Monday, May 28, 2012

The 2,000 Percent Nation--Chapter 9


Chapter 9

What Social Enterprises
Should Work On

“But if you love those who love you, what credit is that to you?
For even sinners love those who love them.
And if you do good to those who do good to you,
what credit is that to you?
For even sinners do the same.
And if you lend to those from whom you hope to receive back,
what credit is that to you?
For even sinners lend to sinners to receive as much back.
But love your enemies, do good, and lend,
hoping for nothing in return; and your reward will be great,
and you will be sons of the Most High.
For He is kind to the unthankful and evil.
Therefore be merciful, just as your Father also is merciful.

— Luke 6:32-36 (NKJV)

Social entrepreneurs often take the unconventional view that they should establish organizations solely focused on providing products and services that will do the most good for everyone else, whether the beneficiaries are their enemies or their friends, rather than focus on personal financial gain. Clearly, such a commitment has been formed either by God’s directions as described in Luke 6:32-36 or by an exceptionally warm heart for others.
You may be scratching your head wondering how enterprises created to serve such social purposes are different from the typical for-profit or nonprofit organization. Let me explain through some descriptions, distinctions, and examples.
I don’t know of an accurate, narrow definition of a social enterprise because my research shows that such organizations employ a wide variety of structures and approaches. Instead of attempting to provide a definition, let me describe what I’ve observed: Those enterprises typically seek to optimize a social benefit as their top priority through making breakthrough improvements to the product and service offerings they supply for those who need the benefit and cannot supply it for themselves.
How, then, is a social enterprise different from a foundation? While a foundation typically accomplishes its beneficial role by funding socially helpful activities performed by others, social enterprises directly engage in providing the helpful offerings. Social enterprises may be the recipients of foundation funds, especially during the development and testing of their business models (the “who,” “what,” “when,” “why,” “where,” “how,” and “how much” of serving stakeholders, who are all those affected by their activities). Ownership of social enterprises may also be donated by entrepreneurs to foundations when that step will enable more social benefits to be produced through attracting gifts and reducing taxes.
A for-profit enterprise’s primary purposes are typically to earn a profit above its cost of capital and to increase its value during any stock sales by its owners. Serving any social purposes would normally be considered by a for-profit firm only when such accomplishments are obviously beneficial to profits and value improvement. An emerging view among a minority in the business community is that adding social benefits can be helpful for achieving profit- and value maximizing, especially for consumer products and services companies, by attracting more customers and providing more encouragement not to waste raw materials, energy, and other resources.
A nonprofit enterprise’s primary purpose is to accomplish some public good. However, a nonprofit enterprise may or may not be seeking to make substantial innovations. As a result, some social enterprises may be established as nonprofit legal entities in part to reduce the taxes that would otherwise increase their costs or to attract more resources from donors when tax deductions are available for gifts. In many cases, the decision to seek nonprofit status is used to help clarify to potential beneficiaries that no one is trying to take economic advantage of the gifts that are received.
To help you appreciate what I mean by these distinctions, let’s look at some examples starting with one that will be familiar to many in North America: the food company, Newman’s Own, Inc. The company’s all-natural grocery products (which started with salad dressings) were developed by the late actor, Paul Newman, and his friend, A. E. Hotchner, to be healthier and tastier for consumers and to provide more social benefits for suppliers. In doing so, the success of Newman’s Own also helped interest larger food companies in providing healthier, more socially beneficial products.
Newman’s Own, Inc., is owned by Newman’s Own Foundation. All profits from the operating company’s products are donated by the Newman’s Own Foundation (less the foundation’s small administrative costs) to various charities, and several hundred million dollars have been provided in this way.
In this example, Newman’s Own, Inc., is a nonprofit social enterprise, and being owned by a foundation makes it legally easier for the company’s profits to support worthy activities performed by various charities. If the only purpose of Newman’s Own, Inc., were to benefit its stakeholders (and not to help any who aren’t stakeholders), there would be no need for a foundation. Under such an alternative purpose and ownership, Newman’s Own products could simply be sold at lower prices and be reformulated to provide even more beneficial ingredients so that consumers would receive more for their money until no profit was left to be shared with charities. For more information about these two organizations, go to http://www.newmansown.com/ and http://www.newmansownfoundation.org/.
Now, let’s take a quick trip to India and check out the Aravind Eye Care System’s medical activities there. Aravind was established in 1976 by Dr. Govindappa. Venkataswamy to treat eye conditions that often lead to blindness when left untreated, an unfortunately common circumstance for many poor people in lesser developed countries. The organization’s purpose is to serve as many patients as possible while also making big improvements in eye-care methods and training eye-care practitioners in the most effective practices. As part of its activities, Aravind manufactures some ophthalmic products (such as the intraocular lenses used in cataract surgery) to improve quality and to reduce costs.
How is Aravind different from any other eye-care product or service provider? Typically, such operations are based on a for-profit purpose and legal structure. Aravind is actually a hybrid organization, combining for-profit and nonprofit practices. What’s unusual is that Aravind uses for-profit activities as its primary source of funds instead of the way that many charities solicit donations to permit serving those in need. This nonprofit organization serves two kinds of patients: those who can afford to pay and those who cannot. Profits from treating the paying patients subsidize services for those who cannot pay.
You may be imagining that the paying patients are charged high prices to allow for more poor people to be helped. That’s not the case. Instead, Aravind has become a world leader in cutting the costs and improving the outcomes of many eye-care services, especially cataract surgery.
The results are so extraordinary that the National Health Service in the U.K. has flown thousands of its patients to India for cataract surgeries that are conducted by Aravind physicians. Even after paying for the travel and other expenses, the total costs to the National Health Service are lower and there are fewer surgical complications for these U.K. citizens than what the patients would experience from treatment by National Health Service surgeons back home.
As a result of its innovations and educational activities, Aravind is advancing the practice of eye care for everyone, but even more rapidly for poor people around the world as the use of its business model and highly effective, low-cost practices spreads. Most recently, Aravind has been training its competitors in how to copy its most effective practices. In doing so, Aravind’s approach has made it clear that medical executives and practitioners often lack the skills necessary to create innovative business models and to make cost-reducing breakthroughs in improving care. If you would like to learn more about the organization’s experiences, visit Aravind’s Web site, http://www.aravind.org/. The scope of what this social enterprise does is increasing rapidly, so be sure to read the latest annual report while you are there. At the time of this writing, a valuable history of the organization had been recently published, Infinite Vision: How Aravind Became the World’s Greatest Business Case for Compassion by Pavithra K. Mehta and Suchitra Shenoy (Berrett-Koehler, 2011), that I recommend to you as well. The book describes the spiritual aspects of that organization becoming an effective social enterprise in more detail than you may find elsewhere.
Let’s next consider a more recently established organization, the Bangladeshi social joint venture, Grameen Danone Foods, founded by Bangladesh’s depositor-owned Grameen Bank (a social enterprise that primarily provides microloans and educational assistance to help eliminate poverty) and France’s publicly owned, for-profit Groupe Danone (best known for its yogurt, bottled water, and baby food). The joint venture provides a lower-priced, healthier yogurt snack that improves nutrition for children in poor families at low cost through an innovative, small-scale manufacturing technology and employment of local small farmers as suppliers and poor women as distributors. The company also seeks to minimize any environmental harm through its use of solar power and innovative packaging.
Grameen Bank brought to this joint venture its local knowledge of a pressing social need for serving poor children and its experience in establishing enterprises that improve the quality of life and provide more income for poor people living in Bangladesh’s rural areas. Groupe Danone brought to the venture its depth of expertise in creating, manufacturing, and distributing yogurt products.
Unlike many joint ventures involving only for-profit, publicly owned enterprises, Groupe Danone didn’t connect with Grameen Bank to enrich its shareholders. The joint venture was founded with the understanding that it would provide no profit or dividends on its investment to its founders, but would focus on avoiding losses. Any profits would be reinvested to expand the company so more poor people would be served and more kinds of nutritional products developed.
Groupe Danone’s financial expectation was simply to have its initial capital investment returned over time. The original intent was for the company’s stake to eventually be sold at cost to the poor people who work in and supply the joint venture. Groupe Danone stands prepared to provide additional technical expertise after such a stock sale should other products or services need to be developed for the venture.
Despite the lack of profit incentive, Groupe Danone’s management felt very well rewarded for their efforts by having the chance to see the good that their activities have helped accomplish. The joint venture’s work gave their lives more meaning than would have occurred by focusing on traditional for-profit activities in serving wealthier customers.
The heart of this venture’s brilliance is ultimately found in the innovations that create so many more nutritional, poverty-reducing, and environmental benefits at low cost. Without the combined skills of the Grameen Bank and Groupe Danone, such innovations would not have occurred. In the long run, however, the venture’s success in serving rural poor people will primarily depend on the hard work and insight of its employees, suppliers, and distributors who serve local households.
If you would like to learn more about this venture, its founding and initial development are described in Creating a World without Poverty — Social Business and the Future of Capitalism, by Muhammad Yunus (PublicAffairs, 2008). You’ll also gain a helpful perspective on principles that can be applied for creating social enterprises that succeed by complementary organizations working together to make socially beneficial breakthroughs that neither one alone could accomplish.
With these three examples of social enterprises in mind, let me discuss possible roles for social entrepreneurs and enterprises in establishing and improving 2,000 percent nations. While the potential list of roles is quite long, I believe that the following are the largest and most beneficial opportunities for social enterprises:

