In bed with the enemy, “Let’s shift the conversation form how to grow the organization to how to best increase its impact…”

In a world that at times postures itself as a cynical and skeptical, unruly teenager that always feels deceived, it is sometimes hard to believe that big “C” capitalists like Coca-Cola are providing people of Kenya with solar power energy. The energy presence of Coke is now felt by Kenyans as a result of a Corporate-Social Partnership between the American solar entrepreneurs Guarav Manchanda. In this partnership Coca-Cola markets Machanda’s One Degree solar power kits[i] that give off-grid rural vendors a reliable power source. Because of this Corporate-Social Partnership, rural vendors can now stay open past sunset, increase safety and visibility after dark, and sell more soft drinks.[ii] On average the rural vendors are  able to stay open four extra hours each day, raise earnings by 15% on average and saved 90% on energy spending,[iii] due not purchasing kerosene lamps, flashlight batteries, or candles.  Simply put the introduction of the solar power kits has increased   business hours, increased profit on all angles, and reduces long-term expenses.

Based on this example one cannot deny that Corporate-Social Partnerships are channels with the  potential to bring social venture products and services to the Base of the Pyramid.  This understanding also leads to my question of, could Corporate-Social Partnerships be the types of approaches that current and future social innovators should be using in order to increase their impact?

There is definitely no one remedy that cures all illnesses and there definitely is not only one remedy that can increase social entrepreneurs’ impact. However, it does appear that Corporate-Social Partnerships can be effective tools for increasing impact on target populations that are at times difficult to reach by land or cultural access. Corporate- Social Partnerships are a bridge between the private and public sector and most importantly are a bridge between social entrepreneurs and their customers. This bridge is becoming more and more important as the world is becoming more globalized and interconnected. Therefore, it is essential that many social innovators and entrepreneurs’ target  companies that receive large portions of the over 5 trillion dollars[iv] spent a year by the BOP, because these are viable channels with strong potential to increase impact.  

For social entrepreneurs where the primary focus is impact and (not profit), bigger isn’t necessarily better.[v] Therefore, it is important to find more efficient ways to make their desired impact, and with the growing trend of corporate-social partnerships it is clear that there is potential for a strong and impactful relationship between the public and private sectors. Long gone are the days when non-profits and for-profit social entreprenuers worked in separation from corporations.  Over time it has become very clear to both parties that they are both focused on having their products and services reach those that need/wants them. In many ways these partnerships are a smart move for social entrepreneurs because there work allows for an increase in the health and income of many companies faithful consumers. Highlighting that they are a valued enterprise, for corporations.

Corporate-Social Partnerships when done right are mutually beneficial for all involved.  Social ventures now benefit from a robust corporate distribution channels that impacts millions. They can now streamline a communication that can permeate through cultural, social, and religious barriers. While corporations gain and maintain more faithful consumers.  

Ultimately when we discuss social ventures scaling up to make an impact, I think that we may be looking at the possibilities of scaling up a bit narrowly. In such a globalized world scaling up has for better or worse taken on a new form. The old rules of how to scale up- staffing, communicating, alliance-building, lobbying, and stimulating market forces[vi] , dare I say are out dated. I firmly believe that in the next decade or so scaling up will take the forms of partnerships in order to generate impacts and reach millions if not billions of people. Also for all the skeptics, Corporate-Social Partnerships can be an avenue   to ensure that there is more accountability being placed on corporations and the type of impacts that they have on many household, BOP and non-BOP.  While I believe in the power of Corporate-Social Partnerships, I am very interested to know  what  will be  the cost for this shift in ways of scaling up and can it be sustained?

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[i] Why Coke Is Bringing Solar Power To Rural Kenya. http://www.FastCompany.com.

[ii] Why Coke Is Bringing Solar Power To Rural Kenya. http://www.FastCompany.com.

[iii] Why Coke Is Bringing Solar Power To Rural Kenya. http://www.FastCompany.com. 

[iv] How Misinformed Ideas about Profit Are Holding Back The World’s Poor. http://www.FastCompany.com.

[v] It’s Not All About Growth for Social Enterprises. 2013. Tripp, Kimberly Dasher. Harvard Business Review. 

[vi] How to Take a Social Venter to Scale. 2012. Bloom, Paul. Harvard Business Review.