The evolution of business | Amanda Joy Ravenhill | TEDxTokyo 2014

Summary

This script explores the concept of 'survival of the fitness' within ecosystems, drawing parallels to the evolution of social enterprises. It highlights Suzanne Simard's research on plant communication through mycorrhizal networks, suggesting a model of mutualism and interdependence that businesses should emulate. Social enterprises are presented as innovative solutions to environmental and social issues, combining social missions with commercial activities, and are exemplified by various global initiatives. The speaker advocates for a shift in business paradigms towards a model that fosters life and commerce, inspired by nature's principles.

Takeaways

• 🌿 **Evolution and Ecosystems**: Darwin's theory of evolution is often misunderstood; it's not about the survival of the fittest but the survival of the fitness within an ecosystem that determines a species' success.
• 🌳 **Plant Communication**: Suzanne Simard's research shows plants communicate and share resources through a mycorrhizal network, illustrating a symbiotic relationship with fungi.
• 🔬 **Mutualism in Nature**: The concept of mutualism, where both parties benefit from a symbiotic relationship, is highlighted as a key principle in nature's design.
• 💡 **Inspiration from Nature**: Biomimicry, drawing inspiration from nature for design, is a source of innovation and is central to the speaker's work as a social entrepreneur.
• 🏢 **Social Enterprise Defined**: Social enterprises are defined by a social or environmental mission and the inclusion of commercial activity, aiming to create both social and financial value.
• 🌐 **Global Impact**: Social enterprises are effective at solving environmental and social problems, often being more resourceful, innovative, and sustainable than traditional entities.
• 🤝 **Ecosystem Approach**: Social enterprises often adopt an ecosystem approach, partnering with various stakeholders to create shared value, akin to the mutualism seen in nature.
• 🌍 **Urgent Global Challenges**: The script highlights the dire environmental and social challenges we face, such as coral reef bleaching and climate refugees, emphasizing the need for immediate action.
• 🐣 **Humanity's Potential**: Drawing on Buckminster Fuller's analogy, humanity is at a pivotal moment, ready to stand on its own and learn to 'fly', signifying our potential for positive change.
• 🔄 **Business Models for Change**: The speaker outlines three business models for social enterprises: integrated, external, and embedded, each contributing to social impact in different ways.
• 🌱 **Rethinking Commerce**: The script calls for a shift in the current model of business, advocating for commerce that creates conditions conducive to its own sustainability, reflecting life's design principles.

Q & A

What is the common misconception about Darwin's theory of evolution?

The common misconception is that Darwin said 'Evolution is determined by the survival of the fittest.' However, Darwin actually observed that it is the survival of the fitness within one's ecosystem that determines a species' success.

What is a mycorrhiza and how does it relate to the 'wood wide web'?

A mycorrhiza is a symbiosis formed between plant roots and fungi, where both organisms benefit. The 'wood wide web' is a term used by Suzanne Simard to describe how trees communicate and share resources, such as carbon, water, and warning signals, through this mycorrhizal network.

How did Suzanne Simard and her colleagues track the movement of carbon in trees?

They exposed a tree to a rare form of carbon, C13 and C14, in the form of CO2. The tree absorbed this carbon through photosynthesis, and they were able to track how it moved through the tree and the mycorrhizal network, even reaching other trees and species as amino acids.

What is the concept of 'mutualism' in the context of plant-fungi symbiosis?

Mutualism is a type of symbiosis where both the organisms involved benefit from the relationship. In the context of plant-fungi symbiosis, mutualism refers to the beneficial relationship between plants and fungi in a mycorrhizal network.

What is the definition of a social enterprise?

A social enterprise is defined by its primary social or environmental mission and its engagement in some form of commercial activity. It aims to create social value while also generating financial value.

How are social enterprises different from traditional businesses, nonprofits, and governments in solving problems?

Social enterprises are more resourceful and efficient than governments, more innovative and collaborative than businesses, and more financially sustainable than nonprofits. They often take an ecosystem approach, partnering with various organizations to create shared value.

What is an example of a social enterprise that supports local women entrepreneurs?

Zidisha in Kenya is a microfinance organization that supports local women entrepreneurs to start their own social enterprises.

What is the concept of 'integrated social enterprises' and an example of it?

Integrated social enterprises are businesses where making sense (social impact) and making cents (financial gain) activities overlap. An example is Project Drawdown, which scouts the world for climate solutions and compiles this information into a book to sell, along with other programs, all aimed at creating a better narrative around climate change.

