One hundred low-cost tools for global women

A microfinance circle outside Hyderabad, India
A microfinance circle outside Hyderabad, India

In a gorgeous new large-format book called 100 under $100: One Hundred Tools for Empowering Global Women , author and activist Betsy Teutsch spotlights, uh, yes, 100 tools for empowering global women.

That’s what makes this book both inspiring and puzzling–the realization that so many different things can be done, at a relatively low cost, to help poor women climb out of poverty, without knowing which of those tools will work best.

I wrote about Betsy’s book for Guardian Sustainable Business. Here’s how my story begins:

About 600 million people in sub-Saharan Africa lack access to electricity. Solar panels might help, but rural people don’t often have the cash to buy them, or the ability to access bank loans.

Azuri Technologies, a UK-based firm that does business in 10 African nations, thinks that it might have the answer. It charges customers a one-time installation fee and then lets them use their mobile phones to make regular payments that – it claims – are less than what they now spend for kerosene or phone charging. In return, customers get eight hours of lighting a day and the ability to charge their phones. If all goes well, they own the system in about 18 months.

There’s nothing revolutionary about this business model: cash-strapped US shoppers have been buying on the layaway plan since the Great Depression. But pay-as-you-go solar lighting in Africa is a new twist, made possible by the declining costs of photovoltaic panels, the spread of cheap mobile phones, ubiquitous connectivity and cloud computing.

Environmentalist Betsy Teutsch highlights pay-as-you-go solar in her new book,100 under $100: One Hundred Tools for Empowering Global Women, which looks at low-cost, high-impact tools that drive global development.

“This is integrating microcredit, mobile money and the solar panel,” Teutsch says. “If it brings you lights, if it brings you cell phone charging, if it brings you radio and if you get rid of kerosene, it’s transformative.”

Her book presents an array of similar tools that, according to Teutsch, have enormous potential to prevent disease, deliver clean energy, lift incomes and promote human rights. They range from simple and time-tested technologies like breastfeeding, hand-washing, bikes and vaccines to high-tech innovations like Solar Ear, a low-cost hearing aid powered by solar-charged batteries, and Inesfly, an insecticide-infused paint that protects against the blood-sucking vinchuca beetle, which spreads Chagas disease.

I go on to say, however, that

a problem with the 100-under-$100 model is that we don’t know as much as we should about how to alleviate poverty and empower women.

Microfinance, malaria nets and clean cookstoves are among Teutsch’s favored tools. Yet microfinance has suffered a series of setbacks in India and Bangladesh, and now there’s spirited debate among economists about whether it leads to gains in income, consumption or education. While mosquito nets clearly help stop the spread of malaria, many are used for fishing – and perhaps overfishing. And while clean cookstoves undoubtedly reduce indoor air pollution and save fuel, field studies indicate that underprivileged women have not embraced them. A reporter for Nature who spent months in India found that they often sit unused in corners, broken or simply abandoned.

book-cover-100-Under-100_miniIf any of you are reading my other blog, Nonprofit Chronicles–and I do hope you will check it out, and subscribe–you’ll know that this is a current obsession of mine: Many nonprofit groups do a poor job, or make no effort at all, to measure their impact. So it’s difficult to donors, whether they be governments, foundations or individuals, to know how to be spent their charitable dollars.

This is not an excuse for inaction. I recently read Peter Singer’s excellent 2010 book, The Life You Can Save: How to Do Your Part to End World Poverty, in which he argues, persuasively, that most of us in the rich world are not doing nearly as  much as we could to alleviate suffering among the poor. He’s got a new book out exploring similar themes called The Most Good You Can Do: How Effective Altruism Is Changing Ideas About Living Ethically. Read one of those, or watch his TED talk, then read Betsy’s book, and you will be well equipped to make a difference.

Healthy junk food? Hey, why not?

brian-wansink-hero2Let them eat kale is not a recipe for solving America’s obesity crisis. Trust me. I’ve tried kale. I like Indian food, Thai food, Vietnamese food, Mexican food. I like spinach. But kale? It ain’t happening. Not for me, not for most people.

