You may have never heard of Corporate Social Responsibility or Corporate Shared Value, but you have more than likely come across the products TOMS shoes, Newman’s Own or a slew of other companies who contribute goods to the impoverished with every purchase you make.
Many of these companies have taken advantage of new business models that consider a “triple bottom line,” instead of the traditional single bottom line-profit. A triple bottom line does not abandon the importance of profit margins, but incorporates the importance of social and environmental concerns in their business practices. For too long, international and even local corporations have continued the practice of making money at the expense of the most vulnerable populations, and often simultaneously consume or contaminate the basic resources these populations need to survive.
Wouldn’t it be remarkable if every purchase we made helped alleviate poverty? The following is a brief guide to help you not only understand how businesses can contribute to the greater social welfare of the impoverished, but to help you choose which businesses you invest in. After all, our money is one of our most powerful resources for implementing change.
1. Contribute to Sustainable Infrastructure
Is the business promising to donate 5% of all proceeds to a charitable organization that helps provide education to children in need, or are they claiming to donate one jacket for each one you purchase? There are many business models that fall under the category of “socially responsible,” but very few businesses implement sustainable ones.
Sustainable strategies have the added advantage of not only providing one-time support, but providing the tools necessary for people to empower themselves and break the cycle of poverty altogether. Businesses who invest in programs or initiatives designed to build sustainable infrastructures, which the poor can utilize to better their financial and social circumstances, inevitably end up having a much greater impact.
Such practices as “buy one, give one” models do not necessarily accomplish this. In fact, many companies who utilize “buy one, give one” models need poor people without their product in order to sell their product.
2. Pay Attention to Supply Chains
Earning a living wage in working conditions that respect human rights is essential to alleviating rates of global poverty. However, in today’s globalized economy, it’s hard to know where exactly the product you buy is being made and in what kind of conditions it was produced.
Though the company may be based out of the U.S., the raw supplies may be imported and the product manufactured in South East Asia via numerous factories with no association to one another. Despite the barriers, there are mechanisms available for consumers and businesses to identify supply chains behind the products they purchase to ensure the fair and respectable treatment of the workers who produce it.
Those businesses who have taken the extra effort to guarantee ethical supply chains usually will indicate so on their website. There are also organizations such as the United Students Against Sweatshops (USAS) who can help you locate such businesses, as well as online shopping sites such as fashiongchange.org that claim to only allow businesses to operate through their website if they meet certain socially responsible prerequisites.
3. Work with Local NGOs
Businesses who work with local NGOs (local, as in where their product is manufactured) have a higher probability of not only adhering to sustainable practices, but also actually addressing the most pressing problems of that region. If a business donates high-strength eye glasses to a population that suffers from an unusually high percentage of cataracts, the business would most likely categorize this effort as socially responsible.
However, what they might not know is that the high presence of cataracts is largely due to malnutrition. Cooperation with local nonprofits increases the amount of knowledge businesses have about the population they are trying to help, and increases the likelihood that their efforts do not bypass the actual causes of the problem they attempt to alleviate.
During the holiday season there is often a sharp increase in charitable donations. However, using the above guidelines, you can also ensure the gifts you purchase make an equal, if not greater impact on those who need it the most.
– Jamison Crowell
Sources: New York Times, Huffington Post
Photo: Global Envision
Jack Johnson: Beach Bum or Dedicated Advocate?
Sun-soaked beaches, surfboards, flip-flops, palm trees: these are all images that come to mind when listening to a Jack Johnson song. The Hawaiian-born and bred musician has cultivated a wonderful laidback musical personality that reflects our fantasies about Hawaii and “taking it easy.” However, when it comes to charity, Johnson could not be more active.
Alongside his wife Kim, Jack has founded two charitable organizations: Kokua Hawaii Foundation and the Johnson Ohana Charitable Foundation. The former organization works to promote environmental education and responsibility in local schools and communities in Hawaii. Building upon the grassroots success of their first charity, Kim and Jack founded the Johnson Ohana Charitable Foundation in 2008 to promote environmental, art, and music education on a much larger scale. The organization has raised $25 million to date for their causes and for smaller charities the organization partners with. An example of this is a $50,000 donation given to the Tsunami Relief Fund in 2011.