• Help nonprofit and for-profit leaders learn about the potential to make more breakthroughs in providing complementary, exponential benefit increases for Godly purposes by founding and teaming with others in social enterprises.
• Increase the capabilities of experienced social entrepreneurs to develop more complementary, exponential benefit breakthroughs for Godly purposes.
• Assist people who would like to advance social purposes to learn the advantages of encouraging the founding of, establishing of, and support of social enterprises for Godly purposes.
• Alert political leaders to the benefits of creating more incentives and reducing barriers for establishing and expanding highly effective, innovative social enterprises seeking to serve Godly purposes.

Let’s first consider helping nonprofit and for-profit leaders learn about the potential to make more breakthroughs in providing complementary, exponential benefit increases for Godly purposes by founding and teaming with others in social enterprises.

Help Nonprofit and For-Profit Leaders Learn
about the Potential to Make More Breakthroughs
in Providing Complementary, Exponential Benefit Increases
for Godly Purposes by Founding and Teaming with Others
in Social Enterprises

So speak and so do as those who will be judged by the law of liberty.
For judgment is without mercy to the one who has shown no mercy.
Mercy triumphs over judgment.

— James 2:12-13 (NKJV)

A very small percentage of social enterprises have made breakthroughs in providing complementary, exponential benefit increases for Godly purposes. In addition, many of such highly fruitful enterprises are not well known beyond their own stakeholders. As a consequence of such limited awareness of what has been done, most of the potential to serve Godly purposes through social enterprises is being ignored.
Social enterprises that document and communicate their experiences with making complementary, exponential benefit increases and the lessons learned will have larger influences than those that don’t do so. In making that comparison, I’m reminded of how establishing the Malcolm Baldrige National Quality Award in the United States helped to increase interest in and the effectiveness of quality management for operations in businesses, health care, education, and nonprofit organizations there. All Baldrige award winners were required to host site visits from those who wanted to learn from the award winners’ experiences, and as a result of such visits thousands of organizations shifted their attention and actions in more productive ways. Although highly fruitful social enterprises are not required to open their doors in the same way, it would be beneficial if they would all voluntarily choose to do so.
Scholars and book publishers interested in social enterprises have made it easier to learn about the more fruitful practices through publishing research in articles and books. No doubt popular interest in the subject will ultimately grow, and it will become easier for those who are new to the field to locate such essential information about Godly fruitfulness.
Any exemplary social enterprises should also encourage leaders of for-profit and nonprofit organizations who want to establish social enterprises for Godly purposes to serve as unpaid volunteers or to work as employees in the exemplary organizations. In this way, more hands-on training can be received by those who want to duplicate what the most fruitful social enterprises are doing. Think of this suggestion in terms of the differences between visiting McDonald’s world headquarters for the first time to begin evaluating whether to become a franchisee and working at McDonald’s Hamburger University to learn how to operate an effective franchise after purchasing one.
Successful social enterprises can also help draw attention to new kinds of potential by creating still more social enterprises that serve different purposes from their original ones. For instance, the Grameen Bank extended its scope beyond microlending and antipoverty education to establish the Village Phone program to help poor women in rural communities establish wireless payphone services. Those who studied this new program were later able to apply it in nations where the Grameen Bank did not operate.
Teaming with those who are interested in serving Godly social purposes and lack the knowledge and experience to do so can be of even greater significance for helping leaders learn. That’s exactly what happened when the Grameen Bank teamed with Groupe Danone. Not only can such a new enterprise be copied elsewhere, but Groupe Danone also learned how to work with local microfinance organizations around the world to develop still other types of ventures that could apply its product and operational expertise. As a result, a large increase in innovation breakthroughs by social enterprise might follow.
Let’s next consider how to increase the capabilities of experienced social entrepreneurs to develop more complementary, exponential benefit breakthroughs for Godly purposes.

