Social Entrepreneurship for the 21 Century: Innovation ......I. Social Entrepreneurship in the...

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SocialEntrepreneurshipforthe21stCentury:

InnovationAcrosstheNonprofit,PrivateandPublicSectors

Instructor: GeorgiaLevensonKeohane glk2107@columbia.eduOffered: EMBAElective,Fall2018

CourseOverview

Inlessthanageneration,wehavewitnessedatectonicshiftinthewaypeoplethinkabout—andworktoward—socialchange.Thegroundswellofnewactivism—socialentrepreneurship—ismanifestacrosssocietyasinnovativechangemakerstestnewsolutionstoentrenchedsocial,economic,andenvironmentalproblems.Thiscourseisdesignedforstudentswhoareinterestedinunderstandingandparticipatinginsocialentrepreneurship,whethertheypursuecareers(oravocations)inthenonprofit,privateorpublicsectors.

Thecoursegivesanoverviewofthefield,withindepthexamplesandcasestudiesofinnovativechangemakersandorganizationsinthenonprofit,privateandpublicsectorsthatilluminatethetraitsandtoolsofthenewactivism:aheightenedemphasisonmeasurementandevaluation;anembraceofcompetitioninanumberofforms,includingthedesignandimplementationofmarketbasedinstrumentslikeprizesandchallenges;thedevelopmentof‘laboratories’tofostersocialinnovationswhichcanthenbebroughttoscale;experimentswithtechnologyandtheuseofopenandcrowdsourcesolutionstosocialchange;andanewthinkingaboutassetmanagementandinvestment,thenatureofsocialvalueandreturns,andthesourcesofcapitalavailabletoaddresschronicsocialproblems.Thecoursealsoexplorestheopportunitiesandtensionsinherentincross-sectorwork:thedefinitionofpublicgoods,therespectiverolesthatphilanthropy,governmentandcommercialactorsplayinprovidingthem,andtheinnovationsthatoccurwhenpartnershipsformacrossthesectors.

Classeswillcombinelectures,discussions,andpresentationsbysomeoftoday’smostinnovativesocialentrepreneurs.Eachsession,designedasaseminar,willbeguidedbythreebasicquestions:

(1) Whatistheentrenchedproblem–eithermarketorgovernmentfailure–thatthesocialentrepreneuristryingtoaddress?

(2) Whatistheinnovation:howisthisproblembeingaddressedinanew,differentormoreeffectiveway?

(3) Isitworking?Whataretheadvantages,andrisks,associatedwiththisapproach?

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ConnectionwiththeCoreCurriculum

Thelearninginthiscoursewillutilize,buildonandextendconceptscoveredinthefollowingcorecourses:

CoreCourse ConnectionwithCoreCorporateFinance 1. Timevalueofmoney

2. Incrementalcost/benefitDecisionModels 1. Useofanalysisindecision-making

2. Fundamentalconceptsofdecision-making3. Decisionmakingunderuncertaintyandrisk

FinancialAccounting 1. TheaccountingmodelGlobalEconomicEnvironmentI

1. WhatisGDPandhowisitmeasured?2. Whyaresomecountriessomuchricherthanothers?3. Whataretheeffectsoffiscalpolicy?4. Whatistheroleoffinancialmarketsintheeconomy?

LeadershipDevelopment 1. Ethics2. Decision-making

MarketingStrategy 1. Roleofmarketingvaluecreationforcustomers,leadingtostakeholdervalue(owners,shareholders,employees)

StrategyFormulation 1. Linkagesbetweenvaluesleadershipandeconomicvaluecreation2. Behavioralandevidence-basedstrategy

Studentswillbeexpectedtohavemasteredtheseconceptsandbeabletoapplytheminthecourse.

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CourseOrganization

Thecourseisdividedintothreemodules:

I. SocialEntrepreneurshipintheNonprofitSectorexaminestheemergenceofanewkindofserviceprovider,anewbreedoffunder–theso-calledventurephilanthropy–andthebusinessmodelseachemploytoadvancesocialchange;

II. SocialImpactinthePrivateSectorexplorestheinfusionofsocialsectorvaluesintoprofit-makingactivitiesfromtheenterpriseandinvestorperspectives,includingtheemergingfieldofimpactinvestingandthegrowingnumberoffirmsthatseektocreatesocietalorenvironmentalbenefit–“shared”or“blended”value–throughcommercialbusiness.

