Dr. Md. Shairul Mashreque :
Social business is a well conceived model of poverty reduction now selling well all over the world. Nobel laureate Prof. Dr. Muhammad Yunus has given a thematic shape to this concept all with his intellectual capacity building.
To refer to Wikipedia: This concept term had once been commonly used, was first defined by Nobel Peace Prize laureate Prof. Muhammad Yunus and is described in his books Creating a world without poverty – Social Business and the future of capitalism and Building Social Business – The new kind of capitalism that serves humanity’s most pressing needs. Unlike a profit-maximizing business, the prime aim of a Social Business is not to maximize profits (although generating profits is desired). Furthermore, business owners are not receiving any dividend out of the business profits, if any. Unlike a non-profit, a Social Business is not dependent on donations or on private or public grants to survive and to operate, because, as any other business, it is self-sustainable. Furthermore, unlike a non-profit, where funds are spent only once on the field, funds in a Social Business are invested to increase and improve the business’ operations on the field on an indefinite basis. Per Yunus’ quote: “A charity dollar has only one life; a Social Business dollar can be invested over and over again.”
Social Business is designed to address a social problem. It is non-loss and non-divident Company financially self-sustainable. ‘Profits realized by the business are reinvested in the business itself (or used to start other social businesses), with the aim of increasing social impact, for example expanding the company’s reach, improving the products or services or in other ways subsidizing the social mission’
Prof. Yunus is action oriented. With such orientation he continues to generate new ideas to suit empirical requirements for meeting daunting challenges of poverty. In fac, he has thrown down a gauntlet for the elimination of poverty working with missionary moorings to mobilize the target beneficiaries. His Grameen bank is well articulated micro-finance model capable of replication. ‘Unlike traditional business, a social business operates for the benefit of addressing social needs that enable societies to function more efficiently. Social business provides a necessary framework for tackling social issues by combining business know-how with the desire to improve quality of life’ Prof. Yunus has already shown its effectiveness for mitigating extreme poverty combined with his condition of economic sustainability. Based on 7 principles, it will add a new dimension to business which is non-profitable, welfare oriented and participatory.
7-principles were developed by Prof. Muhammad Yunus and Hans Reitz, the co-founder of Grameen Creative Lab:
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
Financial and economic sustainability
Investors get back their investment amount only; no dividend is given beyond investment money
When investment amount is paid back, company profit stays with the company for expansion and improvement
Environmentally conscious
Workforce gets market wage with better working conditions
Do it with joy
Social business is intended to ‘serve humanity’s most pressing needs.’ In contemporary economic system ‘there are currently two main types of organization models. The private sector where companies sell products or services to make money, and non-profit organizations financed by the government like healthcare and education.’ Social business model militates against any stop-a-gap measure to help the poor by showing charity. It seeks to involve the poor into the mainstream of socio-economic life. Where both governments and the markets reach their limits, charities may fill the gap. The disadvantaged locus ‘is full of potential but has never had a real opportunity.’
Public policy on substantive areas of modernization project contemplates some desirable changes. Nevertheless policy outcomes resulting from lack of governance in the implementation of the projected goals under a variety of policy sectors and sub-sectors rather aggravate pauperization.. Increasing alienation of the deprived class is the outcome of the introduction or continuation of programmes under such policy frame work.
Social protests in favour of backward community are the culmination of perpetual deprivation and negligence. Many a time the movements of the victims of state policy become raison d ‘etre for open confrontation.
Backwardness and wanton exploitation of the deprived class is a motivating factor for a series of protestant movements. They create social tension and political instability. For, policy intervention reflects lack of’ a coherent plan, purpose and direction’. Structural tension is a common feature of complicated social life. It is expressed quite through conflict latent or manifest.
Uneven development affects stable equilibrium and thereby strengthens such tension. Heart burning and frustration among the disgruntled groups in electoral constituencies is a continuing process as the bottom end of distribution profile is caught up by deprivation trap. Outcome of development policy is likely to produce manifold contra-indications thus providing a background of confrontation. Catastrophic human problems, labour exploitation and vulnerability of women and children are the predicaments of contemporary Bangladesh.
Through social business Prof. Yunus tries to tame the tide of escalation of deprivation putting the poor first. He has created Yunus center for promoting policy advocacy in favour of social business. This is to send poverty to museum.
(Dr. Md. Shairul Mashreque, Professor, Dept. of Public Administration, Chittagong University)
