June 5, 2007

The Time Is Nau

Filed under: Noah's Posts

I read about a clothing company called Nau in the June Fast Company. It sounds like a remarkable organization on many levels. They encourage store patrons to have their purchases shipped home. This allows them to carry less inventory, keep their shops smaller and use less energy. They use open source methods for fabric design and invite their competitors to use their fabrics. These are both noteworthy practices, but they aren’t what really caught my eye.

Nau gives 5% of all sales to charities dedicated to solving environmental and humanitarian issues. Given that the gold standard in business is 1%, this is quite a commitment for a company that has just opened its doors. The really interesting part is how they are doing this. When you make a purchase from Nau, they ask you which of their charities you’d like your 5% to go to. This puts the giving experience in the lap of the customer and engages them with the Nau giving mission.

Many companies have charity programs, but few bring their customers into the mix. I think this is valuable for a couple of reasons. First, this is good business. It’s just plain smart to let customers know that you are working to make the world a better place (and not just working to make a profit). Second, this is good for giving. When customers are engaged in this process, they will learn about the Nau charities and experience the warmth of giving to these charities. This is bound to rub off at some point and encourage more giving down the line.

I hope this company is wildly successful. I hope their practices are picked up by others. Check them out and have fun deciding where your 5% will go.

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