by Angeli Diamante
Supply Chain Planner / Social Enterprise Devt Officer
"The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man."
Who would have thought that a young company such as ours is already reaping so many accolades and recognition? In 2011, HN has been called a game changer by Entrepreneur magazine, and has received the Social Entrepreneur of the Year Award from Ernst & Young and Go Negosyo. There is no doubt that people gravitate towards Human Nature as well-- from people working for established companies choosing to transfer to our young SME, and even famous celebrities freely endorsing us to spread the wonder we’re doing. As we’re about to turn 3, we have proven that it is possible to have a company with a heart to create so much impact simply by being pro-Philippines, pro-poor and pro-environment.
Not Your Normal Enterprise
To say that HN is not your normal business is an understatement. We truly go beyond what business is required of and we’re probably the best example of a social enterprise in the market. In the Gawad Kalinga network, we serve as one of the big brothers of the GK Center for Social Innovation (CSI). We mentor the entrepreneurs of CSI as they seek to create social enterprises that will provide sustainable means of livelihood to GK communities.
We share a similar impact with other renowned Filipino social enterprises such as Hapinoy and Rags 2 Riches. Hapinoy seeks to consolidate orders of sari-sari stores in order to bring more income to them and eventually pass some savings to the end consumers of the D & E market. While Rags 2 Riches sells high-class bags made from discarded fabrics woven by nanays from Payatas and other marginalized communities.
The good that we do is not sustained by charity, but by our collective passion to create change that is evident in our creativity. Just look at the businesses inspired by Human Nature that are thriving in CSI with their innate wit and charm.
- Happy Green - a true brew of farm freshness. The famous welcome drink from the Enchanted Farm is brewed and bottled on site. It’s definitely healthier and fresher than the common bottled teas in the supermarket.
- Golden Eggs - turning the common red salted egg into treasure! It uses a natural dye for coloring which is much safer for human consumption.
- Jacinto & Lirio - statement bags from plant leather. High fashion comes with a higher impact as water lily is converted from pest to profits for affected communities.
- Theo & Philo - the only bean to bar chocolate from the Philippines. Using Cacao beans from Davao and infused with distinctively Filipino flavors such as Green Mango, Labuyo Calamansi and Pili.
All of these existing products and services instantly capture our hearts but to arrive at what makes them social enterprises, we try to arrive at common denominators that set us apart from conventional business enterprises.
First, Social Entrepreneurs have a Social Mission. Without the social mission, an enterprise exists only as a purely commercial enterprise. Take away the flowery PR campaigns that try to make companies look good in eyes of the market and you’ll see what an enterprise is truly made of. In Human Nature, the heart of our work goes to uplifting the lives of Filipinos farmers. Instead of them getting an unfair deal from traders, HN buys its raw materials from the farmers at a fair price. We also train & link them with partners to upgrade their quality & production and we connect them to other buyers to increase the demand for their output. Another example of a social mission at the core of business is the concept of microfinance which was made successful by Mohammad Yunus of Grameen Bank. His mission was simply to give impoverished people access to credit so that they do not need to borrow money from loan sharks at a much higher (and unreasonable!) rate. Back then, no bank would ever think of lending money to the poor, but microfinance changed that notion by empowering neighbors to look after one another as they build their credit rating.
Second, a social enterprise assesses their performance through the Triple Bottom Line or the 3 P’s. The 3 P’s being People, Profit, and Planet. It is not simply about profits and making lots of it!(money is important to keep the business running though…), as we must carry a holistic approach in social development and creating a sustainable business. Our treatment in Human Nature of profit is not simply to maximize it but to optimize it. We treat our suppliers and dealers as stakeholders by ensuring everyone gets an equitable share of the revenue chain that will enable them to sustain their own operations and take care of their own stakeholders. People and Planet hold primary value in decisions of social enterprises. Quality of life, dignity of work, environmental stewardship are key values that are never compromised in business decisions. This triple bottom line is applicable not only to social enterprises as even corporations like the Ayala Group of Companies is slowly adapting to this philosophy.
Third, well… this criterion is still not set in stone as there is still no exact definition of what truly makes a social enterprise. Scholars and academics are still arguing over these criterions and I believe this is good for us as we thrive in developing models from the unknown or the never been tried. That’s the marvel of social entrepreneurship! Some people initially pursue only the social aspect with profits then somehow following as they achieve scale and pursue sustainability. While some are able to convert their for profit business by evaluating every stage of their business and reflecting where can they start making a difference.
In the end, what really makes a social enterprise different from normal enterprises is our unreasonable will and our heart to serve that goes beyond just making money. My first 9 months have been amazing, and I look forward to all the wonderful ground-breaking things we will be able to achieve for our country.