Posted by: Sabine Kurjo McNeill | March 28, 2008

Developing a Social Equity Market

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:

  1. for the Company
    • it can make profits
    • profits are re-invested into the growth of the business
  2. for Investors
    • it can not take dividends out of the company
    • investments are treated as loans that are paid back with interest.

This means

  1. for the Company
    • it puts its mission and its people first
    • it measures its performance in terms of achieving its social objectives
  2. 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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