The Tipping Point Network …Catalyzing A Globally Sustainable Economy

1. The Tipping Point Network …Catalyzing A Globally Sustainable Economy

2. How Do We Make World Sustainability The Top Priority for Everyone? Sustainable sectors like organics, renewable energy and integrative medicine have achieved only about 2% market shares. How can we get to the market share tipping point (about 10%) in each sustainable sector? Capital Missions Company has an answer ~ Use KINS (Key Initiator Network Strategy), a social innovation method CMC has proven over 25 years to reach the “tipping point”* for sustainability. *The tipping point occurs when an innovation breaks through resistance to become widely accepted.

3. How Can Sustainability* Get To The Tipping Point? Answer: CMC’s Business Leadership Networks What are they? Self-organizing networks of key, collaborative, high-integrity leaders in widely diverse fields who come together by invitation to achieve inspiring innovations while enjoying their kindred spirits. Why is this one good answer? These networks leverage philanthropists' dollars to get the sustainability market share from 2% to 10%, after which the global economy can fund sustainability. * Humans enhance rather than deplete the earth’s resources. At present, we need 1.2 earths to sustain the earth’s existing population.

4. What CMC Business Leadership Networks Exist in What Niches of Sustainability? Initial Design courtesy of Evolve.org See Appendix A and/or CapitalMissions.com for a description of 18 CMC networks

5. What Is The Capital Missions Company? Its Vision: Achieve a globally sustainable economy. Its Strategy: Use donor dollars to seed the harnessing of the marketplace to solve social problems. Its Method: Use KINS (The Key Initiator Network Strategy) to create powerful networks. KINS networks already serve various niches of sustainability, including: • social investing in ten niches of finance • business parity for women • business parity for African-Americans • solar energy • corporate social responsibility • wealth stewardship • socially-responsible philanthropy • micro-finance Now we will use KINS to create the Tipping Point Network to catalyze globally sustainable economies.

6. What Is The KINS Method? • KINS networks are 'chaordic' and operate the way any living organism does, being self-organizing, self-directed and capable of replication. • They introduce innovation effectively because they operate on the strategy of generosity, which creates unique alignment among powerful leaders who believe that "a deal is a good deal when it is good for all concerned.” • Most important, KINS networks leverage philanthropic dollars to use business to solve social problems. • KINS has a 25-year track record of success. See Appendix B. for a description of how KINS mimics nature’s order.

7. KINS Networks’ Core Operating Principles • Members operate on the Capital Missions Company’s mantra: • “A deal is a good deal when it is good for all concerned.”* • Each member does what s/he loves to do, does uniquely well and does as little else as possible. Feedback from members takes each person’s work to the next level. • Everyone has equal time at the mike. • Cutting-edge information from each constituency is shared confidentially, building trust among members. • All our information is available to all the members all the time. • Members exemplify 'servant leadership' • Members do their best to return phone calls within 48 hours. • These principles never change yet the actual networks’ initiatives can change mightily. This factor is a key quality of high-performing companies cited in the book, “Built To Last: Successful Habits Of Visionary Companies” by Jim Collins and Jerry I. Porras. * Mantra created by Virginia Rogers of Chicago

8. Now Comes… Design of the Tipping Point Network A reputation rooted in integrity; A demonstrated track record for giving back generously; The highest standing in their constituency; Advanced collaborative skills and servant leadership; Consciousness that 'we are all one’; Passion for designing the 'tipping point' for sustainability. This design was created by the founders of the Solar Circle and proved successful within 18 months. Steps 1.Create the vision statement - inspiring, daunting, measurable: Draft Vision: Catalyze globally sustainable economies. 2.Identify all constituencies for achieving the vision. (See page 11 for the working list of constituencies.) 3. Select the “key initiators” using these criteria:

9. Design of a Tipping Point Network (continued) 4. Schedule Founders’ Retreat for 30 to design the network - July 2006 • 5. Interview network members and others to identify obstacles and opportunities related to the mission (should be done by an outside expert). • 6. From this analysis, identify the important initiatives. • 7. Have members prioritize the initiatives by negotiating what their constituencies can contribute and what leverage and synergy are possible. • 8. Have members choose to champion the prioritized initiatives that most take their own work to the next level. • 9. Champions have access to executive and spiritual coaches to break through the obstacles they see. • 10. Seek breakthrough methods in addition to KINS to improve our network design.

