©Centre for Sustainable Action introduces investment opportunities for a sustainable future

©Centre for Sustainable Action is a cooperative created to support small to medium enterprises (SMEs) to embed sustainability within their business plans. 

We aim to support the wellbeing of entrepreneurs and business leaders to help achieve profitability and a social purpose through the development of products and services that are inherently sustainable. As a cooperative, we have the ability to raise £10 million in funding but we cannot do this alone we need the help of brilliant minds to make our mission possible. 

Join our #brilliant minds campaign at the Centre for Action to learn more register for the event by clicking on the link below.

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American Society for Quality (ASQ) Sustainability Survey

ASQ Sustainability Survey

Scan the QR Code to benchmark your Sustainability & CSR performance against best practice within your industry 

https://www.surveymonkey.co.uk/r/ASQSustainabilitySurvey
 

#quality #sustainability #csr #climatechange #environment

Quality and Essesntial Element of Sustainable Development - American Society for Quality EED Summer Newsletter 2020

 

American Society for Quality EED Sutstainability Committee Strategic Plan - ASQ EED Summer Newsletter 2020

 

 

 

Sustainability Footprint: A Case of Persception in Two SMEs - American Society for Quality EED Summer Newsletter 2020

 

The Four Swans of Sustainability and more...

Learn more about sustainability in my easy to read, jargon free eBooks.

Get 2 eBooks for the price of 1 during European Sustainable Development Week 2018

With each eBook bundle receive a 75% discount on the online CPD accredited ©​Certificate in Sustainability Strategy  

Start your sustainability strategy journey by clicking the link below:

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Management Systems and Performance Frameworks for Sustainability

My second book Management Systems and Performance Frameworks for Sustainability: A Road Map for Sustainably Managed Enterprises is now available! A through an in-depth exploration of quality management theory, this book proposes a "Sustainability Management Framework" as a structure for a balanced approach to developing operations strategy for corporate social sustainability (CSR). #SustainableStrategy This book is a development in sustainable theory showing you a road map of how to put it into practice. #FutureProof Receive your complimentary copy as part of your ©Diploma in Sustainability Strategy comment below to know more. http://ow.ly/icHT30jN5RK

Garthdee Field Allotments and Community Garden Project

Garden allotments are often an overlooked mechanism to foster sustainability connecting individuals to the environment by growing food and building community engagement. In this episode I showcase the work of Stuart Oram Chairman of the Garthdee Field Allotments and Community Garden. To learn more on how you can incorporate CSR in to your business strategy, register for the upcoming Certificate in Sustainability Strategy and Diploma in Sustainability Strategy course www.SustainabilityStrategy.org 

Back draught - the need for continuous improvement in the Wind Energy Industry

Renewable energy and in particular wind energy has seen a rapid increase in deployment within the past decade to meet the UK’s renewable energy targets. Within Scotland there has an exponential increase in renewable energy projects accounting for 61% of proposed and installed UK onshore wind farms. Onshore wind farms have also contributed to economic prosperity providing 8,600 jobs yielding £548 million in GVA. However critics claim that wind farms are not labour intensive and jobs are subsidised at a cost of £100,000 per job created. Therefore economic benefits can appear to be illusory are in spite of reductions in fossil use in the energy supply grid. The question can be asked is the wind energy revolution truly sustainable.

Although the economic costs are readily disclosed and debated in the public however the hidden cost of wind energy accidents is suppressed by the industry and externalised at times by environmental champions. Caithness Wind Farm Information Forum  an advocacy group that campaigns against wind turbines categorise wind sector accidents as Fatal accidents, Human injury, Human health, Blade failure, Fire, Structural accidents, Ice throw, Transport, Environmental damage and other miscellaneous events e.g. lightning strikes, electrical failure.
During the period 2009 – 2011 over 1500 accidents were admitted to have occurred within the wind energy sector highlighting the need for improved non-financial risk management.

