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Interventions that Increase the Likelihood of a Market Solution
The previous sections have described the market barriers that may need to be overcome to have
a successful collaboration with the business sector. They have also described the three levels at
which involvement can be pursued. The purpose of this section is to describe how non-profits
can intervene to increase the probability of achieving a market solution that increases business
capacity to engage in a social change initiative. The same interventions may be used to
encourage other, less intensive levels of business involvement as well.
The Ford Foundation identified five categories of activities that are likely to produce the desired
results. They found that increasing the probability of the desired outcome usually required a
range of actions, implemented by multiple actors. Here are the five categories of activities:
Create awareness, interest and leadership within the business sector – The business sector
may not always be aware of some of the profitable opportunities that exist in low-income
communities, or of how businesses could contribute to the transformation of those communities.
The businesses may overstate risks and understate rewards. Non-profits can address this by
conducting research and disseminating information. The research might include examples of
successful non-profit/business collaborations. The dissemination could include books, articles,
web pages, etc., and forums to organize and galvanize business leaders’ involvement.
Develop new information, products and networks – If the initiative is left with the business
sector to design new products and services, the cost may appear prohibitive. Sometimes this
hurdle can be overcome if the non-profit designs and tests the product/service before asking
business to participate. Individual Development A ccounts, for example, were created almost
entirely by non-profits, and are embraced by financial institutions across North America. 16
Address organizational and cultural barriers with management tools and change strategies –
When reporting and compensation arrangements in a corporation do not support participation
in a social change collaboration, or when faulty assumptions or prejudices related to low-income
people and communities exist, non-profits may be able to offer alternative approaches for
reporting and compensation, diversity training, or assistance in managing cultural change.
Create new market mechanisms – The creators of the Social Purchasing Portal 14 found a way to
link socially conscious businesses with social enterprise suppliers in a way that did not create an
undue burden on either side. Workforce intermediaries are often able to provide much value in
the recruiting and employee development process, that businesses prefer to recruit through
them. Community development corporations are sometimes able to work through a range of
bureaucratic issues to assemble land on terms that are attractive to businesses.
Organize for collective action and public policy – These are typically strategies to change
public policy or create voluntary industry norms or standards. The social purchasing portal
model of engaging a municipality to change its procurement procedures to favour some
purchasing from vendors who provide employment to certain employee groups is one possible
approach. A requirement for a housing developer to design a portion of their housing for the
low-income market, in exchange for the revision of certain zoning restrictions, is another.
Collaborating with Business for Social Transformation
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