Net Impact Europe: Can Business Make a Positive Difference?

Net Impact held its first conference in Europe last week, achieving a major milestone while paying tribute to the intense interest on the part of European and international MBA students in using business tools to make a positive social impact. The ability of corporations and business tools to drive social change is still a hot topic, and the participants at this conference brought diverse perspectives on the issue and some challenging questions, all related to the conference theme of “Sustainable Prosperity.”

It was my pleasure to be there representing Acumen Fund as I have been a big fan of Net Impact since I revived the Net Impact chapter at Stanford when I was there from 2001-2003. The conference had its own unique flavor, hosted by three institutions from across Europe – the International Organization MBA, a program based at the University of Geneva in Switzerland, The University of Nottingham in the UK, and INSEAD in France. Over 400 participants joined the meeting, bringing an interest in everything from corporate social responsibility, to environmentally sustainable business; socially responsible investing to business at the “base of the pyramid” (BoP). The dedication of the student volunteers managing a dizzying array of panels was readily apparent, and they put together a professional and compelling event.

Though Net Impact began 15 years ago with a focus on how MBAs could make a positive difference within the business world, this conference and other recent Net Impact conferences in the US have clearly demonstrated that working for a socially responsible for-profit company is just one way to make a difference. The Net Impact Europe conference had a much greater showing from international organizations like Global Alliance for Improved Nuitrition (GAIN), CARE International, Aga Khan Agency for Microfinance (AKAM), and the ILO, with fewer corporate titans taking the stage as keynote speakers or panelists than I have seen at other Net Impact conferences. Representatives from Toyota, Microsoft and KPMG were there, however, to share some of their best practices related to social responsibility. At times, though, it seemed like the businesses that were represented were on trial, being challenged as to whether they were doing enough or taking the right approach.

For example, on a panel I joined to discuss innovations for serving BoP markets, the question was asked: Is selling low-cost products to the poor really the same as poverty alleviation? A fair question, though one that suggests a zero-sum-game approach to developing more inclusive markets. In our experience, businesses may fail to reach the neediest through their products, but can still expand access and reduce the burden on governments and aid organizations by allowing them to target their efforts towards the poorest.

In a session on trends in banking, Frans Cornelissen, Head of Sustainability Europe at ABN Amro gave a wonderfully candid presentation on the ability of banks to be more responsible in their lending practices, while still facing limitations on issues like SME lending in the developing world, which poses not only greater risks, but also much higher transaction costs. A session on microfinance challenged the basic assumption that micro-finance can take people out of poverty, and presenters from AKAM and the ILO addressed the need to improve regulation of the sector. A need for more regulation is rarely a point raised in business schools, so this struck me as an interesting moment. The make-up of speakers and organizations featured made me wonder if, in Europe, the role of NGOs and multi-laterals is still seen as more central in addressing social issues than it is, perhaps, in the US.

Certainly things were different across the Atlantic. The food was better, the array of accents was truly impressive, and the soccer (football!) talk was constant. But some things were the same. The brightest and most ambitious young people around the world are starting to ask themselves what the biggest and most exciting challenges out there really are, and they are seeing issues of poverty, the environment, education, and social justice as worthy of their attention. It was exciting to see Net Impact extend its already vibrant community into Europe, where MBA students are clearly ready to build their education and career goals around solving pressing global social issues.

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