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 s everal leading companies-are beginning to find inspiration in:an unexpected place: the social sector. That includes public schools, welfare-to-work pr ograms, and the inner city. Indeed, a new paradigm for-innovation is emerging: a partnership between pr ivate enterprise and public: interest that produces profitable and,sustaina ble change for both sides. In this article, the author shows how some companies are moving beyond corp orate 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 create d lasting change. Now companies are-viewing community needs as opportunitie s to develop ideas and demonstrate business technologies; find and serve ne w markets; and solve long-standing business problems. They focus on inventi ng 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 s he has found that successful private-public partnerships share six characte ristics: a clear business agenda, strong partners committed to change, inve stment by both parties, rootedness in the user community, links-to other or ganizations, and a commitment to-sustain. and replicate the results.:Drawin g on examples of successful companies such as IBM and Bell Atlantic,;the au thor illustrates how this paradigm has produced innovations that have both business and community payoffs.