The social index project

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EXECUTIVE SUMMARY 3I - VISION

- MISSION - POLITICS

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II STRATEGY

II DEFINITION- PRESENT SITUATION - OPPORTUNITY - PROJECT DEFINITION

- SOCIAL INDEX PLATFORM – EDUCATIONAL AND DONATION MARKETPLACE

- SOCIAL INDEX SOCIAL INDEX - SOCIAL INDEX EXCHANGE TRADED FUND

STRATEGY- MARKET DEFINITION - STRATEGIC VECTOR - FUNDRAISING GENERATION - COMPETITORS, COOPERATIVES AND

COMPLEMENTARY COMPANIES- STRATEGIC PUSHES - COMPETITIVE ADVANTAGES

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III ADMINISTRATION

III - ORGANIZATION - STAFFING PLAN - SALARY STRUCTURE - BUSINESS TIMETABLE - PROCESS DESCRIPTION

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IV ANALYSIS

IV MARKET ANALYSIS

IV - INFORMATION DATABASE - S.W.O.T. - FORECAST - BARRIERS - SYNERGY EVALUATION - CULTURAL ADJUSTMENT

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IV FINANCIAL ANALYSIS

IV - P&L BY YEAR - P&L BY QTR. - CAPEX AND CASH FLOW - FUNDRAISING PLAN - EXPENSES - CHARGES AND MISCELLANEOUS

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EXECUTIVE SUMMARY SOCIALINDEX.ORG Section:PART I

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3Project “CONTRIBUTING TO CREATE A MORE EQUAL WORLD” Date: 2007

EXECUTIVE SUMMARYProject Definition:

The Social Index Foundation is involved in the promotion of community development through technology. Social Index provides Social Organizations with a program for Digital Gap Reduction in order to create a more equal world. To support this idea, Social Index provides a valuable donation platform to establish relationships between sponsors and social organizations based on the social promotional ratio that they display for a particular community.

Social Index begins with the premise that Social Organizations are accomplishing outstanding work both containing and promoting groups of Children and Adults that are at risk all over the world. Their work is contributing to decrease in people’s problems; however, the lack of resources available limits their possibility to expand on their actions.

The lack of fundraising resides in the limited relation between Companies and Social Organizations in each community. Most companies do not know about the existence of Social organizations that are acting in their communities, and when they realize about the existence of a Social Organization and start to make some contributions, it is hard for them to know if the Social Organization has had previous success in allocating resources – based on the lack of promotional tools that most of these organizations have.

Consequently, Social Index will be focused on providing tools and estimations for Non Profit organizations, and on displaying the human development that they generate in the community. This information will help Social Organizations receive more support from community forces and Companies operating in each country.

In order to create these estimations and measure Social Franchises development, Social Index has developed a seven step program that Social Organizations must follow for Digital Gap Reduction and community development.

Technology intensive companies have impacted on the wellbeing of the population and on human development of each community. Infrastructure investments developed by technology intensive companies insert the communities where they operate in the world. This infrastructure contributes to developing the people’s knowledge from these places, requiring less resources compared with the past. Nowadays, people with access to technology can achieve the same level of human development no matter where they are located, developing global citizens when we refer to knowledge.

Consequently, Technology intensive companies have silently contributed to community development changing the physical appearance of communities where they have decided to operate. It is not a common situation to observe community forces taking into consideration the importance that these infrastructure investments have had, for the individual and collective promotion of their people connecting them with the world.

In the present day we can observe a non fair situation. Technology intensive companies generate this social impact no matter which kind of macroeconomical, micro economical or governmental situation they are operating in. On the other hand, financial markets are mainly taking into consideration activity indicators with no kind of relation to the social impact that these companies are generating for the world.

EXECUTIVE SUMMARY SOCIALINDEX.ORG Section:PART I

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Within these circumstances, it is important to provide tools to estimate the level of infrastructure and participation that technology intensive companies offer to the world. It is imperative to develop a ratio to measure and let community forces understand, the level of human development and promotion achieved by their people based in the infrastructure investment and economic contributions made by For profit organization operating in their societies.

Through these tools of social promotion estimation, for profit organizations will be able to assign budgets for social responsibility development, receiving the deserved level of community recognition, giving them the chance to display those results to the financial community represented by their shareholders.

Based on this situation, the strategic vector of The Social Index Foundation will focus on the estimation of Social positions of the participants, to increase the penetration of their proposals to obtain the greatest possible results for the digital gap reduction and community development in the world.

The Social Index Foundation management identified two initial opportunities for fundraising: - Development of a donation marketplace platform in order to establish relationships between social franchises and sponsors around the world.- The estimation of the Social responsibility impact that each Public technology intensive companies displayed in a community, in order to create an Exchange traded fund.

These operating lines will evolve into three networks serving different segments of customers.

- The IT educational program focuses in the digital gap reduction and community development. In order to support that program, we create the IT donation platform focused to establish relationships between social franchises and sponsors based on their infrastructure and social impact generation on each community.

- The Social Index, focused in the creation of a social index in order to display the greatest contributors from all over the world and the impact that they create with their infrastructure and with their donations on each community.

- The IT Exchange traded fund, focused in the creation of a Security that will track our social responsibility Index trading like a stock on an exchange.

Through these three modules we can provide all participants with tools to achieve our vision make knowledge accessible worldwide, estimate Social positions of participants and facilitate the process to reduce the digital gap and promote community development of each country around the world.

- VISION- MISSIÓN - APPROACH- POLITICS

SOCIALINDEX.ORG Section:PART I

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Vision:The Social Index Foundation’s vision is to promote human development through technology, contributing to create a more equal world.

Mission:The Social Index Foundation's mission is to provide a valuable educational program for digital gap reduction and community development. In order to support the program, we create the IT donation platform focused on establishing relationships between social franchises and sponsors based on their social impact generation on each community.

Politics:The Social Index Foundation is involved with the development of local communities. We firmly believe that this vector contributes to the human development of its populations. Based on this fact, our contribution is focused on creating value for these societies using technology, in order to generate social transformations for each community where social organizations operate.

The Social Index program limits its coverage to IT Educational programs and E-commerce promotion, for other kinds of educational or cultural topics are not part of our focus. Consequently, we are open to all social organizations no matter what kind of religious, educational or political vision they profess.

Based on our contribution offering an educational program, plus a valuable donation platform to establish relationships between sponsors and social organizations, the social transformation and social promotion ratio estimation appears as the best option to reach our objectives.

- Social Transformation ratio is a statistic that we have developed internally measuring the structure that a Social Organization displays in a particular community - structure ratio -, plus a list of educational and fundraising activities - social impact - that they have performed to accomplish the program.

- Social promotion ratio is the statistic that measures the infrastructure that a Sponsor displays– infrastructure ratio –, plus the contributions that it performed – participation ratio – in the communities where it operates.

Through the Social Transformation Ratio, Social Index will be focused on providing tools and estimations for Social Franchises, and on displaying the human development that they generate in the community. This information will help Social Organizations receive more support from community forces and Companies operating in each country.

Through the Social Promotion Ratio, The Social Index Foundation’s orientation will be focused on providing tools to estimate the level of infrastructure and participation that technology intensive company’s offer to the world. Through these estimations we will measure and let community forces understand, the level of human development and promotion achieved by their people, based on the infrastructure investment and economic contributions made by For profit organization operating in their societies.

This information will provide community forces with the possibility to appreciate a company’s social promotion actions – through a systemic approach – with the idea to support them in expanding their operations. For companies, this information will give them the chance to enhance the social impact that they create, establishing a relation between their economic donations and their commercial objectives developing a better social responsibility allocation of resources.

- VISION- MISSIÓN - APPROACH- POLITICS

SOCIALINDEX.ORG Section:PART I

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We firmly believe that every person in the world has the potential to become a leader if we provide the necessary amount of resources needed it to develop their personalities and talents. In order to achieve this goal it is necessary to establish relationships between Social Organizations, Sponsors and Community forces to reduce the digital gap and promote community development in each country around the world.

The Social Index Foundation has arrived to facilitate that process…

- Present situation SOCIALINDEX.ORG Section:PART II

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PRESENT SITUATION

Present situation analyses are focused on the comprehension of actual systems and actors operating nowadays promoting human development. These analyses try to define the situation of each sector to determine the present field of operation where we are going to develop our activities.

These analyses incorporate two different visions, participation actions and infrastructure actions for human development. It is a common situation to find lots of information about participation actions developed by organizations around the world, but it is not as common a situation to find information analyzing the impact that the technology development has in the communities where these infrastructures are developed. These infrastructural developments impact considerably in the physical appearance of the communities that have received these kinds of investments. Communities develop into more open and multicultural spaces.

Based on this approach, the incorporation of technology drastically decreases the amount of resources needed to give access to worldwide knowledge. This situation is observed as a radical worldwide change for human development in educational, social, cultural and professional areas.

Analyzing the institutions that promote human development around the world we can find two clearly defined groups:

- Not for profit organizations- For profit organizations

Organizations developing different functions to promote people around the world, especially the ones that need it the most.

Our analyses focusing on For profit organizations will only take into consideration technology intensive companies, analyzing other kinds of companies promoting human development only when it is required to enhance information.

All people from the moment that they started their social, cultural and economic development are reached by different technology platforms developed by For profit organizations. We refer to system such as:

- Communicational systems- Digital content management systems- E-commerce systems- Financial management systems- Transportation management systems

Consequently, we can infer that in the promotion of human development, the following kinds of platforms are participating:

- Search engines- Social platforms- Learning and Educational platforms- Electronic commerce platforms- Telecommunication platforms- Online Banking platforms

These systems are operating through Internet Companies, Data Carrier Companies, Banks and financial institutions, Telecommunication carriers and Courier services.


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Analyzing the sectors that are part of this process, nowadays we can find Data carrier companies operating through fixed and mobile line communications, Content provider and Ecommerce companies operating in the Technology industry, Banking institutions operating through the financial sector and finally Courier Services companies operating through the Air freight and delivery service sector.

Infrastructure investments developed by technology intensive companies insert the communities where they operate in the world. This infrastructure contributes to developing the people’s knowledge from these places, requiring less resources compared with the past. Nowadays, people with access to technology can achieve the same level of human development no matter where they are located, developing global citizens when we refer to knowledge.

Analyzing the telecommunications industry, these companies develop their networks connecting people from all over the world. These voice and data networks have had a considerable impact during the last decades for human development. Through their infrastructures, individuals reach contents from all over the world, contents that in the past were not available for regular people.

Efforts made by these companies to develop their fixed and mobile platforms were considerable, modifying the reality of the world in general and in particular for the communities where each company operates, during the last 50 years.

A similar situation can be observed in the technology sector. Software and internet companies have considerably enhanced the amount of contents freely available to people. These companies develop their platforms through the incorporation of different languages, making accessible information and knowledge for people around the world. The same situations are occurring with Social platform developments, giving people the chance to promote their ideas and culture in exchange with other people all over the world. E-commerce companies provide the environment for any person to develop a professional activity without country borders. Educational online companies such as but not limited to, learning platforms, encyclopedias and dictionaries, and other kind of development focused on human knowledge.

Technology platforms from the financial sector provide people with access to different formats of banking products. These financial products are channeled through ATM machines and online platforms facilitating people’s inclusion in microfinance and savings. Through these platforms, communities from all countries can carry out commercial operations in the world, with no consideration of where they are located. Through these networks, citizens from all over the world have access to the same kind of technological systems.

These infrastructure developments performed by different technology intensive companies have impacted on the wellbeing of the population and on the human development of each community. Technology intensive companies have silently contributed to community development changing the physical appearance of communities where they have decided to operate. It is not a common situation to observe community forces taking into consideration the importance that these infrastructure investments have had, for the individual and collective promotion of their people connecting them with the world.

Infrastructure investments have not been the only kind of social promotion action that technology intensive companies have done to promote societies. It is a common situation to observe an important social responsibility among them, contributing with their participation – through donations and economic contributions – with the communities where they operate.


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Companies social contributions through participation actions, generally comes from the interest of the corporations and the enrollment of their employees willing to help. It is common to observe participation actions such as:

- Economic contributions for human development in the societies where they operate- Technology resources donated such as computers, servers, telecommunication

systems for people’s integration to reduce the digital gap- Companies donating personnel working hours in activities for social promotion

These proposals are commonly channeled through internal social entrepreneurs acting as focal persons in social responsibility for their organizations. These kinds of efforts appear as actions that these companies develop to contribute to world development.

In the present day we can observe a non fair situation. Technology intensive companies generate this social impact no matter which kind of macroeconomical, micro economical or governmental situation they are operating in. On the other hand, financial markets are mainly taking into consideration activity indicators with no kind of relation to the social impact that these companies are generating for the world.

Within these circumstances, it is important to provide tools to estimate the level of infrastructure and participation that technology intensive companies offer to the world. It is imperative to develop a ratio to measure and let community forces understand, the level of human development and promotion achieved by their people based in the infrastructure investment and economic contributions made by For profit organization operating in their societies.

This information will provide communities forces with the possibility to appreciate a company’s social promotion actions – through a systemic approach – with the idea to support them expanding their operations. For companies, this information will give them the chance to enhance the social impact that they create, establishing a relation between their economic donations and their commercial objectives developing a better social responsibility allocation of resources.