Aside from the rapid expansion of the industry into offshore areas one of the root causes of the increase in accidents is the absence of industry wide standards for quality, safety and environmental management and a desire by the wind industry to value the guarantee confidentiality in regards to incident and accident reporting above organisational transparency (Fig 1). 

The UK’s Health and Safety Executive has been reticent to impose a minimum safe distance between wind turbine developments and occupied buildings and presently does not maintain a database of wind turbine failures making accident trend analysis nearly impossible. At an operational level fire brigades are at times ill-equipped to deal with wind turbine fires as working heights can be more than 80 metres. Wind farms have also accounted for the deaths of endangered birds and bats exacting an environmental toll despite the carbon friendliness of wind energy.

Within this context the Wind Industry must begin the process of standards development in consultation with all stakeholders i.e. government, NGOs and businesses to ensure that environmental claims can be substantiated and more importantly continuous improvement is embedded within the sector.

Volkswagen quality - lots of smoke and mirrors?

Organisations and individuals strive for telos or purpose for their existence. This manifests itself in the business context in terms of values, mission statements and policy. The tragedy for Volkswagen is that its foundations was based on nefarious purpose that cannot be divorced from its present context.

Volkswagen was established by the Deutsche Arbeitsfront "German Labour Front" or DAF by the Nazi Party as part of its Kraft durch Freude "Strength through Joy" as free trade unions were banned under Hitler's leadership. The strength through joy program was meant to appease workers by providing affordable cruises, holidays, an affordable automobile and social activities once the domain

of the upper classes.

Along with Schönheit der Arbeit "Beauty of Work" the improvement of factories and work spaces the emphasis being "somke free" environments. Volkswagen "Peoples car" and its iconic "beetle" design was produced in 1938 with the intention to provide German workers with an affordable automobile at the price of a German motorcycle through a payment plan. Many German workers opted for this payment approach with the onset of war some prospective car owners lost their deposits. This led to protest regarding the leadership of the DAF under Dr Robert Ley who boasted that he controlled workers' lives from the 'cradle to the grave'. Subsequent Volkswagen automobiles for both domestic and military use prior to 1945 were made by an estimated 15000 slave labour victims from concentration camps comprising 80% of the company's wartime workforce. Volkswagen in 1998 accepted corporate responsibility for their actions and has set up a fund to compensate victims.

In its post-war reincarnation Volkswagen develop a renewed purpose as the car "Das Auto" built around a fun, friendly image of the "Beetle" shape embellished with the pictures of flowers and bright colours as well as popularised in Disney movies such as "Herbie goes bananas" along way from the militarised look of the original models. The whimsical nature of the "Herbie" film genre had a lasting impression on my childhood as one of my elementary school teachers owned a Volkswagen which some of my classmates described as a "dustbin on wheels". This analogy was not unfounded when compared with Japanese brands such as Datsun not only provided economy but were quieter due to the use of coolant rather than air to reduce engine temperature. The company continued its focus on volume rather than quality as its strategy for success. Consecutive Volkswagen executives have pursued this expansion acquiring 18% market share in China, 22% in Brazilian market coupled with a ruthless search for cost savings through component sharing between production models. The effects of this strategy is evident in Volkswagen's wind noise issue in 2011 and prior power train non conformity although a decade old contributing to a crisis in reliability has not been forgotten by consumers in key markets such as the U.S. where sales fell by 22% in summer 2014. J.D. Power Initial Quality Study has consistently rated Volkswagen brand near the bottom for every year except 2009.

The engineered rigging of emissions test and data arguably is symptomatic of an organisational culture with a misaligned purpose on "the car" rather than the customer/stakeholder i.e. global society. As a result over 1M tons of pollution in the form of emissions to air e.g. nitrogen dioxide (NO₂₎  from approximately 11M vehicles containing rigged components which is equivalent to the combined emissions from all power stations, vehicles, industry and agriculture. Pollutants such as nitrogen oxide (NO) and specifically NO₂ pose a  respiratory threat to humans and animals by inflaming the breathing passages. The EU is disproportionately at risk due to the higher level of diesel vehicles when compared to the US where 3% of automobiles use diesel.

