A world of difference: for these entrepreneurs, social responsibility isn't just part of their PR campaigns—it's the essence of their businesses. And they're changing the world for the better, one community at a time

Entrepreneur, Oct, 2004 by April Y. Pennington

"I am not an Athenian or a Greek, but a citizen of the world."

--Socrates

Though Socrates expressed this idea more than 2,000 years ago, his words offer a glimpse into the future, where our global village is pulled tightly together through technology. But in creating a prosperous planet, one commodity has remaiued abundant: humanity. With the socioeconomic and political climate turbulent and in need of helping hands beyond appointed leaders, civic responsibility has now been embraced not only by individuals, but also by businesses.

The role of businesses in civic responsibility--actively working in conlmunities for positive change--blows past charity donations and in-house recycling programs as businesses take an aggressive, hands-on approach to making change happen in their communities. Despite the tarnished image some business leaders have sustained in recent years, there are shining examples of those who work to build successful communities as well as successful businesses.

The most recent Cone Corporate Citizenship Study illustrates exactly how active a role Americans expect compariles to play in society. Of those surveyed, 78 percent felt companies had a responsibility to support causes, and 84 percent said they decide which companies they want to see doing business in their communities based on companies' commitment to social issues.

Whether businesses enact community programs out of genuine concern isn't always clear, but there are benefits regardless, says Nancy Adcox, community relations chair of Raleigh, North Carolina's National Association of Women Business Owners chapter and founder of motivational training firm Xanzia Inc. One major benefit of starting service programs is enhancing employee morale. Says Adcox, "Employees have the need to search for meaning in their lives and to know they make a difference in the world."

Tony Massengale, director of the Center for Civic & Commuraty Capacity Building in Pasadena, California, focuses on teaching civic standards and political competency to government/ public agencies, philanthropic foundations and a broad spectrum of nonprofit groups. He has joined forces with civic business project Minnesota Active Citizenship Initiative (MACI) to promote civic organizing to all citizens and organizations as an approach for civic renewal. "Everyone has to ask themselves, What can we do to improve the quality of life for those on the margins?" he says. Massengale has found young entrepreneurs in particular to be sincere and enthusiastic about being civically responsible. But it's not just startups taking strides--the desire to have a profitable venture and help communities is widespread, regardless of what stage the business is at.

SOMETHING GOOD IN STORE

Kowalski's Markets, based in Woodbury, Minnesota, started in 1983 with the good values set forth by founders Mary Anne and Jim Kowalski. They built the business on the principles of great customer service and plenty of community-minded good deeds--but they never instituted a written policy.

All that changed in 2000, when the Kowalskis got a call from Peg Michels, co-author, with Massengale, of MACrs Civic Organizing Framework, a set of principles, standards and strategies that explains how MACI works. Michels, who had previously worked with Mary Anne in another civic/ political organization, believed Kowalski's Markets fit well with the ideals MACI was trying to promote. Mary Anne was interested in MACI's organized approach to what she and her husband, 59 and 58, respectively, had done informally in their business. Her interest led to the Kowalskis not only collaborating with four other businesses on a MACI curriculum for teaching civic leadership to business leaders, but also using Kowalski's Markets as the pilot for the curriculum.

Employees of Kowalski's Markets were introduced to the principles, standards, teachings and language of the MACI curriculum in 2001. "We designed [a curriculum] we thought would be practical and would work," says Mary Anne. "Can you do this in business--be ethical, have integrity and think through things in a civic manner, know everything you do affects everybody else?"

The Kowalskis had an opportunity to flex their civic muscle when they purchased four store locations in 2002. One of the stores was located in Minneapolis' Camden neighborhood, a lower- to middle-class community unlike their typical upscale customer demographic. Rather than sell the property, the Kowalskis decided they had an obligation to provide a neighborhood grocery store to that community since the former tenant had faded to do so, and the civic experiment began.

The Kowalskis shared their vision of a community institution and their desire to create a neighborhood market during a Camden community meeting. Though the store had already opened, the Kowalskis offered residents of the neighborhood the power to name it and spend all the store profits as they wished. The Kowalskis promised a clean, safe store with good lighting and security, and removed cigarettes and lottery tickets from all their stores. In the spirt of partnership, the Kowalskis asked the community to show support by shopping there. The residents shocked the couple by stating they would rather have the store prosper and remain than take any profits, and the residents felt using the Kowalski's name would attract more stores and restaurants to the area. Pledging a three-year commitment, the couple promised that if they decided to Sell the store due to a lack of profits, they'd sell it only to someone who would keep the community at heart.