Durreen Shahnaz, is an Associate Professor at Lee Kuan Yew School of Public Policy at National University of Singapore advocates in the daily Star for an Asian Stock Exchange

As I write this article, the storm in the financial markets continues — stock markets in Asia, Europe and the US all are going through roller coaster rides, people fear bank runs and governments are pulling together trillion dollars worth of rescue packages. In this sadly crazy historic moment, when every current option is looking bleak and governments are busy cleaning up the private sector mess, perhaps it is a good time to look some distance into the future toward a gleam of hope for a kinder and gentler form of capitalism. My suggestion for that is to put together effective regional ‘social stock exchanges’ in each continent that can spearhead social good through capital markets. I believe Asia is ripe to take the lead in meeting this challenge. Read the rest of this entry »

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Nobel Prize winner Yunus has a new idea for attacking poverty through capitalism: Enlist companies whose mission is to change the world, writes Alan M. Webber in USA Today. I agree with the observation of Alan when he said at the end of the article that ‘It’s the kind of creative economic thinking that could earn Yunus a second Nobel Prize — this time in economics’.

Follow his writing in full:
Muhammad Yunus has already changed the world once, which is why he was awarded the Nobel Peace Prize. By creating the Grameen Bank and using microfinance to improve the lives of the poorest of the poor in Bangladesh, he demonstrated a transformational model for eliminating poverty. Read the rest of this entry »

William Azaroff to whom banking is only marginally interesting but using the platform of banking to solve social problems is a powerful draw, writes in his own blog azaroff.com :

Muhammad Yunus At Vancity, where I work, we recently created a division called Social Finance. This is where our Business Banking department now resides, as well as Commercial Mortgages and our amazing Community Business Banking team, where many of our most innovative and socially relevant products and services are generated.

Creating and naming this new division was an interesting risk, and as soon as I heard the name Social Finance, I thought to myself: Holy crap I can’t believe I get to work here. Read the rest of this entry »

Not-for-profit schemes can make society here ‘more balanced and humane’ writes Cheong Suk-Wai in Strait Times:

SINGAPORE is a global business centre with room for ‘social business’, according to Nobel laureate Muhammad Yunus.

That is what the Bangladeshi economist and a pioneer of micro-credit calls not-for-profit businesses and programmes set up to generate jobs and other opportunities to help those trapped in poverty.

‘Social business’ is not charity, but more in keeping with the adage: It’s better to teach a man how to fish than to give him fish.

Speaking to The Straits Times here yesterday, Professor Yunus said: ‘The business proposition is for the poor to pay a tiny amount of money for you to take care of their needs. Read the rest of this entry »


Sheridan Prasso reports in Fortune magazine regarding his observation on Professor Yunus’ first vnture about social business:

Along a dirt road in Bangladesh’s green, fertile heartland, 140 miles northwest of Dhaka, workers in flip-flops are hauling bricks, pouring cement and hammering boards. The object of their labor: a small yogurt factory being built by Danone, the French food company, on the outskirts of Bogra.

It may not look like much, but the one-story building behind a wrought-iron gate is the epicenter of a Big New Idea – one that Muhammad Yunus, the winner of last year’s Nobel Peace Prize for his pioneering work on microcredit, thinks can revolutionize a world still being transformed by his first big idea. Read the rest of this entry »

Vivian Norris de Montaigu, writes in The Huffington Post on the closeness of Bill Gates’ Creative Capitalism and Muhammad Yunus’ Social Business:

The way it works is that instead of giving money away to a non-profit charity, you help create businesses — in fact new business models. As little as a $25 can motivate an entrepreneur in the developing world, by funding a microcredit organization such as Kiva.org, which gives out small loans. This process allows that money to grow and be reused and help create true sustainability, unlike the charity dollar which must be raised each year. Now try the same thing on the corporate level and you can begin to see that it is truly possible to create a “world without poverty”, and that poverty is indeed an “artificial construction.” These words have been stated time and again by Professor Muhammad Yunus’, the 2006 Nobel Peace Prize winner, and they are put forth in his latest book, Creating a World Without Poverty: Social Business and the Future of Capitalism. Professor Yunus, also known as the “banker to the poor” is asking that the poor be poor no more and is inviting major international corporations to not make a profit off the poor, but actually create sustainable businesses which also provide a public service, be it in the areas of health, technology, infrastructure, communications, education, etc. Read the rest of this entry »

Social business

From Wikipedia, the free encyclopedia

A social business is one which aims to be financially self-sufficient, if not profitable, in its pursuit of a social, ethical or environmental goal. Examples of social businesses in the United Kingdom included The Ethical Property Company, Divine Chocolate and Fair Finance. A more famous example is the Bangladeshi Grameen Bank, set up by Professor Dr. Muhammad Yunus in 1983. Dr. Yunus is a key proponent of the social business model, seeing it as a means to eradicate poverty and to influence the future of capitalism. However, his definition specifies that profits cannot be distributed to investors and must instead be ploughed back into the business or the community it serves. Definition

Definition:

Social businesses can be defined as follows:

Social Businesses seek to profit from acts that generate social improvements and serve a broader human development purpose. A key attribute of social businesses is that an increase in revenue corresponds to an incremental social enhancement. The social mission will permeate the culture and structure of the organization and the dual bottom lines – social and economic will be in equal standing with the firm pursuing long term maximization of both.<a title=”1″ Read the rest of this entry »