Category Archives: Business

Will solar energy replace fossil fuels? An expert seems to think so

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A review of Rooftop Revolution: How Solar Power Can Save Our Economy — and our Planet — from Dirty Energy, by Danny Kennedy

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The basic facts are clear. The US must move to solar and other forms of renewable energy to slow down global warming; lower the environmental costs of extracting coal, oil, and natural gas; reduce the adverse public health impact of fossil fuel emissions; and end our dependency on overseas sources of petroleum.

But did you know that the move to solar energy is inevitable? That, sooner or later, the economic advantages of solar will be so compelling that the relatively few people today who still believe the coal and oil industries’ propaganda will eventually be forced to decide to install photovoltaic panels on their rooftops and commercial buildings?

That’s the message that emerges from reading between the lines of Rooftop Revolution, the paean to solar energy by Danny Kennedy, one of the avatars of the rising solar industry. Kennedy demonstrates with a wealth of statistics and a captivating narrative that the price of solar electricity from rooftop installations is on such a steep downward track, the pace of technological innovation in the industry is so swift, and the price of oil is on such an inevitable long-term rising trend, that within a very few years it will become impossible to ignore the widening gap in cost between electricity from solar and that from fossil-fuel generating plants — a gap in favor of solar.

Not so incidentally, Kennedy reports, “the tide turned in 2010 when fully half of new electric generation coming online globally was renewable. In the United States, renewables were 25 percent of new electric generation.” And “going solar by 2015 will be economically rational for two-thirds of the households in the United States.”

However, Kennedy makes it clear that he isn’t satisfied to let history run its course. The urgent need to lower global warming, and the potential of solar energy to create millions of desperately needed new jobs, together force him to advocate for public support to urge changes in state and federal energy policy.

In Rooftop Revolution, Kennedy makes a powerful case for the adoption of solar on the basis of its job-creating power alone: the solar energy industry hires roughly twice as many people as the fossil fuel business per dollar invested. And the total number of jobs in the solar industry is growing at a ferocious pace while employment in the fossil fuel sector is shrinking.

As the author makes clear, a sensible federal policy of incentives to promote solar and not to encourage the use of fossil fuels could greatly speed up the move to solar energy. However, the powers that be in Washington DC have decided otherwise. Despite all the cries of foul from the US Chamber of Commerce and the oil industry that the government is giving away the store to the solar industry — they point to Solyndra as “proof” — the facts tell us a much different story. In fact, the oil, coal, and natural gas industry has received federal subsidies in the last decade that are more than an order of magnitude greater than those granted to renewables (about 10 times for nuclear, 11 times for natural gas and petroleum, and 22 times for coal!).

About that Solyndra case, by the way: the company was the only one of more than 40 firms that received loans under the same program and proceeded to fail, and the loan program had already set aside more than five times the loss from Solyndra as a reserve against bad loans.

Kennedy quotes Jeremy Rifkin’s assertion that “The great economic revolutions in history occur when new communications technologies converge with new energy systems.” This statement, which encapsulates the thesis of Rifkin’s 2011 book, The Third Industrial Revolution (reviewed here), meshes with Kennedy’s thinking in his description of the changing character of the electricity market. As the number of solar-equipped buildings on the grid increases, the role of the power companies will start to shift, employing them as brokers of a sort, managing the flow of the surplus electricity to fill in gaps elsewhere on the grid. However, Rifkin envisions this becoming the predominant or sole role of the power companies by mid-century; if Kennedy believes that, he doesn’t indicate so in Rooftop Revolution. Instead, he dwells on the technical challenges facing the industry to incorporate surplus solar energy amounting to even less than half the total power in the system. The technology to accomplish that is almost market-ready, Kennedy points out, but it’s not there yet.

Rooftop Revolution offers an appealing overview of the present and prospects for solar energy, written in an engaging conversational style and brought to life by the author’s autobiographical asides and his brief profiles of a number of the leading lights in bringing the power of the sun to life on Earth.

Danny Kennedy is a co-founder and Executive Vice President of Sungevity, a fast-growing firm in Oakland, California, that installs custom-fitted residential solar systems around the US and now in The Netherlands as well. Kennedy was a campaign manager for Greenpeace for many years before launching Sungevity and is widely considered a leading authority on global energy issues.