Despite the fact that the infrastructure investment developed by Technology intensive companies around the world was considerable, many places remain to be developed and many people remain to be incorporated.

Through these tools of social promotion estimation, for profit organizations will be able to assign budgets for social responsibility development, receiving the deserved level of community recognition, giving them the chance to display those results to the financial community represented by their shareholders.

Consequently, we can infer an increasing necessity among For profit organizations. This necessity focuses on the acquisition of new tools, giving them the chance to establish a relation between their infrastructure contributions and their participation contributions. By using these tools, they will increase the penetration of social responsibility actions performed, managing their contributions through a single source.

This worldwide penetration will need:First: Tools for sponsors that permit them to know the amount of investment that they can offer to a particular community, compared with the total investment of that infrastructure that a community displays. For this purpose it is necessary to estimate the amount of infrastructure developed by each company and the participation that it shows each industry.


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Second: offer a system to estimate these levels of infrastructure and participation in order to create a ranking to measure the level of social promotion generated by each company. This ranking will help investors committed to social responsibility to allocate their resources and investments to the most successful contributing companies.

Through this action, the social promotion ratio of each technology intensive company will be estimated giving each the chance to attract investors with similar interests. These investors will be able to estimate the value of a company focused more on the long term impact that these companies create, instead of measuring a company based on a particular macroeconomic, micro economic or governmental decision.

The second part of the analysis will be focused in the not for profit organizations operating nowadays in the promotion of human beings around the world. We can infer that the most important social impact is now being generated by those organizations focusing on children and adults at risk. Within both groups we can detect social organizations that are focused on unsupported children and the ones that are focused on adults with educational, habitat or employment problems.

Social organizations that are focused on unsupported children operate nowadays as a place where most of these kids live for a certain period of time waiting for a family to adopt them. These social organizations are carrying out a wonderful job. Children are supported and promoted giving them access to primary needs such as food, clothes and health programs plus the possibility to be reincorporated into school programs.

Most of these organizations operate with incredibly limited resources. Consequently the lack of contributions is limiting the possibility to expand and enhance current programs being developed to promote kids and change their futures.

Consequently most of these kids and teenagers are generally included in under challenging educational and employment programs. It is a common situation to observe proliferation of programs such as:

- Communitarian farms- Basic employment programs mostly oriented to repetitive physical tasks

Despite the fact that farms and other kind of communitarian activities are very important for human development, in terms of social promotion and future integration of these kids in highly skilled jobs appears as a limited reality.

Most of the kids participate in learning programs focused on activities with no contact with technology limiting their possibility to obtain an important level of knowledge development and a future integration to professional jobs. This situation contributes to the structural educational lack that they will face all their lives, with limited possibilities to change that situation.

Most of these kids are born and raised in environment with lots of needs and limitations. The social organizations often act as a temporary family; however the lack of resources is limiting the possibilities of these kids when compared to similar kids living in the same society.

This situation affects the possibility of finding adoptive families. Families with the necessary amount of resources to incorporate a new member to their group, face important gaps between the way that they live and the way that most of these kids are living. It is fair to say that most of these families – and kids – show admirable hearts and will to surpass all kinds of difficulties, but the transition is in most cases very traumatic.


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These reasons appear as an imperative to provide social organizations focused on children promotion with the necessary amount of resources needed to develop their potential. Most of these children face alimentary problems during the beginning of their lives, affecting their capacity to learn in some way. On the other hand we can infer that it would be easy for them to incorporate technology into their lives in order to defeat the digital gap because the capacity of children to learn is amazing.

For this reason we believe that if we provide an environment that takes into consideration all the necessary things that a social organization needs to promote a child, these kids will be able to transform their lives, transforming themselves into community leaders. For this change to take place, the usual compromise of social organizations and the involvement of the international community are necessary.

Social organizations for Adults operate through different approaches. Some of these organizations operate as community shelters; others operate as primary contention spaces where people at risk can have a good meal or stay for the night. Other social organizations provide adults with employment programs – generally with low qualification – to insert them into the work force. All these social organizations are developing incredible work in their communities, but they are facing the same kind of resource limitation that other kinds of Not for profit associations are facing. In general, the resources that they have are the necessary ones to offer people a primary contention.

Consequently, despite the fact that the primary contention is being developed with incredible success, the lack of resources make it difficult to enhance current offerings to expand and enhance adult’s integrations in their communities.

It is a common situation to observe labor programs promoting adults through activities with a low qualification or limited possibilities to challenge their skills. Most of these activities are:

- Jobs with an important presence of physical activities- Jobs with limited incorporation of technology

Most of these adults change constantly between jobs, where temporary work is the most common situation observed. Despite the fact that quick inclusion of adults in work programs is important; a sustainable and systemic development through a job specialization is limited and not commonly observed.

Another important situation resides in the digital gap shown by adults at risk. The lack of technology inclusion makes it hard for people to enhance their current specializations; giving them the chance to change current jobs – jobs in general with low remunerations and exploitative conditions -.

For all these reasons, we can infer that the international community has an important chance to contribute to social organizations focused on child and adult promotion. The international contribution must be focused on providing resources to assist Social organizations to support and expand their current operations focusing on human development activities.

This worldwide support must take into consideration:

First, a standardized program providing social organizations with a planned amount of resources, taking into consideration what is necessary in order to support the activities needed to decrease the digital gap and contribute to community development.


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Second, the development of a platform in order to provide social organizations with a space to establish relationships with sponsors from their communities in order to receive support for their current programs. For this purpose it is necessary to develop a space where social organizations can list their needs to receive contributions from sponsors willing to contribute to their cause.

- Opportunity SOCIALINDEX.ORG Section:PART II

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OPPORTUNITY

The Social Index Foundation begins with the premise that technology intensive companies are generating an important contribution for human development in the communities where they operate. This contribution is defined by the estimation of the social promotion that each of these companies are developing. We define the social promotion as the combination of the level of infrastructure developed in their operations and the level of participation – based on economic contributions – provided for human development.

Based on this approach, the current analysis incorporates two statistics, participation ratio and infrastructure ratio provided by a sponsor for a particular community in a certain period of time.

With the idea of comparing all sponsors – mainly legal entities – on an equal basis, we will include each technology intensive company and compare it with companies within their industry. The following industries will be included: (industry index)1

- Bank sector index:Money Center BanksRegional Banks

- Computer sector index:Internet Software & ServicesInternet Information ProvidersCatalog and Mail Order Houses (incorporated to the Internet Information Providers)Personal ComputersDiversified Computer SystemsBusiness Software & ServicesApplication Software

- Telecommunication sector index:Wireless CommunicationsDiversified Communication ServicesTelecom Services – ForeignLong Distance CarriersInternet Service Providers

- Transportation sector index:Air Delivery and Freight Services

At an analytical level, we will estimate the infrastructure ratio based on the following variables:- Market capitalization of the company, compared with the total market capitalization of

the industry.- Virtual presence estimated by the Alexa ranking.- Country presence that they display on each community where they display operations

around the World.- Languages incorporated to their operations defined by the amount of population –

compared with the total worldwide population – that have that language as an official one.

The participation ratio will be estimated based on the following variables:1 Industry index impacts directly in the estimation of infrastructure of public companies. For private companies act as a general guideline where they can enroll their companies


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- Economic contributions donated through the system for social organizations- Other kind of donations channeled through the community platform- Social participations of sponsors in social franchises of their communities

The system will take into consideration the contributions that sponsors provide to social franchises and will establish a relation with the level of infrastructure that by they display in the same community. The infrastructure ratio that they achieved multiplied with the money that they contribute will impact in the amounts of points collected by sponsors in the social index creation.

We create this system with the idea to establish relations between private investments in participation and private investment on infrastructure. Based on the fact that Sponsors contribute with their infrastructure and with their participation to human development, this is the best approach that we could find.

Consequently, if a Social organization list in the platform that they need computers – paying each of them 1000 points = 1000 usd – each sponsor will contribute with their money impacting in different ways at the social index estimation.

In this example we analyze the social impact generated by three banks making contributions to a social franchise located in Mexico.

HSBC contributes donating a computer to a social franchise operating in Mexico. If they donated the whole computer (1000 usd) the Social index is impacted in 1000 points, multiplied by their infrastructure ratio – in this case 2.9 – representing 2900 points for the ranking.

SOCIAL INDEX ASSIGNING POINTS TO EACH BANK

RATE SCALE=

BANK 2.9

ESTIMATES THE AMOUNT OF POINTS TO BE PAID FOR EACH BANK FINANCING COMPUTERS FOR A SOCIAL FRANCHISE IN MEXICO

ESTIMATION BANK

RATE SCALE = COMPANY INFRASTRUCTURE AND MARKET SHARE FOR A PARTICULAR LOCATION

RATE SCALE=

BANK 2.5

RATE SCALE=

BANK 1.5

RATESCALE

MARKET CAP INDEX / BANK

VIRTUAL PRESENCE

BANK COUNTRY PRESENCE

LANGUAGE PRESENCE


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HSBC’s Social Impact is multiplied by their infrastructure generating more points. For Mexican people it is supporting with its contributions and with their infrastructure to the human development of their population. The social index estimates that impact and generates the multiplier.

Same situation happens with Citibank / Banamex receiving 2500 points for the same action to contribute with one computer.

On the other hand, Wachovia receive only 1500 points if it contributes to purchase the same computer. For Wachovia it is not a good decision to invest in Social Franchises located in Mexico. Based on the fact that it is not operating in Mexico, its infrastructure ratio is mainly compound of market capitalization and virtual presence. Wachovia will generate more social impact if it decides to support Social Franchises located in US where it has an important operation.

As it is observed, the same social organization pays different amounts of points to each sponsor that contributes with it.

Social promotion positions achieved by Sponsor through the system show interesting characteristics compared with a simple donation action. A simple donation action helps a social organization with a particular need that it has in a certain moment. Social promotion actions performed by sponsors through the system take into consideration a systemic plan for human development and community promotion.

This systemic plan provides education and economic promotion tools to people enrolled in the system in order to promote them. The system tries to cover all aspects needed by a social

POINTS = XXX

POINTS = XXXXX

POINTS = XXXX

RELATION BETWEEN STRUCTURE AND PARTICIPATION

HSBC SURPASSES BANAMEX BASED ON A HIGHER RATIO OF PARTICIPATION

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organization to achieve its results – and Social Index program results – to promote groups at risk in a particular community.

This social impact generation is possible based on the constitutive characteristics of the program. The Social Index program aims to establish a relation between social franchises and sponsors in the same community, in order to create community spaces. The idea is to integrate community forces to socially promote groups of children and adults at risk.

The relation between infrastructure and participation – generating social promotion ratio – that sponsors show are dynamic contributing with different ratios to human development on a certain period of time. The social promotion position displayed by a sponsor is affected by:- Infrastructure level that the sponsor displays in a particular community- Participation level that the sponsor displays in the same community

Consequently, the social promotion position allows estimating the level of competitiveness that a community displays in technology and community integration:- At a technological level: through the amount of resources invested by companies on that particular placeAt a participative level: through the capacity displayed by the private sector to contribute with social organizations

As it is observed, social promotion position variations are affected by operative economic decisions – infrastructure level -, and by social responsibility decisions – participation level – of each sponsor on each community. These social promotion ratios show an important utility to estimate human development around the world, displaying where it is necessary to contribute with more infrastructure, contributing to create a more equal world in terms of opportunities.

For companies, these estimations provide them with information to support their operative expansion decisions and social responsibility actions with the community of shareholders. With this information they will be able to justify new operations and attract social responsibility focused investors around the world.

Through these actions, companies will be able to receive support from different groups of investors such as community associations, religious associations and financial investments groups. From the communitarian side, these estimations will provide community forces with the necessary information to understand which companies are contributing the most to their people in order to support them at a macroeconomical, micro economical and multi governmental level.

The second part of the analysis focuses on Social organizations operating nowadays supporting human development around the world. We will focus our attention in social organizations focusing on children and adults at risk.

The Social Index foundation begins with the premise that every person in the world has the potential to become a community leader if he or she receives the necessary support to develop his or her capabilities. We refer to necessary support as the social, cultural and economic resources needed it to develop a person, plus the community support in social relations that let people develop their personalities and talents.

Referring in particular to children, the Social Index foundation takes into consideration the UNICEF definition that says “kids learn what they live”, to establish a model for social and technological inclusion in order to support and give them tools to develop themselves.


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The most venturous people are those that face different cultural, social and economical contrasts during their lives. These contrasts give people the chance to confront ideas, choose and decide between different possibilities and follow their destiny to make their dreams come true.

Unsupported Children are constantly facing difficult situations and challenges in their lives. These kids start working and earning their own money at a very early stage of their lives. It is a common situation to observe people referring to these kids like if they were in an inferior position, but these kids show an incredible capacity to overcome situations that other people in the same situation would not able to support.

It is hard to believe that children coming from an origin with so many unfavorable situations will be able to achieve a leadership position in a community. But these kids show incredible capabilities that make them special compared with other kids at the same age. These characteristics provide us with the possibility to help these kids develop by providing them of the necessary amount of resources to develop their personalities and talent.