While on tour, Johnson donates 100% of tour profits to his Charitable Foundation. Johnson is also a major proponent of the “1% For the Planet” brand, which aims to get corporations and brands to donate at least one percent of its sales to nonprofits. His 2005 album “In Between Dreams” became the first music album to feature the one percent ideal, and his subsequent albums have followed suit.
Johnson is completely invested in teaching and promoting environmental sustainability. “Jack Johnson’s 2008 tour and CD, “Sleep Through the Static,” set a new precedent in the music industry by taking an eco-friendly approach to all aspects of producing and touring,” according to the Johnson Ohana Charitable Foundation’s website.
Getting young people involved in sustainable farming and local organizing is crucial to Johnson, and a way to build even greater change. In a recent interview with Samaritan Mag, Johnson said, “We feel like if we can connect kids to their food when they’re young, they can tackle bigger problems as they get older.”
The next time you kick back to a Jack Johnson CD, maybe a sustainable vegetable garden will dance across your imagination as much as a day at the beach.
– Taylor Diamond
Sources: Johnson Ohana Charitable Foundation, Samaritan Mag
More than Moved
In the midst of international mourning for Nelson Mandela and in an attempt to drive home the message of International Human Rights Day, a Brazilian NGO posed a provocative question on Tuesday, December 10.
A billboard designed by Conectas Human Rights, featured an image of Nelson Mandela and the question, “Do you feel moved by his legacy?” The text then urged the Brazilian population to act upon their emotions and “Do more than be moved.”
This campaign is driven by recent public opinion polls that reveal a negative feeling toward human rights issues in Brazil and support for more stringent laws and regulations.
Respondents to surveys administered across 134 municipalities in June 2013, support the reduction of maximum crime penalties from 18 years of age to 16, based on a belief held by 60% of the sample population that criminality is the result of ‘bad character.’
Moreover, the Datafolha Research Institute released data that reveal 26% of self-identified conservative-leaning respondents believe that homosexuality must be discouraged by society as a whole, whilst 33% believe that poverty is the result of laziness.
These emerging public opinions are linked to a reduction in funding for human rights groups, namely through foreign aid.
Brazil is widely considered to be an emerging market, the country’s role as 2014 World Cup host is evidence of this image but it disguises the fact that a growing economy does not automatically address human rights issues as seen through the need of foreign aid in assisting structural development.
It is estimated that 60% of the country’s NGOs relied on foreign aid for 80% of their budgets in 2003. Between 2008 and 2009 this aid decreased by 30% and again by another 49% in 2010 alone.
Executive Director of the Brazil Human Rights Fund, Ana Araújo, reminds us that Brazil was marked by dictatorship as recently as 30 years ago, a type of legacy that differs greatly from the one being celebrated across the globe on International Human Rights Day 2013.
Araújo argues that domestic support for human rights groups is the next, though not imminent, step, suggesting that emerging powers require more support, not less, to ensure that their emergence is ‘just.’
– Zoë Dean
Sources: Global Voices Online, Universo Online: CNT, Universo Online: Rightist Leanings, Open Democracy
Justin Bieber’s Charity for the Philippines
International pop star Justin Bieber flexes his humanitarian muscle in the effort to help the victims of Typhoon Haiyan in the Philippines by providing aid relief.
From books to water, Bieber brought along with him necessities and supplies meant to reconstruct the lives of those negatively affected by the largest typhoon to hit the Southeast with roughly over 5,000 individuals dead and many more displaced.
Bieber also participated in the Philippine national pastime by playing basketball matches with locals in the city of Tacloban, the Visayan metropole of the Leyte province, a region largely affected by the storm. Additionally, Bieber sang an accoustic performance to the local community.
In cooperation with UNICEF, Action Against Hunger and the Philam Foundation, Bieber offers numerous prizes if they donate to the cause. Among these is a studio tour or VIP tickets to Bieber’s movie premiere “Believe”.
To date, Bieber has raised $3 million dollars.
https://www.youtube.com/watch?v=SQHIuOxgiSQBieber’s recent philanthropic efforts are a change of pace from recent headlines in the past few months. Bieber was caught on video urinating into a bucket at the back of a New York City restaurant.
