Not All Businesses are Bad, Nor All Nonprofits are Inherently Good: 3 Steps to Let Go of Limiting Beliefs

A while back a colleague said to me that they only worked with nonprofits and government agencies because they just wanted to help organizations that supported the greater good and not companies trying to make a profit.  Clearly this has stuck with me.  What I found interesting is that this individual runs a business…..

Finger Pointing

Photo by Gabus

Beyond that, I heard a basic underlying assumption that I think is antiquated and definitely not always true: all nonprofits are good and all businesses are bad!  In theory, this assumption makes sense (kinda).  But the reality is that there are nonprofits that are run poorly or operate without integrity in the name of the greater good.  In addition, there are now more and more businesses that are committed to benefiting society as well as making a profit.

I recently read The Honest Truth About Dishonesty by Dan Ariely (a great book I highly recommend) and I was intrigued to learn that one of the most compelling reasons people will lie or cheat is for altruism.  Apparently, doing something for others gives people this perception that it is ok to bend the rules or flat out break them.  Dan Ariely even made a note in his book that while he has not done any research on behavioral economics in the nonprofit sector the correlation there cannot be ignored.


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Please note, I don’t mean to make a blanket judgement about nonprofits.  Obviously a commitment to altruism doesn’t equal a lack of integrity.  But this is a concern that needs to be more openly addressed and discussed.  Instead of making a blanket judgement about an organization’s intent as benevolent or malevolent based on their tax ID status, we need to look at additional indicators for assessing their “goodness.”   And we need to let go of limiting beliefs like these that inhibit innovation and ultimately stifle forward progress.

The first step in letting go of these kinds of limiting beliefs is (well kinda like the 12 steps to sobriety) recognizing there’s a problem.  The problem being that we possess these “rules” of life which we live by that are in-and-of-themselves limiting beliefs.  All business is bad and all nonprofits are good is just one example of a limiting belief.  Other examples include: failure is bad, mistakes are unacceptable, or we must never portray our vulnerability.

The second step is to engage in reflection.  As Petter Senge says, reflections is the art of “slowing down our thinking process to become more aware” of how our limiting beliefs are formed.  This kind of self-reflection may occur in conversation with others, through journaling, or meditation.  If this kind of practice is challenging for you, a coach, mentor or teacher can provide invaluable guidance and insight along the way.

The third step is to develop a habit of inquisition by asking probing questions and searching out new information.  Remember those times when you (or someone else) got in trouble for questioning authority?  Well, don’t let that stop you from challenging others because that in-and-of-itself is also antiquated thinking.  As a leader, you not only have to challenge assumptions, you also must deftly address difficult questions.

By following these three (seemingly simple yet difficult in practice) steps we can avoid limiting beliefs or assumptions that ineffectively characterize the world around us and therefore squander our potential to create positive, meaningful change.

Confronting our Freedom: Privacy in the 21st Century

We just celebrated 4th of July, Independence Day!  The sacred, all American holiday where we celebrate our God given right, freedom.  Freedom of governance of life, and our personal liberty.  One of our most cherished freedoms, our right to privacy, resides on an ever-changing playing field.

Sometimes I think we cling to the myth of total privacy in a hyper-connected, global society.  It is not that we don’t enjoy any privacy.  We do.  And I for one, truly being a pretty private person (seriously, I’m a juxtaposition upon juxtaposition), totally get it.  With the innovations that have come as a result of the world wide web, information flow cannot be so controlled like it was in the past.

But, what we once guarded to keep private in organizations and personally is now out in the open.  Whether you like it or not, the reality is here.  And you have a few options.  Either act like it’s still 1979 and try to keep everything under lock and key.  Or demonstrate that you believe so much in your ability to walk the talk by embracing transparency.

Jay Coen Gilbert

Jay Coen Gilbert Presenting on July 3

One of the things I loved about the presentation from Jay at B Lab was the report card he shared of a member business.  Right there, on their sleeves was the performance of the company including a rating for their Governance Practices, Worker Relations, Community Support, and Environmental Policies.

The kicker is that, most of these companies, according to the standards of our educational system, are not “passing” class.  And that’s fine, in fact that’s understandable.  The shifts that need to occur overall are systematic and fairly significant.  Such change takes time as well as a dedication to a process of continual improvement.  After all, we’re not expecting perfection, we are looking for a demonstrated commitment to the journey.

By embracing transparency, these businesses are accepting their imperfection and showing some vulnerability.  And for various reasons, they’re stronger as a result.  These companies are saying, “Hey we’re really dedicated to doing our best and being the best for the world.  So much so that we’ll share our progress to let others verify our practices.  And we’ll let you see our report card.”

That’s not to say that companies should play the game with all their cards facing out.  Or communicate with reckless abandon.  But to be held accountable by being transparent about their business practices is the only way we can create and uphold new standards for socially responsible enterprises.