Instead, re-engineering the foods that most of us already enjoy – pizza, burgers and the like – might help all of us to become healthier. That, at least, is what Hank Cardello, a former food-industry executive and author of Stuffed: An Insider’s Look at Who’s Really Making America Fat, would like us to believe.

I interviewed Hank for a story for Future Food 2050, a website about “how ingenuity will feed the world” sponsored by the Institute of Food Technologists. Here’s how my story begins:

Future consumers should be able to have their cake and eat it too—without getting fat.

So says Hank Cardello, who directs the Obesity Solutions Initiative at the Hudson Institute and wrote the best-selling book “Stuffed: An Insider’s Look at Who’s (Really) Making America Fat and How the Food Industry Can Fix It” (Harper Collins, 2009). Products like soft drinks, burgers, fries, pizza and cupcakes should all be reconfigured as lower in calories and “better for you” to help alleviate the ongoing obesity crisis in America and other developed nations, argues this noted consultant to food industry powerhouses. Cardello contends this will enable the industry to grow even as the waistlines of consumers shrink.

Healthy junk food, Cardello maintains, need not be an oxymoron. “If we are going to make progress, we are going to have to focus on taking the most popular foods and modifying them,” he says. “That should be a rallying call for food scientists, kind of like putting a man on the moon. We’ve got to take french fries and burgers and everything else and … find ways to make them better for you without compromising them. This way, you don’t ask the consumers to change their eating habits.”

In fact, companies are already moving in this direction, Cardello explains. McDonald’s hamburgers are, as it happens, leaner than those of competing chains, and Chick-Fil-A has reduced the amount of chicken in its sandwiches—saving the company money and reducing calories for the consumer.

Cardello goes on to say that he’d like to get past polarization that has characterized much of the obesity debate, with activists blaming Big Food, and putting business executives on the defensive. I think he’s right about that. The causes of obesity are complex. The solutions are likely to come, at least in part, from the food industry.

You can read the rest of my story here.

Books I liked in 2014

For my last blog post of the year, I’d like to share with you some of the books that I enjoyed reading in 2014. I made a conscious effort this year to do less work-related reading, which isn’t always easy — so many books about business, sustainability and the environment come my way from publishers and authors — but I’m glad I did.

imageMy favorite nonfiction book of the year was The Short and Tragic Life of Robert Peace: A Brilliant Young Man Who Left Newark for the Ivy League, by Jeff Hobbs. It’s the story of an extraordinary young man named Rob Peace, who grew up in a poor, violent, drug-addled suburb of Newark but managed to escaped–temporarily–in part because he was blessed with devoted parents. His father, known as Skeet, was a street hustler who spent the final years of his life in jail, convicted of murder, yet managed to teach Rob both perfect penmanship and the dirty street-fighting tactics to deploy in a tight spot. His mother Jackie had little education and not  enough money, at one point, to pay a few hundred dollars a year of tuition to keep Rob in a Catholic elementary school where he was thriving, but she instilled in him a sense that he was destined to do great things. He was, in fact, not only brainy but tough and possessed of an insatiable curiosity and lifelong quest for new experience that  carried him, not just to Yale, where he majored in molecular biophysics and biochemistry, but to Ipanema beach in Rio (after teaching himself Portugese) and Croatia, with a high school buddy–trips that he was able to afford after taking a job as a baggage handler at Continental Airlines because the perks included free standby travel. Rob also provided for himself and helped support his mother and grandparents by dealing marijuana, in copious quantities, to his priviliged classmates at Yale.

Rob’s freshman year roommate was as aspring novelist named Jeff Hobbs, a well-to-do son  of a doctor whose father, brother and sister were all Yale grads. Rob and Jeff, who Rob mockingly calls “Da Jeffrey.” become unlikely and close friends who live together throughout their time at Yale and, while Hobbs remains mostly in the background,  his connection to Rob Peace, and admiration for him, lends this book a deeply-felt emotion. Hobbs also turns out to be a dogged reporter who reconstructs Rob’s life before and after Yale in vivid and mesmerizing detail.

Americanah, by Chimamanda Ngozi Adichie, my favorite novel of the year, is alsoimage about race, class, privilege and identity. It’s the coming of age story of a spirited young girl from Nigeria named Ifemelu, who comes to New York on a student visa and, after stints as a nanny and worse, finds fame as a blogger. Her blog is called Raceteenth or Various Observations About American Blacks (Those Formerly Known as Negroes) by a Non-American Black, and it’s hilarious. (She writes a lot about hair.) Eventually, Ifemelu makes her way back to Nigeria where she re-encounters her teenage boyfriend, Obinze, who has made his fortune in England. The book, which pushes 500 pages, sprawls a bit but it is never dull, and Adiche is a shrewd observer of human foibles.

Like many of us baby boomers, especially those with aging parents, I’ve been thinking a lot this year about growing old. I read two terrific, but very different, books on the topic. Being Mortal, by Atul Gawande, a surgeon and a staff writer for The New Yorker, makes a compelling case that the America’s health care system has valued longevity above all else, without much consideration of the question of how we want to pass our final years. That makes it sound like a treatise and it’s not; it’s a series of stories about people growing old, including not only Gawande’s patients but his father. Equally moving is Roz Chast’s laugh-out-loud and cry-to-yourself graphic novel, Can’t We Talk about Something More Pleasant? A Memoir, about what happens to her parents (and to her) when they are no longer able to live in the Brooklyn apartment they had inhabited for nearly half a century.

I’ve always been attracted to books that explain complex, arcane, even obscure subjects in entertaining ways. Michael Lewis and Elizabeth Kolbert are willing to bring their gifts for storytelling to the toughest of subjects, so I’ll read just about anything they write. Lewis’s Flash Boys is an unexpectedly lively book about high-speed trading on Wall Street, of all things. In The Sixth Extinction, Kolbert travels far and wide, from Costa Rica and Paris to the Great Barrier Reef, to show us how we are on a path to destroying fully half of the world’s species this century. It’s not as grim as it sounds, perhaps because she brings a wry sense of humor to science writing.

There’s been an explosion of smart journalism about food lately that has brought forth a number of excellent books, two of them written journalist colleagues and friends. In American Catch: The Fight for Our Local Seafood, Paul Greenberg explores the roots of the US’s seafood deficit, and argues that we should buy more fish that are caught (or farmed) nearby. Sam Fromartz, a Washington, DC-based writer and a skilled baker, travels across the US and Europe — baking baguettes in Paris, rye bread in Berlin and sourdough in California–to bring us In Search of the Perfect Loaf: A Baker’s Odyssey. Sam’s book will inspire you to try baking. I haven’t done so yet, but maybe next year.

Other books that I enjoyed this year:

Quiet: The Power of Introverts in a World that Can’t Stop Talking, by Susan Cain. Does spending time with groups of people invigorate you–or deplete you? If it’s the latter (as it is with me), you must read this book.

The Upside of Down: Why Failing Well is the Key to Success, by Megan McArdle. The columnist and blogger argues that one of the secrets of America’s success is that we don’t hold it against people when they screw up.

All the Truth is Out: The Week Politics Went Tabloid, by Matt Bai. A New York Times writer’s account of the collapse of Gary Hart’s 1988 presidential campaign is fresher and more relevant to today’s world of journalism and entertainment than you might expect.

How Adam Smith Can Change Your Life: An Unexpected Guide to Human Nature and Happiness by Russ Roberts. A moral philosopher as well as an economist, Smith wrote The Theory of Moral Sentiments to guide people on how to live, as Roberts explains in this reader-friendly volume.

Vietnam, Now by David Lamb. A Los Angeles Time reporter who covered the war in the 1960s returns in the late 1990s to see what has changed, as capitalism arrives in Vietnam. I read this to prepare for my holiday trip to Vietnam and, in fact, I am posting this blogpost from Hanoi–a sentence that certainly could not have been written 10 or 15 years ago. Vietnam was part of my adolescence. I opposed and protested the war during high school (where my anti-war speech on graduation day drew catcalls) and I’m excited to be visiting this vibrant  nation of 90 million people for the first time. One thing I can tell you already–Vietnam is more peaceful and prosperous than at any time in its history, and that can be said about a surprising number of places in the world today. The world has its troubles, to be sure, but for all its woes, tomorrow is likely to be better than today, and next year is likely to better than this. And that’s one reason to look forward to 2015.

