How we need to do

Posted on September 8, 2012 by


From Wikipedia, bezmaksas enciklopēdijas

Social business, as the term is commonly used, was first defined by Nobel Peace Prize laureate Prof. Muhammad Yunus and is described in his books Creating a world without poverty—Social Business and the future of capitalism and Building Social Business—The new kind of capitalism that serves humanity’s most pressing needs. A number of organizations with which he is involved actively promote and incubate social businesses. These include the Yunus Centre in Bangladesh, the Yunus Social Business Centre University of Florence, the Grameen Creative Lab in Germany, and Social Business Earth.

In Yunus’ definition, a social business is a non-loss, non-dividend company designed to address a social objective within the highly regulated marketplace of today. It is distinct from a non-profit because the business should seek to generate a modest profit but this will be used to expand the company’s reach, improve the product or service or in other ways to subsidise the social mission.

In fact a wider definition of social business is possible, including any business which has a social rather than financial objective.

Disambiguation: Social business, Social enterprise and Social business model

A more commonly used and better understood concept is the related model of social enterprise. This term describes broadly ‘commercial activity by socially minded organizations’. Charities may engage in social enterprise in order to generate funds, as per the ‘op-shop’ model; a social enterprise model may also be used to provide supported employment to those with barriers to work. Social business is therefore a subset of social enterprise, with the specific characteristic that, whereas a social enterprise can be funded by philanthropy or government grant, a true social business should be self-sufficient.

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