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National Campaign to Prevent Teen Pregnancy
The National Campaign to Prevent Teen Pregnancy was founded in 1995 to bring together a variety of efforts to reduce teen pregnancy in the United States. Over the last four years the campaign has recruited a prestigious board, developed effective programs for influencing the media, attracted a strong staff, sponsored research on the causes of the high teen pregnancy rate in the United States, and raised significant funds. The campaign's board and staff must now decide how rapidly to grow, whether to establish a local presence, what their research priorities should be, and how to work effectively with others in the field. -
The Ladder and the Scale: commitment and Accountability at Project Match (Abridged)
Located in one of the most troubled housing projects in Chicago, the job training program known as Project Match has an unusual approach to the task of bringing welfare recipients into the world of work. Rather than trying to broker a simple job placement, the program tries to encourage long-term change in the habits and living style of its hard-to-place population, in part by creating a social atmosphere in which work and ambition are valued. But because it receives funds from the Illinois Department of Public Aid, Project Match finds itself under pressure to produce job-placement results which demonstrate its success. The program itself urges authorities to find ways to quantify success besides simply finding someone a job-and places a premium on keeping track of those it's trying to help, long after a first job placement. The case highlights the challenges of social service program evaluation, as well as the problems an innovative agency has explaining itself to traditional bureaucracies with which it must deal. Revised May 2008. HKS 1076.3 -
Questionable Payments
This note consists of vignettes illustrating the breadth and depth of the issue of questionable payments. Petty bribes, graft, blackmail, and corrupt officials are all included in these real-life examples of managers caught in the middle of difficult situations. See also "A Note on Questionable Payments in Business" (UV0387). -
A Note on Questionable Payments in Business
Written to accompany "Questionable Payments" (UV0386), this note provides insights into the issue of questionable payments (e.g., bribery and extortion). -
A Note on Rights
This note explains the idea of rights. It examines such distinctions as positive versus negative rights, and fundamental versus derivative rights. -
Green Reporting
A good environmental-reporting process can make a firm more environmentally responsible and more competitive--in the marketplace and in the war for talent. -
Dilemma at Devil's Den
This case deals primarily with ethics and the individual's personal system and the way it affects his or her perceptions and actions. It also looks at rewards and punishments and their influence on behavior. Susan is a student employee at a campus snack bar who is caught between a wish to do what she thinks is right--take steps to stop food being taken off the premises that hasn't been paid for--and fear of negative consequences if she takes such action. She would also like to see students work harder, finish what is assigned to them on the night shift, and be punished for stealing from the cash register. Almost all students have faced peer pressure to do things that violate their value systems. The case helps students to understand why they feel so much ambivalence, sometimes going along and sometimes setting limits. Some issues are ethical; others involve criminal behavior. Issues include sexual permissiveness and experimentation, drug use and dealing, cheating, trespassing, and stealing. The case also raises questions of a company's ethics and responsibility for creating, or allowing, a climate that tolerates at best, and encourages at worst, illegal, criminal, or unethical behavior. -
Seeking Neighborhood Revitalization in Philadelphia: Using Tax Credits to Link the Private and Nonprofit Sectors
In this case, the relationship between public goalsthe revitalization of distressed neighborhoods in Philadelphiaand nonprofit organizations is mediated by an unusual vehicle. A Pennsylvania state tax credit program is designed to channel funds from private, for-profit firms to not-for-profit neighborhood groups. The case describes the first five years of the so-called Philadelphia Plan and a series of specific projects supported by specific firms, in exchange for a reduction in state corporate taxes. The projects profiled include a housing program for the formerly homeless supported by Crown, Cork and Seal Corporation; a neighborhood housing improvement program supported by Allstate Insurance; and a community development corporation and builder of subsidized housing supported by Mellon Bank. The case implicitly raises the question of whether it is prudent or effective for state government to direct funds toward nonprofits in this way; whether government should facilitate such "tripartite" (public, private, nonprofit) arrangements which could redound to the business advantage of firms; whether public sector involvement in fundraising for nonprofits will support their mission or divert them from it. For students of urban problems, the case also raises the question of whether the work of nonprofits such as those described in the case can be an effective means of improving distressed neighborhoodsand how such improvement could or should be measured. HKS Case Number 1578.0 -
How Free Are Free Agents?
