Asian Development Bank
Social Business: A way to solve society's
most pressing problems
Muhammad Yunus
Yunus Centre Dhaka, 2012
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Yunus Centre Statements
Our Vision
Putting poverty into poverty
museums
Our Mission
Promoting and developing
Social Business to put poverty
into poverty museums by year
2050
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Yunus Centre Key Assignments
Centre of Social Business
International Secretariat
• Promoting Social Business
• Social Business Centres, institutes, and
chair
• Social Business Funds
• Creation of SB partnerships
• Grameen Social Business website
• International Scheduling
• Media, press releases
• Yunus Centre website
Events
Yunus Centre Library
• Yunus Centre Forum
• Social Business Day
• Social Business Plan Competition
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•
•
•
Archiving
Documentation
Photos and films
Gifts and prizes
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Yunus Centre - Social Business
Social Businesses
University collaborations
• Grameen Bank, Grameen Danone,
Grameen Veolia, Grameen Yukiguni
Maitake, Grameen Intel, Grameen
Uniqlo, Grameen Fibreglass,
Grameen Healthcare Services,
Grameen Distribution, etc.
• Yunus Social Business Centre @
University of Florence
• Social Business Chair at HEC,
France
• Yunus Centre at AIT, Thailand
Social business funds
• Yunus Fund Monaco
• Grameen Credit Agricole
Microfinance Foundation
• In process: IDB, JICA Social
Business Fund
Yunus Centre
Social Business
Holistic Social Business
Movements
•
•
•
•
East Timor
Kohlapur, India
Caldas (with GCL)
Haiti (with GCL)
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What is Social Business?
A social business is a non-loss,
non-dividend company designed
to address a social problem.
Yunus Centre
The profits are used to expand
the company’s reach and
improve the products and/or
services
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Social Business Principles
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
5. Environmentally conscious
6. Workforce gets market wage with better
working conditions
7. …do it with joy
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The Need for Social Business
Grameen's Answer
Current economic theory only
postulates a single dimensional
human being – The profit
maximizer
Social business is the
missing piece to combine
the market with the fight
against poverty and other
social ills
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Social Business Background
Sustainability
• Grameen Bank
Addressing the
poor
• Precursors:
– Grameen Shakti
– Grameen Shikka
• Grameen
Danone
• Grameen Veolia
• Others
Social Business
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Social Business / Social Enterprise
Social
Business
Social
Enterprise
Using skills drawn from business world to fight
social problems
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Valuation of “social profit” and the Triple Bottom
Line (social, environmental, economic)
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Venture is self-sustainable
Dividends owed to investors
Financial profit reinvested for the benefit of the
company
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How Does Social Business Work?
Initial investment
Investment
Reinvestment
Return of initial
investment
Profit
Identifying
a social
need
Source: Yunus Centre
Cycle of
Social
Business
Product
Sales
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Social Business Types
Type I
Type II
Definition: Refers to a social business that
focuses on providing a product and/or
service with a specific social, ethical,
and/or environmental objective
Definition: Is a profit-oriented business
that is owned by the poor, who can gain
through receiving direct dividends or by
some indirect benefits
Example: Grameen Danone
Example: Grameen Bank
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Int. Social Business Partnerships
Source: Yunus Centre
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Social Business Funds
1
Definition
2
• Social business funds are created to
provide financing for social businesses in
a pre-determined sector or location
• Social business funds function as Social
Businesses themselves
• Investors do not get any dividends
• Once established, the fund will raise
additional capital from investors enabling
it to expand its reach
• Additionally, the loan amounts repaid by
the borrowers will go to replenishing the
fund
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Future of Social Business Funds
How it works
• The fund borrowers must repay their loan
amount, with interest, and the fund, in
turn, pays back the investors
• The interest paid by the borrowers will
help defray the administrative cost
Overview
• To finance the development and creation
of new Social Businesses
• To expand the scope of an existing Social
Business
• To replicate an established Social Business
or to convert an existing entity
3
Purpose of Funds
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Further Initiatives
SB Regulations
To regulate the social businesses´
practices
Social Stock Exchange
To measure the performance of
the social businesses
Social MBA courses
Next
Initiatives
To teach about social business
as an alternative to profit
maximization businesses
SB Ratings & Journals
Social Impact Indicators
To exchange news and research
about social business
To measure the social impact of
the social businesses
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Grameen Social Business Network
Projects: • Colombia,
• Bangladesh,
• Haiti,
• Ghana
University
Partnerships:
Grameen Creative
Lab / Social
Business Centres:
•Germany,
•Argentina,
•South Africa,
•Tanzania
Potential Projects:
• India,
• Russia,
• Pakistan,
• China,
• East Timor,
• Albania
CSU CI, HEC, NSU,
University of Glasgow,
Caledonian University,
Kyushu University, Rikkyo
University, Asian Institute
of Technology, Bocconi
University,
University of Florence,
European Business
School, European
Institute of Design,
Kathmandu University,
Zayed University
•National University of
Singapore,
University of
Kebangsaan,
Okan University
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Thank You!
For more information on social business, please
contact the Yunus Centre:
info@yunuscentre.org
Facebook.com/YunusCentre
Twitter.com/YunusCentre
Source: Yunus Centre
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