It is a common situation to establish a relation between the successes of a person and his or her efforts. Even though effort is the engine that contributes to our objectives, the creative capacity is generated from a previous formation stage that allows people to abstract themselves and create ideas.

People that change their realities and pursue their objectives usually display the following characteristics:

- Capacity to think outside the box.- Capacity to imagine a different world- Capacity to control the adversity

These characteristics plus an important base of knowledge provide people the chance to develop their capabilities and transform them into change makers for their communities.

Analyzing situations faced by unsupported kids, these children display recurrent characteristics:

- lack in structure to support them, generating a creativity beyond the typical cultural structures that other people follow

- the necessity to avoid the reality that oppresses them, generating a capacity to dream and create an imaginary world to feel preserved

- Adverse environment, generating in them the capacity to control and develop strategies to survive.

Comparing both situations, we can find common characteristics between leaders and unsupported children living in the streets. Despite that those kids don’t count with the necessary structure to develop their capabilities, the lack of social and family structure were they live makes their lives different, giving them a vision of reality with no relation of what most of the people think.

Based on this idea, we believe that if unsupported children receive the correct amount of love, support and self esteem to develop their capacities, trying to promote those characteristics that make their personality unique, they will be able to change their realities transforming their lives.

Based on the fact that they are children, the digital gap reduction is something that can be rapidly decreased among those kids. This digital gap appears as more complicated when we


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analyze the adults at risk on each community. This is the reason why we believe that if we create the correct spaces for community development, kids can transform themselves in community leaders helping adults with technology development.

Consequently, the Social Index Foundation focuses their strengths on promoting social organizations of children and adults at risk, in order to transform their spaces in community centers. These places will focus on social, cultural, labor and entrepreneur activities, reducing the digital and social gap among participants through technology.

The analysis to estimate social organization impact will reside in two ratios: Structure ratio developed by each social franchise and social impact achieved by their efforts – based on the structure ratio - . These two analyses will give us the chance to estimate the social transformation generated by each organization focusing on human development.

Based on this approach, our system focuses on the structural promotion of social organizations and in the maintenance of their operations through sponsor contributions. On the other hand, our program establishes a certain amount of steps to be approved by social organizations in order to achieve the proposed goals of the program, the digital gap reduction and the community development.

Social organizations will be measured by the structure ratio that they develop and the social impact that they generate in a particular community. Through these estimations we will be able to compound an estimation of the social transformation that they are creating.

Despite the fact that the structural ratio is not estimating the capacity to promote the community, this ratio display the capacity of the social franchise to receive the support of domestic and international community of sponsors in order to achieve their goals. This estimation shows the determination that social franchises have, because they will be competing with similar franchises to receive community support, plus the determination to fund raise activities in their own communities.

For social transformation we refer to Educational and fundraising activities that each organization develops in their community. These impacts will be measured by the amount of technological skills that their members incorporate and the fundraising activities that each social organization performs.

Social Organizations must achieve 7 steps in order to graduate in the program. These steps are: Design – Build – Technology – Education, for the early and growth phase

E G1 2 3 4

Design Build Technology* EducationTechnology Room Technology Room Computer Module 1 - 4

Wi Fi Router Module 4 - 7

VOIP TelephoneModule Learning

Platforms Photo Video Camara Module E-Commerce

Multimedia Room Multimedia Room DVD Elective Course - Design TV Elective Course - IT Audio Equipment

Common Space Living Room TV DVD


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Deposit Deposit Kitchen Kitchen Refrigerator

Oven Bedroom Beds

Cabinet Wardrobe

Bathroom Basin Bath Bidet Shower Racks

Laundry Room Laundry Room Washing Machine Clothes Dryer

Specialization and fundraising for the consolidation phase of development. Ongoing activities and Expansion are part of the daily support that the platform offers to Social Franchises.

C O 5 6 7 8

Specialisation Fundraising Ongoing* Expand

Squeak - Smalltalk E-commerce PlatformsSponsor Internet

Connection Technology RoomCISCO Certified

Associate E-commerce websites CISCO Certified

Associate E-commerce Retail Sponsor Telephone bill Sun Java Programmer E-commerce Fair Trade Macromedia Designer Professional IT Services Multimedia Room

101 Ideas for Fundraising Sponsor Cable Living Room Lounge Room Deposit Sponsor a Child Kitchen Sponsor a Meal Sponsor a blanket Beds Cabinet Sponsor with Clothes Wardrobe Basin Sponsor Bath Products Bath Bidet Shower Sponsor with Towels Racks

Sponsor Cleaning

Products Washing Machine Sponsor volunteer Clothes Dryer

Through these 7 steps, social franchises will be able to cover all the aspects that they need to develop their operations. Each development phase accomplished by Social Organizations provides them with a new percentage level of program achievement.


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The social positions achieved by Social Organizations are affected by:- Structural development shown by the organization- Social transformation level achieved by the organization

As we observe, social positions are affected by internal decisions taken by their members – social transformation – plus a supportive community willing to contribute with these organizations.

Consequently, Social Index will be focused on providing tools and estimations for Social Franchises, to display the human development that they generate in their communities. This information will help Social Organizations receive more support from community forces and Companies operating in each country.

- Project definition- Strategy SOCIALINDEX.ORG Section:

PART IIPage:


Project definition

Characteristics:The Social Index management has identified two initial opportunities for generating revenue: - Development of a donation marketplace platform in order to establish relationships between social organizations and sponsors around the world.- The estimation of the Social Responsibility impact that each Public technology intensive company can make in a community, in order to create an Exchange traded fund.

These operating lines will evolve into three networks serving different segments of customers.

- The IT educational program focuses on the digital gap reduction and community development. In order to support this program, we have created the IT donation platform. It is focus to establish relationships between social franchises and sponsors based on their infrastructure and social impact generation in each community.

- The Social Index Index, focused on the creation of a social index in order to display the greatest contributors from all over the world and the impact that they have with their infrastructure and with their donations in each community.

- The IT Exchange traded fund, focused on the creation of a Security that will track our social responsibility Index trading like a stock on an exchange.

To Support these operations, The Social Index Foundation platform will operate using the following systems and providers:

- E-learning systems:

- Financial systems:

- Payment systems:

- Virtual presence estimation systems:


PART IIPage:


The Social Index Platform: - Educational program and Donation Marketplace -

The Social Index Foundation is involved in the promotion of community development through technology. Social Index provides Social Organizations with a program for Digital Gap Reduction in order to create a more equal world. To support this idea, Social Index provides a valuable donation platform to establish relationships between sponsors and social organizations based on the social promotional ratio that they display for a particular community.

At an operating level, the system will focus its strengths on:Social Organizations working with Kids and Teenagers: for social, cultural, and educational development.Social Organizations working with Adults: focused on social, cultural and employment promotionSupporting Staff Organizations: providing assistance and guidelines, supporting other organizations for specific projects.

For sponsors the system will focus its strengths on:- Public Companies operating through different stock exchanges, willing to contribute with social organizations- Private companies willing to contribute to social organizations- Individual contributors, willing to donate money to social organizations.

At an analytical level, the system estimates four ratios in order to define the social promotion generated by sponsors and the social transformation generated by social franchises around the world:

- For Social Franchises, the estimation of the structural level that they achieve and the social impact that they generate. These two estimations will create operative ratios impacting their performance in the system. We define both ratios combined as the Social transformation generated by a Social Organization.

- For Sponsors, the estimation of the infrastructure level of their operations and the participation level – through contributions - that they display in each community where they are operating. These two estimations will create ratios impacting their performance in The Social Index Index. We define both ratios combined as the social promotion generated by a Sponsor.

Logic:

Social Index begins with the premise that Social Organizations are accomplishing incredible work both containing and promoting groups of Children and Adults that are at risk all over the world. Their work is contributing to decrease in people’s problems; however, the lack of resources available limits their possibility to expand on their actions.

The lack of fundraising resides in the limited relation between Companies and Social Organizations in each community. Most companies don’t know about the existence of Social organizations that are acting in their communities, and when they realize about the existence of a Social Franchise and start to make some contributions, it is hard for them to know if the Social Organization has had previous success in allocating resources – based on the lack of promotional tools that most of these organizations have.

Therefore, Social Index will be focused on providing tools and estimations for Social Franchises, and on showing the human development that they generate in the community. This information will help Social Organizations receive more support from community forces and Companies operating in each country.


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In order to create these estimations and measure Social Franchises development, Social Index has developed a seven step program that Social Organizations must follow for Digital Gap Reduction and community development.

The seven step process tends to cover all aspects that a social organization needs to achieve in order to surpass the digital gap reduction and this is achieved through a community development program that we will propose.

Social Index groups Social franchises in three categories: Early (E), Growth (G) and Consolidated (C) franchises.

Structure Ratio development:

These initial three phases of the program intend to cover all structural aspects – structure ratio – that a social franchise will need to develop for the Social Index program and other objectives that they pursue:

1. Design: Covering aspect such as Building development including but not limited to Technology and Multimedia room, Common spaces, Deposit, kitchen, Bedrooms, Bathrooms and Laundry room.

2. Build: Covering aspect such as Construction and infrastructural development of facilities

3. Technology: Covering all technological devices that a social franchise needs to reduce the digital gap such as computers, Routers, Video Camera, DVD, TV and Audio Equipment plus infrastructure needs such as refrigerators, ovens, washing machines and clothes dryers.

These three phases will lead social franchises through different levels of percentage achievement inside the system.The design phase gives Social Organizations 40% of program completion. Based on the fact that social organizations must provide their legal constitution and land ownership to apply, we assume that they have already made an important effort to achieve this stage.

The second step gives Social Organizations 65% of program completion. Social Organizations list their needs in the system and sponsors contribute with their facilities to development.

The third step gives social organizations 75% of program completion. Social Organizations list their technology device needs and sponsors contribute as needed to them.

Based on the fact that social franchises are competing in the listings with other social organizations we can infer that the contributions they receive and raise through the system and outside the system are displaying their level of determination. Consequently, the system raises the percentage level of accomplishment for each contribution that they receive.

1 DESIGN

2 BUILD

3 TECH

G

75%40%

E E

65%


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Social Organizations will be able to inform Social Index – by customizing their profile – of all contributions that they receive from companies not enrolled, leveraging their achievement levels in the system. Of course, they will receive more money from these contributions but they will not be able to list these articles again as their needs for this phase have been met, based on the system restrictions. –See restrictions –

Social Impact Ratio development:Phases four, five and six intend to cover all aspect that a social franchise will need to generate social impact and achieve program results.

4. IT Education: providing participants with access to IT Educational programs. – Check Program area for details –

SOCIALFRANCHISE

RECEIVE CONTRIBUTIONS = $$

SOCIAL IMPACT RATIO(COMMUNITY) = 40% to 70%

ASSIGNS SCORES

1- DESIGN

2- BUILD

3- TECHNOLOGY

LIST THEIRNEEDS

4 ITEDUCATION

5 SPECIALIZE

6 FUND RAISING

C

90%75%

G C

85%

7 ONGOING

C

100%


PART IIPage:


5. Specialization: providing participants with access to IT Educational certifications. – Check Program area for details –

6. Fundraising: providing participants’ franchises with access to E-commerce platforms and to a network of certified Fair Trade organizations and Resellers to raise funds with local products that they produce and trade. – Check Program area for details –

SOCIALFRANCHISE

TAKE EXAMS AND ACHIEVE THE GOALS

= %


ASSIGN SCORES

PREPARE AND TAKE IT EXAMS

IT EDUCATION:

SOCIALFRANCHISE

RECEIVESCERTIFICATION

OFFER PROFESIONAL IT SERVICES

= $$


ASSIGN SCORES

SPECIALIZATION:


PART IIPage:


The ongoing phase provides the resources that social organizations need to support and manage their operations on a daily basis.

Based on the level of social transformation ratio that they have achieved in their communities, the system will estimate the level of program achievement that they display at that moment in order to provide social franchises with tools to promote their work. On the other hand, the social transformation ratio displayed by a social organization will impact on the amount of money that they will receive from Public Sponsors.

The Social Index Foundation establishes three categories for sponsors operating in the system.- Technology intensive Companies, with securities listed on major stock exchanges around the world- Technology intensive companies with no public quotations operating all over the world - Individual contributors willing to support Social franchises in their communities and throughout the world.

These Sponsors contribute to Social franchises through the system. For contributions performed by Private Companies and Individual contributors, the system processes that contribution and provides the social franchise with the money or the product, with a discount of two percent of the donated money in terms of platform commission. For contributions performed by Public Companies, the system will retain an amount of money equivalent to the amount of percentage that the Social franchise must still achieve in order to complete the whole program. The system follows this calculation: Donated Amount * (1-Social franchise program level achievement) = money retained at the system.

The amount of money retained for each contribution in each phase will be invested in our Social Index ETF during the time that the Social franchises operate in the system to achieve their goals. Social Franchises receive the retained money when they achieve 100% of their goals.

Social Index learning program:

SOCIALFRANCHISE

WEB SERVICECALL / RESULTS

SELL PRODUCTS ON THE INTERNET

= $$


ASSIGNS SCORES

LIST AND SELL LOCAL PRODUCTS

FUNDRAISING:


PART IIPage:


Social Index program focuses on two groups of topics. - Information technology learning programs- Fundraising learning programs.