In Black and White on Wall Street, Joseph Jett, the trader blamed for Kidder Peabody's controversial demise in 1994, tells his side of the story. But his account is more than just a tale of racism and greed. Reviewer Joseph L. Badaracco, Jr., finds that Jett's experiences, when taken in the larger context of work life, are a cautionary tale about the serious challenges to personal integrity faced by knowledge workers in the new economy. Jett believed that a career on Wall Street offered valuable solutions to some age-old problems. He would be a free agent, choosing where and how he worked; his pay and promotions would depend on his performance, not on connections, company politics, or skin color. In short, Jett thought he would be his own man. Instead, he discovered that the old realities of organizational life and interpersonal relationships still shape the new workplace. According to Badaracco, it would be naive to expect the new economy to be radically different from the old one. Even if economic relationships have changed, human nature has not: self-interested managers, backroom politics, prejudice, and the seductions of power and money still shape behavior. People may now get to "eat what they kill," but bosses usually determine who gets the best hunting grounds. Thus Machiavelli's fundamental question--Can men and women in positions of responsibility lead lives of integrity in the face of uncertainty and relentless competition?--remains acutely relevant. Using Jett's experiences as a starting point, Badaracco draws several lessons about maintaining integrity in the free-agent workplace. -
Working on Nonprofit Boards: Don't Assume the Shoe Fits
Contrary to popular perception, business people can be benevolent. For instance, one recent study notes that four-fifths of all Harvard Business School graduates are involved with nonprofits, with more than half of those serving on boards. Most business professionals will spend some time on a nonprofit board. That's the good news, the author says. The bad news is that the involvement of business people can easily backfire. That's because they often try to take what they have learned from business school and the corporate world and apply it to their duties in the nonprofit sector. On the surface, there are similarities between the for-profit and nonprofit sectors. Both have boards of directors, trustees and chairpeople, regular meetings, and so forth. But the governance of nonprofit organizations is very different from the governance of for-profit businesses in several critical areas, including missions, measurements, and board composition. For instance, the CEO in the nonprofit world must manage a relationship with a nonexecutive board chair. In the for-profit world, the CEO is the chair. Such significant differences make it difficult to transfer ideas and practices between the for-profit and nonprofit worlds. In this article, F. Warren McFarlan describes the main differences between serving on a for-profit board and serving on a nonprofit board. As he points out, understanding the differences will make it easier for business people to move smoothly from one environment to the other and will therefore make their commitments more effective. Nonprofits need business people, but only on the right terms. -
Philanthropy's New Agenda: Creating Value
During the past two decades, the number of charitable foundations in the United States has doubled while the value of their assets has increased more than 1,100%. As new wealth continues to pour into foundations, the authors take a timely look at the field and conclude that radical change is needed. First, they explain why. Compared with direct giving, foundations are strongly favored through tax preferences whose value increases in rising stock markets. As a nation, then, we make a substantial investment in foundation philanthropy that goes well beyond the original gifts of private donors. We should therefore expect foundations to achieve a social impact disproportionate to their spending. If foundations serve merely as passive conduits for giving, then they not only fall far short of their potential but also fail to meet an important societal obligation. Drawing on Porter's work on competition and strategy, the authors then present a framework for thinking systematically about how foundations create value and how the various approaches to value creation can be deployed within the context of an overarching strategy. Although many foundations talk about "strategic" giving, much current practice is at odds with strategy. Among the common problems, foundations scatter their funding too broadly, they overlook the value-creating potential of longer and closer working relationships with grantees, and they pay insufficient attention to the ultimate results of the work they fund. This article lays out a blueprint for change, challenging foundation leaders to spearhead the evolution of philanthropy from private acts of conscience into a professional field. -
Women's World Banking: Catalytic Change Through Networks
Describes the evolution of Women's World Banking, an international microfinance nonprofit promoting financial access for poor women. Explores the organization's development of different types of networks to achieve its mission. -
Explore, Inc.