Enjoy the holidays and happy new year.

Paul Hawken’s next big idea

98b56975-55f2-45d2-9e39-19578c3bbc70-620x372I’ve learned a lot over the years from Paul Hawken, and when our paths have crossed, I’ve always enjoyed the time we’ve spent together. He was an early supporter of FORTUNE’s Brainstorm Green, and I recall a delightful walk along the beach in Laguna Niguel where he told me about the work he’d been doing with Lee Scott, then the CEO of Walmart. Some years later, I spent an afternoon with him at his offices in Sausalito, talking about the shortcomings of the socially responsible investment industry. He also delivered a great talk about the high costs of cheap food a few years back at the Cooking for Solutions conference at the Monterey Bay Aquarium.

So when I first got wind of Project Drawdown, Paul’s latest project, I was eager to hear more. We talked by phone the other day, and the idea was unveiled last night at the big Greenbuild conference in New Orleans. I wrote about Project Drawdown for Guardian Sustainable Business.

Here’s how my story begins:

Ten years ago, in a landmark article in Science Magazine, Princeton professors Stephen Pacala and Robert Socolow wrote, “Humanity can solve the carbon and climate problem in the first half of this century simply by scaling up what we already know how to do.” They identified a series of so-called climate stabilization wedges – among them efficient cars and buildings, increasing solar, wind and nuclear power, and reducing deforestation – that if adopted would eventually maintain atmospheric concentrations of CO2 at about 500 parts per million (ppm), a level they said “would prevent most damaging climate change.” At the time, atmospheric concentrations stood at about 375 ppm.

A decade later, annual emissions continue to grow and atmospheric concentrations have topped 395 ppm – and they are rising steadily. The situation appears grim.

It is not, argues pioneering environmentalist, entrepreneur and author Paul Hawken. Climate solutions abound, he said, and today, at the opening plenary of the big Greenbuild conference in New Orleans, he will unveil Project Drawdown – a new compendium of climate solutions that are designed not just to stabilize, but to reduce the greenhouse gases in the atmosphere.

“Stabilization at 450, 500, 550 ppm is chaos,” Hawken said. “Our goal should be drawdown.”

Project Drawdown will begin as a lavishly illustrated book and online database, to be released late next year. Its purpose is to re-frame the climate debate, by showing that solving the climate crisis will bring, not sacrifice, but “more security, more prosperity, more jobs, more well-being and better health,” Hawken said.

I’m skeptical of what appears to be easy solutions to the climate crisis because, in my view, if it were easy to become radically more efficient and shift from fossil fuels to renewable energy, well, why haven’t we done it already? But some of the solutions in the book, which is still being researched, are growing fast–distributed solar power, LEDs, utility-scale wind farms. Others are creative. Educating girls in the developing world, which isn’t ordinarily regarded as a climate solution, would, it turns out, be of enormous benefit because girls who get more education have fewer children, and fewer children mean fewer emissions.

You can read the rest of my story here.

Paul Greenberg’s fish stories

AmericanCatchCoverMuch of what I know about seafood I’ve learned from Paul Greenberg. Paul is an acquaintance and a gifted writer whose new book, called American Catch: The Fight for Our Local Seafood, looks at three iconic American seafood species: New York oysters, Gulf shrimp and Alaska salmon. It’s a sequel of sorts to his previous book, Four Fish: The Future of the Last Wild Food, which I blogged about in 2010.

In the introduction to the new book, Paul describes the impact of globalization on the seafood that we catch and eat in the US:

By all rights this most healthy of food should be an American mainstay. The United States controls more ocean than any other country on earth. Our seafood-producing territory covers 2.8bn acres, more than twice as much real estate as we have set aside for landfood.

But in spite of our billions of acres of ocean, our 94,000 miles of coast, our 3.5m miles of rivers, a full 91% of the seafood Americans eat comes from abroad.

..It gets fishier still. While 91% of the seafood Americans eat is foreign, a third of the seafood that Americans catch gets sold to foreigners. By and large the fish and shellfish we are sending abroad are wild while the seafood we are importing is very often farmed.