10. Design of a Tipping Point Network (continued) 11. Bring the picture puzzle pieces from each member together to create a picture of the future that works for all. From this picture, give voice to the whole. 12. Members create business/action plans pro bono, showing steps to be funded by donors, investors and government. • 13. Founders design an initiative to fund the action/business plans. • 14. The Network continues to self-organize and self-direct using KINS and other methods. • However, founders of a network start with a blank sheet of paper and can create whatever design they want, simply drawing on the experiences of other KINS networks for inspiration. The above design offers a starting place.

11. Potential Constituencies of the Tipping Point Network Economics, Finance & Business Stewardship of Wealth Shareholder Advocacy Blended Value Social Venture Capital Multi-national Corporate Responsibility Equity for Women Institutional Investors Living Local Economies Global Innovation Equity for Minorities Complimentary Currencies Socially Responsible Investments Natural Capitalism Science & Technology Spiritual Science Clean Technology Communications & Media Collaborative Media Alternative Media Indigenous Mind Culture & ArtHealing Arts Environment & Stewardship Organic Agriculture Endangered Species Clean Air, Water & Soil Biomimicry Conscious Consumers Global Sustainability Climate Change Health & Healing Environmental Health Integrative Medicine Relationships & Cocreation Planatary Systemics Destiny Paths Male-Female Parity Resources & Infrastructure Renewable Energy Solar Energy Green Housing Affordable Housing Justice & Governance Global Visionaries Green Government Government Reforms Parity for Minorities Equal Rights Strategic Philanthropy Community Development Microenterprise Security & Peacekeeping Peace Movement Energy Independence Learning & Education Ecological Literacy Progressive Education Economics In Context Spirituality & Service Meditation Movement Self-Empowerment Groups Spirit of Money

12. Why Do These Networks Work? They Use The Strategy of Generosity • By choosing leaders who give back most… Through the “strength of weak ties” principle, their followers: are generous create alignment and thus pass on the innovation most effectively • They are self-organizing in a trusting, family-like environment • As peers, members seek to give at the high level they receive through their deep common purpose • They accept the equality of participation by all (“equal time at the mike”) • They are purpose-centered and principle-based and organized around diverse constituencies. The Result Is A Most Time-Efficient And Cost-Efficient Way To Innovate

13. Research Stage • Capital Missions Company is now identifying 15 'tipping point' philanthropists and 15 'tipping point initiators' believed by their colleagues to most exemplify the KINS qualities. • In particular, CMC is identifying philanthropists who have already set a goal of providing substantial funding for particular niches of sustainability - see page 11. • “Tipping Point Initiators” are those believed to be champions of the project most likely to create the tipping point in their field. (See Appendix D for current Tipping Point Initiators) • A Founder’s Retreat to design the Network will be held in July 2006 for these 30 founders plus the 4 original Founding Funders of the Tipping Point Project.

14. Legal Structure & Budget • The Tipping Point Project is a direct project of the Coop America Foundation •  Todd Larsen, Managing Director of Coop America Foundation, is the project director. •  Coop America Foundation has retained Capital Missions Company, a for-profit company, to use its unique KINS method (Key Initiator Network Strategy) to create the Tipping Point Project. •  Coop America Foundation is the fiscal sponsor and CMC is the fiscal agent for the Tipping Point Network.

15. Funders Of The Tipping Point Network Krystyna Jurzykowski Mark McDonough Sam Mills Ron Miller Sheirah Foundation (Howard Rosenfeld and Sheryl Leach) Tommy Short John Smith Mary and Molly Stranahan Marion Weber Founding Funders will be honored in perpetuity on Tipping Point Network materials.

16. What Are The Benefits To Funders Of The Tipping Point Project? By using our experience in philanthropy and finance, we will harness the engine of commerce to fund sustainability. Funders will enjoy the “power of peers," meeting your kindred spirits from the niches of sustainability other than yours. “Founding Funders” will be shown as such in perpetuity on all Tipping Point Network materials. The Tipping Point Network expects to design the most powerful initiatives possible to increase the market share of sustainability from 2 % to 10%, after which the global economy can presumably fund sustainability. This should give philanthropists the highest possible impact for their philanthropic dollar. Funders enjoy the joy of co-creating huge-impact initiatives with the leading tipping point initiators chosen by their peers without being asked for money. Members expect to look back ten years from now on hundreds of millions of dollars the Tipping Point Network has catalyzed for sustainability.