What is the goal of Hero Hatchery and how does it fund its activities?

Hero Hatchery is a crowdfunded climate activist fellowship with the goal of creating influential climate activists. It funds its program by selling a low-fee crowdfunding service.

What is the 'embedded social enterprise' business model and an example of it?

The embedded social enterprise model is where the social mission and financial activities are one and the same. An example is New Leaf Paper, which aims to halt deforestation by increasing recycled paper content, with every sale furthering its mission and increasing its positive social impact.

Why is the current model of business described as 'stealing the future'?

The current model of business is described this way because it depletes natural capital and calls it income, causing environmental disruptions and extinctions. It's seen as selling the Earth's future resources to the present, which is unsustainable and harmful.

What is the vision for the future of commerce according to the speaker?

The speaker envisions a future where all businesses are social enterprises, creating conditions conducive to both life and commerce, reflecting life's design principles and rebuilding systems of commerce to be sustainable and beneficial over time.

Outlines

00:00

🌿 The Evolution of Social Enterprise and Mutualism in Nature

This paragraph introduces the misconception about Darwin's theory of evolution and clarifies that it's about the survival of the fittest within one's ecosystem. It draws a parallel between this concept and the evolution of business, specifically social enterprise. The speaker, a businesswoman inspired by nature, explains how social enterprises combine social or environmental missions with commercial activities, solving problems more effectively than traditional entities. Examples of social enterprises like Zidisha and Stag Dining Group are given, illustrating their ecosystem approach to shared value creation.

05:04

🌏 Business Transformation Towards Interdependence and Sustainability

The second paragraph discusses the shift in business models from a survival-of-the-fittest mentality to one that embraces interconnection and interdependence, akin to an ecosystem. The speaker emphasizes the urgency of this shift due to impending environmental crises, such as coral reef bleaching and climate refugees. The concept of social enterprise is further explored with three business models: integrated, external, and embedded, each with its own method of intertwining social impact with financial gain. The speaker also critiques the current business model that depletes natural capital and calls for a biomimetic approach to commerce that fosters conditions conducive to long-term success.

10:09

🌱 Envisioning a World of Social Enterprise

In the final paragraph, the speaker imagines a world where all businesses operate as social enterprises, integrating profit with purpose. This vision is underpinned by life's design principles that have proven effective over time. The speaker concludes with a call to action for commerce to reflect these principles, suggesting a future where business contributes positively to both society and the environment, eliciting applause from the audience.

Keywords

💡Evolution

Evolution refers to the process by which species of organisms change over time through genetic variation and natural selection. In the video, the speaker corrects a common misconception about Darwin's theory, emphasizing that evolution is not about the survival of the 'fittest' in an absolute sense, but rather about the 'fitness' of an organism within its ecosystem, which is central to understanding the theme of interdependence and community.

💡Symbiosis

Symbiosis is a close and long-term biological interaction between two different species. The video describes a type of symbiosis known as mycorrhiza, where plant roots and fungi form a mutually beneficial relationship. This concept is used to draw a parallel with the idea of social enterprise, suggesting that successful business, like successful species, depends on mutually beneficial relationships within its environment.

💡Mycorrhiza

Mycorrhiza is a symbiotic association between the roots of plants and certain fungi. In the script, Suzanne Simard's research is highlighted, showing how trees exchange nutrients and signals through mycorrhizal networks, illustrating the interconnectedness of life and the concept of the 'wood wide web', which is a metaphor for the interconnected systems in nature and business.

💡Social Enterprise

A social enterprise is an organization that operates primarily to achieve a social, environmental, or cultural objective alongside a commercial one. The video emphasizes that social enterprises combine the innovation of business with the mission-driven approach of nonprofits, creating shared value and solving societal problems more effectively than traditional entities.

💡Mutualism

Mutualism is a type of symbiosis where both organisms involved benefit from the relationship. The video uses mutualism as a metaphor for the cooperative approach that social enterprises take, working with various stakeholders to create a symbiotic relationship that benefits all parties involved.

💡Biomimicry

Biomimicry is the practice of looking to nature for inspiration in designing sustainable systems and processes. The speaker mentions being inspired by the natural world's 3.8 billion years of innovation, using biomimicry to fuel her work as a social entrepreneur, thus connecting the theme of learning from nature to the practice of business.

