We started writing “Friends” updates, and decided that blogging the progress of the project might be a good form of PathMaking in its own right (that is, until we change the world).
Dear Friends of MakeThePath (FoMTP):
I’m sending this update to keep you in the loop on the progress of the MakeThePath project. In spite of the economy (or perhaps because of it, see below), cool things are happening, and I see an increased interest in community-building projects like ours. Here’s what’s been up (in mini-blog form)
1) SBIR-grant
Just yesterday we submitted our SBIR (Small Business Innovation Research) grant application to the NSF’s Software Engineering division. If we are successful, the grant will provide funding for the first phase of project development and will get us to an alpha-testing stage (which I hope some of you will want to try). Grant writing is always a bit of a chore, but it turned out to be a useful exercise in refining the technical details for how the algorithms will actually work (the precise details didn’t exactly make their way into the proposal, of course). Naturally, we are working on the alpha-version while the NSF deliberates,
2) Investors’ Circle Conference
I attended the Fall conference of Investors’ Circle, a group of investors (including angels) in the socially responsible investing space and made some contacts that should prove useful for the project going forward. These investors face an interesting problem that was the topic of much discussion at the conference. The idea behind socially responsible investing is to maximize social returns as well as monetary returns. The problem is that monetary returns are simple to measure and compare between investments, whereas no standard exists for measuring social return. In the past, socially responsible funds have employed so-called “negative screens” to screen out businesses that were involved in gambling, producing weapons, cigarettes, alcohol, etc. However, the current phase of socially responsible investing is directed at funding companies that not only “do no harm,” but actually create social good. The tricky part is defining “social good,” and measuring it in a way that allows different investments to be compared. Several “ratings organizations” were in attendance, and you can already see a battle of social metrics brewing. It’s important, I think, because until investors can compare funds on some reasonable metric, they (we) will simply sort the choices by 5-year or 10-year returns, and choose on that basis.
A second theme that will be of more interest to the legally-minded among the FoMTP was a discussion of how fiduciary duty norms can inhibit directors from considering anything beside financial return in their role as directors. Socially responsible investors are in an interesting position since they may have a seat on the board, and are concerned about their duties under Revlon when it comes time for their exit (e.g. sale of the company). There is a group working on creating what they term the B-Corporation, which would be a legal entity somewhere between the traditional C-corporation and a non-profit. The idea is to structure the company as a C-corp from an ownership and tax standpoint, but allow the company to explicitly include in their charter and bylaws directives to the board and management to consider other forms of shareholder value in addition to economic return. Some states (including Massachusetts) already allow such considerations and the B-Corporation group is working to amend other state corporation laws (Delaware especially) to make such a structure possible. Green-Arrow is proud to be a Massachusetts corporation for just this reason (though we are aware that this will be a “challenge” down the road).
3) Are we out of our minds?
Finally, as the economy continues its slow melt, I have this motivational article from FoMTP Drew Fitzgerald. I may have been out of my mind for leaving my job just as this was all happening, but at least I’m in good company. Thanks Drew.
http://www.wired.com/culture/culturereviews/magazine/16-12/st_essay
Well, back to making the path, as we say around here.
Thanks for your support, and we look forward to getting something fun for your browser soon.
Best,
Scott