17. Is It Possible To Achieve The Tipping Point Vision? • Sufficient data now exists to prove the positive market performance of socially-responsible investing (SRI). • (See data in “Investing With Your Values,” by Hal Brill, Jack A. Brill, and Cliff Feigenbaum) • Social investing represents $1 of every $9 and is becoming mainstream due to the “prudent man” rule for fiduciary investors (they must invest as “prudent men” would invest). • As fiduciaries adopt social investing, SRI will fund the sustainability niches. • -Half the existing KINS networks are in social investing • Sustainability niches will be further resourced as citizens rise to the challenge of global warming. • KINS networks have a 25-year track record of success and the KINS/Tipping Point Method has a two-year record of success.* • The networks can now increasingly leverage resources with each other, aligning around the Tipping Point Network’s design. • * The Report to Funders of this network, Solar Circle, is available upon request.

18. How You Can Help • You have been recommended as a leader who may appreciate the Tipping Point Network’s mission. • If you feel the approach described here has merit, please schedule a 15-90 minute phone appointment to ask any questions and then to give your recommendations of Tipping Point philanthropists and Tipping Point initiators who you feel meet our Tipping Point criteria, including yourself. • All information shared with Capital Missions Company will be held in strict confidence. CMC’s president, Susan Davis, has managed this process confidentially in creating 18 networks over the last 25 years.

19. A tipping point … chain reaction … will occur … to catalyze … globally sustainable economies The Tipping Point Network Susan Davis President Capital Missions Company2006

20. Appendices • Appendix A: Description of CMC Networks Page 21-22 • Social Investor Networks • Business Leadership Networks • Appendix B: KINS Mimics Nature’s Order Page 23-25 • Appendix C: Holy Grail (Article) Page 26-27 • Socially responsible companies • perform better than others financially. • Appendix D: Tipping Point Initiators Page 28

21. Social Investor Networks • Key Examples of Networks Capital Missions Has • Served As Founding Organizer: • Institutional treasurers (Triple Bottom Line Simulation® – CapitalMissions.com) • Social venture capital (Investors’ Circle – InvestorsCircle.net) • Business equity for leading women-led businesses (VisionKeepers’ Forum® – The Northern Trust) • Business equity for leading African-American businesses (DreamMakers’ Forum® – The Northern Trust) • Financial services companies offering social investment products (“Making A Profit While Making A Difference” – CapitalMissions.com) • Micro-enterprise proliferation (Growing Businesses Foundation, Nigeria)

22. Business Leadership Networks • Key Examples of Networks Capital Missions Has • Served As Founding Organizer: • U. S. families of $100 million plus (Harris Bank Family Office Management Conference) • America’s leading women business owners (Committee of 200 – C200.org) • Leading socially-responsible U.S. CEOs (Social Venture Network* – SVN.org) • * Susan Davis was a founding board member, not the Founding Organizer. • Financial education for women(Financial Forum) • Strategic philanthropy • (Destiny Circle)

23. KINS Mimics Nature’s Order • KINS operates according to laws of nature • Distributed intelligence - all members can access all information all the time* • Chaordic - the network keeps a dynamic tension between chaos and order* • Emergence - the network regularly seeks the new emerging from nature.* Founders visualize that the tipping point is reached, see what infrastructure exists and 'reverse engineer' to plot the path from the present to this future. • Dee Hock built Visa International proving the profitable business application of these principles * * From “Birth of the Chaordic Age,” by Dee Hock

24. KINS Mimics Nature’s Order (Continued) • “Strength of weak ties” - innovation travels through the “strength of a weak tie” between influencers and others.** • Power of peers - leaders who share your values and operate at your level are invaluable to you • “Mavens (information hounds), salesmen (charismatic enthusiasts) and connectors (colleague introducers)” - these people introduce innovation into culture *** • Power of alignment and positive energy - KINS energy fields are dramatically more efficient than corporate energy fields (see next slide). ** A key concept from social anthropology *** From “The Tipping Point,” byMalcolm Gladwell

25. Typical Corporate Energy Field (Competition Model) Business Leadership Network Energy Field (Collaboration Model) GOAL Self-interested goal of increasing market share GOAL Altruistic goal of network’s mission is in dynamic tension with selfish goal of members’ career advancement Result: The more efficient energy field introduces innovation more powerfully. (Arrows represent individuals or divisions)