…American consumers suffer from a deficit of American fish, but someone out there somewhere is eating our lunch.

Last week, I interviewed Paul by email for Guardian Sustainable Business. I asked him why trade in seafood differs from the global exchange of other goods, the prospects for restoring oysters to New York harbor and a couple of intriguing experiments with community-supported fisheries. You can read his responses here.

There’s encouraging news in Paul’s fish stories. Alaska’s salmon fishermen are in the midst of what could be a successful effort to protect the world’s most productive salmon fishery from Pebble Mine a massive gold and copper mine near Bristol Bay. (The EPA moved to block the mine last week.) Meantime, nonprofit groups in New York are laboring to bring back the oysters that were once plentiful up and down the east coast.

A lifelong fisherman, Paul brings to these stories and obvious passion for his subject and a zest for adventure. (He uncovers and consumes a New York oyster from the muddy waters of the East River.) More than passion, though, goes into a book like American Catch. In the acknowledgements, I learned that Paul’s editor put him through seven drafts of the manuscript. The result, a rarity in this world of 24-7 news, instant analysis, and blogging on the run, is a work of journalism that delivers both insight and enormous pleasure.

The upside of outsourcing

To match Insight INDIA-OUTSOURCING/I heard an excellent, in-depth interview this week with William Easterly, the development economist and author of a new book called The Tyranny of Experts: Economists, Dictators and the Forgotten Rights of the Poor. Easterly, a controversial figure, is critical of top-down development experts — he names Jeffrey Sachs and Bill Gates, among others — who push technocratic, centralized approaches to alleviating poverty. Instead, he argues that the best way to promote economic development is for westerners to push for democracy, human rights and free markets in the world’s poorest countries.

Easterly cites, among others, the Nobel laureate Amartya Sen, who has said: “No famine has ever taken place in the history of the world in a functioning democracy.” Others disagree, noting that parts of India came perilously close to famine just a decade ago. What’s more, China has lifted hundreds of millions of people out of poverty while suppressing human rights, but allowing economic freedom.

I’m in no position to try to adjudicate the debate about how poor countries become rich, but I was thinking about Easterly’s faith in markets and global trade as I wrote my story this week for Guardian Sustainable Business. The story looks at an idea called “socially-responsible outsourcing” or simple “impact sourcing,” and a nonprofit called DDD that tries to put that idea into practice. (DDD stands for Digital Divide Data.) DDD operates businesses in Cambodia, Kenya and Laos that employ young people, typically high school age, to provide information technology and web research, mostly to clients in the US. The goal of the enterprise is to provide economic opportunity to the poor, DDD’s founders told me.

Here’s how my story begins:

So much attention is paid to deplorable factory conditions in poor countries that it’s easy to forget that global supply chains for electronics, apparel and toys have helped lift masses of people out of poverty. Since 1980, 680 million people have risen out of poverty in China which has seen its extreme-poverty rate fall from 84% to about 10%, largely because of trade, reports The Economist.

Now, a small number of companies, nonprofits and foundations want to see if the rapidly growing global supply chains that process data and operate call centers — an industry usually described as business processing outsourcing, or BPO — can be deployed to help alleviate poverty in Africa and South Asia. Can outsourcing, a business driven by the search for cheap labor, reconfigure itself to do good?

“By responsibly and ethically employing hundreds of thousands of people, BPOs have a role to play in shifting the social landscape in emerging economies around the world,” says a report called Outsourcing for Social Good from Telus International, a Canadian outsourcing firm, and Impakt, a social responsibility consultancy.

Others agree. The Rockefeller Foundation has committed $100m to a project called Digital Jobs Africa that aims to improve one million lives in six African nations. A nonprofit called Samasource organizes poor women and youth in Africa and Asia to deliver data services to such businesses as Microsoft and Google. And a company called Cloud Factory that operates in Kenya and Nepal says digital outsourcing can “flatten the world, connect people into the global economy and raise up leaders to fight poverty and change their communities.”