Phase 4 Phase 5 Phase 6Education Specialisation Fundraising

Module 1 - 4 Ms Career Module E-commerce PlatformsModule 4 - 7 CISCO Certified Associate E-commerce websites

Module Learning Platforms Sun Java Programmer E-commerce RetailModule E-Commerce Macromedia Designer E-commerce Fair Trade

Elective Course - Design PMI Professional IT ServicesElective Course - IT Squeak Smalltalk 101 Ideas for Fundraising

Social Index programs intend to cover only IT Educational programs and E-commerce promotion, it not being our intent to focus on other kind of educational or cultural topics.

Restrictions:

Social Organizations can list items in the system, taking into consideration the following restrictions. These products pay different amounts of points to sponsors.

ITEM Restrictions: PointsComputer 1 per person - two years 1000

Wi Fi Router Annual / at least 4 computers 80Voip Telephone 1 per person - two years 60

Photo Video Camara 1 per social franchise - two years 200Washing Machine 1 per year - 20 people 500

Clothes Dryer 1 per year - 20 people 500Refrigerator 1 in two years - 10 people 800

Oven 1 in two years - 10 people 800DVD 1 in two years 200TV 1 in two years 200

Audio Equipment 1 in two years 150Meal Per day per kid or adult 10

Blanket Quarterly per person 20Clothes Once Monthly per person 40Towels Each semester per person 20

Cleaning Weekly per person 5Telephone bill Once per Month 20

Cable Tv Once per Month 20Internet Connection Once per Month 20Sponsor Volunteer All what they want 10 usd = 10Sponsor Volunteer All what they want 20 usd = 20Sponsor Volunteer All what they want 30 usd = 30Sponsor Volunteer All what they want 40 usd = 40Sponsor Volunteer All what they want 50 usd = 50Sponsor Volunteer All what they want 100 usd = 100

Sponsors:


PART IIPage:


For Sponsors supporting Social Organizations, Social Index recognizes them by creating an Index that display their contributions – through donations and infrastructure – to human development around the world.

Social Index sponsorship begins with the premise that technology intensive companies are contributing to the human development in the communities where they operate. We define the social promotional ratio of a Sponsor as the amount of contributions that they provide to social organization, plus the infrastructure that they already develop for a particular community.

The infrastructure ratio is important for Companies because this estimation allows community forces to know the efforts that these sponsors have already made in the communities where they operate. Sponsors efforts in supporting plus expanding operations have decreased the amount of resources that a human needs to develop their knowledge and integration throughout the world.

The infrastructure ratio is estimated taking into consideration four variables.

At an analytical level, Social Index estimates Sponsors social impact, by taking into consideration two ratios:

- Infrastructure Ratio, measured by:

Sponsors Market Capitalizations, compared with the whole market capitalization of their industry.

MARKET CAP.(SPONSOR CAP./ TOTAL CAP. OF

THE INDUSTRY)

VIRTUAL PRESENCE(BETTER POSITION PAYS MORE)

LANGUAGE PRESENCE(< LANGUAGES PAYS MORE)

{BASED ON POPULATION}

COUNTRY PRESENCE(< PRESENCE PAYS MORE)

MULTIPLIER=

2.77

ESTIMATION SPONSORSMULTIPLIER

MULTIPLIER = SPONSOR INFRASTRUCTURE AND MARKET PRESENCE FOR A PARTICULAR LOCATION

MULTIPLIER=

2.81


PART IIPage:


Sponsors virtual presence, based on the amount of visits that they receive through their websites:

SPONSORS

MKT CAPINFO

SPONSOR MKT CAP. / TOTAL INDUSTRY MKT CAP.

= 0.2274%

MKT CAP % * VARIABLE INDUSTRY WEIGHT

= 0.2274 * 1

ASSIGNS ESTIMATION

MARKET CAPITALIZATION ESTIMATION PROCESS

MARKET CAPITALIZATION:

SPONSORS

WEBPOSITION

SPONSOR WEB POSITION WEIGHT = 0.40%

WEB POSITION % * VARIABLE INDUSTRY WEIGHT

= 0.40 * 1

ASSIGNS ESTIMATION

VIRTUAL PRESENCE ESTIMATION PROCESS

VIRTUAL PRESENCE:


PART IIPage:


Sponsors countries presence, based on the amount of Countries where they display physical or virtual operations

Sponsors language presence, based on the amount of languages that they display and cover on their websites.

SPONSORS

SYSTEMCALCULATION

COUNTRY PRESENCE (1-3) = 0.20%

COUNTRY PRES. % * VARIABLE INDUSTRY

WEIGHT = 0.20 * 2 = 0.40

ASSIGNS ESTIMATION

COUNTRY PRESENCE ESTIMATION PROCESS

COUNTRY PRESENCE:

SPONSORS

SYSTEMCALCULATION

LANGUAGE PRESENCE (POPULATION / TOTAL POP.)

= 0.1996%

LANGUAGE % * VARIABLE INDUSTRY WEIGHT = 0.1996 * 1 = 0.1996

ASSIGNS ESTIMATION

LANGUAGE PRESENCE ESTIMATION PROCESS

LANGUAGE PRESENCE:


PART IIPage:


- Participation Ratio, measured by:The contributions that they offer to support social franchises in their local communities.

Each variable will differ in their weighting based on the industry of analysis impacting in the amount of points generated for The Social Index Index.

How does Social Index platform works?

Social Index establishes a chronogram for Social Franchise development. At an operating level, social organization enrolled in the system must provide the proof of land ownership and legal entity registration in their country as a not for profit association / corporation or equivalent. The Social Index development program works in order to support Social Organizations develop their structure – in structure and technology – plus the maintenance of their ongoing expenses, but not to support them in order to receive funds for lands or legal constitution.

For land acquisitions and legal entity constitution we plan to support social organizations in providing partnerships with other institutions and VC’s focusing on these programs.

Social franchises enroll in the system providing information of their operations in order to be accepted. These requirements incorporate legal and technical aspects to be approved by the social institution.When a Social organization applies to the program, The Social Index Foundation creates an electronic file with the following statutory and legal information:

SPONSOR CONTRIBUTES TO SOCIAL FRANCHISES RECEIVING POINTS BASED ON THEIR INFRASTRUCTURE RATIO

SPONSORS CONTRIBUTESELECT SOCIAL FRANCHISES

- SENDS MONEY- ADDS POINTS

MONEYPOINTS


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- Vision and Mission of the social organization - We are open to all social organizations no matter which kind of religious, educational or political vision they profess –

- Year of Incorporation- Rented personnel and volunteers operating in their organization- Authorities- Structural level achieved by the Social Organization- Statutory information- Accounting balance sheets- Taxable condition granted by their local IRS agency- Bank account certification granted by a recognized financial institution

The Social Index Foundation will take into consideration all of these legal aspects in order to approve or deny access to the system.When the Social Organization receives the approval to operate through the system, they will become Social franchises being part of the digital gap reduction program focused on community development. To support Social Organizations working with this program, they will be able to list their needs in the platform.

Based on the amount of structural development that they already developed in their communities, the system will estimate the level of program achievement that they show at that moment. This level of achievement will impact on the amount of money that they will receive from Public Sponsors.

The Social Index Foundation is committed to the development of Social franchises around the world, to create spaces for Community nurturing. These organizations will promote groups of kids and adults at risk in each community, which is the primary focuses of the foundation.

Consequently, our program will focus its strengths on the following groups to create social impacts in the community spaces developed by Social Organizations and supported by the system.

KIDS

Social Franchise

ADULTS

COMMUNITY

SOCIAL STRUCTURE + SOCIAL IMPACT=

SOCIAL TRANSFORMATION


PART IIPage:


1- First step for Social Impact: The Social franchise operates as an open space for the promotion of children development through technology. Within this approach, children will be promoted through technology and educational programs to reduce the Digital Gap in the world.

Participants that are part of these educational programs will be strongly encouraged to incorporate the large amount of IT learning into their work in order to insert their communities in the world.

In the social and cultural development of kids the following will be operating:- Online Social platforms- Online Search platforms- E- Learning platforms

2- Second step for Social Impact: Social franchises operating as a open community space for adult development through technology. Within this approach, adults at risk will be promoted through technological educational programs in order to reduce the Digital Gap in the world and qualify them for more technical skilled jobs that lead to economic inclusion.Participants that are part of these educational programs will be strongly encouraged to participate and incorporate the large amount of IT learning contents into their work, in order to insert their communities in the world.

- 3- Third step for Social Impact: Social franchises operating as an economic promoter’s for the community developed products. Within this approach, through the adults that are part of the program, the system will promote local products through e-commerce platforms in their communities and around the world. The idea is to provide the tools that they need for the

CONTENTPLATFORMS

SOCIAL FRANCHISE

SOCIAL FRANCHISES PROMOTING PARTICIPANT’S ACCESS TO INFORMATION

TECHNOLOGY PLATFORMS


PART IIPage:


economic promotion of what is produced in their countries. We refer to products and services such as IT Technology services provided by adults with IT Certifications.

The Social Index Foundation will provide Social Franchises with:- Global service agreements negotiated with major courier companies- Website development and integration with online commercial platforms- Online payment systems in order to charge consumers purchasing their products

At an operating level, Social franchises from all over the world publish their products and services through major commercial platforms. Referring to products, they will complete the AWB and Commercial invoice and products will be delivered worldwide with a transit time from 24hs up to 96hs.

Supporting Staff Organizations:Within the social franchises that are operating in the system, supporting staff organizations will provide assistance in specific topics to other social franchises operating in the Social Index platform.

Supporting staff organizations will provide the system with intellectual and social capital focusing on specific areas of expertise to support human development around the world. Supporting staff organizations will be able to list their needs through the community platform. For contributions channeled through the Donation marketplace platform, supporting staff organizations will promote their expertise among social franchises and agree with them on the development of a program. Having established relations with Social franchises, supporting staff organizations will be able to list their needs through the donation marketplace.

Supporting staff organizations will be able to list their needs through the volunteer category and through the technology phase. Based on the fact that most of these organizations provide professional services, listing through Volunteers programs will cover the actual fee of professional work. The

SELLERS

CUSTOMER

BUYERS

DEMAND

AUCTION WEBSITES

SELF OPERATED WEB SITES

RESELLERSE-TAILERS

SUPPLY

KAMPALA - UGANDA

CUSTOMER

SOCIAL FRANCHISES PROMOTING PRODUCTS AND SERVICES

- COMPANY -- COMMUNITY -

- SCHOOL – INDIVIDUAL -

FROM – TO ANY PLACE IN THE WORLD IN 24HS UP TO 72HSBOLIVIA ARGENTINA

DEVELOPINGCOUNTRIES

DEVELOPEDCOUNTRIES


PART IIPage:


technology phase for supporting staff organizations will be focused on providing them with the technological devices needed to perform their work. Supporting staff organizations, providing support to more than one social franchise will display on their profiles the social organizations that they are supporting. Consequently, their operations will be measured by the whole impact that they are achieving around the world through different franchises.

Contacts and workflow between social franchises and supporting staff organizations will be handled through the community platform. Through this platform participants will be able to establish relations, post their off topic needs and offers and provide expertise to other community members. Other functions incorporated into the community system will be the feedback system which provides participants with the opportunity to give points to recommend other members.

Through these operations we can observe a win – win approach between social organizations. Supporting staff organizations will receive funds for their work on specific areas. On the other hand, social franchises will receive support for their current operations in order to achieve Social Index program goals.

Who is Social Index focused on?For social organizations the system will focus strengths in:

- Social Organizations working with Kids and Teenagers: for social, cultural, and educational development.

- Social Organizations working with Adults: focused on social, cultural and employment promotion- Supporting Staff Organizations: providing assistance and guidelines, supporting others organizations

on specific topics.

SOCIAL FRANCHISES – SUPPORTING STAFF ORGANIZATIONSSOCIAL FRANCHISES IN ASSOCIATION WITH MODULAR FRANCHISES TO

SUPPORT OR EXPAND OPERATIONS

ADULTSSOCIAL

FRANCHISE

KIDS

COMMUNITYPSYCHOLOGISTS

TEAMS

MEDICAL ORGANIZATIONS

E.G. DOCTORS WITHOUT BORDERS

FAIR TRADEORGANIZATIONS

E.G.. WORLD OF GOODS


PART IIPage:


For sponsors the system will focus its strengths on:- Public Companies operating in the following sectors – check industries – through different exchanges, willing to contribute to social organizations- Private companies operating in the following sectors – check industries –, willing to contribute to social organizations- Individual contributors, willing to donate money to social organizations.

