What to Think About While Reading ‘Building Social Business’

Building Social Business, Uncategorized

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1. What is your definition of social business?

2. Do you agree with Yunus that social businesses must invest 100% of profits back into the social mission? What are some incentives beyond profit to interest investors -assuming they are not all motivated by social good outcomes?

3. Marketing: should businesses focus more on the product they are selling to consumers or advertise their social mission as well?

4. How can nonprofits and social businesses balance the expectations of donors/investors, customers, and beneficiaries?

5. Corporate Social Responsibility is a growing area many businesses are adding to their companies. In your opinion, does this count as social business?

What questions do you have about social business?

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One thought on “What to Think About While Reading ‘Building Social Business’

  1. 2. Do you agree with Yunus that social businesses must invest 100% of profits back into the social mission?

    Yes in principle.

    What we reasoned was that at least 50% should be invested in the community retaining the remainder in the business for contingency/replication. Like Yunus, we make the case for non-distribution of dividend.

    As it turned out in practice we would invest 100% of profit in our own social mission

    Putting this into the practical context of leveraging investment, I offer an illustation from 2010 as we sought would be social investors to transition children from abusive orphanages to family homes.

    For some such investment might be justified by enlightened self-interest, but we realised that for many a financial incentive might be required. We suggested a split of ROI from savings on government expenditure between the social, business and investor.

    My late colleague made the point that too much emphasis on financial returns would lead the the usual suspects moving in to strip the social mission. His thoughts now sem prescient.

    Sharing this with Marc Lane, from Chicago, he showed me a video debate between himself and Yunus on this very subject. The video can be found at the end of my article:

    http://www.p-ced.com/1/node/238

    Liked by 1 person

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