B Corps – A Community Conversation about Triple Bottom Line Business Models

A few weeks ago I published a blog post about B Corps and the response I got indicated that people were intrigued to learn more.  Well, I present  just the opportunity some of you were looking for!  You are invited to join us for:

B Corps – A Community Conversation about Triple Bottom Line Business Models

When: Tuesday July 3, 2012 8am – 9:30am

Where: At the Rocky Mountain Innosphere

Innovative businesses of the 21st Century are adopting new models of organization, whereby they commit to making a positive social and environmental impact, as well as striving for economic gains. B Corps provide a framework and community support for these emerging businesses. Come out to meet Jay Coen Gilbert, Co-Founder of B Lab, for a community conversation about the opportunities and challenges for B Corps in today’s marketplace. During this session the following questions will be answered, plus questions from the audience:

  • What does the new model of business look like?
  • What is the difference between a Certified B Corps and a Benefit Corporation?
  • What is happening with Colorado Benefit Corporation legislation?
  • What are the benefits of being a B Corps or a Benefit Corporation?

This is a free event (refreshments provided), but space is limited – RSVP required.

Email Ariana(at)RosabellaConsulting.com or text (970) 218-3922

About B Lab and Jay Coen Gilbert, Co-Founder

B Lab is a nonprofit organization that serves a global movement of entrepreneurs that use the power of business to solve social and environmental problems. This will redefine success in business so that all companies compete not only to be the best in the world, but the best for the world.

B Lab drives this systemic change through three interrelated initiatives: 1) building a community of Certified B Corporations to make it easier for all of us to tell the difference between “good companies” and good marketing; 2) passing legislation to accelerate growth of social entrepreneurship and impact investing; and 3) driving capital to impact investments through use of GIIRS Ratings and Analytics.

Certified B Corporations 1) meet rigorous standards of social and environmental performance; 2) legally expand their corporate responsibilities to include consideration of stakeholder interests; and 3) build collective voice through the power of the unifying B Corporation brand. As of April 2012, there are more than 500 Certified B Corporations from over 60 industries, representing a diverse multi-billion marketplace.

Legislation creating a new corporate form with higher standards of corporate purpose, accountability, and transparency — called the benefit corporation — has passed in 7 states and is moving forward with broad bi-partisan support in more than ten more.

B Lab’s GIIRS Ratings & Analytics platform, launched at the Clinton Global Initiative in September 2011, is being used by more than 50 GIIRS Pioneer Funds representing $3 billion in assets invested in 300 of the world’s leading social entrepreneurs across 30 countries form North America and Europe through emerging markets in Latin America, Asia, and Africa. 17 GIIRS Pioneer Investors have declared an investment preference for GIIRS-rated funds and companies in their impact investing portfolios.

Prior to B Lab, despite having no game, Jay co-founded and sold AND 1, a $250M basketball footwear and apparel company based outside Philadelphia. Jay led AND 1’s product and marketing and was AND 1’s CEO during its period of most rapid growth.

Jay is a Henry Crown Fellow of the Aspen Institute, President of the Board of the Philadelphia chapter of KIPP Philadelphia Schools, a growing cluster of high performing public charter schools, and a former Board member of Investors’ Circle and Social Venture Network, leading national networks of social entrepreneurs and early stage social investors.

Jay grew up in New York City before heading west to Stanford University, graduating with a degree in East Asian Studies in 1989. Prior to AND 1, Jay worked for McKinsey & Co and several organizations in NYC’s public and non-profit sectors.

Between AND 1 and B Lab, Jay enjoyed a sabbatical Down Under and in Monteverde, Costa Rica with his yogini wife Randi and their two children, Dex, 13, and Ria 12. They live in Berwyn, PA.

Read the an interview with Jay Coen Gilbert in Entrepreneur Magazine!

What questions would you like answered at this event?  Post them as a comment here!

Industry Standard vs. Standard for the Industry: B Corps have Created New Standards for Business

Industry Standard and Standard for the Industry are two different things.  The Industry Standard has been to operate business with one single purpose, to make a profit.  Now there is a new kind of business entity called BCorps or Benefit Corporations.

Butterfly

BCorps represent a transformation from business-as-usual

In addition to being responsible for the financial bottom line, B Corps are also required to: 1) serve a purpose that creates a positive impact on society and the environment; 2) Be accountable to employees, the community and the environment as well as to shareholders; and 3) Operate with transparency by providing public reporting on their social and environmental impacts that is validated by a third party.

The Standard for B Corps is threefold, purpose, accountability and transparency.  While these elements are standard for the industry they are not yet industry standard for business.  Seven states have enacted legislation that recognizes Benefit Corporations and 8 states (including Colorado) have legislation pending.  There are currently 520 certified B Corps in the country.  These companies are pushing the envelope by taking a stand to say that the Industry Standard is no longer an acceptable way for conducting business.

With just over 13% of states enacting BCorps legislation, a company may adopt the standards of B Corps without registering as a Benefit Corporation.  And many businesses are poised to make a positive difference while making a profit.  It seems that a multitude of factors are suggesting this is the way to go.  The question remains, will this new business paradigm become industry standard for business?