Stanford Social Innovation Review

More and more business leaders recognize that their company’s future is increasingly intertwined with the needs and demands of society. But many executives don’t understand how to manage that changing relationship. In this article, McKinsey & Company consultants provide a model for incorporating sociopolitical issues into the strategic decision-making process.

Which woman is more likely to attract unpleasant sexual attention: the office sweetheart or the ambitious upstart? A new study by social psychologist Jennifer Berdahl points to the upstart. From her findings, Berdahl concludes that “men aren’t harassing women to get into their pants, but to put them down....”

Corporations that violate human rights not only inflict suffering, but also hurt their bottom line. The authors suggest five principles that corporations can follow to improve their human rights footprint.

Critics of microfinance institutions (MFIs) ask them to choose between helping the poor or making money for investors, but this is a false choice. MFIs can have their impact and profit, too, says the author, the CEO of the Grameen Foundation. He sketches a new vision of microfinance as a platform, not a product; one that relies on high volumes, not high margins, and that uses limits on private benefit, holistic performance standards, and third-party certification to help MFIs meet both their bottom lines.

Commercial microfinance institutions (MFIs) must calculate two bottom lines: alleviating poverty for clients and also generating profits for investors. To achieve the latter goal, some MFIs charge their impoverished clients exorbitant interest rates. The recent Banco Compartamos IPO in Mexico raises a red flag, demonstrating how easily well-intentioned MFIs and their investors can shift from microlending to microloan-sharking.

Breaking down the firewall between foundation
investments and programming.

A Czech social enterprise uses woodworking to help drug addicts.

The Rainforest Action Network launched an intensive consumer boycott of several Mitsubishi companies, leading to significant changes in the way the Japanese giant and many of its partners do business. That engagement provides critical lessons for both activist NGOs and corporations.

Socially responsible brands that merge with multinationals may be abandoning their principles

Organic Exchange uses its global network to promote environmentally friendly fibers.

How can companies hire and promote more women and minorities?

How organizations can inspire reconciliation instead of revenge.

The Potential and Limits of Corporate Social Responsibility.

What the public sector can teach the nonprofit and business sectors.

Why businesspeople don’t mention values when they discuss social responsibility.