Volkswagen quality ethos is focused on "reliability, visual appeal and service" with  the absence of sustainability.
Sustainability can be achieved by cultural acceptance within the organisation that it has a duty to global society due to the lifecycle impacts of its products and services. Sustainability Footprints which is defined as "methodologies for assessing the social and environmental impact of the economic investment in a specific strategic option in relation to other strategic alternatives and their potential risk to the survival of future generations" e.g. carbon footprint can assist Volkswagen in monitoring and measuring its business performance leading to culture of innovation instead of deception.

Volkswagen by adopting a sustainable business practices can finally transform the company from being Das Auto "the car" but rather truly being the "People's car" putting individuals and society at the core of its corporate strategy and adopting a "cradle to the cradle" approach to managing its processes.

The deadly cost of product recalls

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With all the news of the recent Takata air bag recall becoming one of the biggest recalls in US history, my colleague Scott Huntington put together a study of some of the most deadly and costly product recalls to find out just how big of a deal they are. He found that over 2000 recalls happen a year, including more than 6 a day!

Download a free chapter from my new book Sustainability Footprints in SMEs

To celebrate the upcoming launch of my new book Sustainability Footprints in SMEs in January.

I am offering a free chapter to all my friends: https://lnkd.in/bxrgZbc

Help us spread the word by sharing on social media!

AMEC/ Robert Gordon University World Quality Day 2014

Yesterday I enjoyed facilitating the World Quality Day Seminar 2014 at Robert Gordon University with the support of my colleagues at RGU and AMEC.

Excellent presentations were delivered from both our guest speakers Steve Wright, CEO Benncon Limited and Dr Natalia Alvarez, CEO PhD Transition.

I am grateful for the support of Chartered Quality Institute members specifically Hilary Smith-Milne and Jessica Horne. 

To celebrate our 3rd year of our event, exclusive access to the AMEC/ Robert Gordon University World Quality Day 2014 presentations are now available by clicking the following link http://bit.ly/1sMIoDF

Eurocopter - When Puma's fly

The tragic loss of life arising from the recent crash of a Eurocopter Super Puma AS332 L2 on the 23 August 2013 brings into sharp focus the dangers of North Sea Oil and Gas. This tragedy is personally poignant to me as I served in a Royal Navy search and rescue (SAR) unit based in Scotland that was resourced with ageing but superbly maintained Sea King helicopters.

Herein lies the case for quality – Ageing Design: the original design of the Super Puma came into production in 1981 with a series of product extensions in areas such as avionics, engine and gearbox power to meet the demands of the expanding commercial market. A focus on incremental improvement not continual improvement, to compete Eurocopter must invest an estimated €500m into research and development of a helicopter for civilian transport and search and rescue operations. This ageing theme extends to the Eurocopter helicopter product portfolio with new versions stymied by delays and cost overruns for potential replacements for the Super Puma in the form of the NH90 and Tiger military version helicopters.

Design issues aside the Eurocopter Super Puma and its variants have been involved in five accidents in the North Sea since 2009.

Specifically the Eurocopter Super Puma AS332 L2 has accounted for 20 fatalities in the North Sea over the past five years the worst being an accident occurring in waters off the coast of Peterhead, Scotland in April 2009 resulting in 16 fatalities. The investigation into the accident conducted by the UK Air Accidents Investigation Branch (AAIB) concluded gearbox failure that may have been diagnosed if the “metallic particle discovered on the epicyclic chip detector during maintenance on 25 March 2009, some 36 flying hours as an indication of second stage planet gear” failure.

As a result the UK Air Accidents Investigation Branch (AAIB) recommended that “Eurocopter, with the European Aviation Safety Agency (EASA), develop and implement an inspection of the internal components of the main rotor gearbox epicyclic module for all AS332 L2 and EC225LP helicopters as a matter of urgency to ensure the continued airworthiness of the main rotor gearbox”.