💡Ecosystem Approach

An ecosystem approach in business involves considering the interconnectedness of an organization with its environment, including customers, suppliers, and even competitors. The video script describes how social enterprises often adopt this approach, creating partnerships that enhance the overall value for all participants, much like the mycorrhizal networks in nature.

💡Interdependence

Interdependence refers to the reliance of one entity on another for survival or success. The video script discusses the shift in business from a model of competition to one of interdependence, where businesses recognize the value of working together to create a sustainable and thriving environment.

💡Climate Solutions

Climate solutions are strategies or technologies aimed at mitigating or adapting to climate change. The speaker talks about her project, Drawdown, which seeks the world's best climate solutions, reflecting the video's theme of using business as a tool for environmental and social benefit.

💡Natural Capital

Natural capital refers to the stock of natural resources and ecosystem services that provide economic, social, and ecological benefits. The video criticizes the current model of business for depleting natural capital and causing environmental harm, advocating for a business model that grows and sustains natural capital.

💡Biomimicry Institute

The Biomimicry Institute, founded by Janine Benyus, promotes the idea that we should look to nature's time-tested patterns and strategies to create sustainable solutions. The video uses the institute's philosophy to argue for a business model that, like nature, creates conditions conducive to its own success and sustainability.

Highlights

Darwin's observation that survival is not about the fittest but about adapting to one's ecosystem is a key insight for understanding species' success.

The evolution of business is paralleling biological evolution, with a focus on 'social enterprise'.

Suzanne Simard's research on plant communication through mycorrhizal networks reveals a complex underground symbiosis.

The 'wood wide web' is a term used to describe how trees share resources and signals through mycorrhizal networks.

Mutualism in nature, where both parties benefit, is analogous to the symbiotic relationship in social enterprises.

Natural selection is redefined by how well organisms fit into their ecosystem and care for their community.

The speaker, a businesswoman, is inspired by the principles of nature for her work in social entrepreneurship.

Social enterprise is defined by a social/environmental mission and commercial activity, creating both social and financial value.

Social enterprises are often more effective at solving problems than government, business, or nonprofits due to their unique approach.

Examples of social enterprises include Zidisha, supporting women entrepreneurs in Kenya, and Stag Dining Group, promoting local sustainable farms.

Social enterprises often adopt an ecosystem approach, partnering with various entities to create shared value.

The shift in business from a survival-of-the-fittest model to one of interconnection and interdependence reflects a new understanding of power in business.

The speaker emphasizes the urgency of adopting new business models to address impending environmental and social crises.

Buckminster Fuller's view of humanity as a newly hatched chick symbolizes the potential for a new beginning in our approach to business and the environment.

Social enterprise can be categorized into three business models: integrated, external, and embedded, each with different approaches to social and financial value creation.

The current business model is criticized for depleting natural capital and causing environmental disruptions, highlighting the need for a wiser approach.

The concept of biomimicry, learning from nature's design principles, is proposed as a way to rebuild commerce systems for a sustainable future.

The speaker envisions a world where all businesses operate as social enterprises, creating a positive impact on both society and the environment.

Transcripts

Transcriber: Reiko Bovee Reviewer: Mile Živković

You may think that Darwin said,

"Evolution is determined by the survival of the fittest."

When in fact what he astutely observed

was that it is not the survival of the fittest,

but rather, the survival of the fitness within one's ecosystem

that actually determines a species' success.

Through exciting new insights in the field of biology,

we are beginning to understand just how true this is.

And we are beginning to see how the evolution of business

is following a similar path, often called "social enterprise."

Suzanne Simard is an ecology professor at the University of British Columbia.

She studies how plants interact through the beneficial fungal network

that connects them below ground.

The plant roots actually connect to the fungi

and form a symbiosis known as a mycorrhiza.

Simard and her colleagues exposed a rare form of carbon, C13 and C14,

in a form of CO2 to a tree.

That tree then absorbed that carbon through photosynthesis

and they were able to track as that carbon went through the trees

down through this mycorrhizal network and up into other trees

and even other species of trees in the form of amino acids.

They also found that water and warning signals

also are similarly stealthily passed in this mycorrhizal network

she calls the "wood wide web."

This sort of mutualism is a symbiosis between plants and fungi.

When it benefits both, this sort of symbiosis

is called "mutualism."

Natural selection is not what we once thought.

We are not breeding for our own best fitness,

but rather how well we fit in to the ecosystem around us

and can care for our community.

