Two Canadian charitable organizations are hoping to give the traditional notion of philanthropy a makeover while creating an example for the future of sustainable business practices.
The Calgary Youth Business Foundation (CYBF), a national charity that provides those aged 18–34 with mentoring and resources to help them launch successful entrepreneurial businesses, is teaming up with the Trico Charitable Foundation (TCF), which focuses on provoking innovation and building capacity in social entrepreneurship.
To be more accessible and youth-friendly, the foundations prefer the term “socially minded entrepreneurship” to philanthropy, which tends to conjure images of out-of-reach black-tie dinners and billionaires.
“While the phrase may not roll off your tongue with such ease, the idea is to give young and aspiring entrepreneurs the sense that doing something—anything—that brings benefit to their community is within their grasp, whether they run a business of 1 or 100,” says Michele Fugiel Gartner, program manager of Trico Charitable Foundation.
Trico has promised to provide funding to CYBF in the form of loans that will go directly to socially minded entrepreneurs.
But a socially minded business doesn’t necessarily equal not-for-profit, says Christi Millar, director of CYBF Alberta.
It could be a for-profit business that serves a social need; a for-profit business that encourages or requires community volunteerism from its staff; or a business that has an ingrained value and publicly expressed purpose to giving back to the community, Millar explains.
CYBF has funded a number of these businesses already, one being DeliverGood, a for-profit company that matches the material needs of charities and not-for-profits with businesses that make or can provide for such needs, which could be everything from underwear to computers.
“If my organization is doing well while doing good, it’s a win for all involved. And because our service is free to the charities, we can especially be confident in our approach to our bottom line—both financially and socially,” says Rob Price, founder of DeliverGood.
Triple Bottom Line
CYBF believes that training young entrepreneurs to run socially minded businesses is building the foundation of the future economy, because it expands to consider the “triple bottom line”: people, planet, and profit.
“I think it’s common knowledge that once you start giving it becomes addictive; the benefit that the giver gets far outweighs the recipient. We envision that once someone is structuring their business corporately to include philanthropic values, they are also more likely to give in their personal lives. The reverse is also true,” says Fugiel Gartner.
“This is why we believe so strongly in this partnership and are strongly encouraging young entrepreneurs to consider applying for this funding.”
The term triple bottom line was coined in 1994 by John Elkington, founder of SustainAbility, a think-tank and consultancy that works with businesses in the pursuit of economic, social, and environmental sustainability.
“People” refers to treating employees well and reinvesting (tax deductible) profits into the community through donations or projects.
“Planet” refers to adopting environmentally sustainable practices through all aspects of business transactions, from production processes, to administration, to post-sale product disposal.
“Profit” refers to shifting the “profit at any cost” mentality to making a profit in harmony with the principles of people and the planet.
The idea has become influential in the last decade and adopted increasingly by companies that believe they must consider the larger social and ecological effects of their actions—not simply financial results—in order to be successful.
Not to be confused with “greenwashing,” the triple bottom line concept is a core business strategy that considers long-term survival that is both wed to and dependent upon corporate social responsibility.
A growing body of evidence suggests that this approach is indeed viable, as companies realize the most talented, committed employees also tend to require non-monetary meaning in their work, and consumers increasingly look to buy from companies that do business ethically.
