Seventh Generation is a classic social entrepreneur example.
The company was founded as a mail-order firm for green household products in 1988, and became a $150 million brand under the leadership of CEO Jeffrey Hollender. This success story has not been without challenges, though. After Hollender handed the CEO duties to former Pepsi exec Chuck Maniscalco in 2009, the company entered into a controversial deal with Walmart.
Following this misstep, Maniscalco resigned and the company is now led by John Replogle, formerly of Burt’s Bees. This example illustrates that the social entrepreneurship model works best when the product is the social vehicle, meaning that the product or service being sold triggers the social or environmental change. Also, it is important to note that the business cannot be separated from the social mission.
Toms Shoes, for example, donates a pair of shoes for every pair sold. Without this intrinsic link, the company becomes just another shoe company.