This recommendation contributed to the introduction of safety Directives by the European Aviation Safety Agency (EASA) and new pertinent maintenance guidance by Eurocopter. Surprisingly AAIB investigators highlighted parallels with an earlier accident in 1980 involving a SA330J Puma helicopter indicating a clear absence of a factual approach to decision making – an organisational failure to learn from past events that unfortunately led to deadly consequences. Subsequent two forced landings of albeit variants of the Super Puma led to a UK ban on sea flights which was only lifted in July 2013

Eurocopter the world’s largest commercial helicopter manufacturer saddled with excess inventory, poor cash position and under pressure from agile competitors such as Bell Helicopters, Augusta Westland who are keen to acquire a piece of its market share as energy operators opt for transport firms that use alternative helicopter supplier, may yet face Darwinian extinction if it does not evolve and focus on quality.

Findus - Strategy that lacks beef

Living in the UK I have always ridiculed my North American relatives for living in countries with a perceived "less than stringent" food supply chain. I guess now the "chickens have come home to roost" more aptly put "the horses have bolted out of the stable".

Its no laughing matter for Findus a company that in 2012 was rescued by a £60m purchase of its junior debt by  its shareholder Lion Capital as well as later debt restructuring of £220m that injected £20m in cash on the balance sheet and provided a cushion of a £70m overdraft facility. Analysts speculate that Findus is a victim of the markets with high raw material prices, demands buy its customers for lower prices and evil Eastern European criminal gangs trading in Romanian horse meat all conspiring against its success.

The facts reveal a different story - Findus was purchased by Lion Capital a private equity firm in 2008 for £1.1bn from its rival CapVest with the long term goal to divest at a premium after expanding the business which is currently second in Europe to Birds Eye Iglo. In 2011 under the watch of CEO Chris Britton a former Diageo Group Marketing Director the firm and its shareholder Lion Capital requested that the restrictive covenants preventing the firm's ability to raise capital be relaxed. The financial markets acquiesced, this enabled Findus to raise 1.1bn from lenders which was used to go on an acquisition spree acquiring continental food brands such as Frudesa and Salto a  from the french firm Bonduelle. Yet Chris Britton also aimed to focus the company on its core competencies.

Quality is a competency that has been overlooked in the company's pursuit of growth. In documents disclosed to their supermarket customers the firm admits since August 2012 horse meat may have been used in the production of its frozen Beef Lasagne product. Eagerly blaming suppliers like Comigel for product non conformance. Findus failed to accept its responsibility as a corporate entity to build mutually beneficial supplier arrangements within its supply chain. Also by its own admission the company had not been conducting inspection and testing of incoming products which is indicative of overall poor process management. As a result customer confidence is lost and with it potential market share, saddled by a burden of debt Findus may yet face the lash of fines from UK regulators which will be less severe than the backlash of angry consumers.

This scenario was avoidable if Findus had pursued its a strategy of quality and continuous improvement as own its corporate website states  "you’ll find the most consistent Findus ingredient is quality. A strong commitment to quality has long underpinned the continuing success of the Group and its brands in both the retail and foodservice sectors".
 Its time for Findus and the Food Sector to find the virtue of quality a key ingredient for strategic success...

To learn more about quality, safety and environmental management visit www.sustainabilitycsr.com 

BP's Deepwater Horizon - A Quality issue or a Safety issue?

Its been more that two years since the tragedy of the Deepwater Horizon incident costing the lives of some of its crew,  damage to the environment besides the strain on the lives and livelihoods of individuals living in US states along the Gulf coast.
There appears to be a return to business as usual oil production has improved in the Gulf of Mexico. BP the defendants in this case have moved from "beyond petroleum" to above suspicion recently rewarded by the financial markets with a share price increase for negotiating £4.9 million in damages with victims. Policymakers and the industry have opted for more compliance focused on safety and environmental dimensions of performance which will necessitate the need for more audits and auditors. An uneasy hush has fallen as the incident slowly fades from the headlines and the collective memory of the public. A scenario that seems oddly familiar....

Background

Dr. Tony Hayward was appointed CEO of BP after the less than savory departure of Lord Browne his mentor and predecessor. As CEO he promised to focus on safety "like a laser" knowing full well as a BP insider the spate of safety incidents that occurred prior to his appointment at their Texas city refinery in 2004 - 2005, the near sinking of the Thunder-horse platform in the Gulf of Mexico, oil spill in Alaska in 2006 and US Labor Department  fines for safety violations at its Toledo refinery in 2006.
Tony Hayward a geologist by profession also adopted a strategy of doing more with less by immediately cutting over 5000 jobs  early in his now fateful tenure. This decision to cut jobs may have made an accident like Deepwater Horizon predestined. To his credit he instituted risk management training for executives at BP's "Operations Academy" at MIT and established the company's Operations Management System (OMS) which although innovative now seem painful inadequate.


Quality Failure

The Chartered Quality Institute defines quality management as "an organisation-wide approach to understanding precisely what customers need and consistently delivering accurate solutions within budget, on time and with the minimum loss to society". This inclusive understanding of quality especially minimizing loss to society was not understood by Tony Hayward and BP's senior management. The company cautioned employees against having  uncovered cups of hot beverages but no procedure for the "negative pressure test" critical in terminating drilling operations.
The question may be asked... was the Deepwater Horizon fit for purpose?
 As a drilling platform the Deepwater Horizon was state of the art; built by Hyundai at a cost of $365 million, it was a unique combination of ship and drilling package. Operated by a crew of 160 it was kept relatively motionless when at sea by four metal pontoon legs and GPS positioning systems. At the time of construction its 28000 tonne drilling package set a world record for the heaviest object ever lifted.

Despite state of the art equipment the Deepwater Horizon as with other platforms had an Achilles heel it was the absence of a quality culture within the oil and gas sector which traditionally has been dominated by a risk taking attitude necessary for oil  and gas exploration.

This absence of a quality culture gave rise to the following quality failures leading to the explosion aboard the Deepwater Horizon:

1. Incorrect parts - centralizers key equipment used in drilling operations were received from supplier not to specification
2. Breach of existing well design - to little centralizers used in operations 6 instead of 21 -  a casualty of the misdirected focus on reducing cost not reducing the cost of quality
3. No Product verification -  incoming inspection tests were not conducted on the cement foam upon receipt from the supplier Haliburton
4. Poor Supplier Management - cement supplied by Haliburton failed in-house tests. The need to develop mutually beneficial supplier relationships is a corner stone of total quality management and quality management standards such as the ISO 9001. BP's relationship with their supply chain Transocean and Haliburton as events has revealed can be described as combative at best.
5. Poor Process Management - "Negative Pressure Test" was not on the platforms work plan. There was no procedure for conducting the "Negative Pressure Test"
6. No Management of Change Procedure - Negative Pressure Test added to the work plan at the "eleventh hour". This confusion led to the acceptance of one positive test result despite three failed negative pressure tests a decision that sealed the fate of the crew of the Deepwater Horizon.

These 6 quality failures resulted in catastrophic loss of life and environmental disaster- the safety consequence - a cost we can only estimate.

The cost to BP for the absence of a quality culture has been a $91 billion loss of market value between April - June 2010, over 350 lawsuits from the general public, damage to its brand image, loss of support from environmental groups with the US Audubon Society "largest uncontrolled science experiment in our country", shareholder dissatisfaction and loss of industry leadership.

Safety is not the issue it is a lack of an understanding of quality and its impact on the triple bottom-line economic, social and environmental. Its time for BP, the oil and gas industry and regulators to adopt an industry-wide approach that embraces continuous improvement that goes "beyond quality"

Sustainable Space Tourism or Pigs in Space -is space tourism sustainable?

Since the first communication signals of Sputnik as it orbited our earth. Humanity's insatiable appetite for knowledge and space exploration has impacted negatively on the environment of the earths orbital atmosphere. Most of us with our feet firmly planted on the ground may find it incredible that to date it is estimated that there are more than 21000 man made objects measuring more than 4 inches in earths orbit with millions of other objects measuring a centimetre or less. These man made objects benignly described as space debris can range from spent booster stages, nuts, batteries, nuclear waste to derilect satellites... all moving faster than 20 times the speed of sound, reaching speeds of up to 18000 miles per hour just to remain in orbit. The management or lack of management of waste extends to the more distasteful issue of human waste matter which in some instances is lauchned into the vastness of space.

Environmental concerns aside the existence of space debris is a hazard that increases the risks inherent with space travel. Companies such as Virgin Galactic who are in the forefront in the race to commercialise space flight and colonise space such hazards are being either ignored or muted in favour of economic or financial expedience.  The risks of these hazards however are so acute that the U.S. Space Surveillance Network  an arm of the U.S. Department of Defense daily tracks all space debris larger than 10 centimetres.

The National Aeronautical Space Agency (NASA) has taken the lead in adopting a more sustainable approach to space flight in the earth's orbit by developing mitigation standards aimed at reducing orbital debris. Similar plans have been developed by other countries such as Japan and instituitions such as the European Space Agency (ESA). Although commendable these efforts fall short of a clean up of the earth's orbital space whose costs may prove prohibitive with the hope of  incentives such as government subsidises to spur entrepreneurial activity in this sector but a pipe dream in an age of government cut backs and financial austerity.  Despite the enormous challenge of removing space debris a joint venture between two Japanese firms are engaged in the development of a spaced debris removal systems.

In the race to commercialise space and colonise future planets we must aim not to repeat humanity's failure to incorporate sustainability principles in our 20th century technological development. The choices are clear our species homo spaiens which in latin means "wise men" must aim for sustainable space tourism or forever live as pigs in space.

To learn more about quality, safety and the environment visit www.sustainabilitycsr.com

Chief Sustainability Officer - Where's the beef Chief...

The 21st century has seen the emergence of a new chief on the block - the Chief Sustainability Officer. A well heeled recruitment consultancy recently produced a report heralding the arrival of the Chief Sustainability Officer (CSO) to the "C suite" along with the emergence of sustainability and corporate social responsibility to the strategic agenda. Sadly the recent spate of high profile resignations US and in UK the imprisonment of former members of parliament for unethical conduct paints a less rosy picture of the importance of social responsibility  amongst the business and political elite.
The concept and use of the prefix "Chief" is a truly American phenomena in the United Kingdom and the Commonwealth the term Director is preferred. Therefore depending on the corporate culture of your organisation Chief Executive Officer or it's British equivalent Managing Director is used to describe the same role.
 The tribe of the corporate suite or "C suite" in the last 20 yeras has undergone an extraordinary expansion of "Chiefs" such as Chief Information Officer average salary £76000 responsible for the development and implementation of information technology strategy within the firm but so also does the Chief Technology Officer average salary £86000 and who can forget the Chief Web Officer. The aforementioned chiefs have emerged through the proliferation of the information technology, internet use and dare I say the lack of insight amongst some Chief Executives Officers in the 1990s to envisage the change being created by a then very young Internet.
Information technology concerns aside the "C suite" has seen it's share of exotic "Chiefs" such as Chief Visionary Officer, Chief Customer Officer and Chief Creative Officer. In terms of their value added contribution to strategic growth the question can be asked Where is the beef chief?
There is a danger that the new chief on the block the Chief Sustainability Officer may go the way of some of the other chiefs a mere title consigned to irrelevance. Sustainability is the key opportunity facing corporations in the 21st century and by nature should be the sole domain of the Chief Executive Officer as the firm's principal strategist. The advent of the Chief Sustainability Officer is an attempt to delegate the sustainability agenda and normalise it's role within existing paradigm of the corporate structure. Sustainability by its very mandate to incorporate the survival of future generations into present economic decisions is by nature inherently disruptive. The dynamics of the corporate structures are not designed to adjust to disruptive change. In order for sustainability to take root in organisations we need more sustainability warriors and champions not any more chiefs. As simple as it may seem lets make the philosophy of sustainability chief in the new capitalist model for the 21st century.

