Posts tagged with: manufacturing

Did ‘Social Business’ Sink the Cardboard Bike?

Did ‘Social Business’ Sink the Cardboard Bike?

Jonathan Witt, research fellow at Acton, recently wrote a piece at The Federalist about “social business.” He argues that it might do more good to own and operate an ethical business that follows through on its contracts and “respects the dignity of employees and customers,” rather than trying to have a “social business.” Witt begins by talking about a cardboard bike. In 2012, Izhar Gafni became relatively famous by creating a sturdy cardboard bike that could be sold to the poorest around the world for $20. After two years and unsuccessful Indiegogo campaign, this potentially revolutionary project has failed to go anywhere. Witt argues that “social business” is to blame:

After talking up the virtues of a “social business model,” the start-up behind the bike, Cardboard Technologies, expended considerable energy trying to raising capital from Indiegogo donors uninterested in profit. The lack of a profit motive may have played a role. It also didn’t help that the price of the bike kept shifting—from $20 to $290 to $95 plus $40 shipping. Would-be investors had to wonder: Was the bike going to have a revolutionary everyman price, or wasn’t it?

CEO Nimrod Elmish tried to explain, saying the bicycle’s price will fluctuate depending on where you live, costing more for buyers in wealthy countries and nothing for those in developing countries. “We want to bring a social business model that will make [it] available to all,” Fortune quoted him as saying. “We don’t have a price tag, we have a value tag.”

(more…)

The Center for Faith and Work at LeTourneau University recently profiled Camcraft, a Christian-run manufacturing business whose owners, the Bertsche family, seek to steward their business according to God’s purposes. “By using Biblical principles to run a company,” says Bern Bertsche, “not only is that God’s way, but it’s a very effective way to run a business.”

Watch the video below:

Camcraft orients itself around a broader mission to (1) to glorify God, (2) be a great place to work, (3) be a trusted and valued partner for customers, and (4) grow profitability. In addition to manufacturing high-precision metal components, Camcraft conducts after-work Bible studies for employees. “We know a lot of people never see the inside of a church,” says Bertsche, “but they see this business five days a week.” (more…)

On National Review Online, Acton Research Director Samuel Gregg reflects on President Obama’s State of the Union address last night, and flags the “reality-denial” that is expressed by “a few token references to free enterprise and rewarding individual initiative (to reassure us we’re still living in America instead of just another declining European social democracy).” More:

Judging from the president’s remarks, you’d never guess we just had a negative quarter of economic growth; or that the unemployment rate just ticked up again; or that millions of Americans have simply given up looking for work; or that Obamacare is (as predicted) already driving up the health-care costs that the president claimed are falling (just ask those businesses busy shifting thousands of employees into part-time positions in order to cap their exploding health-care costs); or that . . . again, I fear I am belaboring the point.

What’s the plan from the White House?

… we hear the president tell us, yet again, that we need to pump more money into universities and colleges. Never mind the higher-education bubble, which is going to implode sooner than most people think. We’re also told that we need to develop high-speed rail. One wonders if anyone has asked people in the People’s Republic of California how that’s working out. Then there is the apparently endless promise of green energy, which, despite the billions of taxpayer dollars poured into it, hasn’t actually created that many jobs at all. In addition to all this, we are now informed we must raise the minimum wage. Never mind all the evidence underscoring just how much damage minimum-wage laws do to the job prospects of the poor and many young people, not to mention newly arrived immigrants who just want a chance to start working.

Read “Rhetoric versus Reality” by Samuel Gregg on NRO.

And pick up a copy of Gregg’s new book Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future here.

Thanks to RealClearPolicy for linking.

Blog author: jballor
Tuesday, January 2, 2007
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James Dyson, inventor of the world’s most exciting bagless vacuum cleaner, will receive a knighthood. Speaking of his company, the BBC reports:

Today, the company has about 1,400 staff in the UK, with about 4,000 others working in production plants in Malaysia and China.

Despite his successes, Mr Dyson has been criticised for his decision to ship so many production jobs abroad.

Paul Kenny, general secretary of the GMB said: “Do people now get a knighthood for services to exporting jobs?”

By contrast, Dyson says, “I have spent 35 years making things in a country that often has little regard for its manufacturers.”

“It has left me more convinced than ever that engineering is this country’s future.”

HT: Gear Factor