26. Holy Grail From Business Ethics Winter 2004 pg 4-5 Holy Grail Found Absolute, definitive proof that responsible companies perform better financially By Marjorie Kelly OK, yes, it's true that researchers don't speak this way: They'll never say "absolute, definitive proof" of anything has been found - not even that the sky is blue. Theirs is the language of positive correlations, statistical significance, and other somnolent phrases. I'm no statistician. I am instead someone who's observed the socially responsible investing (SRI) field for 17 years, and in that time I've seen countless theorists attempt to scale the Everest of SRI, reaching for the summit of certainty: Do socially responsible companies perform better financially? The answer has long been the statistical Holy Grail: eagerly sought, ever out of reach. I'm here to announce the search is over. The evidence is in. And even the statisticians are saying it's conclusive. Social and environmental responsibility does go hand in hand with superior financial performance - that's the finding of two "meta-studies" in recent months. A meta-study is distinguished by being a study of studies - it rolls up years of research by various theorists, using various lenses, studying different industries, different time periods, different definitions of social responsibility, and so on. This lends such studies an outsized authority. The most impressive of these is the rigorous and groundbreaking study that in October won the Moskowitz Prize of the Social Investment Forum, awarded for outstanding research in social investing. It was conducted by Marc Orlitzky of the University of Sydney, Australia, and by Frank Schmidt and Sara Rynes from the University of Iowa. Their meta-analysis, "Corporate Social and Financial Performance," was a study of 52 studies over 30 years. They thus reviewed in one fell swoop three decades of attempts to answer the perennial question. And they proved that a statistically significant association between corporate social performance and financial performance exists, which varies "from highly positive to modestly positive." The researchers offered ideas on what might be behind this correlation. One theory is that corporate social responsibility (CSR) is an indicator of good management - a kind of flag saying sophisticated, cutting-edge managers are at work. A second theory sees the causation going the other way: financially successful firms have more resources for social activities. The study supported both theories. In a virtuous cycle, "financially successful companies spend more because they can afford it, but [corporate social responsibility] also helps them become a bit more successful." It's not rocket science to see why CSR firms perform better financially. CSR helps companies develop new competencies because it engages employees organization-wide, calls for a "forward-thinking managerial style," and leaves responsible firms better prepared for "external changes, turbulence, and crises," study authors wrote. It builds reputations and enhances relations with bankers and investors. It helps firms attract better employees and increase employee goodwill. It helps firms run better.

27. Holy Grail • In November 2004, just a month after the Moskowitz Prize was announced, a second major meta-study was released, commissioned by the UK Environment Agency. Its resounding conclusion was similar: Companies with sound environmental policies and practices are highly likely to see improved financial performance. The analysis looked at 60 research studies over the last six years, finding that 51 of them (85 percent) showed a positive correlation between environmental management and financial performance. Again, we have rigorous proof that good environmental management delivers financial benefits. • This second study, "Corporate Environmental Governance," was conducted by Innovest Strategic Value Advisors, an international social research firm with over $1 billion in funds it sub-advises. The Innovest report offered many anecdotes of superior financial returns being paired with good environmental management: • ｷ The Winslow Green Growth Fund has consistently outperformed its peer growth funds, with average annual returns above the benchmark index by 20 percent, 6 percent, and 11 percent over one, three, and five years respectively. • ｷ Forest and paper products companies with above-average environmental performance had 43 percent better share-price performance over four years than those with below-average environmental ratings. • ｷ In the oil and gas sector, the top environmentally rated firms outperformed laggards in share price by 12 percent over three years. • Though the evidence is clear, not everyone will believe it. As Matthew Kiernan, the CEO of Innovest, commented in the UK Environment Agency report, the misconception remains that tracking environmental performance "is at best a waste of time for investors, and at worst actively harmful to financial returns." Indeed, when the Environment Agency asked analysts to spontaneously name the factors they considered in investing, just 3 percent mentioned environmental factors. • While doubters remain, they may unwittingly create opportunity for SRI investors. Knowing that responsible companies outperform, savvy investors have a head start in locating future winners before the broad market does. The future of SRI may lie in searching for undiscovered indicators that lead to superior stock selection. This has already been done, for example, by McBassi & Co., which is creating a niche for itself by buying stocks in companies that invest the most in human capital. Its portfolio of such firms created in late 2001 has outperformed the S&P by nearly 7 points over two years (see Business Ethics, summer 2004). • As some folks pretend the jury is still out, we might liken their stance to "doubts" over global warming. What they're disputing is not a scientific question but an economic worldview. Statistically speaking, the perennial question has been answered. CSR does indeed go hand-in-hand with financial out performance. Thirty years and 112 studies later, the Holy Grail has been found.

28. Tipping Point Initiators Name