Social businesses not only generate profit, but also solve poverty, lack of educational opportunities, unemployment, public health and other social problems.
What is social business?
Social business – the mission of these organizations is to discover solutions to society‘s biggest social problems.
Different from ordinary companies?
Unlike conventional businesses and corporations, the main goal of social business organizations is not profit, but positive social changes. Of course, profit is also important so that the organization can be independent and finance its activities.
Social business combines social issues with business know-how – all of which help improve people’s lives
7 principles of social business
These principles were defined by Professor Muhammad Yunus, Nobel peace prize winner and the ‘father of social business’.
- 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.
- Financial and economic sustainability.
- Investors get back their investment amount only. No dividend is given beyond investment money
- When investment amount is paid back, company profit stays with the company for expansion and improvement
- Environmentally conscious
- Workforce gets market wage with better working conditions
- …do it with joy