AMDP Proposal - Blue Ventures - Draft

TO: Clark Hansen, CEO

FROM: Kevin Maguire, Research and Development

DATE: March 2, 2022

SUBJECT: Investment Proposal – Blue Ventures

In my research for this week, I have come across a very promising organization in that of Blue Ventures. This organization is primarily concerned with assisting fishing in developing economies to maintain sustainable practices. Their beliefs and goals align with the standards of Anima Mundi Development Partners. In this memo, I will both restate our beliefs and demonstrate how Blue Ventures aligns with them in a practical way.

AMDP Criteria

The Triple Bottom Line

When evaluating an organization for consideration for investment, Anima Mundi Development Partners values the assessment of its triple bottom line. Traditionally, organizations tend to focus solely on profit when evaluating the success of an enterprise. The triple bottom line takes into account other measures of an organization's impact (Slaper). These can be separated into the three P’s:

- Profit: Standard measure of monetary success. How much revenue is the company producing compared to its costs incurred?

- Planet: The impact a company has on the planet and climate. Is the output of the organization keeping our environment sustainable? Or is it increasing strain on resources and climate-related issues?

- People: The impact that an organization has on a community and society. Is a community better off because of this organization’s presence? Measures of this could be jobs provided, quality of life improvements, cost of living decreases.

Corporate Social Responsibility

Corporate Social Responsibility is the overarching term for the practices of an organization that do not directly pertain to its goal of profit-maximization (Handy). Practicing CSR demonstrates a company’s direction to achieve success within the people and planet portions of the triple bottom line.

Social Enterprise

Although there is ambiguity in regards to a concrete definition of social enterprise, the standard characteristics are the “dual mission of social and economic value creation”(Saebi). The defining point of a social enterprise is that its primary concern is with the creation of social value, whereas market value creation can be sacrificed in its place.

Carbon Footprint

Carbon footprint can simply be defined as the amount of carbon that is released from the atmosphere by a given company in tonnage. This is typically compared against the average person globally, domestically, or the sustainable rate to see if a company is environmentally considerate. Reduction can be used from using in manufacturing that themselves have a smaller carbon footprint. Relying on renewable energy sources is another way to lower carbon footprint. An organization can even have a net negative footprint through carbon sequestering practices.

How Blue Ventures Meets these Criteria

What They Do

Blue Ventures truly embodies these criteria through the company’s main community-oriented work. This organization works as partners with 29 other organizations. This joint effort has established a connection with over 560 communities and a reach of 432,905 people (Blue Ventures). 

Started in 2008, this organization has been working to help communities establish and maintain locally ran fisheries through sustainable practices. Many of these communities have relied on these fisheries for generations. Blue Ventures job is to help connect them with other fisheries, introduce them to new fishery management technique, and protect them from predatory corporations that threaten their right to fish on their own land.

Why This Matters

The ocean provides countless essential resources for communities all over the world. Those in developing economies are especially reliant on the ocean as an economic and social resource. Locally ran fisheries are often the main source of income for entire villages. They provide jobs which promote equal opportunity across genders and increase quality of life. These small-scale fisheries have been the way of life for hundreds of years.

At the same time, these fisheries are threatened now more than ever. Large international fishing organizations with far more resources than these individual communities overfish stock and push out local fisheries. Overfishing can result in major cases of environmental injustice such as:

- Environmental degradation

- Destruction of major carbon sinks

- Depletion of food sources

Blue Ventures works to unite these small fisheries in defense of their traditional fishing rights of access. By educating local fisheries on sustainable practices, Blue Ventures hopes to provide these communities with climate-friendly and economically viable techniques for years to come. Additionally, Blue Ventures works with these communities to advocate for new conservation zones. These allow damaged ecological systems to begin to heal from the damage caused by years of unsustainable practices.

What People are Saying

One does not have to look far to find people praising Blue Ventures for their work in marine coastal management. Year after year, the organization itself and its members have been consistently awarded grants for outstanding work with real measurable results. 

In 2015, Blue Ventures Executive Director was awarded the Skoll Award for social entrepreneurship. Skoll stated that this organization deserved the award for “driving the development of new models for conservation that continue to put the human rights and economic needs of fishing people to the fore” (Skoll).

Tusk, another well-renowned conservation effort understands the importance of the work Blue Ventures is doing. In a statement on their website about organizations they partner with, they had this to say about Blue Ventures: “With our marine life in such a perilous state, we must ensure that the work of Blue Ventures continues and expands” (Tusk).

Financial Viability

Blue Ventures receives most of its financial income from grants for core activities. In 2019, its total income was $6,283,953 with $5,697,397 of that coming directly from grants. Its second largest income source was commercial trading operations which constituted $434,249 of its income.

Its largest expenditures were on charitable activities at $4,492,913 out of a total $5,275,372 total expenditures. In the end, a large reconciliation of funds category on the statement of financial activities resulted in total funds carried forward of $3,494,879 (Blue Ventures). 

This demonstrates a strong control over the companies’ financials as they can efficiently manage their money even as a charitable organization; however, there are very little income generating activities by the organization and it is heavily reliant on grant funding for its continued operation.

Recommendation

Blue Ventures is much more than just a company that meets AMDP standard criteria for investment. They are a social enterprise which is actively working to spread ideas aligned with AMDP globally. Although they are not a strong revenue generating company, their continued success repeatedly has earned them grants that along with our investments will continue to keep them financially viable.

Blue Ventures is a company that is taking a proactive approach to social issues that are just now beginning to become exasperated. Climate change continues to increase tensions related to food security and sustainable practices. It is imperative that organizations like Blue Ventures continue this good work in uplifting communities around the world. It would be challenging to find an organization which is successfully pursuing the values of our organization in regards to such a time pertinent issue.

Works Cited (I have no idea how to properly format this in Blogger)

Handy, Femida. Satell Institute, 2018, CORPORATE SOCIAL RESPONSIBILITY: Workable Models for Corporate Philanthropy and Corporate Foundations -- International Examples, https://www.satellinstitute.org/wp-content/uploads/2018/09/CORPORATE-SOCIAL-RESPONSIBILITY-Workable-Models-for-Corporate-Philanthropy-and-Corporate-Foundations-International-Examples.pdf. Accessed 1 Mar. 2022. 

Blue Ventures Conservation, 2020, pp. 11–37, Blue Ventures 2019-2020 Annual Report and Financial Statements. 

“Blue Ventures.” Skoll, Skoll Foundation, https://skoll.org/organization/blue-ventures/. 

“Blue Ventures.” Tusk - Projects, Tusk Trust Limited, https://www.tusk.org/projects/blue-ventures/. 

Saebi, Tina, et al. “Social Entrepreneurship Research: Past Achievements and Future Promises.” Journal of Management, vol. 45, no. 1, Jan. 2019, pp. 70–95, doi:10.1177/0149206318793196.

Slaper, Timothy F, and Tanya J. Hall. “The Triple Bottom Line: What Is It and How Does It Work?” Indiana Business Review, Indiana Business Research Center, 2011, https://www.ibrc.indiana.edu/ibr/2011/spring/article2.html#ftn1.