Increase the Capabilities of Experienced Social Entrepreneurs
to Develop More Complementary, Exponential
Benefit Breakthroughs for Godly Purposes

For if you love those who love you, what reward have you?
Do not even the tax collectors do the same?
And if you greet your brethren only, what do you do more than others?
Do not even the tax collectors do so?
Therefore you shall be perfect, just as your Father in heaven is perfect.

— Matthew 5:46-48 (NKJV)

Increasing the capabilities of experienced social entrepreneurs to develop more complementary, exponential benefit breakthroughs for Godly purposes presents many challenges. Let me list some of the most important ones that are addressed in this section:

• Removing any mission-focused blinders that social entrepreneurs have
• Interesting social enterprise leaders in process development
• Opening minds to the possibility that major opportunities are being missed
• Shifting attention from “doing more of the same” to “accomplishing much more with the same or fewer resources”

Let’s look first at removing any mission-focused blinders that social enterprise leaders have. Many social entrepreneurs primarily rely on passion for their organizational missions to attract and to retain talent and resources. Drawn by the appeal of these purposes, many people also approach these leaders with agendas outside of the social enterprises’ missions.
The most successful leaders know well that it’s important to avoid trying to do things that aren’t part of their organizations’ purposes. The result of taking on new missions can be to dissolve existing passion and support while creating lots of practical problems.
Sensing that danger, many successful social entrepreneurs will do anything to avoid changing any aspect of their current missions … including even how their slogans are worded. Consequently, such social entrepreneurs may well reject the notion of adding more benefits for stakeholders due to justified concern about creating harm from shifting their missions.
I agree that such concerns are valid and deserve to be seriously evaluated. Before making any changes, a social enterprise should carefully investigate how and when more benefits can be successfully added to its mission. Certified breakthrough tutors who specialize in working with social enterprises could be helpful resources for performing such investigations and for drawing the appropriate lessons.
Now, let’s consider the challenges of interesting social entrepreneurs in process development who have ignored that dimension of improving their organizations. The challenge can be quite large because it can require a huge change in focus. For example, I believe that research will probably show many social enterprises have been innovative primarily due to having very few spelled-out processes.
Because those involved with such organizations often want to do better due to deeply held concerns about those who need benefits, many people spend lots of time dreaming up ways to accomplish more. In the absence of rules saying that changes cannot be made, innovators quickly start applying their ideas. Some of the ideas work, and some make a mess. Following either result, such organizations will then move on to trying other innovations that different people have created. Much progress, punctuated with occasional trauma and setbacks from innovation flops, will follow.
In such innovative environments, processes can accelerate improvements by making successful innovations more effective and by putting some limitations on how much damage unsuccessful innovation attempts can cause. As an example of the former kind of improvement opportunity, an innovation often includes many unnecessary complications, a great deal of custom work that has to be performed under pressure, and minimal automation. Studying how to make the innovation more efficient will almost always reveal useful simplifications, opportunities for rule-based actions that almost anyone can correctly take, and automation that speeds benefits being created while slashing costs and investments. As an example of the latter kind of improvement opportunity, a review process can be set up so that those who will be affected by the innovation can comment in advance on how to make the changes more effective before a trial begins.
To interest social entrepreneurs in process development, someone needs to document how such work has benefited other social enterprises and to arrange for social entrepreneurs to observe what has been done and to hear how those affected feel about the changes. In many cases, improving processes within a social enterprise will require delegating such development work to someone in the organization with such interests and skills.
Next, let’s consider the delicate task of opening minds to the possibility that major opportunities are being missed. As background, let me share a story that Peter Drucker told me about his experiences as a consultant to the U.S. government during World War II. His assignment was to help some military contractors increase their output. On successive days, he visited two contractors who were producing the identical items in nearby locations. The first contractor was highly efficient, producing lots of items with only a small percentage being faulty. The second contractor was making a mess, scrapping almost all of its production. When asked if they were aware of one another’s practices, both companies indicated total ignorance. After the second company spent a few days studying what the first company was doing, the struggling contractor soon became almost as effective and efficient as the organization it copied.
I believe that similar learning opportunities exist among social enterprises that are engaged in serving Godly purposes. Of the social enterprise leaders I have met who were serving God’s purposes, none have been aware of how effective or ineffective their results were compared to what others were doing in similar activities. After becoming aware of what others were accomplishing, many minds were quickly opened to the possibilities of making useful changes.
Social entrepreneurs would benefit from forming associations with those who engage in somewhat similar activities and from arranging for the associations to compare the practices member organizations employ to provide suggestions for what practices should be improved and how to do so for each enterprise. Hopefully, any social entrepreneurs who read this chapter will feel moved to do so. Certified breakthrough tutors who specialize in working with social enterprises can also help by suggesting to their students that such associations be established for this purpose.
In addition, social entrepreneurs need to open their minds to thinking about what’s the most that they can accomplish with the available resources, after considering that most individuals, families, communities, regions, and nations needing help won’t receive any benefits from their activities as they are currently provided. In many cases, it may be possible to deliver a more limited set of benefits of the type currently provided at a much lower cost and with reduced effort so that huge increases can be made in how many are served. For instance, a homebuilding social enterprise that normally produces a standard home for needy families might also provide easy-to-use directions for needy people with skill in building to construct a home at a small percentage of the cost of purchasing one or the social enterprise making the total provision.
In other cases, an expensive part of what’s being provided may provide only a tiny part of the total benefit. In such a case, the expensive part might be left out. For example, many social enterprises that are funded by donors who sponsor an individual, a family, a community, or a project incur major overhead costs in facilitating communications between donors and those served. Investigation might reveal that many donors and beneficiaries would be well satisfied with less costly ways of keeping track of how one another are doing.
Let’s now consider how to best assist anyone who would like to advance social purposes to learn the advantages of encouraging the founding of, establishing of, and support for social enterprises.

