Sustainable Development In The Digital Age

One effect of the Internet's ability to reach people widely and inexpensively is that both nonprofit and for-profit organizations have begun to find new business strategies in fulfilling their goals. While the opportunities in the global economy are vast, the possibilities can also be confusing. Venture capitalists may look at "values-based" dot-orgs and say "if you strip off the socially responsible stuff, you've got a business that might work." At the same time, foundations may dismiss dot-coms with social missions as merely businesses. Is there a middle ground — a way to maximize both value and profit without necessarily compromising them? Jonathan Peizer, of the Open Society Institute, suggests models he calls "dot-corgs" that take both approaches into account, depending on the circumstances. We invite readers to discuss the possibilities in our Forum. Consider such questions as: Will dot-corgs prove the best way to sustain revenue in the New Economy? Can an already existing group take on dot-corg status? What will dot-corgs mean for media-issues groups and socially oriented media organizations?
— The Editors (editor@mediachannel.org)




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 Peizer

The 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.

AS THE MEDIA WATCH THE WORLD, WE WATCH THE MEDIA.


How can we build sustainable non-profit media groups? What can the media world learn from nonprofit/for-profit partnerships? Discuss this and more in the Forum


Read Jonathan Peizer's recent essay: "Bridging The Digital Divide: First You Need The Bridge"