Businesses Seek New Ways to Promote Social Goals

New types of organizations are being founded to marry business and nonprofit goals, reports The New York Times.

“I think what people are increasingly looking for, whether in the for-profit or nonprofit sector, is how you harness the vitality and promise of capitalism in a way that’s more fair to everyone,” says Juliana Eades, president of the New Hampshire Community Loan Fund, a nonprofit mortgage lender.

Some people are now talking about a “fourth sector” — so called to differentiate from government, business, and nonprofit sectors — that combines profit making with socially responsible practices and goals.

Many companies are approaching charitable goals as an integral part of its business practices, instead of simply donating money after profit is made, the newspaper notes. And nonprofit groups are looking for ways to combine their activities with money-making ventures as a way to sustain themselves.

“What began as a niche market of socially responsible investors has expanded to mainstream institutions such as pension funds and insurance companies that seek long-term investment performance,” says Marc Fox, a research analyst at Goldman Sachs.

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