Assist People Who Would Like to
Advance Social Purposes
to Learn the Advantages of
Encouraging the Founding of,
Establishing of, and Support for Social Enterprises

Then Joshua the son of Nun called the priests and said to them,
“Take up the ark of the covenant, and let seven priests
bear seven trumpets of rams’ horns before the ark of the LORD.”
And he said to the people,
“Proceed, and march around the city,
and let him who is armed advance before the ark of the LORD.”

— Joshua 6:6-7 (NKJV)

As the preparations for the fall of Jericho showed, God sometimes uses His people to demonstrate support for His purposes through worship before providing the Godly result. God may direct action through specific instructions provided by heavenly messengers, prophets, and the Holy Spirit, but most often He simply tugs on the heart strings of His people so that they will address a distressing situation. Heart-led servants are much more effective for Him after they learn more about what needs to be done to complete His will. Without such instructions, the Israelites might never have marched around Jericho in the way that God intended, and the walls would never have collapsed.
When attending conferences about solving social problems, I’m continually struck that most of the speakers appear to be directed by pure hearts in their desires and attempts to help. Unfortunately, almost none of the speakers and attendees appear to have a sense of exactly what to do that would serve God’s purposes.
As an example, many Christians who desperately want to alleviate some particular kind of suffering will only seek support for methods that are disconnected from God. For instance, some Christians may promote increased government action … despite knowing that governments will usually insist that there be no identification with God, Jesus Christ, or the Holy Spirit. To me, that approach is as if the Israelites had circled Jericho shouting praise for the idea of ending war while leaving the Ark of the Covenant and the priests at home.
Social enterprises operating under Christ’s banner can be vastly more effective in accomplishing tasks that Christian hearts are called to encourage and to perform than are totally secular organizations. Such Christian social enterprises will be blessed by His support, gain directions from the Bible and the Holy Spirit, enjoy favor from prayers made for His assistance, and draw energy and resources from the willing hearts of large numbers of believers. Rather than solely sharing this critical lesson at secular conferences and political get-togethers, I believe that Christian Bible studies on the subject also need to be provided to expand understanding of how to address social needs that God wants met by following His directions.
To encourage this Bible-based teaching, I believe there need to be people who work at or have worked at an effective Christian social enterprise who go from church to church helping Christians learn what social-improvement tasks the Bible directs believers to do. Those people can also show how innovative social enterprises that seek to provide complementary, exponential benefits can help us do God’s will more effectively by seeking His guidance and support.
Such people will also be able to help connect those who would like to carry the message forward with one another as well as to help introduce them to those who want to found, to expand, and to support a given Christian social enterprise. They can also help avoid unnecessary duplication of efforts by pointing out where an existing Christian social enterprise is an effective vehicle for doing His will.
Christian social enterprises can also improve by learning how to be more effective in preparing their staff members, volunteers, beneficiaries, and supporters to attract more attention and interest from those with caring hearts who aren’t yet connected to the enterprises. Here’s another opportunity for those with such experience to specialize in providing their assistance by concentrating on one Christian enterprise at a time and later sharing the lessons of what was learned with others who are skilled in the field so that the body of practice in this activity grows to be stronger and more effective.
Over time, developing Christian social enterprises that make complementary, exponential breakthroughs can also have testimonial value in helping lead more people to accept the Lord’s free gift of Salvation (after repenting of their sins and accepting Him as their Lord and Savior). Can you imagine how impressed caring unsaved people would be by God’s mighty hand providing vastly more bountiful results for Christian social enterprises than for ones that avoid following Him and His directions? Such a result might be a little like God leading Christians to defeat their enemies by simply telling them to march around their opponents.
Let’s finally shift our attention to alerting political leaders to the benefits of creating more incentives for and of reducing barriers to establishing and expanding highly effective, innovative social enterprises seeking to serve Godly purposes.

