Make a Profit, Not a Killing

I predict growth of a new type of business - let's call it Not Just For Profit. Sitting neatly between For Profit and Not For Profit, it pursues financial returns and an altruistic cause. Not Corporate Social Responsibility (CSR) where the cause is peripheral, but Compassionate Capitalism if you like. The cause is central. Inherent in the values and principles that the organisation lives by. This gives immediate advantage because brand trust starts high and PR opportunities are great.

Logic runs something like this: (1) Greed is out. The recession reminds us that someone's profit is someone else's loss. (2) More of us want to make a difference in the world - to address social and environmental concerns. We can't all hop on a plane for a 6 month VSO project in Africa, so we buy Fairtrade bananas, maybe drive a Prius. But we want to do more. (3) The web has made it easy. We can find people who share our values, build a movement - a business - at relatively low cost through crowdsourcing and crowdfunding.

So there may be a fresh crop of startups entering your market shortly. Unfettered by a history, they offer a more relevant business model. Backed by a strong emotive cause, they bond more closely with your customers. Where will they hit you hardest? How can you lessen the impact?
Here is one such company. ARK. It stands for Acts of Random Kindness. The Company sells a logo'd shirt for £28 and asks that each time it's worn, the wearer does something kind for someone else. It was an idea dreamed up by an 18 year old while out on his Duke of Edinburgh Award expedition. He says

"I was tired of corporations being motivated by personal gain. I'd like to be different and join with people who share the same kinda thoughts."

He wanted to inspire people to be kinder to each other. Two years on his dream is being realised.