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Visit the writers’ rooms at The Sopranos, The Wire, Breaking Bad, and Mad Men

1A review of Difficult Men: Behind the Scenes of a Creative Revolution—From The Sopranos and The Wire to Mad Men and Breaking Bad, by Brett Martin

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Chances are, if you have any tolerance at all for television, you’ve watched at least one of the signature dramatic shows that have cropped up on cable during the past decade. I certainly have. I’m a sucker for this stuff, and I didn’t fully understand why until I read Brett Martin’s Difficult Men, a superbly constructed tribute to these programs and their creators.

Martin argues that The Sopranos, The Wire, Mad Men, Breaking Bad and a few other high-quality TV shows are “the signature American art form of the first decade of the twenty-first century, the equivalent of what the films of Scorsese, Altman, Coppola, and others had been to the 1970s or the novels of Updike, Roth, and Mailer to the 1960s.” His thesis is hard to argue with, and I say that having devoured much of the output of those filmmakers and writers.

Difficult Men dwells largely on the creators of those four celebrated dramas—David Chase (The Sopranos), David Simon (The Wire), Matthew Weiner (Mad Men), and Vince Gilligan (Breaking Bad)—plus a few others, especially Alan Ball (Six Feet Under) and David Milch (Deadwood). If you’ve watched any of these programs, you will easily agree with Martin’s assertion that their protagonists “belonged to a species you might call Man Beset or Man Harried—badgered and bothered and thwarted by the modern world.” As Tony Soprano said, encapsulating the meaning of life for all these men, “’Every day is a gift. It’s just . . . does it have to be a pair of socks?’”

The conceit in Martin’s title derives from the indisputable fact that Chase, Simon, Weiner, Gilligan, Ball, and Milch collectively possessed enough neuroses, inner conflicts, self-doubts, disappointments, psychological wounds, and personality quirks to match the six leading men of the dramas they brought to the screen. In short, Tony Soprano and Don Draper have nothing on these guys—and Martin amply demonstrates that by recounting the sometimes colorful but excruciatingly frustrating paths most of them followed to sell their shows to HBO, FX, and AMC.

At least one of the six, David Milch, would qualify for the Neurotics’ Hall of Fame. Martin describes the time when a writer on one of his shows arrived for his first day of work “to see a man in the second-floor window peeing on the flowers below. ‘Oh, must be Milch,’ the receptionist told him.” Milch had (and presumably still has) a reputation as a genius, but he tended to drive everyone working with him around the bend. “At some point,” Martin reports, “Milch stopped committing scripts to paper at all, preferring to come to set and extemporaneously dictate lines to the actors.” Can you imagine being one of those actors?

Martin draws an interesting parallel between these contemporary serialized television dramas and the work of the Victorian writers—Charles Dickens, Anthony Trollope, George Eliot, and others—who gained the 19th century equivalent of superstardom on the strength of their serialized novels. In both cases, format enabled artistry, allowing the creators to develop complex, fully fleshed characters and story arcs that weren’t limited by the 42-minute stricture of today’s network-TV “one-hour” dramas.

To my mind, the most fascinating chapter in Difficult Men is the last one before the epilogue. Martin describes sitting for days on end in the writers’ room for the show Breaking Bad along with creator (called “showrunner”) Vince Gilligan and his crew of very gifted and extravagantly paid screenwriters. That chapter alone is worth the price of the book. You’ll never look at TV drama again the same way if you read it.

Difficult Men is a well organized, skillfully crafted, and insightful look at one of the most-watched cultural phenomena of our time.

According to his website, Brett Martin is a correspondent for GQ. His work has appeared in Vanity Fair, The New Yorker, The New York Times, Bon Appétit, Food & Wine, and many others, as well as on public radio’s This American Life.

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If you own stock, invest in companies, or are starting a new business, read this book!

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A review of The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations, and the Public, by Lynn Stout

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If you so much as skim the business pages in a newspaper, there’s little doubt you’ve heard it said or seen it written that corporate officers and directors are required by law to maximize shareholder value and that they’re subject to lawsuits if their decisions favor any other stakeholder such as employees, customers, or suppliers over profit. The well-entrenched view that shareholders are paramount is widely regarded as the cornerstone of contemporary business law — and it’s flatly untrue.

