The new economy “Social Business”
Prof. Yunus Nobel Peace Prize has new approaches to solve all the world problems that we are seeing today. Social business is a cause-driven business. In a social business, the investors or 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, fair salaries in an ethic 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. Clarifications on Social Business, this concept are not opposed to making profit. Even social businesses are allowed to make profit with the condition that profit stays with the company; the owners will not take profit beyond the amount equivalent to investment. Social business is a new category of business. It does not stipulate the end of the existing type of profit-making business. It widens the market by giving a new option to consumers. It does not intend to monopolies the market and take the existing option away. It adds to the competition. It brings a new dimension to the business world, and a new feeling of social awareness among the business community. When we approach the concept of social business from the philanthropy side, it looks very convincing and logical. Why should everything in philanthropy be given away? If some of these goals can be achieved more efficiently and sustainably in a (social) business format, then why not take that route? After all our purpose is to achieve the social goal. But when you approach it from the orthodox business side, it tends to look a bit out of tune. Why on earth give up profit? Why should anyone run a business without profit? I understand the surprise perfectly. Let’s clarify it: it is not asking any businessperson to give up any of their businesses. Nor asking them to convert some of their businesses into social business. The idea of "giving up" something creates this shock wave. The paradigm is not asking anybody to "give up" anything. All is saying, if you are worrying about a social problem (while totally engaged in your routine business) Social Business have a message for you, you can make a significant contribution in resolving the problem. If you put your mind seriously into it, you may even open the door to eliminate the problem globally. You can do both: conventional business and social business. While you reinvest your money in your own company, everybody benefits from it. The owner, the employer, the clients, the community, the region, the country the whole planet.