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Unformatted text preview: ve. The questions engendered
here – one may have to come back to these again and again as the project evolves – will ensure that a
social initiative maximizes limited resources in pursuit for scaling-up its operations to reach the masses. 1. Inclusivity Customers
(Innovations for the people)
1. What is the product’s addressable market? Are the customers or suppliers really from the lowest income segments?
2. Do low-income people say they genuinely want these products of services? Does the enterprise need to “push” the product?
3. What substitutes exist for the products? How else do poor customers satisfy the demand offered by the product or services?
(Innovations by the people)
1. Are the stakeholders of the enterprise, beneficiaries of the products or services? What is the
level of community participation in delivering the products / services for its own benefit?
2. Is the enterprise exploiting the existing distribution channels of others? Is it aggregating the
consumers and suppliers?
3. Is the enterprise open to continuous innovation to improve its operations? 2. Structure (Innovations of the people)
1. What is the ownership pattern of the enterprise? Is it working as a franchise or a cooperative?
8 | H o w s h o u l d y o u m e a s u r e C S R ? 2. Can the enterprise motivate large corporations to enter and participate given the opportunities
elsewhere? What are the networks and alliances the enterprise has as part of its value chain? 3. Sustainability 1. What is the level of business model maturity?
2. What are the incentives for the participants in every segment of the supply chain?
3. What are the costs to reach and aggregate the participants – customers and suppliers?
4. How strong are the market linkages to end buyer? Can the business model atleast cover its costs in the long run? 4. Capital Model 1. What type of financing is the enterprise using and how is the capital invested?
2. Are there enough credit facilities available for the project?
3. Is the producer cash flow cycle sustainable? Are the products priced to match customer cash
flow? Is the ticket price sufficiently low and the payback period sufficiently brief?
4. Is the enterprise affected by any form of government intervention (in the form of subsidies,
schemes, etc.)? Is the local governance an ally or an adversary? 5. Evaluation Metrics 1. Is the enterprise focusing on people and not just shareholders’ wealth and profits?
2. Are the consumers treated as beneficiaries, suppliers as partners and employees as innovators?
3. Is the enterprise measuring impact on community and environment also?
4. Are there concurrent evaluations during the course of the project?
5. Is the enterprise following the Triple Bottom Line 3 (or 3BL) approach to evaluate its business?
As per Wikipedia, the concept of TBL demands
that a company's responsibility lies with stakeholders rather than shareholders. In this
case, "stakeholders" refers to anyone who is
influenced, either directly or indirectly, by the
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This document was uploaded on 01/14/2014.
- Winter '14