GOONJ – success through innovation

Subject area Management (interdisciplinary): corporate social responsibility/financial management/social entrepreneurship. Study level/applicability Undergraduate/MBA. Case overview The case revolves around a Delhi-based non-governmental organization (NGO), GOONJ founded by 40-year-old social activist, Mr Anshu Gupta. Winner of several awards, this NGO is trying to highlight some ignored but basic needs of the poor by using the surplus of the cities (supply of discarded commodities: clothes, furniture, toys, waste paper, utensils stationary, etc. due to space constraints and the growing consumerism) to address scarcity of essential commodities to the poor in the rural areas and creating it as a powerful developmental resource. GOONJ has a number of collection centers across the nation through which the old clothes are collected. Thereafter, the clothes are washed, dried, repaired and packed and then reached to the far flung villages with help of partner grassroots NGO, panchayats, Indian army, etc.There are three key issues raised in the case: This NGO has been operating without any formal funding for last many years. With annual expenses over ten million, how does NGO operate so successfully. Also, it is interesting to find out how they are able to maintain cost of just 97 paisa (1 paisa=1/100 rupee) from the time old clothing is collected to the point where it has been delivered to a needy. The second issue about the synergy that is created by the NGO – corporate partnership. Further, this case also gives the audience to explore synergy between NGO and B-schools. To understand the problem areas of distribution management when so many different stakeholders are involved. Expected learning outcomes To explore innovations in resource mobilization (sources of financing) and cost management. To appreciate the synergy created by forming partnerships between different stakeholders: NGO, corporate houses, B-schools. To appreciate issues and problems of distribution management – especially in the case when there are different stakeholders involved.