This report by the New Economics Foundation was written before “Creating a World without Poverty” defined ‘social business’ and a ‘social business market’.
The key financial points about this definitions are:
- for the Company
- it can make profits
- profits are re-invested into the growth of the business
- for Investors
- it can not take dividends out of the company
- investments are treated as loans that are paid back with interest.
This means
- for the Company
- it puts its mission and its people first
- it measures its performance in terms of achieving its social objectives
- for Investors
- once investments are paid back with interest, the company has no more obligation towards its investors
- investors can be paid for contributions to the company without taking dividends.
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