Elfenworks Foundation Initiative - Fiduciary Capitalism
Bottom line: it is possible to make a fair profit while lifting people up
Imagine a soup kitchen that, rather than closing its doors on off hours, helps its 'clients' run a for-profit bakery, giving them skills, a sense of future, self-respect and dignity -- all while making a profit. You don't need to imagine, you can see it in action in Detroit, at the Capuchin Soup Kitchen run by a group of Capucin Franciscans in Detroit. We became aware of them through a film by our friends at the San Damiano Foundation. They are running a business - at a profit (half of which is plowed back in, half is given to the men to split). It's run as a sort of public/private partnership, since the not-for-profit soup-kitchen is fostering this little business.
In another public/private partnership, we are working with Boma Systems to protect faculty and administrators (and soon, students) who literally risk their lives to educate at-risk youth at De Marillac Academy in San Francisco's impoverished Tenderloin neighborhood, where poverty and crime go hand in hand. Boma Systems (a name derived from the African barriers made from branches that protect people from predators) will provide cell-phone security Push5 accounts so participants can use their cell phones to immediately dial for help when they feel threatened, summoning help quickly and quietly in a panic situation. The company is also working on a "win back the neighborhood" safety campaign in association with CrimeStoppers.
Other examples of fiduciary capitalism abound - from Microvest and Obopay in the financial space, to Sanaria in biotechnology. All share the common trait of leveraging the profit motive and sound business practices to accelerate and solidify social goods, such as addressing climate change, opening access to capital, fighting deadly disease, and taking on poverty and inequality trends. Understanding "both sides of the tracks" and making a reasonable profit doing so are following the model we envision for fiduciary capitalism.
Note: See also our discussion of The Elfenworks Center for the Study of Fiduciary Capitalism at Saint Mary's College. Currently, this center primarily examines the new role of the activist investor (e.g., pension funds) in promoting a more socially responsible agenda.