Analysis of cost, expenses and developmentCost Analysis: The Social Index Donation Marketplace presents the following costs associated to its operation:

Hosting and bandwidth costs Operation costs associated with Servers acquisition and Data processing capabilities Alexa Web services cost (for virtual presence estimation, $0.00015 per request $0.15 for 1,000

requests) Paypal – verisign certification costs Skillsoft Portal and other educational platforms Patent cost in US of “Method for the estimation of the Social Promotion and Social

Transformation performed by Sponsors and Social Organizations” Expenses:This development marks the beginning of Social Index’s operations. Consequently some expenses will be charged to this module but they are going to be used by all our operations and networks:

Registration of the company in Europe, US and Argentina. Office Renting, Furniture and computer systems Personnel hiring expenses – e.g.: Medical tests – Legal and accounting expenses

Development:Short term development (3rd month):

Development of basic operations – registration, listings – Categories administration of Social Franchises, Companies and Stock Exchanges. Alexa web services integration Capital IQ and Hemscott data financial information incorporation Paypal Verisign integration of online payment services Omidyar community open source software integration to develop the community platform Integration with Ebay web services using rest protocol in order to request information of Social

organizations’ e-commerce performance

Mid term development (6th month) Educational integration with major E-Learning systems in order to support the digital gap

reduction program. Integrations with major e-commerce companies and fair trade organizations in order to support

the fundraising activities of Social Franchises Platform translated to different languages – during the first 6 months we plan to translate into

10 languages –


PART IIPage:


The Social Index Index : The Social Index Foundation is involved in the promotion of community development through technology. Social Index provides Social Organizations with a program for Digital Gap Reduction in order to create a more equal world. To support this idea, Social Index provides a valuable donation platform to establish relationships between sponsors and social organizations based on the social promotional ratio that they display for a particular community.

For Sponsors supporting Social Organizations, Social Index recognizes them by creating an Index that display their contributions – through donations and infrastructure – for human development around the world.

At an operating level, Social Index offers Sponsors the possibility to collect points based on their current infrastructure plus the economic contributions that they provide to a particular community. We define this measure as the Social promotion ratio that they display.

The system shows the following characteristics:- Sponsors receive an infrastructure ratio number, based on the infrastructure that they display for a particular community.- Sponsors receive points for each participation activity that they performed with local franchises.- The system creates an Index, displaying their contributions multiplied by the infrastructure ratio that they have for each particular community.

At an analytical level, The IT Social Index estimates Sponsors social promotion actions impact, taking into consideration two ratios:

- Infrastructure Ratio, measured by:Sponsors market capitalizations, compared with the whole market capitalization of their industry.Sponsors virtual presence, based on the amount of visits that they receive through their websites.Sponsors countries presence, based on the amount of Countries where they display physical or virtual operations.Sponsors language presence, based on the amount of languages that they display and cover with their websites.

- Participation Ratio, measured by:The contributions that they offer to support social franchises in their local communities.

These two sources of information let us create a ranking in order to estimate the social promotion performed by Sponsors from all over the world. These estimations will provide community forces with the necessary information to understand which companies and individual contributors are contributing the most to their people in order to support them at a macroeconomical, micro economical and multi governmental level.

Logic:The Social Index Foundation begins with the premise that technology intensive companies are contributing to the human development in the communities where they operate. We define the social promotional ratio of a Sponsor as the amount of contributions that they provide to social organization, plus the infrastructure that they already develop for a particular community.

The infrastructure ratio is important for Companies because this estimation allow community forces to know the efforts that these sponsor are doing in the communities where they operate. These efforts that Sponsors generate to support and expand operations decreased the amount of resources that a human needs to develop their knowledge and integration throughout the world.


PART IIPage:


The infrastructure ratio is estimated taking into consideration four variables. Each variable will differ in their weighting based on the industry of analysis. – For details check process description section –

How does it work?

Social Index provides Sponsors with a Social Index that displays their contributions in their communities and throughout the world. Social Index index provides a ranking measuring Sponsors social promotion actions, based on donation amounts multiplied by the social promotion ratio that they generate in their own communities and for the world.

Sponsors –physical or legal person – participate in the system contributing to social franchises through economic donations in order to support their operations. Sponsors contribute with money using online payments services and money transfers. Sponsors can contribute choosing between two methods:Manual selection, choosing each Social organization where they want to contributeAutomatic selection where the system chooses between social organizations selecting the ones that pay greater amounts of points for that particular Sponsor based on the multiplication variables

These contributions and the multipliers will affect Social Index social index and the ranking position that each contributor will display. Sponsors will receive a formal recognition for each contribution they performed through the system. These recognitions are delivered in two formats, digital format and print format – shipping charges will apply- and will provide Sponsors the possibility to promote their social promotional actions internally for their employees and externally for their investors.

Physical or Legal persons that need to declare their contributions to the IRS – or similar local tax agency – will receive a certificate showing their declarations. Social Index plans to register operations in US and Europe, covering 32 countries through this action.

The Social Index Social Index groups sponsors into three categories creating the following indexes:Public companies:

MARKET CAP.(SPONSOR CAP./ TOTAL CAP. OF

THE INDUSTRY)

VIRTUAL PRESENCE(BETTER POSITION PAYS MORE)

LANGUAGE PRESENCE(< LANGUAGES PAYS MORE)

{BASED ON POPULATION}

COUNTRY PRESENCE(< PRESENCE PAYS MORE)

MULTIPLIER=

2.77

ESTIMATION SPONSORSMULTIPLIER

MULTIPLIER = SPONSOR INFRASTRUCTURE AND MARKET PRESENCE FOR A PARTICULAR LOCATION

MULTIPLIER=

2.81


PART IIPage:


Greater contributors worldwide for human development Greater contributors on each sector / industry for human development Greater contributors on each country for human development Greater contributors on each sector / industry for human development on each country Greater contributors on each stage Greater contributors on each field (e.g.: computers)

Private companies Greater contributors worldwide for human development Greater contributors on each sector / industry for human development Greater contributors on each country for human development Greater contributors on each sector / industry for human development on each country Greater contributors on each stage Greater contributors on each field (e.g.: computers)

Individual Contributors Greater contributors for human development worldwide Greater contributors for human development on each country

The Social Index Social Index groups Social Franchises into two categories creating the following indexes:Social Franchises:

Greater contributors in social transformation worldwide, for human development – Program accomplishment multiplied by the amount of people socially promoted–

Greater contributors in social transformation on each country for human development

Supporting Staff Organizations: Greater contributors in social transformation worldwide, for human development on each field Greater contributors in social transformation on each country, for human development on each

field Greater contributors on each stage (e.g.: Fundraising / IT Professional services)

Index Construction:The Social Index Index’s core universes are the Technology intensive companies operating through different markets around the world. The Social Index includes large and small capitalization companies listing their securities at the most important stock exchanges. The Social Index also includes large and small private companies operating through the industries that are covered in our system. Finally, Individual contributors willing to contribute to social franchises in their communities are included in the Social Index displays in their own categorization.

Public Companies involved beyond specific thresholds in alcohol, tobacco, gambling, firearms, nuclear power and military weapons – not being our focus – are not eligible to be part of the index.

Who is Social Index Social Index focused on?

- Public and Private Companies willing to estimate the current penetration of their Social responsibility actions in the communities where they operate. On the other hand these estimations provide them with information to support their operative expansions decisions –based on the infrastructure estimation performed by the system – in order to allocate resources with the idea to impact in the greater amount of people around the world.


PART IIPage:


- Long term Investors, willing to invest in Technology Intensive Companies displaying an important social promotional ratio in their communities.

- Community actors, institutions and multilevel governance willing to support technology intensive companies that are providing the greater social impact in their areas.

Objectives

Short term objectives: Social Index development marks the beginning of the social promotion estimation performed

by Sponsors. For public sponsors the system plans to incorporate technology intensive companies with securities listed in major exchanges in the US and Europe

During the first quarter we plan to incorporate Asia, Pacific, Central America and South America stock exchange markets in order to cover Public companies from developing countries.

Mid term objectives: During the second quarter we plan to incorporate the estimation of social responsibility

performed by private companies around the world. These companies will be estimated based on the infrastructure that they display on variables such as language and virtual presence.

Africa Stock exchanges are planned to be incorporated during the sixth month of operation.


PART IIPage:


The Social Index Exchange Traded Fund:

The Social Index Exchange traded fund is our security that tracks our Social Index, focusing on Public technology intensive companies operating nowadays through different exchanges around the world. By owning our ETF Security, investors will be able to diversify their portfolio in different technology intensive companies displaying the higher ratio of human development contribution around the world.

The Social Index ETF provides a structure that allows investors a diversified, low cost, low turnover index investment. IT ETF’s also allow investors to trade certain industries, countries, and indices that may not be as easily available in the fund or stock markets. The Social Index ETF is planned to be managed and marketed by Barclays Global Investors through their I-Shares division.

Funds to support and expand The Social Index ETF will come from:- Long term Investors, willing to invest in Technology Intensive Companies displaying an important social promotional ratio in their communities.- Money retained at the system from public sponsors contributions to social franchises.

Through this approach, Public companies contribution will remain in the system based on the program achievement that social franchises performed around the world. When Social franchises achieve 100% of program goals, the money is transferred from the ETF to the Social Organization.

The Social Index ETF provides the Foundation with a perfect tool to maintain inside the system, the money retained from Social Organizations. Through the ETF we can generate a benefit for Sponsors – with the higher ratio of Social Responsibility – receiving funds channeled through major stock exchanges to support their stocks and Social Franchises receiving long term benefits based on the development of the stocks operating inside the index.

How does it work?

The Social Index Foundation will provide Barclays Global Investors, with all the information about the top 100 public companies listed in our ranking. This selection will be based on the Human development impact that they are generating around the world. With this information, Barclays Investors will be able to generate a security in order to track our Social Index focusing on public technology intensive companies.

The Social Index Foundation will finance that index with the money retained from public sponsors contributions and with the assets that the Foundation has. For Foundation’s assets we refer to the money raised between investors – Foundation investors –, benefits coming from stocks that we acquire on major stock exchanges to support technology intensive companies, and incomes that come from our donation marketplace platform.

Objectives

The Social Index Exchange Traded Fund objective is to become the de facto standard for Social Responsibility investment, focusing on Technology intensive companies that are operating through major stock exchanges around the world.

The competitive advantages of The Social Index Exchange Traded Fund are: Provide investors with a diversified basket of stocks coming from a variety of technology

intensive companies, with the ability to purchase them with low trading costs. Support companies that are displaying the higher amount of human development around the

World.Strategy:


PART IIPage:


Market definition :

For the Social Index Donation and Community platform, the industry in which we will operate is Internet content providers, within the technology sector, focusing on listings and classifieds.

For The Social Index Educational program, the industry in which we will operate is the Educational and Training Services, within the services sector, focusing on Information technology topics.

For The Social Index ETF module, the industry in which we will operate is Closed – End Fund – Equity, within the financial sector, making social responsibility investment our focus. For further information on each industry of competitors see: www.forbes.com -

Strategic Vector:

Social Index’s strategic vector focuses on the diffusion of participants’ social responsibility proposals throughout world, based on the social promotion and social transformation position estimated by our system.

For Social Franchises, the estimation of the structural level that they achieve and the social impact that they generate. We define both ratios combined as the social transformation generated by a Social Organizations.

For Sponsors, the estimation of the infrastructure level of their operations and the participation level through contributions that they display in each community in which they are operating. We define both ratios combined as the social promotion generated by a Sponsor.

These two estimations will create ratios impacting their performance and ranking position displayed in a Social Index.

Social Index's fundraising focus:Funds come through:

Commissions paid by Social Franchises for each contribution that they receive – 2% of the amount –

Interest rates paid by brokers and banks for the money retained in the system. Commissions by Index generation impacting on financial systems. Advertising and affiliates programs. Classified services in the community platform. Member donations channeled directly to The Foundation

Cooperative and complementary companies.

The analysis of cooperatives and complementary organizations will be made for each one of the modules where Social Index operates, with the purpose of clearly determining each scene.

Educational program and Donation marketplace platform:The Complementary companies are:

E Learning platforms: Skillsoft, Educ.ar, ITT Technical Institute Online payment services: Paypal Verisign Web Ranking and Financial Systems: Capital IQ, Hemscott Data, Alexa web services

Cooperative companies are:

http://www.forbes.com/


PART IIPage:


Online stores: Yahoo, Ebay Stores. Courier companies: FedEx, UPS, DHL. Social Networks: Myspace, Flickr – image hosting and tags redirecting consumers to Social

Index - , Facebook.

The Social Index ETF module:The Complementary companies are:

Barclays Global Investors through their I-shares division. NASDAQ Index for Social Responsibility.

Cooperative companies are: Financial platforms: finance.google.com & yahoo finance. Collection and delivery platforms: Bloomberg, Reuters, Dow Jones.

Strategic Pushes

These analyses of strategic pushes will be made for each one of the modules where Social Index operates, with the purpose of clearly determining each competitive scene.

Educational program and Donation marketplace platform For this module strategic pushes will be focused on:

Product: Basic benefit of the product: Donation platform in order to support Social Organizations. Expected product: Educational platform incorporating a donation marketplace in order to

support operations. Incremental product: International educational platform facilitating social organizations and

sponsors to promote community development through technology Potential product: Complete system to manage social promotion actions performed by

sponsors and social transformation actions performed by Social Organizations

IT Educational program and Donation marketplace platform module plans to develop the following functionalities:

Analysis features:

Estimation of the Social Transformation ratio that a Social Organization displays in a particular community.