A month later, Bieber was in an altercation wherein the 19-year old ripped off his shirt at a New York City club during a confrontation with other patrons. Bieber’s entourage was reported to have gotten physical and involved in an altercation with fellow clients.
Bieber joins fellow celebrities in the push to helping the ravaged country to getting back on its feet. Using Prizeo, Bieber, along with other Prizeo users Samuel L. Jackson, Kirsten Bell and One Direction’s Harry Styles and Liam Payne, promoted a cause and offered rewards.
Whether his image be in the positive or negative light, the estimated net worth of $130 million pop star has undergone a certain stage of rebranding. From being a YouTube sensation towards a developing ‘bad boy’ image, Bieber and his actions will remain in the constant public eye.
– Miles Abadilla
Sources: Billboard, Business Insider, Huffington Post, Huffington Post, The Mirror, The Mirror
The Culture of Poverty
There is a prevailing belief that people living in poverty- people who struggle to survive on a day-to-day basis- are somehow all alike in their mentalities and circumstances. According to this conviction, impoverished individuals are of not only their own socioeconomic class, but essentially, also of their own breed as distinct entities from mainstream, above-poverty line Americans. Disturbingly, this myth known as the culture of poverty has infiltrated many cultural institutions in America, such as education, government, and even entertainment.
An important question to investigate is the origins of this faulty poverty paradigm. How exactly did this flawed yet widely-prevailing notion of America’s poor develop? For starters, the phrase “culture of poverty” traces back to 1961 in Oscar Lewis’ book “The Children of Sanchez” in which Lewis explored small Hispanic communities. In his ethnographic observations, Lewis noted that these communities were violent, disjointed, and short-sighted, proposing that perhaps these characteristics are applicable to all impoverished groups. Decades after the publication of Sanchez, Lewis’ findings, rather being associated with the nation’s poor, are used to define the nation’s poor.
However, Lewis’ work is not the sole contributor to engineering the modern-day culture of poverty myth. Researchers propose that this myth is actually a conglomerate of smaller stereotypes regarding the poor. These stereotypes have managed to remain extant in America through multiple platforms such as media and entertainment in which excessive focus is placed on negative traits that, although universal, have been used to strictly classify the impoverished.
Two poverty myths in particular have been extensively circulated throughout society. For instance, poor people are commonly regarded as unmotivated and unfocused. However, there is no direct empirical evidence that the poor have weaker work ethics than others who are more socioeconomically well off. According to the Economic Policy Institute, since many impoverished adults, especially those with children, hold more than one job, and therefore work more hours per week than other Americans.
Furthermore, poor parents are often regarded as having little regard or interest in the academic well-being of their children due to their perceived lack of care for the institution of education as a whole. However, although low-income parents value their child’s success as much as higher-income parents, they are less likely to attend school functions. This trend is not necessarily due to differences in attitudes but is more likely due to differences in availability. Since lower-income parents spend more hours per week at work, they have less free time to allocate outside of the work-place.
Therefore, the culture of poverty is not an accurate reflection of the poor, but rather, reflects cultural stereotypes that have no true basis in fact. Many social forces such as social mobility and government assistance (or lack of) play a role in shaping poverty. However, it is important to note that inheritance can work both ways. An individual can inherit his or her family’s wealth just as easily as an individual can inherit his or her family’s poverty.
– Phoebe Pradhan
Sources: ASCD, NPR
Photo: New York Times
Mixed Policy for Banks in India
Raghuram Rajan took office as the governor of India’s central bank in September. His liberal vision of India’s financial sector was meant to boost economic growth and help the poor. In 1969, India’s former prime minister, Indira Gandhi, nationalized most of the banks in India. Since India’s presidential election in 1969, there have been many reforms to the country’s banking system, but the system is a mix of new liberal policies and right-wing conservative policies, creating an ambiguous mixture that is India’s current banking system.
The Reserve Bank of India’s (RBI) hybrid system may promote social inequality and create an unstable economic atmosphere. Many problems plague India’s banking sector, including bad debts, low bank reserves and mediocre capital levels and the fact that only 35 percent of adults have bank accounts.
At least half of all rupee trading is abroad, and two large foreign banks in India have operations that are 1.9 times bigger than their local counterparts. RBI’s hybrid system may promote social inequality and create an unstable economic atmosphere. The difficulty and lack of opportunities to save money perpetuates poverty and makes it hard for the government to collect taxes.
