I read an article in the November/December issue of Good Business Magazine (www.good.is/business) about Nau, an innovative apparel company whose original charter committed it to giving five percent of its net to charity. One thought among its founders was that, rather than spend 10% on marketing, they’d spend half of that on good will, and let buzz grow organically. The company had a tremendous, unrelated upheaval. Under its new leadership, they are giving away three percent instead. Not bad. (http://www.nau.com/ )
How much do other companies give? If Nau is at 3%, Starbucks 1.7% and Lenovo 1%, where are some of the other most socially-conscious brands? Is there a big discrepancy between publicly- and privately-held firms? …Between large companies and small ones? …Among different industries? I don’t have an answer for you yet, but stay tuned. This is my new self-imposed “project.”
Yesterday I mentioned a new local company that has captivated my imagination: Tithe & More, a boutique real estate firm in Naples and Bonita Springs (www.titheandmore.com).
The founder, Bill Ventress, is a retired Proctor & Gamble executive and founder of Lenscrafters. Bill felt a calling to open a real estate firm in this area as an engine of giving. The agents each give ten percent of their commission to a cause chosen by the firm – that’s the “Tithe” part of the name. Ventress double-matches their contributions by paying at least twenty percent of his broker’s fee: that’s the “and more.” To date, they've donated more than $100,000.
Not bad, huh?
I first learned about Tithe & More last summer, when they donated $25,000 to one of my charities, One Laptop South Florida. With that money and more from the county’s Summer Migrant Program and a bit more from the Immokalee Foundation (www.immokaleefoundation.org), we were able to give free laptop computers and ten weeks of classes to 38 migrant children in Immokalee, the poorest of America’s poor.
Here is where Adam Smith’s concept of enlightened self-interest comes into play. First of all, here’s yet more free press for Ventress’ company. Second, Knowing about its dedication to good works, Jane and I are now much more likely to buy our next home from a Tithe & More agent – and aren’t you, too?
Enlightened: that’s helping people the way you should. Self-interest: that’s growing your company way better than your competitors because of the good will you’ve sown.
As any savvy capitalist knows, you can’t separate self-interest from enlightened behavior.
Do you know of a savvy firm? Nominate it for the Adam Smith Award by contacting me: ted@naplessocialaction.org.
Tuesday, December 9, 2008
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1 comment:
Good stuff Ted. I'll try to send you some info on what Cisco is doing.
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