innovate big

disruptive innovations will drive “real good”

not just “feel good”…according to The Economist’s Special Report on Corporate Social Responsibility [Thanks Daniel for keeping me posted on this]

Illustration by Ian Whadcock

The January 2008 report confirms that we are in the midst of a new and prosperous economic landscape. This rapidly changing competitive landscape requires that companies and business leaders take innovation and social responsibility more seriously than ever.

The Economist report also claims to have (with much regret apparently) totally dismissed its previous opinion that CSR is just a fad. Claiming instead that “CSR has arrived” with results from a recent survey indicating that 96% of people recognize CSR to be important (only 4% of respondents believed CSR was “a waste of time and money”). The stakes are just too high to ignore. Consumers, job seekers, employees, investors and even potential suppliers believe in corporate social responsibility.

In a surprising omission however, The Economist fails to give enough credit to those who are already building businesses using non-traditional and innovative approaches to do “real good”. Companies like Seventh Generation and people like Muhammed Yunus of Grameen Bank (who I recently had the pleasure of hearing speak here in San Francisco) for example, have already proven how effective disruptive innovation can be, not only in theory, but in action to make profits while at the same time making a positive social impact. And most recently among them is Mr. Bill Gates of Microsoft and the Bill & Melinda Gates Foundation. Who is calling for “another level of innovation” in addition to “creative capitalism” to help drive future positive economic and social impact.

Here are 3 disruptions already well on their way:

1. As technologies better support our natural social interactions, traditional marketing and advertising will become less and less effective. The antiquated and impersonal methodologies will be replaced with direct, meaningful communications that aim to create relationships with people (as opposed to just searching for another transaction).
2. The world is flat and the long tail is real. We have the ability to create “real good” more quickly and easily than ever.
3. In addition to an increase in corporate transparency, people are and will continue to become directly involved in the co-creation of products and services. Customers and other stakeholders will actively help the companies they care about succeed.