Borrowing and lending - a new form of CSR

'Neither a borrower, nor a lender be', warned Polonius in Hamlet. So it is unlikely that he would have approved of a new UK-based social enterprise called Ecomodo where its business model is based on just that.

Ecomodo's premise, which has CSR at its very heart, is that lots of people have things gathering dust in various parts of their homes that other people would love to use. Why not set up a 'trusted circle' to enable that exchange to take place? All details are registered online, allowing members to post 'available' or 'wanted' items. Surely, even Polonius would have made allowances for a system which enables a power drill normally only used for 10 minutes of its life to get more outings?

In CSR terms this is a gem of an idea on so many levels. It means people do not have to buy items they will only use once or twice a year. The lender of said items can charge people for doing so (including a deposit against any damage) and make money either for themselves, or for a charity of their choice. As the borrower is not buying a new item, they are saving all the embedded energy that would have gone into creating it. This is such a smart use of resources.

Ecomodo is keen to stress that it is a profit making enterprise to ensure it is financially viable. The organisation takes a fee from every paid-for transaction (unless the fee is going to charity), and also hosts online advertising.

For CSR consultants, this company is one to watch as it could well present the shape of businesses to come. It ticks all the right boxes - supporting charity, saving energy and best use of resources and supporting community groups.

Indeed, community groups and schools can also join the network, and post things they need.

This idea rather harks back to an earlier era, where people routinely hired, rather than bought, goods particularly expensive items such as televisions.

A report produced by WRAP (as referred to in my previous blog) at the end of last year was called Meeting the Climate Change Challenge: the contribution of resource efficiency. It estimated that of the £732 billion total household spend in 2004; £148 billion of those goods could be shifted to services. These largely focussed on expensive items that are used only a few times a year such as formal wear, and DIY tools.

It would appear that Ecomodo has captured the ethos of the time where we make the best use of goods already in existence instead of continually producing more. This makes sense for the planet, and in a recession, for our pockets as well.

Photo credit: Charles & Hudson