Role of Grameen Bank in Social Business in Bangladesh
Introduction To Social Business
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 services for the poor, nutrition for malnourished children, providing safe drinking water, introducing renewable energy, etc. in a business way.
The impact of the business on people or environment, rather the amount of profit made in a given period measures the success of social business. Sustainability of the company indicates that it is running as a business. The objective of the company is to achieve social goals.
Types of Social Businesses
Social business can be classified into the following two types:
Type I: focuses on businesses dealing with social objectives only.
Example: The product produced is for the benefit of the poor.
Type II: can take up any profitable business so long as it is owned by the poor and the disadvantaged, who can gain through receiving direct dividends or by some indirect benefits.
Example: The product could be produced by the poor but exported to an international market while net profits would go towards workers benefits.
Scope of Social Business
While the basic objective of social business is easily stated, its achievement calls for a radical re-appraisal of our ideas for the conduct of profitable business from top down to bottom up. And, in doing so, it brings into sharp relief many of the issues that confront global society as we move into the twenty first century.
Among these the issues that Social Business wishes to address include: * Corporate social responsibility *
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 services for the poor, nutrition for malnourished children, providing safe drinking water, introducing renewable energy, etc. in a business way.
The impact of the business on people or environment, rather the amount of profit made in a given period measures the success of social business. Sustainability of the company indicates that it is running as a business. The objective of the company is to achieve social goals.
Types of Social Businesses
Social business can be classified into the following two types:
Type I: focuses on businesses dealing with social objectives only.
Example: The product produced is for the benefit of the poor.
Type II: can take up any profitable business so long as it is owned by the poor and the disadvantaged, who can gain through receiving direct dividends or by some indirect benefits.
Example: The product could be produced by the poor but exported to an international market while net profits would go towards workers benefits.
Scope of Social Business
While the basic objective of social business is easily stated, its achievement calls for a radical re-appraisal of our ideas for the conduct of profitable business from top down to bottom up. And, in doing so, it brings into sharp relief many of the issues that confront global society as we move into the twenty first century.
Among these the issues that Social Business wishes to address include: * Corporate social responsibility *
References: 1. Yunus, Mohammad.(2010). Building Social Business: The New Kind of Capitalism That Serves Humanity’s Most Pressing Needs. 2