Estimation of the Social promotion ratio that a Sponsor displays in the communities where it operates and lives.

Listing Creation:

Basic listing features – Summary, Category, Group, Endorsement - Integrated photo - video gallery Bulk image upload

Educational Platform:


PART IIPage:


Integrated Skillsoft Portal with Social Index look & feel Social Index Library and education news Books 24x7 Search and Category feature Related Resources Different Level of access displaying different contents for each User in the system Goal and completion day of courses defined by the training specialist

E-Commerce:

Integrated listing for products sold by Social Organizations through their online store Full support of eBay special listings features Multi-channel monitor screen 5 MB image hosting per product Current status on all sales matched to your ID number One checkout system for all sales channels Track all your orders and shipping in one place Automatic printing of domestic and international shipping labels of multiple carriers Easy access to buyers’ tracking links and order statuses Ability to create an inventory item once and automatically feed it to multiple channels Robust image management Real-time inventory counts that prevent underselling or overselling products

Automated customer communications

Automated notifications e.g., winning bidder, item shipped, payment received, feedback, thank you

Automated reciprocal feedback posting Automated non-paying bidder facilitation to ensure fee credits Second Chance Offers to automatically generate more sales Support for both eBay's Unpaid Item Process and Item Not Received consoles

Social Organization relationship manager

Social Organization’s Blog Campaign manager: a feature of this position is to carry out email marketing campaigns

towards the registered community of Sponsors supporting a particular organization or group Digital Recognition manager: a feature of this position is to carry out formal recognitions for

each contribution that a sponsor performs through the system E-cards manager allowing Social Organizations to sell their personalized cards

Community platform – a space for:

Share news and information Discuss different ideas and viewpoints; Collaborate on documents and post announcements Advertise off topic donations


PART IIPage:


Promotion: IT Educational program and Donation marketplace platform module promotion will be focused on establishing relations with major technology companies. We plan to develop our platform using current developments made by technology intensive companies. Consequently, we plan to receive support promoting our Organization from these online platforms operating with us. For these kind of integrations, online platforms offering the best promotional & support deals, plus strong web services integration will be elected. Social Index, being the first Social responsibility platform developed for the technology sector, expects promotion from major companies and incumbents in these sectors.

Social Index promotions will be oriented to Social Organizations with a high level of development and structure operating worldwide. We will offer them the opportunity to be the first social franchise in each country that Social Index will launch its operations, providing resources and training.

We expect public relations promotion from international media companies focusing on new market trends, such as trend watching.com or Fast Company.

Direct marketing promotional efforts focus on large companies, and on incorporating them as full contributors inside Social Index platform. Contacts will be made with the corporate responsibility area of each company displayed in the Social Index, offering them information about our operation and a list of social organizations operating in their areas.

2008 Budget:The most important part of our budget is focused on marketing promotional efforts between large companies operating worldwide and displayed in our social index. Another promotional strategy demanding important resources will be the support of social organizations established as the first social franchise in a particular country. Social Index will finance Build and Technology steps of the program directly to these social organizations.

For the period 2009/2011:

Social Index increases direct support to social organizations providing them with resources channeled directly through our organization. These resources will be channeled to areas or countries with a lower development of public companies and sponsors. Through this action we plan to reduce the low sponsoring impact that these areas will receive based on the lower infrastructure ratio that they display for sponsors, in comparison with other places.

It is important to clarify that the experience of Social Organizations and Sponsors at Social Index will be the best promotional activity we will have, compared with other promotional strategies.

Market:Social Index focuses operations in US and Europe during the beginning of our operations. This decision is based on language and Educational contents incorporation in the platform. During the second quarter we plan to incorporate Languages and Educational contents for Central and South America. Finally we plan to incorporate Asia, Pacific and Africa countries in the first year of operations.

Positioning: Social Index positioning will be focused on the estimation of the Social Responsibility displayed by large technology intensive companies. The idea is to become the de facto standard for Social Responsibility in this area.Public:


PART IIPage:


Social Organization working for the development of Children, Adults and Communities around the world.

Sponsors – Public Companies, Private Companies and Individuals – willing to support the communities where they operate and live.

Social Index Social Index and Exchange Traded Fund

For this module strategic pushes will be focused on:

Product: Basic benefit of the product: Social Index displaying greatest contributors from around the

world. Expected product: A system to appreciate a company’s social promotion actions – through a

systemic approach – with the idea to support them in expanding their operations Incremental product: Social Index establishing a relation between their economic donations

and their commercial objectives developing a better social responsibility allocation of resources Potential product: The creation of a Security that will track our social responsibility Index

trading like a stock on an exchange through an Exchange Traded Fund

Promotion: Social Index Social Index and Exchange Traded Fund module plans to be marketed and promoted by Barclays Global Investors through their I-Shares division. Social Index plans to promote the Exchange traded fund results through the community of sponsors operating through our platform, providing them with a weekly newsletter. Social Index security will be promoted by major financial platforms such as google and yahoo finance, plus other companies like Reuters and Bloomberg.Social Index plans to create a badge – widget that could be displayed by major companies tracked by our Security. Companies will be able to display that badge in their corporate page or Social Responsibility webpage showing their infrastructure ratio and contributions around the world.

Market:Social Index will focus operations in US and Europe at the beginning of our operations. This decision is based on language and Stock Exchange incorporation in the platform. During the second quarter we plan to incorporate the Stock Exchanges of Asia, Pacific, Central and South America, plus the incorporation of 5 new languages. Finally we plan to incorporate the African Stock exchanges during month 6th.

Positioning: Social Index positioning will be focused on the estimation of the Social Responsibility displayed by large technology intensive companies. The idea is to become the de facto standard for Social Responsibility in this area.

Process:The Social Index Foundation will provide Barclays Global Investors, with all the information about the top 100 public companies listed in our ranking. This selection will be based on the Human development impact that they are generating around the world. With this information, Barclays Investors will be able to generate a security in order to track our Social Index, focusing on public technology intensive companies.

Public: Long term Investors, willing to invest in Technology intensive companies displaying an important

social promotional ratio in their communities.


PART IIPage:


Community actors, institutions and multilevel governance willing to support technology intensive companies that are providing the greatest social impact in their areas.

Competitive advantages of Social Index’s moduleAll modules at Social Index show the estimation of the social position of participants, as the most important competitive advantage of our Organization, compared to other Non profits operating on the internet.

These social positions show an important utility for the Social Responsibility sector, through these estimations we will measure and let community forces understand, the level of human development and promotion achieved by their people, based on the infrastructure investment and economic contributions made by For profit organization operating in their societies. Through these three modules we can provide all participants with tools to achieve our vision, make knowledge accessible worldwide, estimate Social positions of participants and facilitate the process of reducing the digital gap and promote community development in each country around the world.

For the Non Profit community: Offering a standardized program providing social organizations with a planned amount of

resources, taking into consideration what is necessary in order to support the activities needed to decrease the digital gap and contribute to community development.

Offering a platform in order to provide social organizations with a space to establish relationships with sponsors from their communities in order to receive support for their current programs

For the Sponsors Community: Offer a system to estimate the level of infrastructure and participation in order to create a

ranking to measure the level of social promotion generated by each company. Provide tools to Sponsors in order to increase the penetration of social responsibility actions

performed, managing their contributions through a single source

For the Investor Community: A ranking that will help investors committed to social responsibility to allocate their resources

and investments to the most successful contributing companies. Provide tools to Investors to estimate the value of a company focused more on the long term

impact that these companies create, instead of measuring a company based on a particular macroeconomic, micro economic or governmental decision.

- ORGANIZATIÓN- PERSONNEL - PROCESS

SOCIALINDEX.ORG Section:PART III

Page:

48PROJECT “CONTRIBUTING TO CREATE A MORE EQUAL WORLD” Date: 2007

ORGANIZATION

Social Index structure:

Social Index plans to register operations on three major markets, covering through this action 32 countries in the world.

- Social Index’s headquarter will be located in the U.S.; for the world, Social Index will be an American Not for profit Organization. We plan to establish our operation in the U.S. based on these needs:

We must find a market where we can develop our legal and administrative operations with stability.

The U.S. shows greater development of social promotion areas such as fundraising and donations when compared with other countries. As an example, Contributors – physical or legal persons - can present donation certificates to their local Tax agencies in order to pay less tax for each economic contribution that they perform through the system.

- Social Index operations and technical personnel will be located in Argentina. This decision appears based on operational cost and present salaries in this country. Argentina shows a good relation between IT professional level, and salaries paid in this market. Through this decision, we will pay 1/3 of the salaries paid in other markets, like US or Europe.

HEADQUARTERS:LEGAL / ADMINISTRATIVE REGISTRATION AS A NON PROFIT CORPORATION501 (C3) TAXABLE CONDITION REGISTRATION

SOCIAL INDEX [US]

OPERATIONS:ENGINEERING DEPT.MARKETING DEPT.OPS AND COMMUNITY DEVELOPMENT DEPT.

YEAR 1:LEGAL / ADMINISTRATIVE/ ACCOUNTING REGISTRATION AS A NON PROFIT CORPORATION

SOCIAL INDEX [EUROPE]

SOCIAL INDEX [ARGENTINA]



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Organization

Social Index displays different coordination mechanisms and organizational system, working in our foundation. We can group positions into the following categories:

- Professional Organization: we can find standardized professional skills and norms among the following positions. Professionals in the operating core such as Programmers, Accountants and Tech Writers inside our organization, rely on roles and skills learned from years of schooling and indoctrination to coordinate their work.

- Adhocracy: the following positions will work through Mutual adjustment.Community developers, Project Managers and training specialists based on the creativity applied to incorporate learning contents for different languages and cultures, plus the incorporation of new worldwide communities in order to broaden our program penetration.

- Administrative, accounting and billing areas will follow standardized procedures and outputs. In the beginning this area will be handled by external vendors.

Technology

Social Index focuses on developments by using PHP 5.0 and Postgre databases. These two open source projects show the greatest amount of functionalities with the lower cost in the market. Postgre Databases offers support and scalability to rapidly broaden operations and even migrate to other commercial platforms such as Oracle 10g. Social Index community area uses a platform developed by Omidyar networks, using different open source tools.

Culture

"The Social Index Foundation, contributing to create a more equal world."

Social Index hiring policy favors passion, creativity and ability over experience. We believe in promoting diversity in our workplace and in our thinking. We value the contributions and perspectives of all employees regardless of race, gender, culture, religion, age, nationality, disability, or sexual orientation. We will strive in our workplace practices to deal with our employees, customers, and suppliers in a fair and ethical manner.

Social Index remains committed to upholding Equal Employment Opportunity and Affirmative Action goals in every aspect of the employment process. Some people wonder what the words "Affirmative Action" mean. To put it plain and simple, Affirmative Action is a set of positive steps that employers use to promote equal employment opportunity and to eliminate discrimination.

Last but not least, The Social Index program limits its coverage to IT Educational programs and E-commerce promotion, for other kinds of educational or cultural topics are not part of our focus. Consequently, we are open to all social organizations no matter what kind of religious, educational or political vision they profess. Employees, shareholders and the board of advisors must be committed to this idea. Any failure to comply with this policy may result in disciplinary action, up to and including termination.



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ORGANIZATIONAL CHART

job description:

Job description based on Essential responsibilities and knowledge requirements are defined in the people manual of the organization for each position.

DIRECTOR

MARKETING ENGINEERING COMMUNITY ADMINISTRATION

SR. TECH WRITER

PROJECT ENGINEER

PROGRAMERANALYST

DESIGNER

PRODUCT MANAGER

PR SPECIALIST

BUSINESS MKTANALYST

ACCOUNTANT

SR. ACCOUNTING

CLERK

ACCOUNTING CLERK

COMMUNITY MANAGER

COMMUNITY MODERATOR

EDUCATIONALMANAGER

TRAINING SPECIALIST

IT / TESTINGDEPLOY

E-PROCUREMENT

MANAGER

CUSTOMS / DISTCOORDINATOR

TELEPHONE MKT REP.