Documents the creation of a national before and after-school day care program aimed at bridging the gap between school and parents' work schedules. This high-growth, for-profit social enterprise organization operated in what was historically the domain of nonprofit or government sectors. Tensions emerge 1) pressure to grow and the need to maintain quality, 2) pursuit of a noble mission and a desire to create personal wealth, 3) creation of a national organization and a local program delivery capability, and 4) meeting investor expectations while maintaining the purity of the programs. -
From Spare Change to Real Change: The Social Sector as Beta Site for Business Innovation
Corporations are continually looking for new sources of innovation. Today several leading companies are beginning to find inspiration in an unexpected place: the social sector. That includes public schools, welfare-to-work programs, and the inner city. Indeed, a new paradigm for innovation is emerging: a partnership between private enterprise and public interest that produces profitable and sustainable change for both sides. In this article, the author shows how some companies are moving beyond corporate social responsibility to corporate social innovation. Traditionally, companies viewed the social sector as a dumping ground for their spare cash, obsolete equipment, and tired executives. But that mind-set hardly created lasting change. Now companies are viewing community needs as opportunities to develop ideas and demonstrate business technologies; find and serve new markets; and solve long-standing business problems. They focus on inventing sophisticated solutions through a hands-on approach. This is not charity; it is R&D, a strategic business investment. The author concedes that it isn't easy to make the new paradigm work. But she has found that successful private-public partnerships share six characteristics: a clear business agenda, strong partners committed to change, investment by both parties, rootedness in the user community, links to other organizations, and a commitment to sustain and replicate the results. Drawing on examples of successful companies such as IBM and Bell Atlantic, the author illustrates how this paradigm has produced innovations that have both business and community payoffs. -
Bell Atlantic and the Union City Schools (D): Results and Replication
The last in a five-part series about Bell Atlantic Corp.'s technology-in-education partnership with the Union City, New Jersey school system. Reviews the various outcomes of the partnership called Project Explore, from the perspective of Bell Atlantic managers and students, teachers, parents, and administrators in the Union City school system. Also describes efforts to replicate or expand the project. Video 9-399-501 is a short version of the case series and may be used in conjunction with it. -
Bell Atlantic and the Union City Schools (C2): Project Explore
The fourth in a five-part series about Bell Atlantic Corp.'s technology-in-education partnership with the Union City, New Jersey school system. Describes Bell Atlantic's planning, implementing, supporting, and assessing elements of the partnership, with special attention to the issues involved in making the partnership succeed and meeting the technology objectives of both partners. Video 9-399-501 is a short version of the case series and may be used in conjunction with it. -
Bell Atlantic and the Union City Schools (C1): Project Explore
The third in a five-part series about Bell Atlantic Corp.'s technology-in-education partnership with the Union City, New Jersey school system. Describes Bell Atlantic's efforts to identify an appropriate site for testing emerging telecommunications technology and its eventual decision to approach the Union City School System as a potential technology in education partner. Video 9-399-501 is a short version of the case series and may be used in conjunction with it. -
New Landscape for Nonprofits
In this article, William P. Ryan, a Cambridge-based consultant to foundations and nonprofit organizations, examines how nonprofits need to adapt to the new competitive environment. For most of this century, society's caring functions have been the work of government and charities. But social services in the United States are in a period of transition. Today the U.S. government no longer considers nonprofits to be entitled--or even best qualified--to provide social services. Profit-seeking companies like Lockheed Martin are now winning contracts for such services. The author describes how government outsourcing and a new business mind-set have changed the landscape of social services. The change raises fundamental questions about the mission and future of nonprofits. Ryan attributes the growth of for-profits in the social service industry to four factors: size, capital, mobility, and responsiveness. While those attributes give for-profits an advantage in acquiring new contracts, nonprofits have not yet lost their foothold. Ryan cites examples of organizations like the YWCA and Abraxas to demonstrate various ways that nonprofits are responding--from subcontracting to partnership to outright conversion to for-profit status. By playing in the new marketplace, nonprofits will be forced to reconfigure their operations and organizations in ways that could compromise their missions. Because nonprofits now find themselves sharing territory with for-profits, sometimes as collaborators and sometimes as competitors, the distinctions between these organizations will continue to blur. The point, Ryan argues, is not whether nonprofits can survive opposition from for-profits. Many have already adjusted to the new competitive environment. The real issue is whether nonprofits can adapt without compromising the qualities that distinguish them from for-profit organizations. -
Social Capital and Capital Gains in Silicon Valley
Silicon Valley is built on social capital, but it is social capital of a fundamentally different type from the concept of "deep civic engagement" that has come to dominate development theory and to influence policy. Social capital in Silicon Valley is best understood as performance-based trust. It emerges among economic and institutional actors in the pursuit of objectives related specifically to innovation and commercialization. In Silicon Valley, the sequence runs from performance to trust, not from community to trust as the civic engagement theorists would have it, Silicon Valley is an open society--open to ideas, to institutions, and especially to people. Community-based trust implies a closed society. The openness of Silicon Valley to foreigners is one of the region's most valuable assets; it has also been the best social capital investment for the home countries. -
Managing Ethics and Legal Compliance: What Works and What Hurts
This survey of employees at six large American companies asked the question: "What works and what hurts in corporate ethics/compliance management?" The study found that a values-based cultural approach to ethics/compliance management works best. Critical ingredients of this approach include leaders' commitment to ethics, fair treatment of employees, rewards for ethical conduct, concern for external stakeholders, and consistency between policies and actions. What hurts effectiveness most are an ethics/compliance program that employees believe exists only to protect top management from blame and an ethical culture that focuses on unquestioning obedience to authority and employee self-interest. The results of effective ethics/compliance management are impressive. They include reduced unethical/illegal behavior in the organization, increased awareness of ethical issues, more ethical advice seeking within the firm, greater willingness to deliver bad news or report ethical/legal violations to management, better decision making because of the ethics/compliance program, and increased employee commitment.