Description
Book SynopsisPractical guidance to maximize financial results while driving positive social change The Mission-Driven Venture provides actionable guidance for leveraging the power of the marketplace to solve the world''s most vexing social problems. Written by attorney and financial advisor Marc J. Lane, a renowned thought leader and expert on entrepreneurship, social enterprises, impact investing and entrepreneurial finance, this book reaches the full spectrum of interests represented at the intersection of business and social change. Whether a social entrepreneur, impact investor, socially conscious individual, or a nonprofit or foundation leader, any reader committed to social innovation can benefit from this practical roadmap to the rapidly developing arena of social enterprise.
Through real-world accounts of the journeys and successes of mission-driven ventures, Lane effectively illustrates the transformative potential of social enterprise, inspiring the reader to be a
Table of Contents
Preface xi
Acknowledgments xv
About the Author xvii
About the Website xix
1 Nothing Stops a Bullet Like a Job 1
“Father G” and Homeboy 5
Vanessa Bartram and WorkSquare, LLC 6
The Origin of Mission-Driven Ventures 7
Businesses Drive Social Change 9
Profits and Purpose 13
Our Agenda 17
2 Where to Begin? Constructing the Mission-Driven Venture 19
Maximizing the Prospects of Financial Success and Meaningful Social Impact 22
Tracking Input, Output, and Outcome Indicators 27
Entity Design Choices 28
Moving from Ideation to Realization 30
Preparing for Launch 35
Zeroing in on Size and Scale 38
3 Communities of Interest: Benefit Corporations and Certified B Corps 40
Delaware Rejects Stakeholderism 43
The Benefit Corporation’s Impact 46
Delaware, the Outlier 49
Patagonia’s Values and Vision 50
Public Good Software Supports Civil Society 52
Ensuring Accountability to Stakeholders 53
4 PRIs and L3Cs 55
The Low-Profit Limited Liability Company (L3C) 59
The “Sustainability Mayor” Leverages His Impact 62
Counseling Data, L3C: A Case Study in Collective Impact 64
5 The Poor and Their Banker Lead the Way 67
Professor Yunus’ Journey 68
The Visit to Jobra 70
The Banking System’s Failure 71
Yunus’ Ingenious Solution 72
The Advent of the “Social Business” 74
Grameen Bank and Its Strategy 75
6 Leveraging Grameen 79
The Power of Cause-Related Marketing 81
The Grameen Family Expands 84
Social Venture Franchising 86
Grameen Empowers Entrepreneurs 88
7 The Mondragón Miracle: Scaling the Peaks Beyond the Pyrenees 91
Italy’s “Social Co-Operatives” 97
France’s “SCOPs” 99
Why Worker-Owned Co-Ops Succeed 99
The Evergreen Cooperatives Build on Mondragón’s Success 100
8 Social Impact Bonds: Aligning Financial and Social Returns 105
Funding Targeted Intervention Strategies 106
“Pay for Success” 112
The Massachusetts Initiative 113
New York City Leads the Way 115
Pay for Success Gains Traction 117
Where Social Impact Bonds Work 118
The Social Impact Bond’s Progeny 119
Empowering the Social Sector 120
9 Building and Rebuilding Communities 121
Donor-Advised Funds 126
The Role Foundations Play 126
Lessons Learned 130
10 Investing for Impact 132
The Origin of Impact Investing 137
Impact Investing Takes Root 142
11 How Impact Investing Works—and Why 147
The Form of the Investment 150
Managing Risk 152
Judging Investment Performance 156
Quantifying Social Returns 157
Cashing Out 159
The Challenges of an Impact Investing Market 161
12 Impact Investing: Pursuing Its Destiny 163
The Importance of Public Policy 165
The Institutional Investors Weigh In 170
The Growth Trajectory Is Clear 174
13 Keeping Score: What Success Looks Like 178
A Safe Haven’s Social Impact 179
Crediting the Causes of Positive Social Change 182
REDF and Social Return on Investment 186
Root Capital and Its “Social and Environmental Scorecard” 189
Acumen Fund and Its “Best Alternative Charitable Option” 190
14 Answering the Call: The Demand for Social Metrics 192
Scaling Success 194
Shared-Outcomes Networks 198
15 Toward a Universal Metrics Language 210
Creating More Social Good 214
The Industry Steps Up 215
Impact Reporting and Investment Standards (IRIS) 216
The Global Impact Investing Rating System (GIIRS) 218
B Analytics 219
Other “Universal” Standards 219
The World Takes Note 220
16 What the Future May Hold: The Triumph of the Mission-Driven Venture 222
The Poorest of the Poor Have Reason for Hope 222
The Growing Role of Business 223
Social Enterprise Gains Influence in the Developing World 224
Business Raises the Bar 225
Governments Reach Out to Mission-Driven Ventures 227
Measurement of Social Performance Becomes
More Sophisticated 228
Stakeholders Look to Substance Over Form 228
Social Capital Takes Center Stage 230
The Stakes Go Higher 231
Collaboration Becomes the Watchword 233
Index 235
