'Good' Business Ideas: News for Socially Conscious Entrepreneurs

Terracycle takes used Capri Sun containers and turns them into backpacks. View full size image

Socially responsible business practices – including organic, fair trade, handmade, giving back, and going green – are becoming the norm for for-profit, as well as nonprofit, businesses. We’re committed to covering this side of small business with our weekly wrap-up of news affecting businesses that have embraced this socially responsible model, combining a for-profit business with nonprofit sensibilities.

More Harm Than Good
Social responsibility activities can do more harm than good when it comes to some businesses, according to new research. BusinessNewsDaily writes this week about a University of South Carolina study that found luxury brands could potentially harm themselves with Corporate Social Responsibility Programs because luxury and socially responsible concepts are at odds with each other. On the other hand, consumers were comfortable with CSR messages being connected to brands tied to “conservation” or “openness” concepts – like Aunt Jemima, which is associated with tradition and protection of the status quo, and Apple iTunes, which customers consider exciting and free-spirited

School Lunch
With childhood obesity on the rise, one socially responsible business is looking to school lunches as a way to help curb the problem. This week, Inc. Magazine's Dave Smith profiles Revolution Foods and the work the company is doing to bring healthy and wholesome menus to schools around the country. Since its launch in 2006, Revolution Foods has provided more than 400 low-income schools in California, Colorado and Washington D.C. with access to nutritious food.

Multicultural Needs
Socially responsible businesses have a growing obligation to provide quality customer service to their diverse customer base. BusinessNewsDaily reports this week on six pieces of advice from a marketing and customer service expert on how to develop multilingual, multicultural customer service . The tips from Anand Subramaniam include being able to asses the scope of a customer's inquiry, adopt culturally nuanced practices and leverage technology.

Making Donations
Charitable giving is on the rise, according to a new survey.  Blackbaud Inc announced this week that its Index of Charitable Giving has shown positive growth for the tenth consecutive month. The Index  reports that overall charitable revenue grew by 11.3 percent for the three months ending in May 2011, compared to the same period in 2010. The report also notes that more people are using the internet to make charitable donations this year than last. 

Secrets to Getting a Loan
Having a good idea sometimes isn't enough to get a socially responsible business off the ground.  It also takes money.  BusinessNewsDaily spoke with Chris Reilly, president of the small-business lending unit of CIT Bank, to get his perspective on the best ways to secure a small business loan . Among his advice, includes doing homework on exactly what is available and what you want, as well as to keep meticulous records throughout the loan process.

Bought Out
What happens when a socially conscious brand is bought out by a giant corporation? Christine MacDonald of the Sacramento News and Review examined the issue this week by looking at what has happened to some eco-conscious companies after their purchase by a large, well-known brand. Cases addressed in the article include Coca-Cola's purchase of Honest Tea and Clorox’s purchase of Burt's Bees.

Here are three business models that might inspire ideas for integrating socially conscious aspects into your business:

TerraCycle: Creates collection and solution programs for all kinds of typically non-recyclable waste. The company then turns the collected waste into new products, ranging from recycled park benches to upcycled backpacks.
On Twitter @Terracycle

Better World Club: An eco-friendly auto-club offering car and bike roadside assistance. They donate 1 percent of their revenue to environmental cleanup and advocacy.
On Twitter: @BetterWorldClub

Pizza Fusion: A nationwide franchise boasting pizza made with all-natural, organic ingredients.  In addition, the company makes deliveries in hybrid cars, purchases renewable energy certificates to offset 100 percent of its power consumption and builds LEED-certified restaurants, among other environmental initiatives.
On Twitter @PizzaFusionMinority Women Entrepreneurs Take Lead on the Common Good

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