In The Shareholder Value Myth, business law professor Lynn Stout proves this point, citing chapter and verse in court decisions going back more than a century. “So long as a board can claim its members honestly believe that what they’re doing is best for ‘the corporation in the long run,’ courts will not interfere with a disinterested board’s decisions — even decisions that reduce share price today.” Having laid the legal groundwork, Stout then proceeds to explain how this mistaken view of shareholder primacy is bad for business.

“Put bluntly,” she writes, “conventional shareholder value thinking is a mistake for most firms — and a big mistake at that. Shareholder value thinking causes corporate managers to focus myopically on short-term earnings reports at the expense of  long-term performance; discourages investment and innovation; harms employees, customers, and communities; and causes companies to indulge in reckless, sociopathic, and socially irresponsible behaviors.” Among the examples Stout cites is the Gulf oil spill, caused by excessive cost-cutting on the part of BP. “In trying to save $1 million a day by skimping on safety procedures at the Macondo well, BP cost its shareholders alone a hundred thousand times more, nearly $100 billion.” Q.E.D.

Stout deftly demonstrates that this irrational focus on shareholder value has been harmful in other ways as well. For example, “[b]etween 1997 and 2008, the number of companies listed on U.S. exchanges declined from 8,823 to only 5,401.” Of several factors that help explain this trend, shareholder primacy clearly stands out. Smart people know that there’s more to success in business than a rising stock price.

The origin of this misguided notion lies in the thinking of the so-called Chicago School of free-market economists best known through the work of the late Nobel Prize-winner Milton Friedman. Friedman had written a book in the 1960s that highlighted the idea, but it was his essay in 1970 in the New York Times Magazine that gained wide attention. There, he “argued that because shareholders ‘own’ the corporation, the only ‘social responsibility of business is to increase its profits.'” Stout argues that “shareholders do not, and cannot, own corporations . . . Corporations are independent legal entities that own themselves, just as human beings own themselves.” Shareholders merely own shares of stock that constitute a contract with the corporation to receive certain financial benefits.

They’re not in charge of the show, either. Some lawyers and economists writing after Friedman contended that  shareholders appoint the directors as their agents. This too, Stout contends, is mistaken. She devotes two chapters to prove that this description of shareholders as principals “mischaracterizes the actual legal and economic relationships among shareholders, directors, and executives in public companies . . . Moreover,” Stout writes, this assumes “that shareholders’ interests [are] purely financial,” when in fact shareholders may have any one of a great many different reasons for buying and holding shares in a company.

A fair portion of The Shareholder Value Myth is focused on analyzing the impact of several popular measures promoted by shareholder advocates, the SEC, and Congress over the past two decades: “de-staggering” boards, so that all directors may be removed at once; giving shareholders the right to circulate proxies to all other shareholders on issues of interest; and equity-based compensation. Ask yourself: How often have shareholders removed the entire membership of a corporate board with a single vote? And how often have shareholders of a public company — other than corporate raiders or hedge funds — successfully obtained proxies to overturn a corporate board policy? You can guess the answer to those questions. But the very worst impact of these efforts to strengthen the shareholders’ hand has come from the popularity of equity-based compensation. “In 1991, just before Congress amended the tax code to encourage stock performance-based pay, the average CEO of a large public company received compensation approximately 140 times that of the average employee. By 2003, the ratio was approximately 500 times.” That policy isn’t the only factor to account for this dramatic rise in the ratio, but it’s certainly a major one. And it only seems to work on the upside. How many times have you read about board decisions to lower a CEO’s pay in proportion to the decline in its stock price the past year? You probably know the answer to that one, too. 

The Shareholder Value Myth is an important contribution to a growing body of thought that seeks to re-conceive the role of the corporation in a more expansive manner commensurate with its growing importance in contemporary society.

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An engaging story about kids, playgrounds, and one hugely successful social entrepreneur

A review of KaBoom! How One Man Built a Movement to Save Play, by Darrell Hammond

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A little more than two years ago I found myself immersed up to my eyeballs in a new venture dedicated to fostering the spirit of play among disadvantaged children. That venture — a mission-driven, for-profit company — was the One World Futbol Project, just then founded by the husband and wife team of Tim Jahnigen and Lisa Tarver. Tim had invented an extraordinary new soccer ball that never goes flat, needs no pump or needle, and goes on playing even if it’s punctured. The Project opened for business shortly afterward during the 2010 World Cup in Johannesburg. Our goal was to distribute one million One World Futbols within three years to children and young people in refugee camps, war zones, impoverished villages, and low-income urban neighborhoods around the world.

What had drawn me to the One World Futbol Project when Tim and Lisa showed me a prototype ball late in 2009 was not the opportunity to give poor kids what would probably be their first ball to play with. For me, the Project wasn’t about play, or sports. I was drawn in by the way so many UN agencies, schools, and NGOs were using soccer as a teaching tool, offering games that helped children acquire insights and skills in conflict resolution, self-confidence, teamwork, gender equity, and HIV/AIDs awareness.

In other words, as I saw it, the One World Futbol could speed community development efforts where poor people lived. That, to me, was a no-brainer, since I’ve been concerned throughout my life with the challenges of global poverty. (Now I’m even writing a book on that topic.) As the business began organizing in the spring of 2010, I became one of four partners. Both Tim and Lisa have continued ever since to emphasize the importance of play in child development, and I even attended a presentation by Dr. Stuart Brown, one of the world’s leading authorities on play. Still, I didn’t get it.

Then I read Darell Hammond’s surprisingly powerful little book, KaBoom! I think I get it now: if kids are deprived of opportunities to play — not twiddling thumbs on video games but creating their own games and rough-housing out-of-doors — the ill effects are evident and provable in their later lives.

Less than 20 years ago, Darell co-founded KaBoom!, a nonprofit organization that builds playgrounds in disadvantaged neighborhoods in North American towns and cities. Darell himself grew up in difficult circumstances (though he didn’t see it that way), and he never finished college, but he proved himself to be a brilliant leader — enough so that he’s now Dr. Hammond, having received an honorary Doctorate from the college he briefly attended.

Since the mid-1990s, KaBoom! has built more than 2,000 playgrounds throughout North America, and it’s estimated that its training, advisory services, and online tools have enabled others to build 10 times that many over the same period. KaBoom! has become a model of social entrepreneurship and a superb example of how nonprofit leaders can equal the very best managers to be found in the private sector. These are all truly remarkable accomplishments.

KaBoom! (the book) is really three books in one. It’s Darell’s story, and the organization’s — an important story, told with charm and unflagging honesty. It’s an essay on the importance of play and the implications for public policy. And it’s a how-to manual for communities to build playgrounds themselves.

If you’re a social entrepreneur or just want to learn more about social entrepreneurship, you owe it to yourself to read at least the first half of this book.

Oh, and by the way: that goal of the One World Futbol Project to distribute one million balls in our first three years? With a generous boost from Chevrolet, we’re on track to meet it!

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A mind-boggling tale: How America rearmed to win World War II

A review of Freedom’s Forge: How American Business Produced Victory in World War II, by Arthur Herman

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Since I was born six months before the U.S. entry into World War II, I grew up familiar with a long list of names — little-heard now, more than half a century later — that were associated with the U.S. role in the war that seized hold of Planet Earth for a half-dozen years and set America’s course as a superpower for the balance of the 20th Century. Jimmy Doolittle, Henry Kaiser, George Marshall, Hap Arnold, Curtis LeMay, Paul Tibbetts, and a host of others — every one of whom figures in the epic story so skillfully told in Freedom’s Forge.

As the book’s subtitle suggests, Freedom’s Forge focuses on the role that America’s business community, and especially Big Business, played in the monumental effort that resulted in the unconditional surrender of Germany and Japan just months apart in 1945.  Two extraordinary men — William S. Knudsen and Henry Kaiser — are the stars of this story, business impresarios who marshaled the stupendous numbers of men and women and the unprecedented mountains of raw materials that supplied the U.S. and its Allies with the weapons of war.

Nothing since — not the Apollo moon landings, not the war in Vietnam, not even America’s protracted wars in Afghanistan and the Middle East — has come even remotely close to the magnitude of World War II. Over the five-year period from July 1940, when the U.S. began to rearm, until August 1945, when Japan surrendered, “America’s shipyards had launched 141 aircraft carriers, eight battleships, 807 cruisers, destroyers, and destroyer escorts, 203 submarines, and . . . almost 52 million tons of merchant shipping. Its factories turned out 88,410 tanks and self-propelled guns, 257,000 artillery pieces, 2.4 million trucks, 2.6 million machine guns — and 41 billion rounds of ammunition. As for aircraft, the United States had produced 324,750, averaging 170 a day since 1942.”

Can the human mind today even comprehend what must have been involved in manufacturing 300,000 airplanes and 100 aircraft carriers?

This staggering output of weapons came as a result of a profound transformation of the American economy, engineered in significant part by Bill Knudsen and Henry Kaiser. The two could hardly have been more different, and they didn’t like each other. Knudsen was a modest and unassuming Danish immigrant who worked closely with Henry Ford on the Model T and later built and ran General Motors into the world’s largest industrial corporation, dwarfing Ford’s output. Kaiser, a West Coast construction magnate who was the son of German immigrants, was flashy, outgoing, and immoderately persuasive — a model of self-promotion. Together with a host of others in and out of government, these two men led the conversion of the U.S. economy to unparalleled heights as the “arsenal of freedom.” Nonetheless, “[i]n 1945 Americans ate more meat, bought more shoes and gasoline, and used more electricity than they had before Hitler invaded France.”

Though I thoroughly enjoyed reading Freedom’s Forge, there was one discordant note. Author Arthur Herman, a free-market conservative who wrote this book as a visiting scholar at the right-wing American Enterprise Institute, advanced a political message throughout. That message could be summed up as “FDR, the New Deal, labor unions — bad. Business, businessmen, military leaders — good.” He could hardly have been more blatant. But the man writes well, and he did a stellar job of telling this unimaginably complex story between the covers of a single volume.

In the conclusion, Herman quotes Josef Stalin when he first met at Tehran with Roosevelt and Churchill in 1943: he “raised his glass in a toast ‘to American production, without which this war would have been lost.'” There could be no higher praise for capitalism, coming as it did from the dictator of the Communist Soviet Union.

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A brilliant new marketing book destined to become a classic

A review of Winning the Story Wars: Why Those Who Live — and Tell — the Best Stories Will Rule the Future, by Jonah Sachs

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If you’ve never seen the wildly popular online videos The Story of Stuff and The Meatrix, do yourself a favor and check them out. These two outstanding examples of the marketer’s craft embody the insights revealed in Jonah Sachs’ outstanding new book, Winning the Story Wars.

For years now, everyone involved in marketing, fundraising, communications, social media, or any related field has been intensely aware that the key to successful messaging is a story. In this beautifully written book, Jonah Sachs explains why that is so, what’s needed for a successful story, and how to construct one, step by step.

As Sachs writes, “the oral tradition that dominated human experience for all but the last few hundred years is returning with a vengeance. It’s a monumental, epoch-making, totally unforeseen turn of events.” If these statements strike you as hyperbolic, consider this: the nearly universal distrust of institutional authority (whether governmental, corporate, or religious) that has become a distinguishing feature of our society over the past five decades, combined with the atomization of our information sources (500 TV channels, one billion Facebook users, 500 million Tweeters), makes it absolutely essential that anyone who needs to deliver a message to a very large number of people must couch it in the form of a story with broad appeal across all the lines that divide us (and define us). As Sachs explains, “Great brands and campaigns are sensitive to the preferences of different types of audiences, but the core stories and the values they represent can be appreciated by anyone. Universality is the opposite of insincerity.”

Winning the Story Wars is, simultaneously, an honest and occasionally embarrassing tale of Sachs’ own halting progress toward understanding the craft of story-making, an exploration of the cultural and anthropological roots of the archetypal stories that live on in our consciousness, and, ultimately, a lucid, practical guidebook to building your own stories.

Sachs has done his homework. He has read Joseph Campbell and Carl Jung as well as the Bible, delved deeply into the history of marketing and advertising, and explored contemporary advertising, as exemplified by the Marlboro Man, the rule-breaking 1960s campaign for the Volkswagen Beetle (“Think Small.”), and Apple’s more recent “1984” and “Think Different” campaigns. He manages to tie together all these disparate sources and examples within the framework of an entirelly original analysis. Along the way, Sachs reveals how three men — Presidents Calvin Coolidge and Herbert Hoover, and “the father of public relations,” Joseph Bernays — transformed the American economy by shifting  public consciousness from the values of our Puritan heritage to the dictates of the marketplace, enshrining consumerism as the dominant feature in our ethos. It’s truly brilliant.

Sachs bases his analysis on ‘the ‘three commandments’ laid out in 1895 by marketing’s first great storyteller, John Powers: Tell the Truth, Be Interesting, and Live the Truth.” Sachs emphasizes the importance of avoiding “Marketing’s five deadly sins: vanity, authority, insincerity, puffery, and gimmickry.”

If you’re engaged in marketing, advertising, fundraising, or anything even reasonably related to them, you must read this book.

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Social entrepreneurship: what it is, how it works, and where it’s going

A review of Social Entrepreneurship: What Everyone Needs to Know, by David Bornstein and Susan Davis

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After three decades of increasingly widespread public attention, a surprisingly large number of commentators in the field of social entrepreneurship continue to argue about the most basic question of all: What is a social enterprise, and what isn’t? In this superb little book, David Bornstein and Susan Davis straightforwardly put this question to rest: “Social entrepreneurship is a process by which citizens build or transform institutions to advance solutions to social problems, such as poverty, illness, illiteracy, environmental destruction, human rights abuses, and corruption, in order to make life better for many.” So much for all those deconstructionists who contend that a social enterprise must never turn a profit, or must always turn a profit, or must address some sorts of problems but not others!

As an introduction to the field, Social Entrepreneurship is unmatched.

Most books on social entrepreneurship feature case studies or vignettes starring some of the field’s most innovative and successful individuals. This was the case with an earlier book of Bornstein’s, How to Change the World, which is widely (and rightfully) regarded as “the bible” of the field. By contrast, the three short chapters that constitute Social Entrepreneurship ask and answer the most fundamental questions that any reader unfamiliar with the pursuit of social change might ask, first clarifying the definition of social entrepreneurship, then examining the practical challenges practitioners face, and finally “Envisioning an Innovating Society.” In that third chapter, Bornstein and Davis discuss how government, academia, business, philanthropy, and the news media might contribute to fashioning the “everyone a changemaker” world posited by Ashoka’s Bill Drayton.

As the authors point out, “Social entrepreneurs have always existed. But in the past they were called visionaries, humanitarians, philanthropists, reformers, saints, or simply great leaders. Attention was paid to their courage, compassion, and vision but rarely to the practical aspects of their accomplishments. Thus, people may know about the moral teachings of St. Francis but not about how the Franciscans became the fastest growing religious order of its day. Children learn that Florence Nightingale ministered to wounded soldiers but not that she built the first professional school for nurses and revolutionized hospital construction. Gandhi is remembered for demonstrations of nonviolent rsistance but not for building a decentralized political apparatus that enabled India to make a successful transition to self-rule.” And if St. Francis, Florence Nightingale, and Gandhi exemplified the isolated and occasional social entrepreneurs of yesteryear, there are thousands of courageous individuals now walking parallel paths to institutional change on every continent — backed up by a growing suport network that includes Ashoka, the Skoll Foundation, the Schwab Center for Social Entrepreneurship, Avina, and many other organizations. Given the enormity of the challenges facing humanity in the 21st Century, their combined efforts may represent our last, best hope to create a world in which our grandchildren can live healthy, rewarding lives.

David Bornstein and Susan Davis came to the task of writing this book with impeccable qualifications. In addition to How to Change the World, which went into a second edition in 2007, Bornstein wrote The Price of a Dream: The Story of the Grameen Bank, first published in 1996. He is the preeminent journalist in the field. Davis is a supremely accomplished activist, having served as a founding member of the Grameen Foundation and then co-founding BRAC USA, which she serves as President and CEO. (BRAC began its institutional life as a Bangladeshi nonprofit, later expanding to many other countries around the world. It is regarded as the world’s largest NGO.) She also helps select Ashoka Fellows. Previously, she held a series of senior positions with the Ford Foundation, Women’s World Banking, the International Labor Organisation, and other institutions.

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How social entrepreneurs are changing our world for the better

A review of Rippling: How Social Entrepreneurs Spread Innovation Throughout the World, by Beverly Schwartz

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Hiding behind the abstract title of this book is an engrossing account that might better have been subtitled “How Ashoka Fellows Spread Innovation Throughout the World.” (I won’t venture to suggest a better title.) The social entrepreneurs in question are, indeed, all Ashoka Fellows, the author served Ashoka as global marketing director for eight years, and Bill Drayton, Ashoka’s founder and chair, wrote a foreword. But I guess “social entrepreneurs” is more inclusive and thus presumably sells more books than “Ashoka Fellows,” so I really shouldn’t complain.

Now, if you’re unfamiliar with Ashoka, please do yourself a favor and click on the underlined name in this sentence. The Ashoka network is nothing less than one of the greatest social innovations of the 20th century. Its more than 2,000 Fellows in over 70 countries around the world are, collectively, the most powerful engine for constructive social change on Planet Earth.

There are two aspects of this first book from Ashoka that I found especially winning:

First, author Beverly Schwartz told the stories of 18 Ashoka Fellows from around the world, and none of them are the usual suspects (the Fellows whose names and tales are familiar to anyone who has read more than a book or two about social enterprise).

Second, Rippling is organized in a manner that illuminates the range and the character of the work that Ashoka Fellows do: “the five strategic ways that social entrepreneurs change social systems — inclusive of both social business and citizen sector models.” These five paths include “restructuring institutional norms,” “changing market dynamics,” “using market forces to create social value,” “advancing full citizenship,” and “cultivating empathy.” Schwartz presents three or four examples in each of these sections, so the reader gains understanding about both the commonalities and the differences among Ashoka’s growing network of Fellows. Most of these stories are engaging. Some are deeply moving. A few were riveting.

Even a cursory familiarity with Ashoka will expose you to the organization’s distinctive vocabulary. Its credo is “Everyone a changemaker.” The work of its fellows engenders “virtuous cycles of social benefit.” Its core value is “empathy.” Far be it from me to try explaining these terms. I suggest you read the book. Do so, and you will gain hope for the future of our species.

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Before Silicon Valley, Bell Labs was America’s hub of innovation

A review of The Idea Factory: Bell Labs and the Great Age of American Innovation, by Jon Gertner

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Ask yourself why the United States of America has remained the dominant economic and military power on the planet for nearly a century now. Is it the superior universal public education system we used to brag about? Is it the wealth of our natural resources: millions of acres of rich, arable land and bountiful mineral and petroleum wealth? Is it the peculiar American ability to build and manage efficient large enterprises? Is it the size and the demographic richness of our population, constantly renewed by the influx of resourceful people from other lands and cultures?

Jingoistic rhetoric aside, it’s most likely that your list of reasons — even, possibly, your only reason — is “American know-how,” the homegrown phrase that points to what seems an unusual national talent for creative thinking and innovation. In fact, it’s difficult to overlook the disproportionate presence of the United States on the lists of Nobel Prizewinners, industrial patents, and other markers of forward thinking in science and engineering throughout much of the 20th Century.

In The Idea Factory, Jon Gertner examines one period and one place where the evidence of American know-how was most pronounced: the time from the end of World War II to the late 1970s in Murray Hill, New Jersey, where AT&T’s Bell Laboratories was headquartered. There, an extraordinary assemblage of brilliant scientists and engineers, guided by a succession of equally brilliant managers, invented or developed into practical form the fundamental advances in science and technology that have shaped the world we live in today: the transistor, the laser, quality assurance methods, communications satellites, mobile telephony, digital photography, fiber-optic communications, and a number of much less well-known but equally important technological advances as well as a long list of innovations in weaponry and spy technology that many of us would prefer not to know about. (In fact, the relationship of Bell Labs to the Pentagon, especially its National Security Agency, remained close throughout the period studied in this book.)

