The fundamental concept underlying a conventional business enterprise is that of maximizing revenues and profits. However, a social business or enterprise is designed to solve social problems. “Social Business”, the term now commonly used, was first defined by Nobel Peace Prize Laureate Professor Muhammad Yunus of Bangladesh in his books “Building Social Business” and “Creating a World without Poverty”. Like the social organization formed by him, called Grameen, the idea is gaining wide acceptability around the world.
In recent months, Dr. Yunus has been very active promoting his concept all over the world. In November 2012, at the Global Business Summit in Vienna, Dr. Yunus called on the European Governments to involve the new generation in coming up with new ideas and incorporate them into the social business concept. Yunus has also invited President Holland of France to champion the cause of social business and become the global social business ambassador.
Although radically different in concept, a social business and a conventional enterprise are not mutually exclusive. A social business 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 subsidize the social mission.
The central theme of the social business concept of subsidizing the poor instead of adopting the profit motive is still in infancy. We all have a responsibility, as the business leaders of the future, to model our ideas and activities in the framework of the concept and make social business the engine for growth.
Sources:
‘The Daily Star, Bangladesh. ‘Yunus Spurs students on social business’ June 13, 2012;
‘Professor Yunus, Grameen and social business’ July 13, 2012;
‘Yunus urges French president to promote social business’ November 1, 2012;
‘Yunus spurs Europe on social business’ November 11, 2012