If I were a millionaire...
- 4 Posts
Imagine you could invest your money to help people, and end the global problems explained in all the posts. Imagine then you could get that money back, and reinvest it again on a different cause.
Welcome to Social Business.
This term, created by Nobel Peace Prize Muhammad Yunus is said to be the key to overcome poverty.
The principles set by this man are:
- 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.
In this youtube video all these are very well explained: https://www.youtube.com/watch?v=-9jbXDH81AA
Business success should stop being measured by money benefit. The objectives of business, as social business addresses, should stop being maximizing profit.
We live in a limited planet. Maximizing has a limit businesses are not considering. If these rules are changed, companies will be more worried about the influence they have on the society and employees (Social Responsibility) rather than the growth of the company.
To those who have studied a bit about economy, Michael Porter may sound familiar (remember the Porter's generic strategies?) . I strongly recommend you to watch his talk on TED: Why business can be good at solving social problems(https://www.youtube.com/watch?v=0iIh5YYDR2o). He shows how the power nowadays is held by businesses and tries to convince of how a new model can solve the social problems. It is worth watching and I agree with everything that is exposed in it.
It is not easy to come up with businesses that would solve this problems. However, I think that once a problem is detected, it has to be strongly considered as a efficient way to overcome it.
I think it is brilliant. I believe it can be a real and sustainable way to build the better world we crave.
To sum up, I want to say social business may not fix every issue, but it is a useful tool for many of them. Mainly for those who are related to a lack of economic sources.
What do you think? ¿Can you think of any problem that could be solved with this kind of businesses?
Here you have some examples of them: