Intro: Sustainable Development in the Digital Age
Page One: Profit Versus Values?
Page Two: The Value of a "Values-Based" Motive
Page Three: Two Models for Sustainable Development
By Jonathan PeizerThe Internet offers new paradigms for sustainable development because of the low entry costs involved in reaching vast populations. Some argue that this requires nonprofit, non-governmental organizations (NGOs) to act more like businesses to better leverage opportunities and meet their mission in the new economy. Others think that a for-profit enterprise making proper use of the Internet can fulfill a social mission more efficiently than an NGO. In fact, both the for-profit and not-for-profit sectors have a role to play in sustainable development producing social impact.
However, one essential notion must be understood to allow the two to function in any workable partnership. Commercial enterprise operates on a profit motive while not-for-profit NGOs operate on a values motive. These fundamentally different motivations often conflict with each other. It's also important to understand what benefits a values-based motive brings to the equation that a profit motive lacks. Merging the two principles requires an appropriate vehicle.
If either motivation is compromised, an organization doing both will not function as effectively. Therefore any paradigm must seek to maximize the potential of both motivations. There are two ways to insure both sustainability and social impact. One is to create a sustainable mission-based, socially responsible enterprise that never compromises its value motive. The other is to forego the value motive as the primary principle and try to achieve social impact with an idea that delivers commercial success. Each model has application depending on the circumstance.
Next Page: Profit Versus Values?
Jonathan Peizer (jpeizer@sorosny.org) is CIO of Soros Foundations, one the funders of MediaChannel.org.