By: Rebekah Iliff, Co-founder & CEO, talkTECH Communications

Olivia Khalili
As a business owner, entrepreneur, part-time recovering control freak and analysis junkie, I’ve spent days…no weeks…pondering the idea of running a “social business”: up and down, around and around, in and out, my brain does flips as it tries to wrap itself around this idea of “People versus Profit.” Or is it “People before Profit?”
At my core a thought lingers, or perhaps it is just a hunch: businesses are about money. Period. But then my “female energy” (yes, I am a true Californian now) kicks in, and I think…but is it? I mean, profit is what we strive for, and after all money is the obvious panacea to the problems we get ourselves into as a culture…as a planet, really. So where does all this “doing good” stuff fit?
My personal belief is that profit cannot be sacrificed for people’s happiness; rather, it is up to the leader of a business or organization to maintain a delicate balance where well being is a priority, and profit is a priority: but neither are mutually exclusive. Many non-profits exist under the auspices of “doing good” but they often spend years as entities that underpay staff and cannot sustain themselves. Who does this benefit? This cannot be a “social good” or “socially beneficial” can it: supporting organizations that do not have a sustainability plan?
But I digress; before I get too far down the rabbit hole I recognize that this is not my particular area of expertise. Not only do I lack sympathy in many areas, but I also tend to say things about things of which I know nothing, only to later regret them after being “schooled” as to the error of my ways.
So…because I “know what I don’t know” I engaged a friend and colleague who has made it her life’s work to answer the questions that haunt me often enough: how do I run a business, make money, and make people feel good about themselves all at the same time? What is the “right” balance of the people/profit issue? Don’t I have a “social mission” if I am honest, kind, and transparent in my business dealings?
Enter: Olivia Khalili, Founder of Cause Capitalism and purveyor of truth for all things social business. Thank you in advance, Olivia, for articulating this idea of a social business so adeptly…you are a total rockstar!
RI: What year did you start Cause Capitalism?
OK: January 2008
RI: What inspired you to start a blog focused on using a social mission to grow business?
OK: Frustration with the choice presented to me, as to many, of you can “do good” or you can “make money.” I had worked in both the corporate and nonprofit sectors as well as in international development. In each, I felt that one part of me was active and valued and the rest discounted: in the corporate sector, ambition was rewarded but at the cost of my values; while during my time with non-profits (which were quite traditional) I felt that innovation and business practices were met with skepticism. So after a stint of heavy questioning, I came upon the idea of business as a tool for social good, which was a concept that spoke to both my idealism and my pragmatism. I began Cause Capitalism as a blog to capture my ideas and the examples and research I unearthed. Several months later, I began interviewing entrepreneurs about how they founded and grew their socially driven businesses and realized that their stories and tactics would be interesting for other people. That’s the point at which I actively began blogging for more than my inner circle.
RI: Why do you recommend that businesses have a social mission?
OK: One way to think about it is that adapting a social mission is a holistic approach to business that takes into account a complete set of stakeholders. Companies that operate under a sustainability lens are motivated by factors outside of direct profit, for example, the health of supply chain communities, employee engagement or energy use. At the outset, financing an on-site daycare center for employees’ children seems like an expense, totally disconnected from profit. But it’s not. Patagonia’s on-site daycare saves the company hundreds of thousands of dollars in recruitment and training costs yearly and increases the productivity and contentment of its employees. Here’s a list of 15 reasons to adopt a social mission.
RI: You’ve completed over 260 posts and interviews for CauseCapitalism.com – have any businesses that previously did not have a social mission increased year-over-year revenues? If so, what are some examples?
OK: A favorite example is Interface Flooring. After Interface revamped its carpet production process to consumer less energy and materials and generate less waste, it saved millions of dollars in material, energy and waste removal costs yearly. The company’s sustainability impact has been even greater. It’s on tract to be zero waste by 2020 and has influenced a sustainability shift in the entire industrial carpet sector.
Or take Walmart’s prescription drug plan, which makes nearly all prescriptions available for $4, a tremendous cost savings for customers. The program was launched as a social business strategy to attract new customers and spending to Walmart while supporting the healthcare needs customers, many of who were uninsured or on Medicare.
RI: What advice would you give to those interested in bringing a social mission to their business?
OK: First off, it’s hard to fail. Create a mission statement that you can communicate publicly, but that more importantly serves to guide your decisions going forward. When you introduce values to business, the decisions can be hard so it helps to have a set of principles and values against which to evaluate the tougher decisions. Look for ways to integrate a social mission into your core business offerings so that it’s not a tangential component but supports your product or service. Start small. Be authentic and take actions that are personally meaningful or support the values and interests of your consumers or community. Learn and fail publicly. Ask for help from traditional competitors, businesses outside of your sector, and from consumers. Understand that you’re still running a business, not a marketing or volunteer campaign. Socially driven companies don’t get a pass from business but they do gain a competitive advantage.
RI: How should those interested in working with you get in touch?
OK: I’m happy to speak with anyone looking to integrate social mission or grow their business. I can be reached here (http://causecapitalism.com/work-with-me/)