It’s difficult to exaggerate the impact of the work at Murray Hill and its outlying sites following World War II. The transistor — the brainchild of three Bell scientists, John Bardeen, Walter Brattain, and William Shockley — is frequently cited as the single most important invention of the century. Certainly, the transistor lies at the heart of all things digital today. Even more fundamental to the world we inhabit is the information theory of Claude Shannon, who explained how computers might communicate with one another long before anything resembling today’s computers existed.

As Gertner explains in great detail, most of Bell Labs’ work was carried out in service of the growing AT&T telephone network. (If you’re young enough to confuse that AT&T with today’s business of the same name, be advised that AT&T was America’s government-regulated telephone monopoly from the 1920s through the 1970s.) Those familiar with the network called it the biggest and most complex machine in the world. “The system’s problems and needs were so vast that it was hard to know where to begin explaining them,” Gertner writes. “The system required that teams of chemists spend their entire lives trying to invent new, cheaper sheathing so that phone cables would not be permeated by rain and ice; the system required that other teams of chemists spend their lives working to improve the insulation that lay between the sheathing and the phone wires themselves. Engineers schooled in electronics, meanwhile, studied echoes, delays, distortion, feedback, and a host of other problems in the hope of inventing strategies, or new circuits, to somehow circumvent them.”

Gertner makes absolutely clear, however, that “this book does not focus on those tens of thousands of Bell Laboratories workers. Instead, it looks primarily at the lives of a select and representative few,” chiefly scientist-managers Mervin Kelly, Jim Fisk, and William Baker and scientists John Pierce and William Shockley. Every one of these individuals was exceptional, and Gertner does an excellent job giving us glimpses of their eccentricities and missteps as well as their extraordinary lives and character and their accomplishments.

I can fault this exhaustive study in only one way: it’s exhausting, expecially in its concluding chapters, where Gertner spends far too many pages dwelling on the eulogies offered up by the managers who ran Bell Labs when it was alive and well, before the break-up of the old AT&T that was consummated in 1983.

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The power of unreasonable people, and how they’re changing the world

A review of The Power of Unreasonable People: How Social Entrepreneurs Create Markets That Change the World, by John Elkington and Pamela Hartigan

@@@@@ (5 out of 5)

For more than a decade I’ve been deeply immersed in the world of social entrepreneurship. Yet somehow I neglected to read this important book when it was first published four years ago. (I acquired a copy, stuck it on a shelf, and promptly forgot all about it.) To my mind, The Power of Unreasonable People ranks with David Bornstein’s seminal work, How to Change the World, as a point of entry into this fascinating, and increasingly important, realm.

The field of social entrepreneurship, still early in its development after Bill Drayton first gave the concept prominence early in the 1980s with the launch of Ashoka, is rife with disagreement. Some observers insist that a social enterprise must be a not-for-profit enterprise. Others assert that only for-profit ventures qualify for the label. Fortunately, Elkington and Hartigan believe that the whole range of organizational forms can be thought of as “social enterprises.” I say fortunately because (a) I agree with them, and (b) to insist otherwise is to miss so much of what is exciting in the field.

The Power of Unreasonable People covers the landscape, describing examples from virtually every area of interest in development, from healthcare to education to poverty eradication. In fact, the book is most rewarding in its presentation of vignettes of individual social enterprises, including interviews with many of their principals. A lot of the examples are familiar to anyone active in the field. Some are not. However, this is no mere collection of case studies. The authors embed each organization within a typology of their devising, allowing the reader to get a sense of how they may be compared with one another. The Power of Unreasonable People concludes with a discussion of the structural changes that are essential if humankind is to prevail in the face of endemic poverty on three continents, ethnic and religious conflicts, and the growing impact of climate change.

John Elkington and Pamela Hartigan are two of the most qualified people in the world to have written this book. Elkington, a force in the area of corporate social responsibility for three decades and a prolific author, co-founded the consultancy SustainAbility in 1987 and originated the term Triple Bottom Line in the 1990s. Hartigan served as founding managing director of the Schwab Foundation for Social Entrepreneurship from 2001 to 2008, partnered with Elkington to establish the consultancy Volans, and now works as Director of the Skoll Centre for Social Entrepreneurship at Oxford University.

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