Ray, 49, left an impressive job as head of distribution for Starbucks to start a distribution center for Pioneer. Running the coffee company's domestic and international distribution was challenging, but Ray wanted more. His effect on Pioneer has been huge. In less than a year, the new distribution center broke even and was supplying jobs to hundreds of people, both Pioneer clients and local immigrants. "I wanted to be in an environment where I could give back," Ray explains. "Taking profits and reinvesting in people has more long-term value than being at a company that just takes from society and reaps profits. I'm a capitalist, but I'm a socially responsible capitalist."

When Ray talks about giving back, he isn't talking just about Pioneer's efforts. He sees the company not only as a business or a social service but also as a test case: If these ideas work at Pioneer, then maybe they can work everywhere. "You could go to every port city and you could do the kind of value-added distribution that we do here," Ray says. "That's the bigger picture for me: How can this become an opportunity for a community to help those who are at risk? We need to create a model here -- and then duplicate it."

Ray isn't the only one who thinks that Pioneer could be a role model for other businesses. The company has several ideas for expansion, including assembling a $4.4 million venture fund with such investors as InterWest Bank, the Rockefeller Foundation, and Wells Fargo & Co., which will help Pioneer purchase businesses to add to its portfolio. Pioneer feels real pressure to grow. "Fifteen years ago, the company had revenues of $4 million," says president and CEO Burns. "Today, we have about $52 million. But we measure our worth not just in terms of dollars but also in terms of making a difference: How many more lives can we touch if we add more businesses?

"It's customary for us to invite employees to tell their stories at our annual and monthly board meetings," Burns continues. "At my first annual meeting, the woman who gave her testimonial was incredible. She brought members of the audience -- including some executives from Boeing -- to tears. One thing that she emphasized was the need to 'keep the company strong so that it can grow and help more people. The world needs places like Pioneer.' For us as a management team, that is exactly what it's all about."

Cheryl Dahle (cdahle@fastcompany.com) is a Fast Company senior writer. Contact Mike Burns (mike.burns@p-h-s.com) by email.

Sidebar: The Social Justice Agenda

Pioneer Human Services is pioneering a new model for social change -- and, in the process, is setting a new agenda for nonprofit organizations everywhere. In an interview with Fast Company, Pioneer president and CEO Mike Burns outlined the key points of a nonprofit agenda that emphasizes performance as well as people.

1. Untapped potential exists where you least expect it.

"Many companies evaluate workers based on only their experience and education," says Burns. "We employ some people who, at age 25 or 27, have never had a job before. They take more training, but they come up to speed and blossom incredibly quickly. We've succeeded by purposefully taking risks on people."

2. We ignore those on the margins at our peril.

"Whether you think that prison is about punishment or rehabilitation, it doesn't make sense to release people who've been locked away for years onto the streets with no job, no money, and no guidance," Burns says. "Work-release programs are a great way to help people prepare to take on responsibilities in the community. There is no evidence that crime increases when work-release programs come into a neighborhood, but we have a hard time getting sites for these programs approved."

3. If you save an individual, then you save a community.

"Once people become taxpaying, contributing citizens," says Burns, "we've helped not only them, but also their entire family. The effect is multiplied many times over. If we can reduce recidivism by chipping away at crime and drug and alcohol addictions, then we're helping reknit the social fabric."

4. Keep your charity.

"Directors of nonprofits have to realize that 'profit' is not a dirty word," Burns says. "It strengthens your organization. The nice thing about our services is that we're not looking toward every July first -- the deadline for government budgets -- wondering, 'Are we going to get refunded? Is the government going to eliminate this program? And if so, what do we do with our personnel?' Our programs are funded by our own resources, which gives us the freedom to base those programs on our clients' needs, not on the availability of funds."