Thursday, June 5, 2008

Socially Responsive = Out of Business?

I think the wave of socially responsible businesses is fantastic. People are dedicating a portion of their hard earned profits to giving back. In some cases, like Tom's Shoes, have turned it into a competitive advantage.

What happens though when the economy get's tough and people stop buying so much and the cushy profit margin goes away? Well, Nau, a socially conscious apparel store in Chicago couldn't survive the recession and the difficult funding climate. Really sad to hear that for the founder, investors and employees, but it happens sometimes.

This is a trend worth watching and the recession progresses.