit at least one cause from an extensive list, that the company helps to improve women’s body awareness and preserve the gypsy culture, and support organic and biodynamic agriculture.

Philanthropic efforts to support different causes are supported through a grant process and cause products. The grants come from the sales of four new tea products, and support organizations that are consistent with the credo. ZGT tries to focus efforts on a few causes very important to the company and Zhena. For example, it is now focusing on supporting CEO Women, a group to help disadvantaged business women with micro-enterprise development.

Furthermore, ZGT offers cause products. These are teas created and named for a certain cause, with all profits going to that cause. Causes include Code Pink and Women for Peace. These products help bolster the company’s reputation through Cause Marketing and help to educate consumers with information about the tea and its cause on each tin.

In order to make sure that the efforts of ZGT are sustainable in future years, Zhena has systematized many of the processes. The primary example of this is the credo which Zhena created. But choosing an important personal issue and making sure to hire employees that support these objectives is also a form of systemization. It further helps to remind Zhena and employees not to straddle their efforts to much — to be firm about which organizations to support and which ones not to support.

Some of the strongest words of wisdom Zhena has to give are to tap your interests and utilize that personal connection. By choosing causes that one is passionate about, people have the bonuses of being ‘paid in soul’ and of greater incentive to work and put everything they can into getting it going.

Zhena wants to leave the legacy of passion for what she has done, and integrating her own culture and personal beliefs into the causes chosen will help further this memory. This extends beyond just grants, dictating her personal volunteer time and encouraging Zhena to donate belly dancing lessons and insight into the Gypsy heritage to help empower women. Zhena in fact uses her heritage and personal experience to guide not only the community involvement of the business but also the business strategy as a whole.

After finding out that her son was ill and needed better healthcare, Zhena turned to self reflection and prayer to find a solution. She then decided to leave her writing behind and start ZGT, literally beginning in a cart donated from a friend. As a result, the causes that the organization supports have a lot to do with giving women the power to be financially independent and helping to ensure that children in need receive the appropriate care.

One important resource for Zhena has been the progressive organizations of like-minded individuals. She has looked to these people for inspiration as well as practical help. Zhena emphasizes the need to ask questions freely, pointing to one example where she asked the crowd she was speaking to for advice and instead found a business partner.

The greatest reward of this integrated approach has been the deep sense of satisfaction that Zhena and those involved have because they know that they are doing something to help. And there have been business advantages: namely in the brand recognition and customer attention it is receiving because of the causes it supports so whole-heartedly.

By Louise Doyle

Based on interview with Zhena Muzyka, founder of Zhena Gypsy Tea, conducted by Susan Hyatt.