III. SocialInnovationinthePublicSectorincludescasestudiesofentrepreneurshipwithingovernment,andtheuseofvariouspolicytoolstoidentifyandscaleprovensolutionstoentrenchedproblems,fosterinnovation,andenlisttheenergyandresourcesofprivate(nonprofitandcommercial)actorstocommonpurpose.

Session Topic CaseStudySocialEntrepreneurshipintheNonprofitSector

1:WhatisSocialEntrepreneurship9.12

Anewkindofserviceprovider AshokaEchoingGreenCityYear

Anewkindoffunder:venturephilanthropy

NewProfitIncRobinHoodFoundationPershingSquareFoundation

2:InnovationsinPhilanthropy9.19

EntrepreneurshiptoEnterprise AcumenFundActivistAssets F.B.HeronFoundation

FordFoundationSocialImpactinthePrivateSector

3:ImpactInvesting:InvestorPerspective9.26

TheMicrofinanceEvolution GrameenBank+SKSMicrofinanceMPesa+MKopa

SocialEnterpriseintheUS TheSocialEntrepreneurs’Fund

4:ProfitsandPurpose:theEntrepreneurs10.10

LaunchingandSustainingaSocialPurposeVenture

B-LabGreystonBakeryEtsy

SocialInnovationinthePublicSector5:Socialinnovationinaction:federalpolicy,localaction10.17

OpenInnovation,BigData,PolicyLabsandInnovationFunds

TheObamaWhiteHouse:RacetotheTop,ToddParkatHHS

PayforSuccessSocialImpactBonds SocialFinanceInc,MAPayforSuccess,TheCommunityOutcomesFund

TheFutureofSocialEntrepreneurship6:Thefutureofthefield10.24

BottomUp FinalStudentPresentations

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Readings

RequiredreadingeachweekwillcomefromGeorgiaLevensonKeohane,SocialEntrepreneurshipforthe21stCentury:InnovationsAcrosstheNonprofit,PrivateandPublicSectors(NewYork:McGrawHill,January2013),CapitalandtheCommonGood:HowInnovativeFinanceisTacklingtheWorld’sMostUrgentProblems(NewYork:ColumbiaBusinessSchool,2016)andcasestudiesandarticlesincludedinonthecourseplatform.

AssessmentandGrading

Studentswillbeevaluatedonthebasisof:

• classparticipation(50%)• writtenassignments:23-pagewriteups(50%)

Assignments:

Studentswillbeevaluatedonthebasisoftheirinclassparticipation,muchofwhichwilldrawfromthetwowrittenassignments/presentations.Thenatureofthesewrite-upswillbedescribedingreaterdetailinthefirstclass:eachoneisa3pagewrite-upthatfocusesonthegeneraltopicofthesession,followedbyanin-depthexaminationofonecasestudywhichanswersthefollowingquestions:

(1) Whatistheentrenchedproblemthesocialentrepreneuristryingtoaddress?(2) Whatistheinnovation:howisthisproblembeingaddressedinanew,differentormore

effectiveway?(3) Isitworking?Howdoweknow?Whataretheadvantages,andrisks,associatedwiththis

approach?

WrittenAssignmentforSession1

Thereisagooddealofreadingandmaterialtocoverforweek1.Thesereadingsareimportanttofacilitateclassdiscussionthefirstweekandtolaythegroundworkforsubsequentweeks.Thestudyquestionsforweek1willhelpwithpreparation.

Inaddition,pleasewriteaonepagedescriptionofanexperienceyouhavehadwithsocialchange.Thiscouldbeafull-timeworkorvoluntaryexperience,orevenanorganizationyouhaveinvestedinordonatedto.Wasthisorganizationoreffortentrepreneurial?Wasitinnovative?Whyorwhynot?Wasthisorganizationoreffortsuccessfulinadvancingsocialchange?Howdoyouknow?

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CourseSchedule

SOCIALENTREPRENEURSHIPINTHENONPROFITSECTOR

Session1:IntroductiontoSocialEntrepreneurship(9.12)

Whatdowemeanbysocialentrepreneurship,andhowhasitevolvedinthenonprofitsectoroverthelastgeneration?Whatcanwelearnfromthenewbreedofserviceproviderandtheemergenceofanewkindof‘venture’philanthropy?

WhatisSocialEntrepreneurship

Anewkindofserviceprovider AshokaEchoingGreen

CityYearAnewkindoffunder:venturephilanthropy

NewProfitIncRobinHoodFoundationPershingSquareFoundation

QuestionsforClassLectureandDiscussion:

1. Introductiontocourse,objectives,requirements,otherlogistics2. Lecture/discussionofthehistoryofsocialentrepreneurshipintheUnitedStates3. Whatisasocialentrepreneur?Whatdowemeanbyinnovation?businessorientation?4. WhatcanwelearnfromthenewbreedofserviceproviderlikeAshokaandCityYear?5. Whatis‘venturephilanthropy’andwhatsetsofproblemsarefunderslikeNewProfitandRobin

Hoodtryingtoaddress?

RequiredReading

• Introduction:o GeorgiaLevensonKeohane,SocialEntrepreneurshipforthe21stCentury:Innovation

AcrosstheNonprofit,PrivateandPublicSectors(NewYork:McGrawHill,January2013),introduction,chapters1,2,3,4,18,19[bookishereafterreferredtoasKeohaneSE21]

• NewBreedofServiceProvidero GeorgiaLevensonKeohane,“Ashoka:InnovatorsforthePublic”(StanfordGraduate

SchoolofBusinessCaseStudy”SM203February2012)o EchoingGreen,LessonsLearnedatits30thAnniversary:o CityYear:TheJourney(HarvardBusinessSchoolCaseNo.311080-PDF-ENG)

• NewKindofFunder:VenturePhilanthropyo ChristineLetts,WilliamRyanandAllenGrossman,“VirtuousCapital:WhatFoundations

CanLearnfromVentureCapitalists,”HarvardBusinessReviewMarch-April1997o NewProfitInc.:GoverningtheNonprofitEnterprise(HarvardBusinessSchoolCaseNo.

9-100-052)o TheRobinHoodFoundation(HarvardBusinessSchoolCaseNo.310031-PDF-ENG)o PershingSquareFoundation:LessonsLearnedattheTenYearMark

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RecommendReading:

SocialEntrepreneurship

• DavidBornstein,“ChangingtheWorldonaShoestring,”TheAtlanticJanuary1998• JGregoryDees,“TheMeaningofSocialEntrepreneurship,”October31,1998.• BillDrayton,“EveryoneaChangemaker:SocialEntrepreneurship’sUltimateGoal,”Innovations

Winter2006• BillDrayton,“TheCitizenSectorBecomingasEntrepreneurialandCompetitiveasBusiness,”

CaliforniaManagementReviewVol44,No.3,Spring2002• RogerL.MartinandSallyOsberg,“SocialEntrepreneurship:TheCaseforDefinition,”Stanford

SocialInnovationReviewSpring2007• WilliamA.Schambra,“TheRealSocialEntrepreneurs,”2010WilliamE.SimonLecture,the

ManhattanInstituteforPolicyResearch,NewYorkCity,9December2010.• “CityYearEnterprise”(HarvardBusinessSchoolCaseStudyNo.9-396-196)• ChristineWallace,“ANarrowerFocusHelpsCityYearWinGrantsandIncreaseItsImpact,”

ChronicleofPhilanthropy4December2011• DavidBornstein,HowtoChangetheWorld:SocialEntrepreneursandthePowerofNewIdeas

(NewYork:OxfordUniversityPress,2004),chapters1,2,8,18,21• PeterDrucker,InnovationandEntrepreneurship:PracticesandPrinciples(NewYork:Harperand

Row,1985)IntroductionandChapter1

VenturePhilanthropy

• RobertS.KaplanandAllenS.Grossman,“TheEmergingCapitalMarketforNonprofits,”HarvardBusinessReviewOctober2010

• WilliamMeehan,DerekKilmer,MaisieO’Flanagan,“InvestinginSociety:Whyweneedamoreefficientsocialcapitalmarket–andhowwecangetthere,”StanfordSocialInnovationReviewSpring2004

• CraigC.Reigel,“PhilanthropicEquity:PromisingEarlyReturns,”TheNonprofitQuarterlyFall/Winter2011

• StevenLeFranceandNancyLatham,“TakingStockofVenturePhilanthropy,”StanfordSocialInnovationReviewSummer2008

