FILE/USA: Former Wall Street bankers turn their job-loss into socially-aware for-profit

Record ID: 243174

  • Title: FILE/USA: Former Wall Street bankers turn their job-loss into socially-aware for-profit
  • Date: 13th February 2009
  • Summary: NEW YORK, NEW YORK, UNITED STATES (FEBRUARY 6, 2009) (REUTERS) SOUNDBITE) (English) IRIS CHAU SAYING: "Um, I'm a little bummed that we are being, I guessed, bundled together with "you're an investment banker, you're one of them." Yes, I'm a little bummed about that, even though you are fairly removed, your organization is fairly removed." SAMPLE TIRE-SANDAL (SOUNDBITE) (English) ALASTAIR ONGLINGSWAN, CO-FOUNDER GREENSOUL SHOES, SAYING: "Well, our goal is to give away a million sandals in five years. So in a year, we'd like to give away maybe 8,000 to 10,000 sandals; and in two years maybe 50,000; and then in the third year, maybe, 100,000; and then from there, you know, we'd like to really scale up out model and start giving away 250,000 to 300,000 and hit a million sandals within five years." SIGN IN OFFICE READING: "GREENSOUL SHOES-1 MILLION SHOES IN 5 YEARS!"
  • Embargoed: 28th February 2009 12:00
  • Keywords:
  • Topics: Economic News,Social Services / Welfare
  • Reuters ID: LVAEWZ2979M2QTUEUCV5JFVMKUNB
  • Story Text: After being laid-off from three of Wall Streets big banks last year, a trio of former bankers put their expertise to use at a for-profit business with a social mission.
    For many people who work on Wall Street, the past year has been the worst ever, even for those who managed to keep their jobs. But for three investment bankers who lost their jobs during the recent crisis in the financial markets, the economic downturn has been a blessing in disguise.
    "The person who actually recruited me to Bear Stearns said it was the best thing that ever happened to me," said Stephen Chen, co-founder of GreenSoul Shoes, a "socially-aware" for-profit venture.
    Last Spring, Chen worked for Bear Stearns in the equity research department, when in the span of one week, the bank and his job disappeared, engulfed by the toxic asset-backed securities which would claim more companies as the year continued.
    Chen, however, landed on his feet, not by scoring a new job on Wall Street seeking another six-figure salary, but by turning in a new direction.
    Already involved with non-profits and community work, Chen sought to apply his skills from the investment bank to this sector. The result was GreenSoul Shoes - what Chen calls a for-profit business with a social mission.
    "The reason that it's called GreenSoul Shoes is because our team fundamentally believes it's our 'soul work' to continue to contribute, to give back in a socially-sustainable enterprise. One that doesn't need to constantly ask for sponsorship donations, fundraisers, but delivers values to multiple people."
    The company works with artisans in small villages in emerging markets, primarily in Southeast Asia, to make shoes out of recycled material, mostly used tires, and sell them in local and international markets. The purpose is to increase revenues in impoverished areas and to provide footwear for the more than 300 million children globally who go without. GreenSoul will also market the shoes in the US, where for every shoe sold, another pair will be freely distributed in the village of origin.
    The company is the brainchild of Alastair Onglingswan, Stephen Chen's long-time friend and mentor, and a self-titled serial entrepreneur. Trained as a lawyer, Onglingswan left the legal arena to start his own technology companies and a real-estate company. One of his many ventures brought the Filipino-American to Manila, where on one occasion several years ago his cousin took him out the see the real Philippines, at a massive landfill called "Smoky Mountain".
    At the 200 acre landfill, covered by shanty towns where families lived under a methane cloud and subsisted on the refuse, the children ran around bare-foot. After an impromptu soccer match in which one child cut his foot on the circuit board of an old computer, Onglingswan told himself he would do something to make a difference.
    Several years later after a number of shoemaking classes with his wife, Iris Chau, who worked at JP Morgan Chase, Onglingswan thought he would be able to do something for the shoeless children during his spare time, on a relatively small scale, but then the financial bubble on Wall Street burst and shook things up.
    After several long, over-night phone conversations between Chen and Onglingswan, as Bear Stearns collapsed and Chen realized he was out of a job, GreenSoul Shoes was born.
    "Literally the next day [after Bear Stearns collapsed], me and Alastair and Iris started the incorporation process for GreenSoul Shoes. It was like six hours," Chen told Reuters.
    But Chen wasn't the only former banker to find themselves at GreenSoul.
    Onglingswan's three-person team is entirely made of one-time Wall Street workers. In November of 2008, they added Lyle Resner, who resigned after one year with Deutsche Bank, and then just last month, Onglingswan's wife, Iris, received the pink slip from JP Morgan after eleven years.
    "Through the financial demise, we picked up Lyle; we picked up Stephen; we picked up Iris.," Onglingswan explained. "So without this financial crisis, I don't think GreenSoul Shoes would ever be off the ground."
    "Transition-wise, have I ever thought that this is what I would be doing? Yes. Have I thought about doing it so soon? No, but the timing was perfect, I think," said Chau of her move from JP Morgan to GreenSoul.
    In the course of the financial downturn, GreenSoul Shoes went from a volunteer non-profit idea for the retirement years to a for-profit venture with a social mission.
    "You're able to implement all the same exact business techniques, stewardship and operations that you learn in a regular business and apply it to a socially-conscious business, then really deliver an impact for a decade, two decades, five decades, or more," Chen concluded.
    "Our goal is to give away a million sandals in five years. So in a year, we'd like to give away maybe 8,000 to 10,000 sandals; and in two years maybe 50,000; and then in the third year, maybe, 100,000; and then from there, you know, we'd like to really scale up out model and start giving away 250,000 to 300,000 and hit a million sandals within five years," described Onglingswan of GreenSoul's mission.
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