I've noticed many panels, articles and conversations around town about the potential impact of the new Obama administration on the nonprofit sector here in the United States.  Amazingly, I have not seen the nonprofit and philanthropic sector lay out its own agenda of what we think we need from our government. 

Well I say no more getting pushed about, waiting to see which way the winds will blow and wondering how we'll be affected.  It's time we lay out an agenda of what the philanthropic sector cares about.  Barack Obama's administration should have as much of an interest in good charities running good programs (and therefore reducing the need for tax-supported programs) as you and I. 

But what is their role? We don't want them telling us where to give--that's why anyone who files the right paperwork, raises money from the public and supports "educational, scientific, literary, religious or other charitable purposes" gets to be a qualified public charity. We don't want them setting priorities--science over the arts, for example. Even if you voted for Senator Obama, most of us what to make those decisions for ourselves.

Instead, I argue that in the coming years the most important contribution to the cause of social entrepreneurship is for the new Obama administration to define standards for corporations who want to publicly claim to be "socially responsible."

Defining "Corporate Social Responsibility"

If a company wants to label their product "organic" or "low fat" or "toxin-free" they have to meet some truth in advertising standards.  But if they want to claim to be good social citizens who use their considerable resources in ways that help rather than hurt us, they can pretty much do that with no accountability unless some darn nosy reporters call them out on it. 

It seems to me that US citizens would be well-served to have some minimum guidelines for those who want to use the claim of social responsibility.  Not that every corporation has to meet these standards (that would go too far toward socialism) but that those who want to promote themselves to the public have to meet some basic thresholds.

For example, perhaps the Obama administration's new Social Entrepreneurship Agency for Nonprofits should expand its mission beyond just nonprofits to become the Social Entrepreneurship Agency--for all those who seek positive social outcomes regardless of the legal vehicle through which they operate. 

It could define basic standards for those who want to lay claim to the title of social responsibility, such as paying a living wage (rather than the legally mandated minimum wage) and providing health care benefits to full-time employees.  It could set a benchmark on animal rights policies, efforts to recycle (both in the workplace and through its products or services), anti-discrimination hiring policies and other measures of what most of us can agree are basic standards of corporate social responsibility.

In this way, citizens such as you and I who want to support companies with a good track record will have some confidence in corporate claims to good citizenship.  And studies show that consumers do want to support companies who engage in cause marketing or social responsibility.  So let's give consumers some effective measure beyond the company's donation of 1% of profits to charity by which to evaluate social responsibility.

I, for one, have confidence in my fellow consumers to make buying choices that will motivate more companies to voluntarily comply with these standards.  Enlightened self-interest will create an army of organizations with the characteristics of social entrepreneurs which, I believe, will get us to our goals for health care, education and elimination of poverty and discrimination faster than social services alone.

• Tags: corporate social responsibility,Obama administration,nonprofit,social entrepreneurship agency,cause marketing,effectiveness

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