The Seattle Times recently ran a Washington Post article on how Steve Case pushes symbiotic relationship of business principles, green ideas. This was particularly interersting to me, given that a few days earlier, Case‘s new company, Revolution, LLC, had flexed its muscles to grow Flexcar, whose [now] former CEO, Lance Ayrault, had shared some of his insights into and experiences with social entrepreneurship at a Northwest Entrepreneur Network breakfast a few days before that. During the Q&A session at the NWEN breakfast, Lance had noted the delicate balance of being a small (and growing) business with a majority stakeholder (Case / Revolution) with an entirely different sense of scale … and, from the announcement, it looks like that balance may be shifting.
According to the Post article, Case, and his CEO, Michael Crooke, want to position Revolution as a meta-brand of environmentally friendly but mainstream products and services, targeting consumers who value "lifestyles of health and sustainability." However, the company web site describing what Revolution is about focuses on control and convenience, with no mention of the environment or [planetary] sustainability. While the article quotes Case as saying that he wants to avoid any product or service that is "too fringy", the web page states "We don’t play it safe – we play to win". One of the investments that Revolution has made is in Gaiam, "a provider of information, goods and services to customers who value the environment, a sustainable economy, healthy lifestyles, alternative healthcare and personal development" whose founder reportedly lives in a shack without running water; another is Miraval Resort, an exclusive "destination for body, mind and spirit", which appears to be at the opposite end of the housing spectrum from a shack … and very distant from the dramatic stories of social entrepreneurship highlighted in the PBS series The New Heroes.
It will be interesting to see whether and how Case, Crooke, et al., can bridge the gaps between the ecology and the economy, and between alternative lifestyles and mainstream business. I’m reminded of "The Tough Choice", a great essay by David Batsone in the March 2005 issue of Worthwhile Magazine, in which he reviews the tradeoffs between profitability and conscience faced by a number of founders of socially responsible businesses, with segments on each of the following:
- Gary Hirschberg, "CE-Yo" of Stonyfield Farm, now majority owned by Groupe Danone: "Looking at the Big Picture"
- Ben Cohen, co-founder of Ben & Jerry’s, now majority owned by Unilever: "The Soul Has Been Lost"
- Gary Erickson, founder of Clif Bar, who rejected a bid from Quaker Oats to buy the company: "Clinging to Independence"
- Greg Steltenpohl, co-founder of Odwalla, who was forced out when the Odwalla board sold the company to Coca-Cola: "The New Gospel"
In each case where an [initially] socially responsible company chose a path of "growth" — several of which are also covered (and available online) in an article on "To Drink or Not to Drink?" by Brooking Gatewood in The Dartmouth Green Magazine — the price paid for growth was a diminishment of the commitment to social responsibility that motivated the founders. It will be interesting to see what happens in this Case … and whether the eco-friendly brand sought by Revolution is achievable … and sustainable.