Turning Profit Motive to Social Good
An AP story summarizes some key points about corporate social responsibility:
“Companies that work to improve health and education overseas also can improve their images in foreign countries and among consumers at home. They can reap benefits to employee morale and recruiting. And they can lay the groundwork in future markets.”
Procter & Gamble’s Children’s Safe-Drinking Water program employs a modest commercial business model to distribute water purification kits where they are most needed - places like Kenya, Haiti, Uganda, Sri Lanka and Pakistan. A packet of PUR, which treats about three gallons of water, costs about 3.5 cents to produce, and is sold to end users for about 10 cents. The difference goes to non-government partners, commercial wholesalers, and individual vendors.
Population Services International, P&G’s nonprofit partner in the venture, sees mission-related advantages in using the commercial sector to achieve its goals, noting that such business approaches can sometimes be more effective than simple donations in actually getting the job done.
One note: From a quick look at their websites, P&G and PSI don’t seem say that end users have to purchase the water purification packets, and at a markup (roughtly 150% by my arithmetic). I posted a comment at Action Without Borders, where I saw the story.