• MathewBishopandMichaelGreen,Philanthrocapitalism(NewYork:Bloomsbury,2008)• MichaelEdwards,JustAnotherEmperor:TheMythsandRealitiesofPhilanthrocapitalism(New

York:Demos,2008)• PaulBloomandEdwardSkloot,eds.ScalingSocialImpact:NewThinking(NewYork:Palgrave

MacMillan,2010)[selectedchapters]

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Session2:InnovationsinPhilanthropy:EntrepreneurshiptoEnterprise,ActivistAssets(9.19)

Whatistheroleofphilanthropyinadvancingsocialchange?Whatistherelationshipbetweenphilanthropyandgovernment,andphilanthropyandthecommercialsector?Theclasswillexplorethreeinnovationsinphilanthropy:

1. theincreaseduseofprizesandchallengesinthenonprofitsector2. amore‘activist’approachfoundationassetmanagement3. theshiftfromentrepreneurshiptoenterpriseandnonprofitinvestmentinfor-profitentities

2:InnovationsinPhilanthropy

EntrepreneurshiptoEnterprise AcumenFundActivistAssets F.B.HeronFoundation

FordFoundation

QuestionsforClassLectureandDiscussion:

1. What,historically,hasbeentheroleofphilanthropy,andhowhasthatchangedovertime?HowdoesAmericanphilanthropycomparetothatinothercountries?

2. Whatdophilanthropicprizesandchallengeachieve?3. Whatismissionrelatedinvesting?Programrelatedinvesting?4. Shouldfoundationsbeinvestinginfor-profitbusinesses?

RequiredReading

• Introductiono Keohane,chapters5-8

• FromEntrepreneurshiptoEnterprise(skim)o AcumenFund:MakingtheImpossiblePossible:TheAcumenFundat15Years

• ActivistAssetso “TheWorldhasChangedandsoMustWe”(HeronFoundation):o HeronFoundationInvestments:http://fbheron.org/investments/and

http://fbheron.org/investments/investees/o ClaraMiller,“Arrivingat100%forMission,”StanfordSocialInnovationReview7March

2017o MissionAccomplished:HowtheHeronFoundationWentAllIn.Forbes30March2017o ClaraMiller,BuildingaFoundationforthe21stCentury.o BigLeague:TransformingtheCapitalMarketswithImpactRigorandDisclosureImpact

AlphaSeptember28th2017o “FordFoundationisanUnlikelyConverttoImpactInvesting,”NewYorkTimesApril13,

2017

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RecommendedReading

PrizesandChallenges

• JonathanBays,TonyGoylandandJoeNewsum,“UsingPrizestoSpurInnovation”McKinseyQuarterlyJuly2009

• “XPrizeCEOPeterH.DiamandisonJackpotsforInnovation,”HarvardBusinessReviewNovember2008

• ThomasKalil,“PrizesforTechnologicalInnovation,”TheHamiltonProject,BrookingsInstitution(December2006)

• JonathanBays,“AndtheWinnerIs…CapturingthePromiseofPhilanthropicPrizes,”McKinseyandCompany2010[fullreporthere:http://www.mckinseyonsociety.com/downloads/reports/Social-Innovation/And_the_winner_is.pdf]

ActivistAssets

• MissionInvestorsExchange:definitionsofMRIs,PRIsandFrequentlyAskedQuestionsaboutProgramRelatedInvestments

• StephanieStrom,“ToAdvancetheirCause,FoundationsBuyStocks,”NewYorkTimes20November2011

• MichaelSwak,“ExpandingPhilanthropy’sReach:MissionRelatedInvestingattheF.B.HeronFoundation,”CommunitiesandBankingSpring2008

• WilliamM.Dietel,“MissionStewardship”TheF.B.HeronFoundation• SusanBerresfordandLorieSlutsky,“Foundations’LongevityShouldBeValued,”Chronicleof

Philanthropy4September2008• Program-RelatedInvestments:LeveragingOurResourcestoCatalyzeBroaderSupportforOur

Mission(GatesFoundation)

EntrepreneurshiptoEnterprise

• “CanVentureCapitalSavetheWorld?”Forbes30November2011• “Ebay’sFounderonInnovatingtheBusinessModelofSocialChange,”HarvardBusinessReview

September2011

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SOCIALIMPACTINTHEPRIVATESECTOR

Session3:ImpactInvesting:TheInvestorPerspective(9.26)

Whatisimpactinvesting,andwhatareinvestorshopingtoachieve?