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STAFFING PLANStaffing Plan Annual Staffing Staffing Staffing Staffing Staffing Staffing Staffing Staffing

Salary Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2 Year 2

Engineering

Engineering Manager $ 53,215 - - - 1 1 1 1 1

Programmer/Analyst $ 27,018 4 4 5 5 7 7 7 7

Project Engineer $ 33,516 1 1 1 1 1 1 1 1

Sr Tech Writer $ 33,516 - - 1 1 1 1 1 1

Designer $ 22,709 2 2 3 3 3 3 3 3

Assoc Programmer $ 14,364 - - - - - - - -

Total Eng 7 7 10 11 13 13 13 13

Hours Qx 3,360 3,360 4,800 5,280 6,240 6,240 6,240 6,240

Marketing

Mgr Marketing $ 40,972 - - 1 1 1 1 1 1

Product Manager Mkt $ 33,516 1 1 2 2 2 2 2 2

Assoc Business/mkt

Analyst $ 17,647 - - 1 1 2 2 2 2

PR Specialist $ 26,266 - - 1 1 1 1 1 1

Telephone Mkt Rep $ 15,971 - 1 1 2 2 2 2 2

Total Mktg 1 2 6 7 8 8 8 8

Community

Community Mgr. $ 35,636 - 1 1 1 - - 1 1

Community Mod. $ 30,301 - 1 2 2 2 2 2 2

Training Specialist $ 30,301 - 2 2 3 4 4 4 4

$ - - - - - - - - -

- 4 5 6 6 6 7 7

General & Admin

Director $ 31,200 1 1 1 1 1 1 1 1

E-Procurement Mgr. $ 35,636 - - - 1 1 1 1 1

Accountant $ 20,383 - 1 1 1 1 2 2 3

Sr Accounting Clerk $ 14,501 1 1 1 2 3 3 3 3

Accounting Clerk $ 12,175 - - 2 3 3 4 4 4

Invoicing Agent $ 12,175 - - 1 2 2 2 2 2

HR Representative $ 22,709 - - - 1 1 1 1 1

Customs Coordinator $ 15,971 - - 1 1 1 1 1 1

Total G&A 2 3 7 12 13 15 15 16

TOTAL EMP. 10 16 28 36 40 42 43 44



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SALARY STRUCTURE:

GRADE LEVEL JOB TITLE EFF

DATEMINIMUM

US GROSSMID POINT US GROSS

MAXIMUM US

GROSS

MAXIMUM US

GROSS PER YEAR

ARGENTINA 1 Available 1-Dec-07 $735.30 $969.00 $1,202.70 $8,823.60 2 Available 1-Dec-07 $820.80 $1,054.50 $1,288.20 $9,849.60

2Receptionist (BIL) 1-Dec-07 $820.80 $1,054.50 $1,288.20 $9,849.60

3Data Entry Oper 1-Dec-07 $877.80 $1,151.40 $1,425.00 $10,533.60

5 Service Agent 1-Dec-07 $1,014.60 $1,368.00 $1,721.40 $12,175.20 5 Customer Rep 1-Dec-07 $1,014.60 $1,368.00 $1,721.40 $12,175.20

5Accounting Clerk 1-Dec-07 $1,014.60 $1,368.00 $1,721.40 $12,175.20

5 Invoicing Agent 1-Dec-07 $1,014.60 $1,368.00 $1,721.40 $12,175.20 5 Customs Agent 1-Dec-07 $1,014.60 $1,368.00 $1,721.40 $12,175.20

7Sr Service Agent 1-Dec-07 $1,208.40 $1,630.20 $2,052.00 $14,500.80

7Sr Customer Rep 1-Dec-07 $1,208.40 $1,630.20 $2,052.00 $14,500.80

7Sr Accounting Clerk 1-Dec-07 $1,208.40 $1,630.20 $2,052.00 $14,500.80

7Sr Invoicing Agent 1-Dec-07 $1,208.40 $1,630.20 $2,052.00 $14,500.80

7Sr Customs Agent 1-Dec-07 $1,208.40 $1,630.20 $2,052.00 $14,500.80

8Secretary (BILINGUAL) 1-Dec-07 $1,330.95 $1,778.40 $2,225.85 $15,971.40

8Telephone Mkt Rep 1-Dec-07 $1,330.95 $1,778.40 $2,225.85 $15,971.40

8Customs Coordinator 1-Dec-07 $1,330.95 $1,778.40 $2,225.85 $15,971.40

8Assoc Accountant 1-Dec-07 $1,330.95 $1,778.40 $2,225.85 $15,971.40

8Associate HR Representa 1-Dec-07 $1,330.95 $1,778.40 $2,225.85 $15,971.40

8Assoc Marketing Spec 1-Dec-07 $1,330.95 $1,778.40 $2,225.85 $15,971.40

9Assoc Financial Analyst 1-Dec-07 $1,470.60 $1,938.00 $2,405.40 $17,647.20

9Assoc Programmer 1-Dec-07 $1,197.00 $1,539.00 $1,938.00 $14,364.00

9 Assoc Designer 1-Dec-07 $1,470.60 $1,938.00 $2,405.40 $17,647.20

9

Assoc Business/mkt Analyst 1-Dec-07 $1,470.60 $1,938.00 $2,405.40 $17,647.20

10 Accountant 1-Dec-07 $1,698.60 $2,234.40 $2,764.50 $20,383.20 11 Sr Accountant 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $22,708.80



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11 Designer 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $22,708.80

11HR Representative 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $22,708.80

11 Marketing Spec 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $22,708.80

11Marketing Analyst 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $22,708.80

11Community Mod. 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $30,301.20

11Training Specialist 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $30,301.20

11Programmer/Analyst 1-Dec-07 $2,251.50 $2,508.00 $3,363.00 $27,018.00

11 Tech Writer 1-Dec-07 $2,251.50 $2,508.00 $3,363.00 $30,096.00

11Telecomm Specialist 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $22,708.80

11Lan Administrator 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $22,708.80

11Business Analyst 1-Dec-07 $1,892.40 $2,525.10 $3,157.80 $22,708.80

12Sr Financial Analyst 1-Dec-07 $2,188.80 $2,912.70 $3,642.30 $26,265.60

12 PR Specialist 1-Dec-07 $2,188.80 $2,912.70 $3,642.30 $26,265.60

12Product Manager Mkt 1-Dec-07 $2,793.00 $3,420.00 $4,047.00 $33,516.00

12

Sr Programmer/Analyst 1-Dec-07 $2,793.00 $3,420.00 $4,047.00 $33,516.00

12 Sr Tech Writer 1-Dec-07 $2,793.00 $3,420.00 $4,047.00 $33,516.00

12Sr Industrial Engineer 1-Dec-07 $2,188.80 $2,912.70 $3,642.30 $26,265.60

12Sr Telecom Spec 1-Dec-07 $2,188.80 $2,912.70 $3,642.30 $26,265.60

12Sr Lan Administrator 1-Dec-07 $2,188.80 $2,912.70 $3,642.30 $26,265.60

13Financial Advisor 1-Dec-07 $2,502.30 $3,357.30 $4,212.30 $30,027.60

13Project Engineer 1-Dec-07 $2,793.00 $3,420.00 $4,047.00 $33,516.00

13

Telecom Systems Advisor 1-Dec-07 $2,502.30 $3,357.30 $4,212.30 $30,027.60

13Community Mgr. 1-Dec-07 $2,969.70 $3,858.90 $4,753.80 $35,636.40

14E-Procurement Mgr. 1-Dec-07 $2,969.70 $3,858.90 $4,753.80 $35,636.40

15 Mgr Marketing 1-Dec-07 $3,414.30 $4,434.60 $5,460.60 $40,971.60

15Engineering Manager 1-Dec-07 $4,434.60 $4,845.00 $5,700.00 $53,215.20

16 1-Dec-07 $3,921.60 $5,101.50 $6,270.00 $47,059.20 17 1-Dec-07 $3,921.60 $5,101.50 $6,270.00 $47,059.20 19 Director 1-Dec-07 $0.00 $2,600.00 $0.00 $31,200.00



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BUSINESS PROGRAM:ID TASK NAME DURATION START DATE DUE DATE PREDECESORS

1Workstation acquisition and Server rental 1 days 8-Aug-07 8-Aug-07

2Adjustments of servers and workstations 1 days 9-Aug-07 9-Aug-07 1

3Functional analysis, architectural design and documentation 7 days 22-Jul-07 29-Jul-07

4 Project Management 6 days 29-Jul-07 4-Aug-07 3

5Development of basic operations – registration, listings – 42 days 29-Jul-07 10-Sep-07 1,3

6 Development of the Social Index 21 days 11-Sep-07 30-Sep-07 57 Incorporation of the company 2 day 2-Oct-07 3-Oct-07

8Design and implementation of User interfaces – Alpha – 68 days 12-Aug-07 20-Oct-07 5,6

9 Community Platform 10 days 20-Oct-07 30-Oct-07 5

10Web services integration with Alexa Web Services 3 days 1-Nov-07 3-Nov-07 5

11

Web services integration with online payment service Verisign-Paypal 10 days 1-Nov-07 10-Nov-07 5

12 Testing & QA 3 days 10-Nov-07 13-Nov-07 1113 Deployment & stabilization 3 days 13-Nov-07 16-Nov-07 12

14Launch of the Marketplace Donation platform – Beta - 1 day 16-Nov-07 16-Nov-07 13

15Administration of international legal requirements 1 days 16-Nov-07 16-Nov-07

16 Office rental 1 days 1-Dec-07 1-Dec-07 717 Hiring of personnel 1 days 1-Dec-07 1-Dec-07 7

18Integration with Financial Platforms - to be defined - 10 days 1-Dec-07 10-Dec-07 14

19Educational – Skillport platform integration 15 days 1-Nov-07 15-Nov-07 14

20IT Content categories administration - Skillsoft platform 15 days 1-Nov-07 15-Nov-07 19

21 Customization of User interfaces 5 days 10-Nov-07 15-Nov-07 2022 Testing & QA 3 days 15-Nov-07 18-Nov-07 2123 Deployment & stabilization 3 days 18-Nov-07 21-Nov-07 22

24Launch of the Social Index Educational Platform 1 day 21-Nov-07 21-Nov-07 23

25Functional analysis, architectural design and documentation 5 days 22-Nov-07 27-Nov-07

26 Project Management 2 days 28-Nov-07 30-Nov-07 25

27

Web Services integration with Ebay – User profile and Get Search Results 7 days 1-Dec-07 7-Dec-07 26

28Integration with a Multi-channel selling platform 28 days 7-Dec-07 5-Jan-08 27

29Design and implementation of User interfaces 5 days 5-Jan-08 10-Jan-08 28

30Integration of Video Functionalities 10 days 10-Jan-08 20-Jan-08 29

31 Social Organization Blogs 20 days 20-Jan-08 10-Feb-08 30



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32 E-Cards 15 days 10-Feb-08 25-Feb-08 3033 Campaign Manager 15 days 10-Feb-08 25-Feb-08 3034 Testing & QA 3 days 25-Feb-08 28-Feb-08 3035 Deployment & stabilization 4 days 28-Feb-08 3-Mar-08 31,32,33,34

36

Integration with Barclays systems in order to provide top 100 companies 30 day 8-Jul-08 8-Aug-08 35Data Capture and Sitemap generation in order to estimate Sponsors infrastructure ratio



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PROCESS DESCRIPTION

The logic of the system relates generally to techniques of estimation in Social Responsibility performed by Organizations from all over the world. More particularly, it relates to a method of Social promotion and Social transformation estimation, based on a system that analyzes the infrastructure level and contributions generated by Sponsors on each community where they operate.

The present method shows an important utility for Sponsors. This information will give them the chance to enhance the social impact that they create, establishing a relation between their economic donations and their commercial objectives developing a better social responsibility allocation of resources.

At an analytical level, the system estimates Sponsors Infrastructure Ratio, measured by:- Sponsors Market Capitalizations, compared with the whole market capitalization of their industry.

- Sponsors virtual presence, based on the amount of visits that they receive through their websites.

- Sponsors countries presence, based on the amount of Countries where they display physical or virtual operations.

- Sponsors language presence, based on the amount of languages that they display and cover with their websites.

The following variables are taken into consideration to estimate contributors’ infrastructure ratio:

VARIABLES TAKEN INTO CONSIDERATION TO ESTIMATE INFRASTRUCTURE RATIO

PUBLIC COMPANIES:

MARKET CAP + VIRTUAL PRESENCE + COUNTRY PRESENCE + LANGUAGE PRESENCE

PRIVATE COMPANIES:

VIRTUAL PRESENCE + LANGUAGE PRESENCE

INDIVIDUALS:

COUNTRY PRESENCE + LANGUAGE



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Public Companies:For Public Companies the following variables are taken into consideration:Market Capitalization, Virtual presence, Language presence and Country Presence are the four variables to compound the infrastructure multiplier for each Sponsor.

Market Capitalization:Beginning with the premise that Technology intensive companies contribute with their infrastructure to human development, Market capitalization displays an order based on the importance the financial community has assigned to a particular organization.

Despite the fact that the market capitalization estimation for Global Companies doesn’t display a direct relation with a particular community, we can establish a direct relation with the success and acceptance that their proposal has all over the world.

Consequently, Market capitalization is the first measurement that we take into consideration in order to define the infrastructure ratio of a particular sponsor in a community. Market capitalization will take into consideration the market capitalization of the sponsor, divided by the market capitalization of the whole industry.

Virtual Presence:The second measure of analysis to estimate the infrastructure ratio of a Sponsor is focused on the amount of visits that their web sites have from around the world. This estimation measures the virtual presence penetration that each company has for the world and for a particular country.

The system weights this estimation using different approaches for each economic sector. This estimation has a bigger impact for the Computer sector, based on the fact that their operations are mainly distributed by digital channels. Impact for the transportation and Banking sector is in the mid region, based on the fact that virtual presence is of some importance for their operations. For the telecommunication sector the impact is low, based on the fact that for their operations virtual presence is not so important.

Languages:The third measure of analysis to estimate the infrastructure ratio of a Sponsor is focused on the amount of languages that they provide to consumers operating with their systems.

This analysis takes into consideration the amount of languages calculated by the population around the world that officially speaks that language. Languages weight in different ways for the system. The more languages a sponsor provides in their operations, the more people can be included and consequently more human development can be generated.