Alert Political Leaders to the Benefits of Creating
More Incentives and Reducing Barriers for
Establishing and Expanding Highly Effective, Innovative
Social Enterprises Seeking to Serve Godly Purposes

I have set watchmen on your walls, O Jerusalem;
They shall never hold their peace day or night.

— Isaiah 62:6 (NKJV)

In persuading political leaders to consider such changes, I believe that someone has to make the case that social enterprises will be able to increase the development of or improvement of a 2,000 percent nation. It would be helpful for a foundation to support a scholar who wants to perform an investigation into the effectiveness of social enterprises and what roles should be encouraged. Rather than just doing one such investigation, I suggest that it could be more helpful to focus on the needs of a single nation and to document a measurement methodology that could be used to conduct parallel investigations in all the other nations.
Alerting political leaders to any such benefits will be much more important in some nations than in others. That’s due to differences in how many hurdles and barriers lie in the way of establishing and conducting such enterprises from country to country. The United Nations often looks at the hurdles for and barriers to establishing a business and finds wide variations from nation to nation. Although I’m not aware of any similar study for social enterprises, I estimate that differences in hurdles and barriers to establishing social enterprises are much greater from country to country, with the largest and most difficult hurdles and barriers being most often found in nations where highly effective social enterprises to serve Godly purposes are the most needed.
In making this observation, I’m well aware that there is much risk in having too little regulation of social enterprises. Many times these organizations are established by well-meaning people with little knowledge of what’s needed or what the consequences of an action might be in a given country. As a result, those seeking to access any benefits that such social entrepreneurs provide might well be unintentionally harmed. Undoubtedly, there are also going to be people who want to use social enterprises to take advantage of others, especially if such organizations receive less government scrutiny.
The right answer in most cases will be to make it relatively easy to establish such enterprises on an extremely small and limited scale, and to focus regulation on being sure that what is being done by newer, small social enterprises is constructive before allowing expansions in size and scope.
Such an approach can also be helpful for creating incentives. In reviewing new social enterprises, those organizations that are performing well might then become eligible for whatever incentives a government decides to provide. Such an approach would help to focus attention on excellence while also discouraging evildoers from trying to take advantage of donors or beneficiaries.
What incentives might countries provide? I believe that the most important ones involve publicity. By making many more people aware that a social enterprise is performing well, talented people, donors, and volunteers will be attracted. From such resources, expanded benefits can be provided. Similar to the Baldrige Award I mentioned earlier in the chapter, a nation could provide new awards for social enterprises that perform at a defined high level of putting together complementary benefit breakthroughs for Godly purposes.
Other useful incentives might involve making social enterprises eligible to be hired to perform official government tasks. For instance, a social enterprise involved in food distribution for poor people in refugee camps might be given a contract to perform similar distribution activities for poor people in the vicinity but who don’t live in the refugee camps. Governments should avoid automatically making such agreements, requiring social enterprises to compete with every other qualified organization and individual. Otherwise, complacency and slack practices might be encouraged.
Social enterprises may turn out to be most useful in poorer nations, especially if such organizations are founded, staffed, and directed by people from such nations. These organizations may be more able to resist being weakened by any corrupt practices that are common in the nation. The nation’s government can also focus on creating more honest activities so that self-dealing by bureaucrats won’t dominate working with these enterprises. Freed from many corrupt practices, social enterprises may well soar higher relative to other kinds of organizations in such a nation. I pray that this result will follow.

In Chapter 10, we consider a controversial subject for some people: what for-profit companies should seek to do in serving Godly purposes.

Copyright © 2007, 2010, 2011, 2012 by Donald W. Mitchell.
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Scripture quotations marked (NKJV)
are taken from the New King James Version.
Copyright © 1982 by Thomas Nelson, Inc.
Used by permission. All rights reserved.

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