The RBI’s growing independence has led to the Bank no longer setting the interest rates that banks must charge. However, the system controls the assignment of credit, requiring banks to invest 23 percent of their deposits in government bonds and save an additional four percent with the RBI.
The rules that govern the debt market mean 58 percent of banking system deposits are based on government preference. Rajan’s position at the RBI creates hope for extending finance to more Indians. New banking laws will make it easier for foreign banks to expand, provided that they set up local subsidiaries that the Indian government can regulate easily. One of Rajan’s goals is to methodically end the way that banks are forced to purchase government debt. In addition, Rajan has vowed to make new rules that will stop business magnates from exploiting the country’s fragile banking system and force banks to recognize debts that would otherwise sour.
– Daren Gottlieb
Sources: The Economist, Rediff News
Global Unemployment
Many countries measure their unemployment rate differently. However, unemployed people are individuals who are actively seeking for job but could not obtain jobs. Reason for unemployment varies from economy downturn, and changes of particular industry to lack of required skills.
In third world countries, global unemployment is cause by overpopulation and lack of education. Unemployment rate is one of the biggest indicators of the economy, but it is also one of the biggest indicators of poverty. Countries with high unemployment rate normally have high level of poverty.
An example of the relationship between poverty and unemployment rate is Greece. In 2008, Greece unemployment rate was 7.7%, but after the economics crisis, the unemployment rate rose to 23.8% in 2012. The same situation is spotted in Spain. Spain’s unemployment rate in 2012 is 24.9%. Even though these numbers are high, but African countries are at alarming levels. Some high unemployment rates in Africa are: Kenya (40%), Congo (49.1%), and Djibouti (59.5%).
In the United States, the unemployment rate is only 7.7% in 2013, but it results in slow economic recovery and more people each day is living under poverty level. With only half of the population employed, these countries do not have enough income to distribute among all their citizens.
Half of the people are unable to support themselves with adequate shelters, food, and medical supply. In developed countries such as the United States, the government offers welfare for unemployed citizens to maintain the standard of living. However, in developing countries, welfare programs do not exist or are very limited. Unemployed individuals are struggling every for their basic needs.
When the world economy is recording due to the emerging market, many people are still suffering from the impact of the economic crisis.
– Phong Pham
Sources: Huffingtion Post, International Labour Organization, Trading Economics, Global Finance
The Pork Barrel Scandal: A Storm Amid a Storm
As relief efforts to victims of Typhoon Haiyan, locally known as Typhoon Yolanda, continue, Philippine legislators are currently being tried for corruption charges regarding misuse of public funds.
Dubbed the “pork barrel scandal,” lawmakers amassed funds aimed to impress local constituents into stimulus programs. Primary among these were the Priority Development Assistant Fund (PDAF) and Disbursement Acceleration Program (DAP), programs discovered to be non-existent NGOs publicized to alleviate poverty and invest in public infrastructure.
In reality, the pork barrel funds ended up in the coffers of five senators and 23 congresspersons. Notable among these is the alleged ringleader Janet Lim-Napoles, owner of the JLN Group of Companies. Napoles is reported to have used the funds to purchase real estate in Los Angeles.
In light of the pork barrel scandal, doubts are cast in relation to President Benigno Aquino III’s image as an enemy of corruption and it hinders efforts for further economic reform. Aquino ran on a ticket to fight corruption in 2010 – evoking his mother, Corazon Aquino’s successes against the corrupt-ridden regime of Ferdinand Marcos in the 1980s.
Aquino himself is being accused of bribing legislators’ loyalty. Around $500 million of discretionary funds for projects were dropped, an amount meant for Haiyan reconstruction.
Transparency regarding the use of governmental funds, particularly disaster relief efforts, is not a new problem. In 2009, local officials were accused of having stolen $20.7 million intended for restoring storm-ravaged northern Luzon through nongovernmental institutions.
Additionally, as stated in a report by the World Bank, addressing the links between poverty and vulnerability by the government, through proper measures and projects, could have prevented further disaster.