The pioneer of what is called socially-responsible outsourcing or simply impact sourcing is DDD (Digital Divide Data), a New York-based nonprofit that operates for-profit data centers in Cambodia, Laos and Kenya. DDD and its impact-oriented peers set themselves apart from outsourcing giants such as Tata, Accenture and Infosys because, they says, they deliberately seeks out workers in the some of the world’s poorest places and provides them not just with jobs, but with the education, training and career counseling they need to rise into the middle class.

“Our ultimate mission is to alleviate poverty,” says Jeremy Hockenstein, 42, the founder and CEO of DDD. “We focus on students who are finishing high school, who are very motivated and very smart and who come from low-income homes.”

Having met Jeremy Hockenstein (via Skype) and his co-founder Michael Chertok (face to face), I have no doubt of their good intentions. Both gave up more lucrative careers to start the nonprofit. DDD is about helping its global employees, not exploiting them.

But their work raises an intriguing question about how much intentions matter when it comes to infotech outsourcing, or all of global trade, for that matter. Despite all the the abuses in the global manufacturing supply chain, it seems inarguable that the factory jobs created in China, Mexico, India and Bangladesh have benefited the poor in those countries. Is it possible the Walmart and Apple have done more to alleviate poverty than Bill Gates and Jeffrey Sachs?

You can read the rest of my story here.

The elusive fortune at the base of the pyramid

cimg7634It’s been an exceptionally busy week, beginning with the 2014 edition of Fortune Brainstorm Green (selected videos are online here) and ending with a holiday weekend visit from my new grandson, so I’m going to quickly post a link to my latest story for Guardian Sustainable Business.

It’s a long-ish story about doing business at the bottom of the pyramid, an idea popularized by the late C.K. Prahalad in a book published a decade ago. Here’s how the story begins:

When CK Prahalad‘s book, The Fortune at the Bottom of the Pyramid, was published in 2004, the book made an immediate splash. Its argument was irresistible: The world’s poorest people are a vast, fast-growing market with untapped buying power, Prahalad wrote, and companies that learn to serve them can make money and help people escape poverty, too.

Microsoft founder Bill Gates called the book “an intriguing blueprint for how to fight poverty with profitability”. BusinessWeek’s Pete Engardio described Prahalad, a professor at the University of Michigan business school, as a business prophet. He was awarded honorary degrees and sought out by CEOs.

Ten years later, businesses big and small continue to pursue profits at the bottom of the pyramid. The global uptake of mobile phones has proven that poor people will buy cell service if it’s available at low prices. (It costs a fraction of a cent per minute in India.) Single-serve packages of shampoo, toothpaste and soap dangle from shelves of tiny storefronts in rural villages. Products ranging from eyeglasses to solar panels are being designed and marketed to people earning $2 a day.

The bottom-of-the-pyramid (BOP) market leader, arguably, is Unilever, with its Anglo-Dutch colonial heritage and a chief executive, Paul Polman, who is determined to improve the world. Unilever generates more than half of its sales from developing markets, with much of that coming from the emerging middle class. Its signature BOP product is Pureit, a countertop water-purification system sold in India, Africa and Latin America. It’s saving lives, but it’s not making money for shareholders.

And there’s the rub. If there is a fortune to be made at the bottom of the pyramid, it remains elusive. Partly that’s because doing business with the poor is unavoidably complex, and partly that’s because the notion was oversold, says Mark Milstein, director of the Center for Sustainable Global Enterprise at Cornell’s business school and an expert on the BOP.

“I haven’t seen anyone making a fortune,” Milstein told me. “Unilever’s made money on some products, but they’ve been challenged. Other companies are making profits, but not enough to matter to their organization.”

The story goes on to report on successful and not-so-successful efforts to do business with the world’s billion or two poor people. We’ll be considering this topic again next month at the Guardian, with a live tweet chat on Tuesday, June 10, at noon. You can read the rest of my story here.