3:ImpactInvesting:InvestorPerspective

TheMicrofinanceEvolution GrameenBank+SKSMicrofinanceMPesa+MKopa

SocialEnterpriseintheUS TheSocialEntrepreneurs’Fund

QuestionsforClassLectureandDiscussion:

1. Whatisimpactinvesting?2. Howisitdifferentfromthefieldsofsociallyresponsibleinvesting,internationalandcommunity

development,ormoremainstreamemergingmarketinvestment?HowdoesimpactinvestingattheBoPinemergingmarketsdifferfromtheUS?

3. Aretherecommercialopportunitiestoinvestbeyondphilanthropicorhybridmodels?4. Whatareinvestorslookingtoaccomplishthroughimpactinvestments?5. Aretherelimitstothisapproach?

RequiredReading

• Introductiono KeohaneSE21,chapter9-13,20o KeohaneCEDIntroductiono OmidyarNetwork,InvestingAcrosstheReturnsContinuum:SSIRFall2016o BrianTrelstad,“MakingSenseoftheManyKindsofImpactInvesting”HarvardBusiness

Review28January2016o GIIN2018AnnualImpactInvestingSurvey(Skim)

• MicrofinanceEvolutiono KeohaneCGDchapter3

• SocialEnterpriseintheUSo LookatthewebsiteofTheSocialEntrepreneurs’Fund.o LizLuckett,“SmallDataforBigImpact,”SSIR16February2018o Skim,ifinterested,casestudiesonCanvason:Bridges,ImpactAmericaFund,DBL

Partnerso “FromBezostoWalton,BigInvestorsBackFundfor‘Flyover’Start-Ups,”NewYork

Times4December2017o “SiliconValleyisOver,SaysSiliconValley,”NewYorkTimes4March2018o TheEarlyResultsofStates’OpportunityZonesarePromising,butThere’sStillRoomfor

Improvement,”BrookingsApril2018

RecommendedReading

• MiltonFriedman,“TheSocialResponsibilityofBusinessistoIncreaseProfits,”NewYorkTimesMagazine(13September1970)

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• “IBMvCarnegieCorporation:TheCentenariansSquareUp,”TheEconomist9June2011.• MichaelSandel,“WhatIsn’tforSale?”TheAtlanticApril2012.• J.P.Morgan,“ImpactInvestments:anEmergingAssetClass,”J.P.MorganGlobalResearch29

November2010,pp1-23(introduction,executivesummary,chpt1)• WorldEconomicForum,“FromtheMarginstotheMainstream:AssessmentoftheImpact

InvestmentSectorandOpportunitiestoEngageMainstreamInvestors,”ExecutiveSummary• PaulBrestandKellyBorn,“WhenCanImpactInvestingCreateRealImpact?”StanfordSocial

InnovationReviewFall2013• “InvestingwithImpact:CreatingFinancial,SocialandEnvironmentalValue,”MorganStanley

SmithBarney2012• “InvestingforSocialandEnvironmentalImpact,”MonitorInstituteJanuary2009• RogerFrank,“ImpactInvesting:WhatExactlyisNew?”StanfordSocialInnovationReviewWinter

2012• MichaelPorterandMichaelKramer,“CreatingSharedValue,”HarvardBusinessReviewJanuary

2011.• AntonyBugg-LevineandJedEmerson,ImpactInvesting(SanFrancisco:Jossey-Bass,2011)• MuhammadYunus,BuildingSocialBusiness(NewYork:PublicAffairs,2010)

MicroFinanceEvolution

• JeffreyA.Harris,“ItTookaVillage”ColumbiaCaseWorksNo.090331December72010• “SKSandtheAPMicrofinanceCrisis,”HarvardBusinessSchoolCaseNo9-212-018October14,

2011• “SKSMicrofinance:TheSourTasteofSuccess”IveySchoolofBusinessCaseStudyNoW12906

April202012• EricBellman,“IPOPitsProfitsvs.Altruism,”WallStreetJournal9July2010.• StephanieStrom,“RichIPOBringsControversytoSKSMicrofinance,NewYorkTimes29July

2010.• VikasBajaj,“LusterDimsforaPublicMicrolender,”NewYorkTimes10May2011.

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Session4:ProfitsandPurpose:theEntrepreneurs(10.10)

Whatdoesittaketolaunchandgrowasocialpurposecompany?

