Profit & Purpose

Why has Warby Parker been able to make such dramatic inroads against the behemoths in the long established eyeglass market? How has Method revolutionized the soap aisle? Amid the cacophony of online retailers, why has Etsy seen such explosive growth, with 2013 annual sales north of $1 billion? These companies all have been disruptive because they are operating from a strong social/environmental purpose. They are proving a counterintuitive truth purpose can drive profits. But it s not just innovative startups that are getting in on the action. Blue chip companies such as Nike, Coca-Cola and IBM are innovating within their organization to create a positive social and environmental impact globally. This is not a trend. It s the future of business. Based on in-depth interviews with founders, Profit & Purpose profiles a number of the most successful pioneers of this new way forward, telling the stories of thirteen social enterprises ranging from non-profits like Charity:Water and DonorsChoose.org, to for-profits, like Method and Burts Bees; from startups like Etsy and Warby Parker, to multinational corporations with market capitalizations in the hundreds of billions, like Coca-Cola, IBM and Nike. Kyle Westaway digs beneath the public stories of these organizations success to reveal how they have harness the power of purpose. Taking readers behind the scenes, he shows how these leading social enterprises progressed from concept to scale, how they overcame common pitfalls, and how they managed to find an optimal balance between their mission and their business mandates. Westaway reveals that though there is no magic bullet formula that guarantees success, there are seven core practices that distinguish these market leaders from the pack of contenders. They are: DISCOVER THROUGH CURIOSITY // Finding the right opportunity catalyzes impact. DESIGN WITH HUMILTY // Prioritizing users creates killer products. BUILD THROUGH HUSTLE // Rallying people creates critical momentum for launch. FUND BY COMMITMENT // Aligning funders around a vision creates true partnerships. CONNECT WITH AUTHENTICITY // Authentic connection builds a movement. SCALE THROUGH COMMUNITY // Focusing on culture ensures smart growth. EVALUATE WITH HONESTY // Honest measurement ensures continual improvement. Profit & Purpose takes the literature on social entrepreneurship an important step forward, providing the practical tools for turning good intentions into breakaway success.

Why has Warby Parker been able to make such dramatic inroadsagainst the behemoths in the long established eyeglass market? Howhas Method revolutionized the soap aisle? Amid the cacophony ofonline retailers, why has Etsy seen such explosive growth, with2013 annual sales north of $1 billion?These companies all have been disruptive because they areoperating from a strong social/environmental purpose. They areproving a counterintuitive truth - purpose can drive profits.But it's not just innovative startups that are getting in onthe action. Blue chip companies such as Nike, Coca-Cola and IBM areinnovating within their organization to create a positive socialand environmental impact globally.This is not a trend. It's the future of business.Based on in-depth interviews with founders, Profit & Purposeprofiles a number of the most successful pioneers of this new wayforward, telling the stories of thirteen social enterprises rangingfrom non-profits like Charity:Water and Dhref="donorschoose.org/">onorsChoose.org, tofor-profits, like Method and Burts Bees; from startups like Etsyand Warby Parker, to multinational corporations with marketcapitalizations in the hundreds of billions, like Coca-Cola, IBMand Nike. Kyle Westaway digs beneath the public stories of theseorganizations' success to reveal how they have harness thepower of purpose.Taking readers behind the scenes, he shows how these leadingsocial enterprises progressed from concept to scale, how theyovercame common pitfalls, and how they managed to find an optimalbalance between their mission and their business mandates. Westawayreveals that though there is no magic bullet formula thatguarantees success, there are seven core practices that distinguishthese market leaders from the pack of contenders. They are:* DISCOVER THROUGH CURIOSITY // Finding the rightopportunity catalyzes impact.* DESIGN WITH HUMILTY // Prioritizing users creates killerproducts.* BUILD THROUGH HUSTLE // Rallying people creates criticalmomentum for launch.* FUND BY COMMITMENT // Aligning funders around a vision createstrue partnerships.* CONNECT WITH AUTHENTICITY // Authentic connection builds amovement.* SCALE THROUGH COMMUNITY // Focusing on culture ensures smartgrowth.* EVALUATE WITH HONESTY // Honest measurement ensures continualimprovement.Profit & Purpose takes the literature on socialentrepreneurship an important step forward, providing the practicaltools for turning good intentions into breakaway success.

Acknowledgments ixIntroduction xiMoving Beyond Shareholder Value xviMoving Beyond Giving xviiA Better Way Forward xxCan I Really Do Well and Do Good? xxiiHow Social Enterprises Are Leading the Way xxivWhat Sets These Social Enterprises Apart? xxviiiBehind the Scenes xxx1 Discover Through Curiosity 1Identifying the Problem of Eyeglasses 2Recognizing the Right Problem for You 6A New Kind of Marketplace 13Method to Their Madness 15Inspiration at a Sleepy Roadside Stand 17Innovation from Within 19The Bumpy Path to Innovation 21Africa's Moonshot 22Key Takeaways 252 Design with Humility 29Bringing Brilliant Design to the Poor 31Letting the Users Guide You 34Discovering You Need to Pivot 36Don't Underestimate the Challenges of Distribution 37You Don't Need to be an Expert 37Embracing Challenges 41User Testing Has Many Benefits 43Knowing What to Outsource 43Finding Early Adopters Takes Work 44Creating Demand 45Good News Travels Slow 46Key Takeaways 483 Build with Hustle 51The Intuitive Hustle 52The Strategic Hustle 57Best Laid Plans 59Beating the Burn Rate 62Simple and Sincere Can Work Wonders 68Key Takeaways 704 Fund Through Commitment 73Promoting a New Version of Capitalism 74When Profit Trumps Purpose 75The Benefits of the Benefit Corporation 76The True Cost of Free Money 76Smart Crowdfunding 78Kickstart 80Follow-On Funding 83Going to the Well 86Embrace 2.0 88Vision Capital 91Not Having to Ask for Money Again 94Investing in the Ecosystem 97Key Takeaways 985 Connect with Authenticity 101Values Drive the Brand 103Establishing the Brand Hierarchy 104Give Them a Delightful Experience 106Reworking One for One 107Offer Delightful Experiences 108Selective Partnerships 109Hit the Road Jack 110The Marketing Method to the Madness 111Don't Talk at Your Customers, Listen to Them 118Building a Community 119Press Coverage Trumps Ads 120Build Momentum with a Pre-Launch Campaign 121Key Takeaways 1236 Scale Through Community 125Making a Mission Truly Meaningful 126Keeping on Top of Employee Engagement 128Wild Growth 131Keeping the Magic Alive 133The Limits of Hustle--Tough Decisions 134Selling Doesn't Necessarily Mean Selling Out 135A Road-Side Startup Goes Corporate 136Dumpster Diving 138A More Sustainable Supply Chain 139Learning from the Big Guys 141Becoming More Innovative 142Sticking with Strengths 143The Challenges of a New Location 146Your Reputation May Precede You, But You Need Community Support 149Key Takeaways 1507 Evaluate with Honesty 153Baking Metrics Into Your Process 153Considered Design 154Throw It Over the Wall 157Measuring Your Footprint 160Learning to Love Data Mining 161Hacking Education 162The Bigger You Are, the More Data You Have 164Collecting Data Over Time 166Key Takeaways 168Conclusion 173About the Website 177Index 179