Social business is a cause-driven business. In a social business, the investors/owners can gradually recoup the money invested, but cannot take any dividend beyond that point. Purpose of the investment is purely to achieve one or more social objectives through the operation of the company, no personal gain is desired by the investors. The company must cover all costs and make profit, at the same time achieve the social objective, such as, healthcare for the poor, housing for the poor, financial services for the poor, nutrition for malnourished children, providing safe drinking water, introducing renewable energy, etc. in a business way. The impact of the business on people or environment, rather the amount of profit made in a given period measures the success of social business. Sustainability of the company indicates that it is running as a business. The objective of the company is to achieve social goals. Types of Social Businesses
Social business can be classified into the following two types:
Type I: focuses on businesses dealing with social objectives only. Example: The product produced is for the benefit of the poor.
Type II: can take up any profitable business so long as it is owned by the poor and the disadvantaged, who can gain through receiving direct dividends or by some indirect benefits.
Example: The product could be produced by the poor but exported to an international market while net profits would go towards workers benefits.
Scope of Social Business
While the basic objective of social business is easily stated, its achievement calls for a radical re-appraisal of our ideas for the conduct of profitable business from top down to bottom up. And, in doing so, it brings into sharp relief many of the issues that confront global society as we move into the twenty first century. Among these the issues that Social Business wishes to address include: * Corporate social responsibility
* Environmentalism and climate change
* Foreign Aid and Investment - 'Trade vs. Aid?'
* Innovation - social and technological
* Micro-credit and microfinance
* Transformational marketing
* Green marketing
* Marketing for NPOs
* Social marketing
* Volunteer and charitable organizations
Principles of Social Business
The following principles of social business were developed by Prof. Muhammad Yunus and Hans Reitz, the co-founder of Grameen creative lab:
* Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization
* Financial and economic sustainability
* Investors get back their investment amount only; no dividend is given beyond investment money
* When investment amount is paid back, company profit stays with the company for expansion and improvement
* Environmentally conscious
* Workforce gets market wage with better working conditions
* Do it with joy
Social Business Practice in Bangladesh
The following organizations are engaged with the operations of social business in Bangladesh: *
* Grameen Bank
* Grameen Danone
* Grameen Veolia
* GC Eye Care Hospital
* Grameen UNIQLO
* BASF Grameen
* Grameen Reebok
* Otto Grameen Trust
* Grameen Fiberglass
* Grameen Intel
* Grameen Yukiguni Maitake
* Grameen Felissimo
Mother Of Social Business “GRAMEEN BANK”
The Grameen Bank is a microfinance organization and community development bank started in Bangladesh that makes small loans (known as microcredit or "grameencredit" to the impoverished without requiring collateral. The name Grameen is derived from the word gram which means "rural" or "village" in the Bengali language....