ProfitsandPurpose:theEntrepreneurs

LaunchingandSustainingaSocialPurposeVenture

B-LabGreystonBakeryEtsy

QuestionsforClassLectureandDiscussion:

1. WhatisB-Lab’sInnovation?WhathasitdonetoadvancethefieldintheU.S.?2. WhatisaBCorp?3. WhataretheadvantagesandrisksforsocialpurposebusinessesintheU.S.?ForbeingaBCorp?4. IsEtsyasocialenterprise?5. IsKickstarterasocialenterprise?6. IsGreystonBakery?7. WhatdoesbeingaBCorphavetodowiththeirmodels?8. WhatisGIIRS?

RequiredReading

• Watch“WhyBCorpsMatter”video• KeohaneSE21Chapter12• “B-LabBuildingaNewSectoroftheEconomy,”HarvardBusinessSchoolCaseStudy(Canvas,

skim)• ChrystiaFreeland,“Capitalism,butwithaLittleHeart,”NewYorkTimesJuly18th2013• GreystonBakeryreadingTBD• “ThisNewYorkBakeryThrivesbyHiringAnyoneWhoWantstoWork,NoQuestionsAsked,”

Entrepreneur18August2017• “WhyKickstarterDecidedtoRadicallyTransformitsBusinessModel.”FastCompany4/12/17• “TheRevolutionatEtsy,”NewYorkTimes25November2017• “TheBarbariansareatEtsy’sHand-HewnResponsiblySourcedGates.”Bloomberg5/18/17

RecommendedReading

• JamesSurowiecki,“CompanieswithBenefits”NewYorker4August2014• AngusLoten,“WithNewLaw,ProfitsTakeaBackSeat,”WallStreetJournal19Jan2012• “FirmswithBenefits”TheEconomist7January2012• JessicaBruder,“For‘BCorps’aNewCorporateStructureandaTripleBottomLine,”NYT3/14/12• RosabethMossKanter,SuperCorp:HowVanguardCompaniesCreateInnovation,Profits,

GrowthandSocialGood(NewYork:Crown,2009).• JosephL.Bower,HermanB.Leonard,LynnS.Paine,CapitalismatRisk(Boston:HarvardBusiness

ReviewPress,2011)• MichaelJ.Sandel,WhatMoneyCan’tBuy:TheMoralLimitsofMarkets(NewYork:Farrar,Straus

andGiroux,2012)

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SOCIALINNOVATIONINTHEPUBLICSECTOR

Session5:SocialImpactBonds:NewYorkCityandBeyond(10.17)

Whatdowemeanbysocialinnovationinthepublicsector?Howdoessocialentrepreneurshipingovernmentdrawontheworkofitsprivate(nonprofitandcommercial)sectorcounterparts?Howcanpublicpolicypromoteinnovation,socialandotherwise?

Howcangovernmentharnessprivateresources–energyandcapital–tobearonpublicproblems?Howdosocialimpactbonds,andthelargerfieldofsocialfinance,engagesocialentrepreneursfromacrossthenonprofit,privateandpublicsectors,inthecollaborativeworkofsocialchange?

5:Socialinnovationinaction:federalpolicy,localaction

OpenInnovation,BigData,PolicyLabsandInnovationFunds

TheObamaWhiteHouse:RacetotheTop,ToddParkatHHS

PayforSuccessSocialImpactBonds SocialFinanceInc,MAPayforSuccess,TheCommunityOutcomesFund

QuestionsforClassLectureandDiscussion:

1. Whatdowemeanby‘socialinnovation’inthepublicsector?2. HowdidtheObamaAdministrationadvancesocialinnovationandentrepreneurshipatthe

federallevel?3. Isthereatensionbetween“innovation”andscaling“whatworks?”4. Howdoessocialinnovationdifferatthenational/federalandlocallevels?5. Whatisasocialimpactbond?6. Howdoesitdifferfromother‘payforsuccess’or‘payforperformance’instruments?7. Doesthefieldofsocialfinanceofferamodelforlargercrosssectorsocialchangeefforts?

