The World Bank estimates that more than 1.4 billion people worldwide live on less than $1.25 per day (that's the same as what you spend on a Sunday newspaper!), many of them living in rural areas of the developing world, and working in what is known as the "informal economy"-labor that goes unregulated unmonitored by government and legal institutions. As globalization opens markets and generates opportunities for developing nations, a key challenge is ensuring that the benefits reach these poor informal laborers, many of whom are women, working to support their children and families.
The United States is the world's largest consumer economy; the practices used by U.S. companies in sourcing goods and bringing them to market affect the earnings of millions of people around the world. We believe that a unique opportunity exists at this moment in history to harness this economy, and the growing consumer market for ethically-sourced products, to create large-scale, market-based solutions for poverty alleviation. Through our work, we aim to prove that a business model grounded in an empowered labor force and an ethical supply chain can not only be profitable, but achieve lasting, sustainable social impact.
When World of Good was founded in 2004, we made the strategic decision to create two entities; a for-profit business and an openly funded nonprofit organization, each operating independently with separate staff and leadership, and pursuing its own unique mission.
We housed our business activities, which rely on market scale and capitalization, in a for-profit corporation that could quickly grow to meet consumer demand and utilize the inherent power and resources of market-based models. Our work to advocate for, and pioneer industry-wide improvements to the conditions of the global working poor exists in a separate 501(c)3 organization - WorldofGood.org, which ensures that these activities are always held in the public interest.
We believe this model puts forward a new paradigm for a "hybrid enterprise," one that shifts away from traditional company/corporate foundation models and towards a more dynamic, interactive model that allows each entity to act in its own interests, while mutually supporting one another at key junctures to reinforce the overarching goal of large-scale poverty alleviation.
Our vision for a new, more empowering global economy harnesses capitalist market competition to create social good; transforming the market into a race to the top rather than a race to the bottom. This theory, what we call "inspired competition," relies on three key components: