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We Are In 'The Golden Age of Purpose' So How Do We Capitalize On It? http://ift.tt/2EZQ7Ph Nancy Mahon, SVP of global philanthropy and corporate citizenship for The Estee Lauder Companies and global executive director for the MAC AIDS Fund, has some counsel for social entrepreneurs and other business leaders interested in impact. It begins with context. We are in “the golden age of purpose.” “We are seeing an acceleration of a trend that has been in motion for some time where consumers are voting with their dollars and they are saying yes we care that you care. We share your values and we want not only a good financial model, but great products and a place to work and a great stock to invest in, we want a sustainable business. You have to make the world a better place,” Mahon says. MAC Cosmetics, an Estée Lauder brand, has been selling Viva Glam lipstick for more than 20 years and giving every penny of the retail revenue to the MAC AIDS Fund to fight AIDS. At the end of 2017, the lifetime total raised reached $480 million with $25 million raised in 2017. Mahon summarizes the strategy, saying, “The more products you sell the more money you are able to give away,” adding, “We try and really marry how we can do good business and also do good for the world.” Still, it is important for social entrepreneurs and other business leaders to understand the model more completely. The retailers who sell MAC Cosmetics agree to remit 100% of the sales price for Viva Glam lipstick and “lipglass” to MAC Cosmetics, which then remits the entire amount to the MAC AIDS Fund, which then funds programs to fight the disease. Retailers sacrifice their profits on these products and MAC Cosmetics still has to produce, distribute and market the products. In the marketing department, they get some help. In the past, luminaries like Rhianna, Miley Cyrus and Lady Gaga have served as spokespeople for the products at a fraction of their market value. Business via Forbes - Entrepreneurs http://ift.tt/dTEDZf February 23, 2018 at 08:56AM
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