And yet, Malacañang emphasizes good governance and faith in relief structures. The Foreign Aid Transparency Hub (FAiTH) was established by the Department of Finance and Department of Foreign Affairs in order to better monitor and track disaster aid. The FAiTH webpage (https://www.gov.ph/faith/#) consists of a list of donor countries and organizations. The site elaborates upon the amount given and the respective organizations to which they are given. FAiTH is comprised of seven different departments within the federal government.
As the country with the largest Catholic inhabitants in Asia, faith gives hope amidst the death toll of over 5,000 with many more displaced. Faith in the idea of good government, however, is, literally, standing trial.
– Miles Abadilla
Sources: The Republic of the Philippines, The Independent, Huffingtion Post, Reuters, NBC
How Can Businesses Alleviate Poverty?
You may have never heard of Corporate Social Responsibility or Corporate Shared Value, but you have more than likely come across the products TOMS shoes, Newman’s Own or a slew of other companies who contribute goods to the impoverished with every purchase you make.
Many of these companies have taken advantage of new business models that consider a “triple bottom line,” instead of the traditional single bottom line-profit. A triple bottom line does not abandon the importance of profit margins, but incorporates the importance of social and environmental concerns in their business practices. For too long, international and even local corporations have continued the practice of making money at the expense of the most vulnerable populations, and often simultaneously consume or contaminate the basic resources these populations need to survive.
Wouldn’t it be remarkable if every purchase we made helped alleviate poverty? The following is a brief guide to help you not only understand how businesses can contribute to the greater social welfare of the impoverished, but to help you choose which businesses you invest in. After all, our money is one of our most powerful resources for implementing change.
1. Contribute to Sustainable Infrastructure
Is the business promising to donate 5% of all proceeds to a charitable organization that helps provide education to children in need, or are they claiming to donate one jacket for each one you purchase? There are many business models that fall under the category of “socially responsible,” but very few businesses implement sustainable ones.
Sustainable strategies have the added advantage of not only providing one-time support, but providing the tools necessary for people to empower themselves and break the cycle of poverty altogether. Businesses who invest in programs or initiatives designed to build sustainable infrastructures, which the poor can utilize to better their financial and social circumstances, inevitably end up having a much greater impact.
Such practices as “buy one, give one” models do not necessarily accomplish this. In fact, many companies who utilize “buy one, give one” models need poor people without their product in order to sell their product.
2. Pay Attention to Supply Chains
Earning a living wage in working conditions that respect human rights is essential to alleviating rates of global poverty. However, in today’s globalized economy, it’s hard to know where exactly the product you buy is being made and in what kind of conditions it was produced.
Though the company may be based out of the U.S., the raw supplies may be imported and the product manufactured in South East Asia via numerous factories with no association to one another. Despite the barriers, there are mechanisms available for consumers and businesses to identify supply chains behind the products they purchase to ensure the fair and respectable treatment of the workers who produce it.
Those businesses who have taken the extra effort to guarantee ethical supply chains usually will indicate so on their website. There are also organizations such as the United Students Against Sweatshops (USAS) who can help you locate such businesses, as well as online shopping sites such as fashiongchange.org that claim to only allow businesses to operate through their website if they meet certain socially responsible prerequisites.
3. Work with Local NGOs
Businesses who work with local NGOs (local, as in where their product is manufactured) have a higher probability of not only adhering to sustainable practices, but also actually addressing the most pressing problems of that region. If a business donates high-strength eye glasses to a population that suffers from an unusually high percentage of cataracts, the business would most likely categorize this effort as socially responsible.
However, what they might not know is that the high presence of cataracts is largely due to malnutrition. Cooperation with local nonprofits increases the amount of knowledge businesses have about the population they are trying to help, and increases the likelihood that their efforts do not bypass the actual causes of the problem they attempt to alleviate.
During the holiday season there is often a sharp increase in charitable donations. However, using the above guidelines, you can also ensure the gifts you purchase make an equal, if not greater impact on those who need it the most.
