Social business

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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 »