Derek Newberry captures the multiple bottom-line value proposition beautifully in his recent Nextbillion post. Building off a previous post focusing on the rift that has arisen over Tata’s 21st century take on Ford’s Model-T between socioeconomic development advocates and environmentalists, he brings us to China to look at a similar problem regarding rural energy needs and delivery.
Describing New Ventures‘ approach to this dilemma he writes,
“we get past the nearly paralyzing complexity of the poverty-environment nexus by focusing our efforts where environmental and social goals meet, essentially working to promote the Zhenghong oven-type models of the world rather than the Nano models.
Some might think this is a cop-out – I would disagree”
He continues by making a case for New Ventures’ focus on combining these hybrid, eco-social innovations with sustainable business models to effectively distribute them. Whether or not this is the best way forward he argues, New Ventures,
“aim(s) to discuss transparently and honestly the prospects and realities for sustainable and social entrepreneurship, about how realistically scalable companies like Hao’s are and the tensions between environmental and social impacts in the private sector.”
This discussion is absolutely necessary and IDG’s approach is to offer the most options, information and the clearest metrics about various the impacts of these businesses. Furthermore, the IDG platform will facilitate dialogue on several different levels so those achieving and supporting these new model businesses can work together on these issues.
So is this a cop out? No, it’s a bid to create buy-in (pun intended) from those who maybe aren’t involved as they should be, and even those who are. We agree with New Ventures that the best way we can achieve fully sustainable development is by supporting true hybrid value/multi-bottom line businesses. Furthermore, IDG’s biggest contribution is to give others enough information to make and act on these decisions for themselves.