It's time that we tune in to this new metanarrative

of the true nature of Nature.

The thing is, I am not even a biologist;

I am a business woman.

I am inspired by the 3.8 billion-year old innovation incubator

called life.

Being inspired by nature for design is called biomimicry.

And it's innovations in this field that fuel my work

as a social entrepreneur.

Social enterprise, short for socially beneficial enterprise,

is defined by two things: one, its primary purpose;

it's some sort of social or environmental mission.

And two, it has some sort of commercial activity.

Another way to look at this is that it makes sense

as it creates its social value,

and it makes cents, with a "C",

as it creates its financial value.

Social enterprises solve pressing environmental and social problems

with the tools of business and the efficiencies of the marketplace.

They are often more capable at solving problems

than government, business or nonprofit.

They are more resourceful and efficient than government,

more innovative and collaborative than businesses

and more financially sustainable than nonprofits.

Social enterprises take up many different forms

and are popping up all over the world.

There's Zidisha, in Kenya, which is a microfinance organization

that works with local women entrepreneurs

so that they can start their own social enterprises.

And there's Stag Dinning Group, a supper club in California

that works with local sustainable farms in order to support that growing network.

Interestingly, these social enterprises often take an ecosystem approach,

partnering with other organizations in order to create shared value;

their customers, their suppliers, even the competitors

are often better off by working with them.

This should sound familiar; it's mutualism.

The enterprise and the environment that it works within work together

in order to create a beneficial symbiotic relationship.

Business is shifting away from the "everyone for themselves" model,

the old paradigm of survival of the fittest,

towards a celebration of the interconnection and interdependence

that fuels life and business for that matter.

We are realizing the power of this interdependence just in time.

Business as usual - over the next 50 years,

we are going to see 95% of our coral reefs die from bleaching.

200 million climate refugees and our global GDP could drop by 5%.

We are realizing the power of this interdependence just in time

so that we can deliver our new discoveries

about the solutions for our world faster than ever

at a time when we need it the most.

My own view of where humanity lies on the timeline of life is borrowed

from my muse, Buckminster Fuller.

He said that humanity now is like a baby chick,

that has just hatched from its eggshell.

After using up all of our trial-and-error, embryonic fluid - our fossil fuels -

we now have everything we need in order to be a complete success.

It might seem like this is the end of the world,

when really this is just a beginning.

It's time that we hatch and stand on our own two feet

and learn to fly.

How are we going to do this?

I think that social enterprise is part of the solution.

There are three different business models:

there is integrated social enterprises,

in which making sense and making cents activities overlap,

utilizing commerce to fund social impact as part of a larger mix of programs.

My example here is a project drawdown, my latest endeavor.

We're scouting the world for the world's best climate solutions,

and we're compiling the best available information into a book

that we are going to sell.

We also have other programs like campaigns and curriculums

in a digital platform, all in the service

of creating a better narrative around climate change.

We need to move away from complacency and toward agency.

There's also external social enterprises.

This is a different business model in which the two activities are separate,

making sense and making cents.

My example here is Hero Hatchery.

It is a crowdfunded climate activist fellowship,

that my husband and I cofounded with the audacious goal

to create the Rosa Parks of the climate movement.

We created a very low-fee crowdfunding service

and we sell this service in order to fund our program.

My third example is the embedded social enterprise business model,

in which the two activities are one and the same.

My example here is New Leaf Paper, with the mission of halting deforestation

by increasing the amount of recycled paper content

within the paper industry.

With every sale it makes, it furthers its mission.

As its financial revenues increase,

its measurable positive social impact also increases.

Let's look at the current model of business.

As my colleague, Paul Hawken, likes to say:

"We are stealing the future, selling it to the present and calling it GDP."

We are depleting our natural capital and calling it income,

and, in the process, causing the 6th mass extinction,

global climate collapse and innumerable other disruptions

to our perfectly designed spaceship, Earth.

A wiser approach would be to grow capital in the present for all,

thus leading to stronger businesses in the future.

As Janine Benyus, the founder of the Biomimicry Institute likes to say,

"Life creates conditions conducive to life."

Don't you think commerce should create conditions conducive to commerce?

Shouldn't social enterprise just be all enterprise?

Now that we can clearly see life's design principles,

we can rebuild our systems of commerce

to reflect that which is simply proven to work over time.

What would it look like

if all businesses were social enterprise?

What a wonderful world that would be!

Thank you.

(Applause)