Capital Driven TransformationGeorge A. Polisner

Work in Progress –April 21, 2013

Capital Driven Transformation Leverage the flow of Investment AND Market Demand (consumers,

institutional procurement) Improve Societal Outcomes

Momentum for visionary CEO’s and leadership

Mitigate externalities

Allow market to lead through innovation not transfer of costs to society

Economic Transformation Framework Economic Transformation Framework (ETF)

Comprehensive view of loosely-coupled entities focused on Corporate Social Behavior (CSB)

For Profit, Not for Profit, For Benefit entities

Resources are imperative Identify all actors

Identify sequencing and critical path

Organized, intelligent approach to capital lowers overall funding risk and transactional costs

Bring Foundations, VC, Angels and Exchanges together and align with ETF entities

Economic Transformation Framework “The Social Responsibility of Business is to Maximize Profits” –Milton

Friedman

How? Leadership and Innovation (Creation of value)

Efficiency (Lower costs)

Transfer (Externalize Costs) to Society

Economic Transformation Framework Transfer (Externalize Costs) to Society

Air/Water Pollution

Destruction of Commons (mining, extraction)

Safety standards for products and employees

Compensation/Benefit Costs of Employees

Tax Avoidance

Infrastructure (roads, highways)

Societal health

Obesity (fast food), Cancer/Lung (tobacco)

Government Regulation and Enforcement Ebbs and Flows

Citizens’ United decision will continue to severely weaken societal protection through government

Leverage the “Market” to create sustainable and meaningful growth/margin incentives Focus on innovation and value creation.

Economic Transformation Framework Economic Transformation Framework

Leverage market demand and socially responsible/impact investment

Identify industry sector leadership in Corporate Social Behavior

Economic Transformation Framework Media (educate and inform)

Corporate Social Behavior(CSB) Data Providers (inform purchases and investment)

Retail, Banking, Finance, Insurance (Certified entities) “Green” centers in major urban areas –major online presence

Unions

Consumers

Investors

Non-profits and NGO’s (Environmental, Labor, Policy, Education, Media)

Economic Transformation Framework

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ConsumersInvestors

Manufacturing Packaging

WarehouseSuppliers

CSR/Ratings CSR/Ratings CSR/Ratings

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Banks/Financial InstitutionsRetail Stores

Shipping

Online Shopping with Ratings/Certified

Retail MallsMedia/Film/Print/Broadcast

Educate/Inform

Certifications Auditors

Quality Assurance

Distribution

Economic Transformation Framework Retail Layer

Good Bank, Community Credit Unions, Financial Institutions and Insurance entities that are “SR-centric”

Costco, Local Community Economy Stores, B Corp.

Online shopping from SR-evolved entities

Media –Educate, Inform and Activate Films

Broadcast

Web

Textbooks

Games

Economic Transformation Framework Clean Transportation

Electric/Hybrid

Other Safe, Clean Energy Alternatives

Fuel Efficiency

Intelligent Logistics (minimize transport through grouping)

Economic Transformation Framework Manufacturing Layer

Minimize environmental footprint

Worker health, safety and wages

Economic Transformation Framework Materials Layer

Raw Materials

Minimize environmental footprint

Natural resource conservation

Energy Portfolio

Conservation

Clean, Safe Renewable portfolio (non-nuclear, non-fossil)

Economic Transformation Framework Data and Certification Layer

Corporate Social Behavior Data

Aggregation

Normalization

Ratings and Analysis

Certification, Compliance and Validation Audit/compliance function

Licensing and Revenue Sharing Agreements