Social Business

Social Business

Last Updated : 10th June, 2015

Social business is a cause-driven business. In a social business, the investors/owners can gradually recoup the money invested, but cannot take any dividend beyond that point. Purpose of the investment is purely to achieve one or more social objectives through the operation of the company, no personal gain is desired by the investors. The company must cover all costs and make profit, at the same time achieve the social objective, such as, healthcare for the poor, housing for the poor, financial ...

What is Social Business ??

Last Updated : 30th June, 2015

A social business is a non-dividend company dedicated entirely to achieve a social goal. In social business, the investor gets his/her investment money back over time, but never receives dividend beyond that amount. The sole purpose of the business is to solve a predetermined social problem in a sustainable way.The 7 principles of Social Business are: Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which t...

The Seven principles of social Business

Last Updated : 10th June, 2015

1   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. 2   Financial and economic sustainability 3   Investors get back their investment amount only. No dividend is given beyond investment money 4   When investment amount is paid back, company profit stays with the company for expansion and improvement ...

Clarifications on Social Business

Last Updated : 10th June, 2015

I am not opposed to making profit. Even social businesses are allowed to make profit with the condition that profit stays with the company; the owners will not take profit beyond the amount equivalent to investment. Social business is a new category of business. It does not stipulate the end of the existing type of profit-making business. It widens the market by giving a new option to consumers. It does not intend to monopolise the market and take the existing option away. It adds to the competi...

A Learning Process

Last Updated : 30th August, 2016

It is a great learning process. You are doing things which you never did before. You are thinking in a way which you never did before. You are surprised to see you are enjoying it a lot. You start digging into your experiences to see what is relevant for the task. You check through the reservoir of technology that you are familiar with, start contacting the pool of experts that you have gotten to know in your business, to achieve your new goal. You start exploring a new world which was totally u...

Author's Summary on Creating a World Without Poverty

Last Updated : 30th August, 2016

Author's Summary on Creating a World Without Poverty While free market capitalism is thriving globally, almost unopposed now, and bringing unprecedented prosperity to many, half of the world lives on two dollars a day or much less. Eradication of poverty remains the biggest challenge before the world. Colossal social problems and deprivations, mostly poverty-related and very unevenly distributed around the globe, continue to shame us everyday. Obviously the free market has failed much of the wo...