The problems of the World Environmental degradation Common wealth, global warming Population increase 1950: 2.5 billion to 2012: 7 billion By 2050 Medium fertility: 8.5; High 10.3 and constant fertility 11.8 b Extreme poverty One billion living on less than a dollar Global conflict Water, oil, urbanisation, diseases
Population dynamics Adults Fertile children Total 1 billion 2 billion 4 billion = 7 billion 2 billion 4 billion 10 billion 4 billion
Who is responsible for solving them • The nation state? • Came into being 400 years ago in France. It was a French Lawyer, Jean Bodin, who invented the nation state 16 century • The battle ever since: Left and Right Corruption • Red tape • Pork barrel • Nanny state (no other alternative) • Mega state: Allows the citizen to keep only what the state wants it to keep • But… the only legitimate body
The Nanny state • Bismarck (Germany) invented the Welfare state: health insurance, old age pensions. • Followed by Britain: unemployment insurance, after WW1 • 1920’s: communists and Nazis took over social institutions. • Democracies still stayed out of doing social work.
The mega state • By 1960, state began to own hospitals, schools, insurance agencies, pension funds, unemployment insurances and finally businesses. • Most of them were failures. • There was a need at that time. • Where government facilitated, drew up the framework and handed over to the private or social sector, provided better services.
Who is responsible for solving them? The private sector? Greed, collusion Corruption Environmental degradation The social sector? Small, regional, lack of resources, tech
Ireland 1 External debt (as % of GDP): 1,382% Gross external debt: $2.38 trillion 2010 GDP (est): $172.3 billion External debt per capita: $566,756 http://www.cnbc.com/id/30308959/?slide=2
United Kingdom 2 External debt (as % of GDP): 413.3% Gross external debt: $8.981 trillion 2010 GDP (est): $2.173 trillion External debt per capita
USA 20. External debt (as % of GDP): 101.1% Gross external debt: $14.825 trillion 2009 GDP (est): $14.66 trillion External debt per capita: $48,258
The Private sectorAynRand The noblest act of a businessman is creating better products and services and earning the wealth which comes from the process. Irony and injustice: We created better products, employed people and now we are told to give up our wealth to the lazy, the non-producers of wealth.
Traditional choices for businessmen Altruistic: sacrifice yourself to others Pragmatic: take advantage of other people ---both will not work.
Long term rational self-interest Environment needs to be protected for our survival. Need a healthy, wealthy, crime-free, educated society to keep buying and supporting business.
So, what can it do? Developed countries Ethical business Find unique ways to balance your budget and look after the old. Providing technology that is used in the developed world to assist with the issues in the developing world. Developing countries Keeping a certain sum of money to contribute to the social sector where prototypes are created that solves social issues. Finding solutions to social problems that can make a profit.
Current CSR in practice marketing window dressing mindset change core competency On the edge of the box
Making profits from the Bottom of the pyramid and providing services HLL Salt; Cemex
Social entrepreneurship in non-profits. Non profits driven by a good heart Forever begging, at the whim and fancy of the funder lacking financial skills or abilities In fits and starts Charisma (people give money), then collapses Multi stream Income Generating Strategies (MIGS) for non profits. The art of simultaneously pursuing both a financial and a social return on investments (the double bottom line)
Vehicles available and the possible maneuverability For profit non profit social business social … enterprise
Scaling up and scaling across • One product that can go national or international • Many products and services that can be used either for: • Services • Mission related income • Cash Cow • Or a combination of the above: Rags 2 Riches, Saturday School, etc
Slow steps…changing mindsets • Established practises • Changing minds • Small steps • Small successes • Take off with ideas and change in mid-flight, if necessary. • Mission…mission…mission • Follow Darwin
Identify your role • Innovator • Entrepreneur • Manager
Some practical needs Sanitation Showers and toilets Recycle soap Take over public education Take over hospitals Build a prototype Set up a business model Give it to the world Responsible CSR: ask for a business plan Find social entrepreneurs
De-soaping Clean water to showers showers Water from showers C L Ean water 170 kgms bio- waste Electricity production Gas stored for sale for cooking Scalene bio waste machine 200 kgm of waste per day Solid waste 200 people, 30 kgm toilets Bio gas
optimism • Ours is a generation that can: • End extreme poverty • Turn around climate change • Stop extinction of species • Solve environmental sustainability vs economic well being • We can bequeath a healthy planet to the next generation
Combines the heart of Mother Theresa and the brain of Richard Branson