Small Change: Why Business Won't Save the WorldA former Ford Foundation director takes a critical look at the role of for-profit companies in philanthropy—and exposes the troubling risks and downsides. A new movement is afoot that promises to save the world by bringing the magic of the market to philanthropy. Nonprofits should be run like businesses, its adherents say, and businesses can find new sources of revenue by marketing goods and services that benefit society. What could be wrong with that? Plenty, argues Michael Edwards. In this hard-hitting, controversial expose he marshals a wealth of evidence to show just how far short the promise of so-called philanthrocapitalism has fallen, and why the whole concept is fundamentally flawed. Some business practices can be beneficial to nonprofits, and it’s definitely a good thing that the for-profit sector is developing a social conscience. Edwards carefully specifies when businesses and business thinking can help. But to really get at the root causes of the systemic problems most nonprofits wrestle with—hunger, poverty, disease, violence—a completely different way of operating is required. Social transformation demands cooperation rather than competition, collective action more than individual effort, and patient, long-term support for solutions over short-term results. Philanthrocapitalism concentrates power in the hands of a few major players, mirroring the very inequities civil organizations should be trying to ameliorate. With a vested interest in the status quo, it shies away from fundamental change. At most all it can promise is valuable but limited advances: small change. Ultimately, Edwards declares that the use of business thinking can and does corrupt civil society. It’s time to differentiate the two—and re-assert the independence of global citizen action. “Anyone who wants the truth of philanthropy in America should read this book.” —Robert B. Reich |
Contents
CHAPTER TWO The Good the Bad and the Ugly | |
CHAPTER THREE Missing Evidence | |
CHAPTER FOUR The High Cost of Mission Drift | |
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accountability achieve activists approaches benefits Berrett-Koehler Billionaires blended value bottom line business thinking chapter Charity citizen action civil society civil society activism civil society groups claim collective action companies competition corporate social responsibility costs create debate democracy democratic economic effective efficiency empowerment example experience funds Gates Foundation global Global Peace Index goals government and civil Grameen ideas increasing individuals inequality institutions investment Jeff Skoll long-term metrics microcredit microfinance million National Nonprofit Quarterly numbers Omidyar Omidyar Network participation percent philanthrocapitalism philanthrocapitalists poor poverty production profit questions revenue save the world says Skoll Skoll Foundation social and environmental social and political social capital markets social change social enterprise social entrepreneurs Social Entrepreneurship social impact Social Innovation social justice social movements social problems social transformation structures successful things venture philanthropy W. K. Kellogg Foundation York