Definitions

Seven Principles of Social Business have been defined on the Yunus Centre site and are as follows:

  1. 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
  2. financial and economic sustainability
  3. investors get back their investment amount only. No dividend is given beyond investment money
  4. when investment amount is paid back, company profit stays with the company for expansion and improvement
  5. environmentally conscious
  6. workforce gets market wage with better working conditions
  7. … do it with joy!

Responses

  1. [...] have committed myself to ‘social business‘ as the most promising and effective model – for creative entrepreneurs and self-employed [...]

  2. “Substitute personal greed with compassion, and the balance sheets will still work out just fine. Profit/loss statements take on a whole new dimension and meaning. Greed and capitalism are not one and the same thing. “Social” capitalism, social enterprise, is perfectly doable. This is the most effective sustainable strategy available for alleviating widespread human suffering stemming from poverty and all that comes with it — up to and including terrorism.”

    Terry Hallman

  3. Many thanks, Jeff, for your quote by Terry Hallman!

    I think that we are up against a few regulatory and institutionalised challenges where greed, control and other non-beneficial attitudes need to be replaced so that young people can flourish as entrepreneurs rather than commit suicide or be unemployed and violent…

    Let’s join not only our good intentions but also our experiences!

    Looking forward to reading more,
    Sabine

  4. Sabine,

    Here’s something else you may find interesting. Just after we launched in the UK in 2004 an interview about efforts and obstacles to establishing a microfinance based development initiative for the Tatars of Crimea.

    TH offers his (our) view on reforming capitalism.

    “Essentially, P-CED challenges conventional capitalism as an insufficient economic paradigm, as evidenced by billions of people in the world living in poverty in capitalist countries and otherwise. Under the conventional scheme, capitalism – enterprise for profit – has certainly transformed much of the world and created a new breed of people in capitalist societies, the middle class. That is a good thing. But, capitalism seems to have developed as far as it can to produce this new class of fairly comfortable people between rich and poor, at least in the West where it has flourished for quite some time.

    The problem is that profit and money still tend to accumulate in the hands of comparatively few people. Money, symbolically representing wealth and ownership of material assets, is not an infinite resource. When it accumulates in enormous quantities in the hands of a few people, that means other people are going to be denied. If everyone in the world has enough to live a decent life and not in poverty, then there is no great problem with some people having far more than they need. But, that’s not the case, and there are no rules in the previous capitalist system to fix that. Profit and numbers have no conscience, and anything done in their name has been accepted as an unavoidable aspect of capitalism.

    I disagree. In 1996, I simply set up a hypothetical ‘what if’ proposition. What if some businesses decided to change their practices, or institute themselves as new enterprises completely, for the sole purpose of generating massive profits as usual and then using those profits to help people who have little or nothing? That’s the way to correct and improve classic capitalism for the broadest benefit worldwide. It’s now called social capitalism, or, social enterprise. I still call it the same as I did in 1996: people-centered economic development, and that remains the name of my organization and my web site.

    At first, the idea seemed heresy – but not for long, simply because it made sense and it didn’t step on the toes of any existing enterprises that were in business to enrich relatively few people. None of them were asked to change anything, but it left open the possibility of more forward-thinking people to step in and do business differently. Even now, I am astonished that the idea struck such a deep and sympathetic chord in so many people so quickly – especially in our top business schools, where one might have thought that they were all in it for the money, for personal wealth, with little regard to social benefit or the poorest of the poor.”

    http://www.iccrimea.org/scholarly/economicdev.html

  5. [...] while Paul has already set up the Advocacy Fund as a Not For Profit Company and thus ‘social business‘ in terms of Muhammad [...]

  6. [...] prefer to create a ‘social business‘ a la Nobel Peace prize winner Muhammad Yunus and wonder whether ‘crowd funders’ [...]

  7. Well, this is a ‘first’ for me! You’ll find a DONATE button on my most popular site http://www.victims-unite.net!


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