Cash flow for a cause

by Tami Kamin-Meyer

For John S. Keller, business is about more than just staying in the black. It’s much more rewarding to have a mission while you make money, he says.

“One of the most rewarding components of social entrepreneurism is the community you develop when you engage in it. You meet people who are passionate, intelligent and concerned with more than the bottom line,” says Keller, president of Worldwide Book Drive in Orem.

Before Keller established Worldwide Book Drive in April 2006, he was involved in product development and consultation focusing on East Asian countries. As a student at Brigham Young University, Keller most enjoyed his International Studies courses. That education led him to work in a half dozen countries throughout Central America, South America and Southeast Asia.

Those experiences exposed Keller to the joys and excitement of benefitting society through entrepreneurial pursuits. His company is a for-profit venture that collects and distributes books around the globe. Sometimes Keller’s organization donates books, while some are resold and others recycled.

Keller is among a growing number of Utah entrepreneurs who successfully couple earning a living with doing good for others. So just what can Utah execs do if they want to incorporate social entrepreneurism into their company’s mission? Several Beehive State business leaders share their opinions, experiences and advice on doing just that.

Defining social entrepreneurship
Defining “social entrepreneurship” may be a bit more complicated than actually providing it.

“There’s been quite a bit of academic debate. The more it’s used, the less it’s understood,” says Fraser Nelson, executive director of the Community Foundation of Utah, an organization she recently co-founded with Greg Warnock, a Utah-based serial social entrepreneur.

Nelson says she defines it as “doing good in a new way.”

Ben Nolte, CEO and managing director of Big Amazon Fish in Lindon, defines social entrepreneurism in a personal way. “Social entrepreneurism is being able to have a social cause you are personally and professionally passionate about. You then forge that passion and compassion into a corporate mission,” he says.

For Nolte and his Brazil-based partner, that means taking adventure travelers and anglers to the Amazon River in Brazil, both for eco-tourism and the rare opportunity for participants to engage in a humanitarian experience in a jungle village community in that country.

The starting point
Any company can incorporate certain degrees of social entrepreneurship into their model, although certain industries lend themselves better to the concept than others, says Keller. After all, the point of social entrepreneurship is to create a better society, but it can also make a positive impact on a company’s bottom line. “Companies that integrate sustainable social entrepreneurship will be better placed in the business world,” he says.

But just where does a CEO wishing to add social entrepreneurship to his or her company’s business plan start?

Keller suggests that CEOs evaluate their businesses to uncover as many components as possible that are both sustainable and fulfill a societal need people will care about. Make sure it’s a need that people will care about long-term, he advises, or risk losing participant enthusiasm and support, he says.

“Profitability and positive social perception” are the two hallmarks of a successful marriage of enterprise and social consciousness, Keller says.

Passion is the key to successful social entrepreneurship, says Steven S. Nelson, CEO of Thornton Walker Real Estate, based in Holladay. Once CEOs pinpoint the societal need they intend to fill, then they should consider whether it’s a niche their companies can successfully satisfy.

“If you have lemons, make lemonade,” Nelson suggests.

His three-step approach for integrating a social cause into a business venture is:
1. Select a mission you’re
passionate about
2. Establish a mission with
clear goals
3. Evaluate the goals and
mission on a regular basis

Social entrepreneurship as a business strategy

Social entrepreneurship depends on a “change in mindset for business leaders to view social entrepreneurship as a component of the business model” to be successful, Keller says. And success in business feeds success for the cause.

“The goodwill created from our good deeds helps us attract more talented colleagues and encourage larger donations from organizations that respect and support our mission,” says Keller. Better rates from vendors or other organizations are also a benefit of social entrepreneurship, he says.

While Fraser Nelson agrees that social entrepreneurship can enhance a business’s bottom line, companies should also look inward for opportunities to be more responsive to the needs of employees, she says. Examples include paying employees a living wage while offering childcare and health insurance. “If employees can’t afford to live in the community where the business is located, you don’t have a sustainable business model,” she says.

Look first, then leap
Experts agree that a well-meaning CEO is likely doing a disservice to their social mission if they don’t follow a few tactics.

Steven Nelson says a common mistake made by CEOs jumping headfirst into social entrepreneurism is “biting off more than he can chew.” He says he’s seen situations where the CEO “trips over his own feet” by over-committing, resulting in quick burnout. “Slow and steady,” he cautions.

He also suggests that a CEO avoid basing their social ventures upon the supposition of need.

“Do your homework before jumping in,” he cautions.

Lastly, he urges, “Do not proliferate redundancy.” He’s learned from past experience that among the biggest frustrations of seasoned board members is that the good works generated by some companies are duplicated elsewhere. “Resolve that by finding a niche that fuels a true need, or, if there isn’t a niche in what you’re good at, learn from the best,” he says.