To learn more about Sustainability/CSR visit www.sustainabilitycsr.com

Social Impact Bonds and the death of sweet charity...

Image via Wikipedia

This weekend I was engaged in an intense debate with a well respected practitioner concerning his development of Poverty Impact Bonds on one of the many online social networks in which to which I regularly contribute. 
Poverty Impact Bonds is a sister concept of Social Impact Bonds which is defined by Social Finance "a contract with the public sector in which it commits to pay for improved social outcomes. On the back of this contract, investment is raised from socially-motivated investors. This investment is used to pay for a range of interventions to improve the social outcomes. The financial returns investors receive are dependent on the degree to which outcomes improve". 
It is proposed that investments by private sector entities e.g. Pension Funds in the early stages of a project will yield a return to society via the achievement of a tangible social outcome e.g. school leavers completing five GCSE's the US equivalent of a high school diploma. This lowers the government's overall public sector cost with a proportion of the projected public sector spend on social intervention being rewarded to Social Impact Bond investors. 
Poverty Impact Bonds which is still in its conceptual stage of development will use a similar methodology however its prime purpose will be to direct private investor funding to alleviate child and family poverty.


The use of Social Impact Bonds is being pioneered in the United Kingdom with a pilot project initiated at Peterborough Prison investing £5M from private investors to reduce re-offending rates by 7.5% over a six year period. Investors will receive a payment representing a proportion of the cost of re-offending. This approach to social intervention is supported by esteemed organisations such as the Young Foundation whose track record in the development of innovative approaches in the social sector e.g. The Open University is unquestioned.
In the United States the current administration is proposing to spend $100M on seven pilot projects using Social Impact Bond which they have re-branded as pay-for-success bonds.


The Social Impact Bond model appeals to my rational instincts but I am concerned of the application of market instruments to social issues. I am also skeptical as to its validity as an instrument to measure or reward social performance. Market instruments have not had a marvelous recent history with our recent financial crisis fueled by the use of sophisticated financial instruments such as derivatives which may be applied to Social Impact Bonds as its use is normalized within financial markets. Market forces are by nature impersonal with social intervention by nature involves personalization the two approaches are philosophically independent. 

That aside many charities exist due to the goodwill of volunteers that provide their time and talent to contribute to the greater good of society. In my own case I raise funds for Help for Heroes  a UK based charity that is growing, effective and transparent, established by individuals seeking to relieve the social, physiological, psychological impact of war. Help for Heroes to date has raised over £87M in funding without recourse to financial markets. This has been achieved by identifying a need and capturing the latent energy of the public to commit to an inspirational program. 
This is of course not a new phenomenon the volunteers past and present at the real army the... Salvation Army who save lives every moment via through counselling, shelter and a hot cup of soup since 1860's.


Aristotle in his writings in Politics on the nature of man surmised that rational men do have an invested interest in the greater good of society that transcends the imperative of wealth creation: 


"Again, how immeasurably greater is the pleasure, when a man feels a thing to be his own; for surely the love of self is a feeling implanted by nature and not given in vain, although selfishness is rightly censured; this, however, is not the mere love of self, but the love of self in excess, like the miser's love of money; for all, or almost all, men love money and other such objects in a measure. And further, there is the greatest pleasure in doing a kindness or service to friends or guests or companions, which can only be rendered when a man has private property."


Being a rational economic man I perceive an underlying danger of the proposed use of Social Impact Bonds will contribute to a withdrawal of individuals seeking to volunteer and spontaneous charitable giving for the following reasons:

1. Is it the intention to monetize the "free labour" of volunteers? 
2. Will individuals who make charitable donations receive suitable ROI if the project is successful? 
3. If therefore the "free labour" of volunteers is now monetised are they not due a ROI for their effort?

Whatever happened to sweet charity...