More information on Zhena Gypsy Tea can be found at: https://www.gypsytea.com/

Equal Exchange — Pioneer in Fair Trade and Nonprofit Distribution

Friday, July 28th, 2006

Equal Exchange is a company founded in 1986 and is devoted to fair trade; in fact, it has been one of the pioneers in the fair trade movement. The three communities it aims to help through this devotion are 1) small family farmers, 2) the environment and global community, and 3) employees of the company. This business innovation and devotion to fair trade has not gone unnoticed. It was awarded the Small Business Association of New England Innovation Award in 2006 and the Business Ethics Magazine Award for Stakeholder Relations in 2000. The company has taken the interesting approach of partnering with non-profits with similar goals to help promote sales and increase distribution. These partnerships have ranged from international peace activism to faith-based groups. The partnerships have paid off for Equal Exchange: 25% of its sales are from faith-based organizations. One example of how these symbiotic relationships between non-profits and the company take-off is that of Equal Exchange and the Central American Solidarity Movement. Both the company and nonprofit wanted to promote peace and help small, exploited farmers during this time of chaos in the region. So Equal Exchange introduced Café Salvador to help small farmers in El Salvador during the civil war. The nonprofit helped to market the coffee as an alternative to Folgers to put pressure on Folgers to in turn use its power to push for a ceasefire. This unique partnership helped the company fulfill its mission of supporting fair trade, and helped to push for a political solution to an international conflict. Rodney North, employee and board member of Equal Exchange, stresses that much of the success in these partnerships is due to patience. Especially in partnering with Lutheran World Relief, both organizations took plenty of time to do their due diligence and ensure that their goals were compatible. Communication regarding what exactly each organization wanted out of the partnership helped to guarantee a long-lasting synergistic partnership rather than a short term arrangement. Furthermore, they began with a very small pilot program to make sure that the congregations would receive the project well. The result was the unorthodox relationship whereby Equal Exchange employees educate congregations about fair trade and international work conditions, and the faith based organizations distribute, market, and sell Equal Exchange products. This link to Faith based groups brings Equal Exchange to the perfect demographic group: people concerned about helping and gathered in a place where they often consume coffee and snacks. Every year, Equal Exchange ships products to 6,000 places of worship, with faith based organization sales representing $4 million in revenues last year. Contrary to common belief, coffee and tea are not the only products that can be fair trade certified. Equal Exchange also sells fair trade sugar, cocoa, and chocolate bars. All of these products are offered through non-profit partners, as they all support the goal of helping to empower small family farmers. Equal Exchange’s official mission is to: “build long-term trade partnerships that are economically just and environmentally sound, to foster mutually beneficial relationships between farmers and consumers and to demonstrate, through [their] success, the contribution of worker cooperatives and Fair Trade to a more equitable, democratic and sustainable world.” To this end, Equal Exchange is itself a cooperative, worker-owned and democratically run. Just like the coops from which it insists on buying products. Workers also donate 10% of profits to fellow fair trade organizations annually, and make donations in kind to nonprofits across the country. Much of the inspiration for employees comes from the mission of the company itself, and the organizations it works with. By Louise Doyle Based on interview with Rodney North, member of the worker cooperative and board of directors of Equal Exchange, conducted by Susan Hyatt. More information on Equal Exchange can be found at: http://www.equalexchange.com/

Capital One and Junior Achievement Education Partnership

Friday, July 28th, 2006

Capital One Financial Corporation and Junior Achievement (JA) have partnered to launch two new education programs aimed at teaching underprivileged kids financial necessities for the future. One program aims to educate 1,000 Virginia kids using an interactive ‘Finance Park.’ The other, ‘Sliding into Succe$$’ teaches up to 1,000 DC area kids financial management by simulating the creation and management of a baseball team. Capital One has donated both financial support and intellectual support to the Virginia initiative, with $1 million and 200 trained employee volunteers for the park. In this case, Capital One is helping JA expand the successful ‘JA Finance Park’ program, which already operates in 8 US cities, to new areas that need help. The program focuses on experiential learning for middle school students, as the park simulates a real city. ‘Sliding into Succe$$,’ by contrast, is a new program, and has the additional help of Washington National’s Chad Cordero. It aims to combine the resources of the three organizations to reach previously un-reachable kids and increase their financial literacy. It also focuses on requiring that students work both independently and as part of a team, a necessary skill for the ‘real world’. JA is a non-profit that reaches about 7 million children a year, with the aim to create a ‘bridge between education and business.’ In this pursuit, it is especially enthusiastic regarding partnerships with businesses to bring real-world know-how to children. More examples of corporate partnerships can be found on their website listed below. Capital One is involved in other community education programs as well, which appears to be a theme in their community involvement and philanthropic programs. Another example is the alliance with non-profit Heart of America to provide educational books to underprivileged children. Over the past four years this initiative has distributed over $3.5 million in new books to approximately 300,000 to at-risk students. As part of this program, employees of Capital One also volunteer books and time to read and mentor children during the Capital One Literacy Celebration and book drive. For more information please visit the CSR press releases at: http://www.csrwire.com/article.cgi/5776.html and http://www.csrwire.com/article.cgi/5766.html and http://www.csrwire.com/PressRelease.php?id=5871 Capital One homepage: http://www.capitalone.com/ Junior Achievement homepage: http://www.ja.org/ Heart of America homepage: www.heartofamerica.org