This estimation has a bigger impact for the Computer sector, based on the fact that their operations are mainly distributed by digital channels to different countries. Impact for the transportation and Banking sector is in the mid region, based on the fact that language presence has some importance for their operations. For the telecommunication sector the impact is low, based on the fact that for their operations languages presence is not so important.

Country Presence:The fourth measure of analysis to estimate the infrastructure ratio of a Sponsor is focused on the amount of countries where Sponsors operate. All countries have the same weight in the system.



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This estimation has a bigger impact for the telecommunication and banking sector, based on the fact that their operations have a stronger necessity to have a presence in each country. Impact for the transportation sector is in the mid region, based on the fact that country presence has some importance for their operations. For the Computer sector the impact is low, based on the fact that for their business operations a local presence is not so important.

Public Companies – Global Calculation: - e.g.-MKT Cap: the sponsor displays a market capitalization that represents 0.22% of the market capitalization of the entire industry. For market capitalization the weighting is always 1. Consequently the result is 0.22 for that variable.Language Presence: the sponsor covers 85% of the worldwide population with the languages that are incorporated to their operations. The weighting of LP for this industry is 2; consequently the result is 1.7 for that variable.



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Virtual presence: sponsor website has an Alexa position located between the 5000 and 10000 websites most visited in the web. The weighting of VP for this industry is 1.75; consequently the result is 1.4 for that variable.Country presence: the sponsor displays a country presence – virtual or physical – in 30 countries. The weighting of CP for this industry is 0.25; consequently the result is 0.15 for that variable.

Public Companies – Country Calculation: - e.g.-Mkt Cap and virtual presence remain with same values. Language and Country presence change.Language Presence: The system compares the registration language of a social franchise with the operational language table of each sponsor. If the sponsor operates with that language, the system will assign 1 as a value for that variable; otherwise the system will assign 0. The weighting of LP for this industry is 2; consequently the result is 2 for that variable



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Country presence: The system compares the origin country of a social franchise with the operational country table of each sponsor. If that sponsor operates in that country, the system will assign 1 as a value for that variable, otherwise the system will assign 0. The weighting of LP for this industry is 2; consequently the result is 2 for that variable.

Private companies:- For Private Companies, Virtual presence and Language presence are the two variables that we take into consideration to compound the infrastructure multiplier for each Sponsor. For Global Impact calculations the Social index takes into consideration the same kind of analysis performed for Public Companies.

Private Companies country calculation



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Virtual presence:The first measure of analysis to estimate the infrastructure ratio of a Sponsor is focused on the amount of visits that their web sites has around the world in the same way that it is measured for public companies.

Language Presence:The system pays points directly to each language that a Sponsor covers and matches with a social franchise.

Individual Contributors:



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- For Individual contributors, Country presence and language presence are the two variables to compound the infrastructure multiplier for each sponsor.

For global impact estimation, the system takes into consideration the amount of contribution, with no multiplier implied on the calculation.

For Country social impact, the system takes into consideration the following two variables, Country presence and Language presence:- The system pays points directly when the country of the contributor and the country of the Social Franchise match. - The system pays points directly when the language of the contributor and the language of the Social Franchise match.

- Information database- S.W.O.T.- Forecast

SOCIALINDEX.ORG Section:PART IV

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Social Index analysis, with respect to the present situation of the sector:

Actual situation:

What evidence is there to suggest that there is a pressing need for a solution?

In the present day we can observe an unfair situation. Technology intensive companies generate social impact no matter which kind of macroeconomical, micro economical or governmental situation they are operating in. On the other hand, financial markets are mainly taking into consideration activity indicators with no relation to the social impact that these companies are generating for the world.Most of the Social organizations around the world operate with incredibly limited resources. Consequently the lack of contributions is limiting the possibility to expand and enhance current programs being developed to promote kids and change their futures.Our Organization provides a new variety of tools for Social responsibility and community development that is not available right now. The following groups will be impacted:- Public and Private Companies willing to estimate the current penetration of their Social responsibility actions in the communities where they operate. These estimations provide them with information to support their operative expansions decisions (based on the infrastructure estimation performed by the system) in order to allocate resources with the idea of impacting /affecting the greatest amount of people around the world.- Long term Investors, willing to invest in Technology intensive companies displaying an important social promotional ratio in their communities.- Community actors, institutions and multilevel governance willing to support technology intensive companies that are providing the greatest social impact in their areas.

What is really new about this system?

This is a system that determines the Social promotion and Social transformation generated by Sponsors and Social organizations, contributing to human development in the communities where they operate.For Social Franchises, the estimation of the structural level that they achieve and the social impact that they generate. These two estimations will create operative ratios impacting their performance in the system. We define both ratios combined as the Social transformation generated by a Social Organization.For Sponsors, the estimation of the infrastructure level of their operations and the participation level through contributions that they display in each community that they are operating in. We define both ratios combined as the social promotion generated by a Sponsor. These two estimations will create ratios impacting their performance and ranking position in a Social Index. The vision of the system is to promote human development through technology, contributing to create a more equal world.

How is this need currently being addressed and why is it not sufficient?

In the present day, the Social Responsibility sector is being poorly served. Technology intensive companies generate a social impact no matter which kind of macroeconomical, micro economical or governmental situation they are operating in, but financial markets are mainly taking into consideration activity indicators with no relation to the social impact that these companies are generating for the world.Within these circumstances, Social Index will be focused on providing tools and estimations of the level of infrastructure and participation that technology intensive company’s offer to the world.



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Social Organizations are accomplishing incredible work both caring for and promoting groups of Children and Adults that are at risk all over the world. Their work is contributing to decrease people’s problems; however, the lack of resources available limits their possibility to expand their actions.Social Index will be focused on providing tools and estimations for Social Franchises, displaying the human development that they generate in the community. This information will help Social Organizations receive more support from community forces and Companies operating in each country.

Has this need been recognized by industry groups, standard bodies or incumbent vendors?

The Bill and Melinda Gates Foundation focuses it’s strengths inside the US, providing social organizations with tools to decrease the digital gap. Pierre Omidyar has been investing lots of money in different social organizations in order to promote community development around the world. The financial sector focused on Social Responsibility is taking into consideration indexes such as Domini of KLD to conduct their investments. Finally, lots of companies are taking Corporate Responsibility very seriously. It has become more and more important today for companies to display a high level of social responsibility in their localities and so a level of competitiveness has entered the field.

How significant and costly is the change required to embrace the proposed solution?

Social Index is an online platform, with no installation or development required to work with our solution. Consequently, actual consumers – Social Organizations, Sponsors, Financial Community – can embrace this solution with no significant costs.

How will the customer’s job change if the problem is solved?

Social Franchises will be able to focus their strengths on social transformation, receiving the financial support of an international community to help conduct their organizations. In order to support them, the platform provides a donation marketplace where they can list their needs. For Sponsors, with these tools of social promotion estimation, they will be able to assign budgets for social responsibility development, receiving the deserved level of community recognition, giving them the chance to display those results to the financial community represented by their shareholders

How would you value your business in a year? What are key milestones that will account for the growth in value from today to 1 year from now?

The IT Education program objective is to become the most important tool for the digital gap reduction and community development around the world.The IT Donation marketplace objective is to become the largest platform of fundraising for social organizations focusing on Public, private and individual contributors.The Social Index Exchange Traded Fund objective is to become the de facto standard for Social Responsibility investment, focusing on Technology intensive companies that are operating through major stock exchanges around the world.The Key Milestones to achieve these goals are:The registration of the company in Europe, the US and Argentina, covering 32 countries. This action gives us the possibility to provide sponsors with donation certificates that are needed for their local Tax agencies.



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Educational integration with major E-Learning systems in order to support the digital gap reduction program.Integration with major e-commerce companies and fair trade organizations in order to support the fundraising activities of Social FranchisesPlatform translated into different languages (during the first 6 months we plan to translate it into 10 languages)During the first quarter we plan to incorporate the Asian, Pacific, Central American and South American stock exchange markets in order to cover Public companies from developing countries. African Stock exchanges are planned to be incorporated in the sixth month of operationThe Social Index ETF is planned to be managed and marketed by Barclays Global Investors through their I-Shares division. An Agreement must be made during the first year

SWOT Analyses

StrengthsOrganization: Patents: Defensive prior art and patent on methods and critical processes Fundraising: Social Index Fundraise through donations like other foundations, plus a new

variety of incomes coming from various sources Fundraising: Georanking patent receiving money for licensing the rights Distribution: Customs and tariff information from 53 countries. Distribution: Important knowledge of Courier logistical services, a vital force for

international e-commerce penetration and economic development. With this information we can ship and distribute most of the products donated through the marketplace donation platform directly to the social organizations.

Social Index begins operations with more than 700 public companies and 10 stock exchanges tracked by our Social Index.

Multidisciplinary team covering areas such as Sociology, Psychology, Community development and business generation applied to Non Profit Organizations.

WeaknessesOrganization: Project plan and platform incorporating an important logic development to our operations.

Participants will be confused if we don’t communicate in a simple way how we estimate social transformations and promotions action.

During the first year of operations, we will develop alliances and integrations with major technology platforms, not having a considerable brand presence.

During the second year of operations, we plan to develop alliances with financial platforms in order to promote our ETF, not having a considerable brand presence.

We plan to subcontract programming hours with the idea of decreasing our structure. We must align all efforts with our project logic and culture in order to obtain the greatest results

Multidisciplinary team will be located in different countries; we must provide good communication channels to obtain major benefits for the organization.

We must ensure that in the estimation of public and private companies’ infrastructure ratio, our organization keeps up-to-date information about their current operations.

OpportunitiesCompany:



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Major interests shown by Companies around the world to support and give back what they have received in the communities where they serve and operate.

People from all over the world show interest and want to get enrolled in social transformation actions.

Social Organizations are requesting tools in order to promote their work between companies operating in their communities

Social Organizations want to expand their current programs incorporating technology into their operations.

Governments from developed and developing countries are showing interest in worldwide programs for the digital gap reduction, such as OLPC – One laptop per child –

Growing interest among investors of new financial products offering increasing profit.

ThreatsCompany: We cannot predict the level of acceptance of our Education and Community Platform in

developing countries with governments that display regimes that limit people’s rights. Distribution: changes in governmental policies regarding import and export of products

such as technological devices for Social Organizations or products sold on the e-commerce platform

Personal Information: Social Organizations may show concerns if they need to display information about kids or adults that are part of their communities. Most of these kids and adults are involved in legal situations and must be protected

We must ensure that Barclay’s investors will pursue the greatest benefits for the organizations operating in an ethical way.

We must ensure that the money donated by public sponsors and retained in the system will be invested in low risk financial products.

Forecast:

Foreseeable situations:

Bank transactional costs for Money transfer to developing countries. We plan to tackle this situation by providing social organizations from developing countries with an international Door to Door delivery of products, instead of giving them the money to acquire the products locally.

Customs restrictions or limitations applying to Electronic products in developing countries. At the moment we have the information for 53 countries displaying no limitations for the products that we plan to ship.

Limited language coverage of E-Learning education programs and platforms. We plan to incorporate different providers in the mid term.

Unforeseeable situations: Despite the fact that the Social Index program limits its coverage to IT Educational

programs and E-commerce promotion, not being part of our focus other kind of educational or cultural topics, we cannot predict the level of acceptance of developing countries with regimes that limit people’s rights.

Level of benchmarking that other social indexes, such as KLD or other Social Organizations, will show with our project logic.

- BARRIERS- SYNERGY AND RISK EVALUATION


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67Project CONTRIBUTING TO CREATE A MORE EQUAL WORLD” Date: 2007

BARRIERS TO ENTRY

Patents: Provisional Patent,

Method for the estimation of social promotion and social transformation to reduce the digital gap and contribute to communities development

This gives us the right to exclude other companies from making, using, offering for sale, selling or importing our processes in the U.S. and other markets.

Time to the market: Social Index begins its operations with the incorporation of more than 10 stock exchanges from different countries, covering technology intensive company’s tickers. For our competitors, to replicate this premise would imply estimating the social infrastructure that those companies are currently offering and the development of a social platform. All these tasks have already been performed by Social Index and we will continue standardizing information in the years that follow to increase the gap between our Organization and its competitors.

Social Index fundraising focus: While other Organizations focus operations on donations, Social Index focuses operations on the Development of a donation marketplace platform and in the estimation of the impact that each Public technology intensive company can make in a community, in order to create an Exchange traded fund in addition to donations. For competitors it would not be easy to incorporate this new vision to their current platforms. This incorporation would require new employees with different specializations, and the integration of them in their present work flow.

Exit barriers:Our business has the advantage of having no significant exit barriers. Exit barriers refer to labor indemnifications (1 salary per year worked in Argentina). Social Index has the possibility to obtain income by selling the marketplace donation platform to other Not for profit organizations operating nowadays in a situation of liquidation.

Cultural adjustment: Values, attitudes and beliefs will be defined by our culture, but we will take into account cultural characteristics of each country where we will operate. Social Index will be focused on finding adjustments based on tolerance and mutual learning, looking for the point where all actors (employees, consumers, suppliers) feel comfortable, obtaining the best economic results for our Organization and in each society where we will operate.

The social index project

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