Honor the Stanford mission, be of value to society, urges Reich

Honor the Stanford mission, be of value to society, urges Reich: "Blurring the lines

But innovations of the past 20 years have broadened the social economy far beyond the world of nonprofit organizations and foundations, and the new social economy is full of hybrid organizations and philosophies.

In the for-profit sector there have been innovations such as 'corporate social responsibility,' in which corporations assume responsibility for the social impact of their actions.

And there is socially responsible investing, in which investment funds avoid industries embroiled in moral controversy, such as tobacco companies, or purposely invest in companies that produce social returns. Such funds barely existed 15 years ago, but now constitute more than 10 percent of professionally managed investment funds.

There are nonprofit organizations that seek to create operations that earn revenue in addition to accepting donations, and 'philanthrocapitalism,' as The Economist dubbed it, in which philanthropists purposely employ business strategies in their grant-making efforts."