Innovating to Evolve

As a global society, we have much more information, than at any other point in time, about the possible externalities and ripple effects of business and commercial activities. In this week’s articles, we see many cases of how companies and investors are harnessing this information to make bold innovations, insights and developments to increase access to resources, provide more incentive for social impact and plan for industry shocks that may occur. In each of these cases, much of the focus is on the gains of innovations without much consideration as to how these ventures and approaches can also incorporate strategies to mitigate the losses and/or prepare for the physical and social landscape they are creating.

Increased Internet access:

Facebook and Google’s aerial solutions to provide broadband internet access to over a billion people will have a major impact on all sectors of industries and life at large. To make sure that the power of this access is used for positive purposes such as education, commercial and entrepreneurial resources and exposure, there will be a need to involve institutional regulations, maintenance and monitoring of this technology. For the market at large, having easier and increased access to the internet may cause market prices to decrease. What effects and shifts will we see for major internet providers and that industry? To increase social impact beyond developing/isolated communities, can the impact of aerial based internet be analyzed and used as a case study or argument to for more wealthy nations to provide internet access for their low-income and limited income subpopulations?  primarily serve a subset of the global population

Electric and automation in the auto industry:

The auto industry has consistently played a major role in the development of planned landscapes and commercial advancement in the United States and globally. We have also seen how this industry was able to evolve and respond to its effects on the environment, urbanization and health through design innovations. However, as the technology review[1] article suggests, with a shift to automation and electric, the automobile industry will have a dramatic effect on the social and commercial landscape that was built around its growth the first time around.

To make sure that innovation occurs at a reasonable and conscious pace, the auto industry could offer training and educational programs to bridge the gap for skills sets that will be needed for automation and electric maintenance and repair.  

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[1] https://www.technologyreview.com/s/604047/self-driving-and-electric-cars-are-going-to-have-tons-of-strange-effects-on-society/

Purpose Over Patriotism

My submission this week pertains to America’s uncertain future as a leader of the free world. This relates to this week’s readings because America’s uncertainty as a global leader parallels the uncertain future of social innovation and enterprise.

Eric Roston’s article detailed America’s position as a “second tier” country when it comes the overall well-being of it citizenry. Particularly, the article notes that our nation received its lowest marks in the categories of “tolerance and inclusion” and “health and wellness.” The irony is striking that “the Land of the Free” would be failing to live up to its core tenets of “liberty and justice for all.” Most abhorrent is that our nation was ranked 92^nd out of 128 nations in “religious tolerance.”

I believe that the future of social innovation and enterprise can help foster a more inclusive and tolerant America. The “purpose over profits” movement that was highlighted in Marsha Hunt’s article offers promise in the form of socially conscious consumers and businesses. There are no major corporations in the United States that do not have an explicit commitment to diversity and inclusion. Undoubtedly, no major corporation could survive, legally and public relationally, without such a socially conscious commitment that may or may not benefit their bottom line. I confident that this will remain unchanged in our future.

On the other hand, our nation is facing huge internal challenges as race relations are at the worst that they have been in decades and an opioid epidemic is devastating communities all across the country. Additionally, the nation’s leadership is abandoning America’s role as a global leader for a more nationalistic doctrinal policy. These harsh realities risk curtailing the impact that social innovation and enterprise may have in the future. America needs leadership that puts purpose over patriotism (or what is being portrayed as patriotism). Even the most innovative ideas, as illustrated by the Daniel Terdiman article, can be stymied by the government, and to a larger extent, the executive branch. American leadership will be essential in pioneering this new socially conscious and impactful world. Simply put, if the world becomes a better place, then America will become a better place.

One final question: As promising as the future of social innovation and enterprise can be, will it be able to overcome the uncertainty around America’s lack of global and national leadership?

The Future of Social Innovation and Enterprise:Is this the Light at the End of the Tunnel?

Social Enterprise represents a means of putting something greater next to the bottom line of a business. Double and triple bottom line companies provide environmental and social impact as part of their mission and link it to the success of their business. Companies such as Facebook, Tesla, and Patagonia show a trend of large companies have adopted social and environmental impact as part of their bottom line.

These companies are changing the landscape for what it means to be a successful company. For example, according to an article on Fast Company, Facebook’s Solar Drone project seeks to provide otherwise inaccessible to infrastructure areas with internet access(Terdiman). In addition to providing this service the project seeks to take advantage of solar power due to its environmental benefits. While watching to Facebook drone take-off with Mark Zuckerburg and his team smiling, I began to wonder if that is what the face of social innovation is meant to be: a CEO of a successful tech giant who has turned his efforts to social causes. This is not to belittle the impact of large companies and their social impact. In fact, these are the more public faces that propel social enterprise to the front pages of the news which is beneficial in gaining traction. I am concerned that this may be the only public face of ‘successful’ social entrepreneurship.

Studies that show America at the bottom of developed nations in terms of “tolerance and inclusion” and “health and wellness”, as pointed out by the Bloomberg article “America Is Now a ‘Second Tier’ Country”(Roston). The question is can social innovation solve this problem? Currently social innovation is represented by the Patagonias, Facebooks, and even Goldman Saks, but seems to be lacking a voice from the average American. The success of social innovation in addressing the social problems the United States faces depends on whether social enterprise is accessible to the people. The people being not only the large well-funded companies or the highly educated. This is where social impact investing can have its greatest effect. Funding enterprises that aim at the source of social inequity and are made up of the constituents that face it represents the direction social innovation must travel.

In this way social enterprise must serve as a mechanism to the American Dream. That is no matter where you are in the social ladder you can achieve a greater status through business. Aiming this at the general population seeks to provide more people with less resources the means of starting social ventures. Therefore, it should be the goal of social impact investors to propel innovation not just among the already successful. 

References:

Terdiman, Daniel. Facebook Completes First Test Flight Of Its Giant Internet Drone. Fast Company. 2016.

Roston, Eric. America Is Now a ‘Second Tier’ Country. Bloomberg. 2017.