RequiredReading

• Introductiono Keohane,chapters14-16,19,21o KeohaneCGDchapter5o “Let’sHearThoseIdeas,”TheEconomist12August2010o MoneyBallforGovernment,introandskim

• PayforSuccess/SocialImpactBondso FirstSocialImpactBondforEarlyChildhoodEducation(Utah/GoldmanSachs)o PressReleaseandFactSheetonMAPathwaysDealo JimAndersonandAndreaPhillips,“WhatWeLearnedfromtheNation’sFirstSocial

ImpactBond,”HuffingtonPost7/2/15o “GoldmanSachstoFinanceEarlyEducationProgram,”NewYorkTimes12June2013o “SocialFinance,Inc.”HarvardBusinessSchoolCaseStudyNo.9-212-055(skim)o ALandmarkMomentforPayforSuccess|3for3:EnactingtheRecommendationsin

PrivateCapital,PublicGood19February2018o StateofPlay:PayforSuccessandEvidenceBasedPolicy1March2018

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RecommendedReading

General

• Bridgeland,JohnandPeterOrszag.2013.“CanGovernmentPlayMoneyball?”TheAtlantic,June19.

• EricLiuandNickHanauer,“The‘MoreWhat,LessHow’Government,”DemocracyWinter2011• DetailedParameters:“RacetotheTopProgram,ExecutiveSummary,”U.S.Dept.ofEducation,

Nov2009• KimSmithandJuliePetersen,“SteeringCapital:OptimizingFinancialSupportforInnovationin

PublicEducation,”BellwetherEducationPartners(April2011)• EricBravermanandMichaelChui,“UnleashingGovernment’sInnovationMojo”McKinsey

QuarterlyJune2012• MicheleJolin,“InnovatingtheWhiteHouse:HowthenextpresidentoftheUnitedStatescan

spursocialentrepreneurship,”StanfordSocialInnovationReviewSpring2008• DavidOsborneandTedGaebler,ReinventingGovernment(Boston:Addison-Wesley,1992)

[selectedchapter,TBD]• StephenGoldsmith,ThePowerofSocialInnovation(SanFrancisco:JosseyBass,2010)

PayforSuccess

• DavidChen,“GoldmantoInvestinCityJailProgram,ProfitsifRecidivismFallsSharply,”NewYorkTimes2August2012

• TinaRosenberg,“ThePromiseofSocialImpactBonds,”NewYorkTimes20June2012• DavidChen,“GoldmantoInvestinCityJailProgram,ProfitsifRecidivismFallsSharply,”New

YorkTimes2August2012• TinaRosenberg,“ThePromiseofSocialImpactBonds,”NewYorkTimes20June2012• “FromPotentialtoAction:BringingSocialImpactBondstotheU.S.”McKinsey&CompanyMay

2012• “PayforSuccess:InvestinginWhatWorks,”NonprofitFinanceFundandtheWhiteHouse

January2012• “BuildingaHealthyandSustainableSocialImpactBondMarket:TheInvestorLandscape,”The

RockefellerFoundation(http://www.rockefellerfoundation.org/blog/building-healthy-sustainable-social)Dec.12.

• SocialFinanceUK,“DevelopmentImpactBondWorkingGroupReport,’(http://www.cgdev.org/sites/default/files/DIB_WG_REPORT.pdf)àcanweputjustexecutivesummary?

• KashRanganandLisaChase“WhyPayforSuccessisaNewFlavorofPhilanthropy”HBSWorkingPaper14-10930April2014

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Session6:TheFutureofSocialEntrepreneurship(10.24)

FinalStudentPresentations

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AdditionalandReserveReadingList

Allbooksandothermaterialslistedbelowareeitheronreserveinthelibraryorwillbepostedtothecourseplatformforfurtherreading.

• JosephA.Schumpeter,TheTheoryofEconomicDevelopment(Cambridge:HarvardUniversity,1961),74-94

• HowardStevenson,“APerspectiveonEntrepreneurship,”(HarvardBusinessSchoolCaseNo.9-384-13113April2006)

• CarlJSchramm,TheEntrepreneurialImperative(NewYork:HarperCollins,2006)

• WilliamJ.Baumol,TheFree-MarketInnovationMachine:AnalyzingtheGrowthMiracleofCapitalism(NewJersey:PrincetonUniversity,2002)

• StephenGoldsmith,ThePowerofSocialInnovation(SanFrancisco:JosseyBass,2010)

• DavidBornstein,HowtoChangetheWorld:SocialEntrepreneursandthePowerofNewIdeas(NewYork:OxfordUniversityPress,2004)