Archive for the ‘Maximilian Martin’ Category

Globalization, long-term demographic trends, changing consumer preferences, and the state of public finances are driving the emergence of an “Impact Economy” for the first time in human history.
   Analogous to the New Economy, the Impact Economy will fundamentally transform business, the public sector, and civil society: A multi-trillion dollar integrated social capital market; companies who seek authentic engagement instead of PR-focused corporate social responsibility; and private risk capital funding the design and delivery of public goods are around the corner.  
   The financial crisis and the recent G-20 commitment to reducing public debt levels will accelerate the transition.
    Many new ventures and projects are under way to cover subsets of the Impact Economy. Beyond philanthropy, take microfinance, bottom-of-the-pyramid investments, clean energy and social investment banking.
   It feels like the early days of a gold rush. As in any innovation phase, some firms will succeed and grow. Many will fail without ever reaching scale.
    Meanwhile, the Impact Economy will change the way we consume, invest, and work.
   For more thoughts on the Impact Economy, see paper.

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Growing social needs and other factors are creating a leadership deficit in the nonprofit sector. Many solutions are being worked on to increase the quantity and quality of nonprofit leaders.

                However, the world needs, above all, leaders who can lead transformational change in their organizations and the social sector. Many social issues of the day require transformative change, rather than mere social remedies.

                Transformative leaders need to be able to address the challenges of the new environment and cultural change with appropriate leadership strategies. Two new sources of such leaders hold promise: business leaders who are crossing over into truly problem-solving philanthropy, and social entrepreneurs engaged in pattern change.

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