about social business
With the idea of social business, Prof. Muhammad Yunus has introduced a new dimension for capitalism: a business model that does not strive to maximize profits but rather to serve humanity’s most pressing needs.
A social business aims at solving social problems with products and services at affordable prices, or giving the poor and marginalized people ownership in a business and therefore allows them to share in its profits. It pays back only its original investment and reinvests its profits in innovations or further growth that advance its social goals. Although the social business is pioneering in its aims, it is traditional in its management. Its workforce is professional and paid according to market wages.
In every sense the social business is sustainable: in its direct environmental impact, its impact down the value chain, and critically, in its financial independence. This is a key difference between social business and charity. Once its initial investment is repaid, the social business aims to be financially self-sustaining, giving it the independence and security to focus its efforts on the long-term improvement of the lives of the disadvantaged.
seven principles of social business
- 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.
- Gender sensitive and environmentally conscious.*
- Workforce gets market wage with better working conditions.
- ...do it with joy.
*The 5th principle was updated after the GSBS 2014 when the issue of women empowerment was thoroughly discussed.
For more information, please visit the following websites:
November 11th, 2015
The Global Social Business Summit 2015 - in Berlin, Germany - has come to a bittersweet end. We thank all those who supported us throughout the process; all those who participated in the event; and all those who helped to spread the YY Spirit of the Social Business Movement in the days leading up to - and during - the event.
We can't wait to see all of you in China for the Global Social Business Summit 2016.
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The main venue for the Global Social Business Summit 2015 is the Tempelhof Airport in Berlin, Germany.MORE