– Jamison Crowell
Sources: New York Times, Huffington Post
Photo: Global Envision
Human Trafficking in the Philippines
New Jersey Congressman Chris Smith and his congressional team traveled to the Philippines earlier this week to meet with victims, aid workers and government officials in the regions hit by Super Typhoon Hayian. The U.S. government has spent $50 million in emergency aid to the Philippines, providing much needed food, water and emergency medical care. However Smith says that rising human trafficking in the Philippines is also a major issue. The Philippines is a large source for both sex and labor human trafficking. The poor are especially vulnerable to human trafficking in the aftermath of natural disasters when they have lost their homes as well as their communities and are looking for a way out.
Congressman Ed Royce hosted a house committee on foreign affairs hearing in Fullerton California on November 27, 2013. One of the speakers was Angela Guanzon, who traveled to the U.S. from the Philippines in 2006 in hopes of a better life. “I worked 18 hour days and had to sleep on the floor in a hallway,” Guanzon said. “My co-workers and I were threatened if we tried to escape.”
Human trafficking is what the State Department, law enforcement officials and NGOs are calling “modern day slavery.” Following narcotics, it is the second most profitable criminal enterprise worldwide and the Philippines has the second largest victim population. Many poverty stricken Filipino women leave their families in the hope supporting them from abroad.
Approximately 1 million Filipino men and women migrate each year, currently there are 10 million Filipinos living abroad. Many of these workers are subject to forced labor and harsh conditions, not just in the U.S., but in Asia and the Middle East as well. Women who work in domestic positions often suffer violence, sexual abuse and rape. Traffickers use local recruiters in villages and urban centers who often pretend to be representatives of government sponsored employment agencies. Furthermore, victims are required to pay “recruitment fees” that leave the workers vulnerable to forced labor, debt bondage and prostitution.
Many Filipinos live in poverty and are often swayed by recruiters who offer work and a better life. Furthermore, the vast majority of victims are also women and girls; 300,000-400,000 are women and 60,000 -100,00 are children; over 80% are females under the age of 18.
To combat this, the Philippines government created the Anti-Trafficking in Persons Act of 2003 and has made minor improvements since then. For example, it increased funding to the anti-trafficking agency from $230,000 to $1.5 million and went from eight full time staff members to 37. They were also able to repatriate 514 Filipinos from Syria in the winter of 2012, 90% of whom were trafficked. Even with an upgraded version of the Anti-Trafficking in Persons Act of 2003, much work still needs to be done in the Philippines and in the U.S. to ensure that women and the poor in the Philippines are not vulnerable to modern day slavery.
– Lisa Toole
Sources: CNN, NJ.com, ABS CBN, HumanTrafficking.org
Photo: The Guardian
Why the Gerald R. Ford School of Public Policy May be Right For You
Picture yourself: you are walking among a beautiful collection of distinguished brick buildings. Snow covers the ground as you gaze upon the seemingly endless trees that dot the walkway. You breathe a sigh of satisfaction and say to yourself “this is the perfect place to fight poverty.”
Welcome to the University of Michigan and the Gerald R. Ford School of Public Policy. Located in Ann Arbor, MI (known affectionately as Tree Town, USA), U of M is one of the nation’s premiere public universities. Many are familiar with the Michigan Wolverines football team, and their stadium, the “Big House,” that holds over 109,000 screaming fans. However, one of the universities true gems is the Ford School.
Named in honor of former U.S. President Gerald Ford, a Michigan alumnus, the Ford School offers a B.A. in Public Policy for undergraduates in addition to a Master of Public Policy and Master of Public Administration for graduate students. The school also has over 16 joint M.A. and PhD programs with other graduate programs in the university, including Economics, Political Science, and Sociology.
A stated strength of the Ford School is in combating poverty. The National Poverty Center is housed in the Ford School and is funded by a grant from the U.S. Department of Health and Human Services. The National Poverty Center trains students in poverty research, publishes briefs and analyses to be used in government forums, and runs national seminars to discuss issues of poverty.
In addition to poverty research, the Ford School is devoted to global development. Students pursuing an M.P.P. spend the summer between their first and second year pursuing an internship directly related to policy issues. 27% of students complete their internships abroad, while 30% work in Washington D.C. for an internationally related program. Additionally, the School houses the International Policy Center, which promotes interdisciplinary research in various global issues.
If you are interested in honing your skills in fighting global poverty, the Ford School of Public Policy may be the place for you.
– Taylor Diamond
Sources: Ford School of Public Policy, National Poverty Center
Britannica