Biz Stone: A good guy who’s doing very well

Biz Stone, co-founder of Twitter, speaks at the Charles Schwab IMPACT 2010 conference in BostonI’m a big fan of Twitter. It’s how I keep up with  the news that I need to know, so I follow Jo Confino, Heidi MooreJoel Makower,  Andy RevkinBryan WalshTom PhilpottDavid Biello, Marcus Chung and Aman Singh. It’s also how way I keep up with the news that I want to know, so I follow Adam Kilgore, Buster Olney, Keith Law, Sam Miller@GioGonzalez47 and @ThisisDSpan. I follow colleagues at Fortune like Adam Lashinsky, economists who write for the public (thanks, @EconTalker!)Twitter has become what the newspaper industry once wanted to create on the Internet, a product informally dubbed “the daily me” that gave each reader news tailored to his or her interests.

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So when I heard that Biz Stone, the co-founder of Twitter, and author of a new book about values and business was coming to Washington, I decided to hear what he had to say. I wasn’t disappointed. I wrote about Biz’s talk and his new book, Things a Little Bird Told Metoday in the Guardian Sustainable Business.

Even if you have little interest in Twitter, the book is worth reading. Here is how my Guardian story begins:

How should we define success in business? Biz Stone, the co-founder of Twitter, says that to be judged successful, a company needs to make money, make the world a better place and bring joy to the people who work there.

“It’s a ridiculously high bar,” he says. “But if you don’t set the bar high, you’re never going to get there.”

Stone has written a new book called Things a Little Bird Told Me: Confessions of the Creative Mind. The book is less about the mind than the heart, less about creativity than values and less about Twitter (and that little bird) than about Stone, an unabashed idealist and, it would appear, a genuinely nice guy. This is the rare Silicon Valley story with little to say about technology, venture capitalists, monetizing users and IPOs but a lot to say about how listening, empathy and generosity can help build a sustainable business and change the world.

“It may sound like a lofty goal,” Stone writes,”but I want to redefine capitalism.”

You can read the rest of the story here. You also might want to check out Biz’s new venture, Jelly, whose ultimate aim is to “build worthwhile empathy.”

Yet another reason to eat less meat

chickens-4The more I learn about the way most chickens, pigs and cows are raised and slaughtered in America, the less appetite I have for meat. I’m not a vegetarian, and may never become one. But, hey, I’ve given up the NFL. I’d like to give up industrial meat, too.

I’ve long been aware of the negative environmental impacts of factory-produced meat. There’s plenty of evidence that the meat-heavy American diet isn’t good for our health. We’re learning than the overuse of antibiotics in animal agriculture puts human health at risk. And chickens and pigs raised for food are confined in cages and crates barely larger than their bodies. It’s not a pretty picture.

Last week. at a forum organized by the New America Foundation called The New Meat Monopoly: The Animal, The Farmer, and You in the New Age of Global Giants, I heard about another reason to avoid factory-farmed meat: Big meat companies, and in particular Tyson Foods, have grown so powerful that they have made life harder than it needs to be for small-scale farmers and ranchers. At the Washington event, farmers, ranchers, anti-trust experts and animal welfare advocates lined up to pillory the big guys.

Among the speakers at the event was  New America Foundation fellow Christopher Leonard, the author of a well-reviewed new book called The Meat Racket:  The Secret Takeover of America’s Food Business. Leonard argues in the book (which I haven’t read, but hope to) that companies like Tyson “keep farmers in a state of indebted servitude, living like modern-day sharecroppers on the ragged edge of bankruptcy.” They are able to do so in part because many farmers have only one or two customers to sell to, so the customers hold all the cards.

Subsequently, I read Obama’s Game of Chicken, an excellent 2012 article Lina Khan in the Washington Monthly about abuses of power by companies like Tyson and Pilgrim’s Pride, and how Obama’s USDA and DOJ have failed to curb them. Khan, who’s also affiliated with the New America Foundation, describes in rich detail what she calls “the stark and growing imbalance of power between the farmers who grow our food and the companies who process it for us, and how this imbalance enables practices unimaginable in any competitive market.”

I wrote about the New America event last week for Guardian Sustainable Business. Here’s how my story begins:

Like politics, industrial-scale meat production creates strange bedfellows. Animal welfare advocates are joining up with farmers, environmentalists and supporters of stronger antitrust laws in the hope of engaging consumers on the issues involving the meat they buy. The aim? To counter the power of big meat companies like Tyson Foods and JBS, the world’s largest protein company and the owner of brands including Pilgrim’s Pride and Kraft.

“Maybe it’s time for a citizens revolt,” said Barry Lynn, director of the markets, enterprise and resiliency initiative at the New America Foundation. Lynn was speaking at a half-day forum in Washington called “The New Meat Monopoly: the animal, the farmer and you in the new age of global giants“.

The accusations thrown at the global meat giants were mostly familiar. By raising and slaughtering chicken, pigs and cattle on a large scale – about eight billion chickens will be raised and killed this year in the US – these companies squeeze out family farmers, treat animals cruelly, create waste and air pollution, and feed their livestock antibiotics that, over time, put human health at risk and raise healthcare costs, at least according to their critics.

What’s more, these critics argue, is that the meat industry’s consolidation and power have been supported by government policy. Subsidized corn and soy reduce the price of meat. Bank loans to farmers are backstopped by the USDA’s Farm Service Agency. Government regulations make it harder to build and operate small-scale slaughterhouses.

You can read the rest of the story here.

Costco, Trader Joe’s, QuikTrip and the “good jobs strategy”

zton_book-257x300As the issue of income inequality takes center stage in Washington, creating risks to the reputations of some of America’s biggest employers, such as Walmart and McDonald’s, Zeynep Ton’s new book, The Good Jobs Strategy, could not be more timely.

Ton, who teaches at MIT’s business school, argues that smart companies invest in their employees, who provide superior service to customers, who become loyal, thus generating profits and shareholder returns. What’s more, she says, this strategy works in the brutally competitive, low margin retail industry, at such companies as Costco, Trader Joe’s, QuikTrip and the big Spanish retailer Mercadona.

I met Zeynep Ton last week at the Hitachi Foundation in Washington, and wrote about her book, and her ideas, today in Guardian Sustainable Business.

Here’s how my story begins:

About 46 million Americans, or 15% of the population, live below the poverty line, and about 10.4 million of them are the working poor. They bag groceries at Walmart or Target, take your order at McDonald’s or Burger King, care for the sick, the elderly or the young.

Conventional wisdom says that’s unavoidable: to stay competitive, keep prices low and maximize profits, companies, particularly in the retail and service industries, need to squeeze their workers. But in a provocative new book, The Good Jobs Strategy, author and teacher Zeynep Ton argues that the conventional wisdom is wrong. Instead, she says, smart companies invest in their employees, and they do so to lower costs and increase profits.

Of course, the idea that companies need to properly reward their key employees is hardly radical. That’s how business works on Wall Street and in Silicon Valley, where the competition for talent is fierce. But Ton, who teaches at the MIT Sloan School of Management, says that a good jobs strategy can also work in retail. In fact, she makes her case after a close study of four mass-market retailers who invest in their employees, keep costs low and deliver superior shareholder returns.

“It’s not the case that success comes from cutting labor costs,” Ton says. “Success can come from investing in people.” What’s more, she says, executives need to understand that that treating workers well “does not depend on charging customers more”.

You can read the rest here.

Regular readers will not be surprised to hear that I’m inclined to agree with Ton. Ten years ago, in my own book, Faith and Fortune, I reported on companies like Southwest Airlines, Starbucks and UPS that pursue their own version of a “good jobs strategy.” To her credit, Ton has shown that the strategy works in retail, and that it can actually help drive prices lower–a potentially valuable lesson for companies like Walmart and McDonald’s.

Zeynep Ton
Zeynep Ton

That said, her book raises a question that is hard, at least for me, to answer: If the good jobs strategy is so good, why don’t more companies embrace it? For that matter, why haven’t those companies that treat their employees well trounced their competitors? In theory, the companies that practice a “good jobs strategy” should be able to attract the best people, deliver the best customer service and force their rivals to copy them or suffer. That’s the way markets are supposed to work.

I put this question to Ton and she offered two answers. First, markets are imperfect. Second, the “good jobs strategy” is hard to execute because it requires redesigning workplaces, providing lots of training, finding the right balance between standardizing tasks and empowering employees, and so forth. Maybe. But I suspect there are other reasons why the “good jobs strategy” has not swept across America. Your thoughts are most welcome.