Socially Responsible Business Models

Another excellent piece for this weekend’s reading– Venturebeat, a blog about new technology ventures, publishes a piece on social capitalism, its two basic models, and why some companies are likely to succeed while others are not. The post is written by Jay Parkhill, who is an attorney that works in the technology sector. Keep in mind that most Venturebeat readers are technology investors so Jay is writing for that audience.

According to Jay, the two basic models are:

1. Companies that seek to do good by capitalizing on our existing shopping patterns. Example: Ethos water.

2. Businesses that encourage consumers to spend money in ways they would not otherwise in order to create a social and/or environmental impact. Example: Terrapass, Kiva.

Read the article for the complete analysis and the pros and cons of each model.

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