Making It Real: Quantifying and Measuring Social Impact

In past posts (i.e. Value = Profit + Public Good), MOTG has talked about the need to measure an organization performance in terms of its financial and social and/or environmental aspects.

For guidance on how you can actually do that check out this great article from RISE (Research Initiative on Social Entrepreneurship), entitled "Assessing Social Impact In Double Bottom Line Ventures"

The articles highlights the strengths and weaknesses of several models for measuring impact and includes examples of how each of the models could be implemented.

Free vs. Fair Trade - Are They Mutually Exclusive Strategies?

The way the debate is framed about free and fair trade one would think that they are mutually exclusive strategies. I believe that they are not – that they can actually be supportive strategies.

The end goal of both fair and free trade is increased economic activity. Free trade focuses on macro systems – on things like tariffs, trade barriers and exchange rates. Fair trade organizations typically focus their efforts on those who are left behind or excluded from the benefits of free trade.

I worked in South Africa with a group of men and women who were in the unfortunate position of being low-skilled labor in a middle income country. In an international marketplace these men and women could neither undercut the low wage labor from low wage countries nor compete with skilled workers from high wage countries. These men and women were unemployed – in fact 60-70% of the people who lived in their communities were also unemployed. They and their families survived at a subsistence level only because there were able to barter and trade in an informal economy. These were men and women, who although low-skilled, had some skills, and although unemployed, desired employment.

South Africa is currently experiencing tremendous growth as a direct result of of its re-entrance into the international economy. The government has paid down its debt and South African companies like SAB, Investec, Old Mutual, and Anglo-American are now doing extremely well on a global scale. Yet these gains are not trickling down to the people that I worked with – because they live in a community that operates outside of the formal economy.

So I say we need both – both free and fair trade - both a focus on universal systems and a focus on creating opportunities for people who are currently marginalized and excluded from those systems.

Locally, a group of individuals, non-profits, and businesses have recently banded together to form an organization called NC fair trade. NC fair trade will focus on increasing awareness about fair trade activities in North Carolina and opportunities for people to get involved in and grow the fair trade community locally. Please visit us at our recently launched website at www.ncfairtrade.com to learn more.