11/26/2021

Building Social Business Yunus Pdf

Building Social Business: The New Kind of Capitalism that Serves Humanity’s Most Pressing Needs

  1. Building Social Business By Muhammad Yunus Pdf
  2. Building Social Business Yunus Pdf Free
  3. Social Business Examples

Muhammad Yunus

256 pages, PublicAffairs, 2010

To change the worldonce is remarkable. Asecond attempt invitesdeification. ButMuhammad Yunus,the founder ofGrameen Bank andpioneer of microcredit, has embarked on yetanother crusade: to foster a new kind of organization,the “social business.”

In his new book, Building Social Business,Yunus devotes many pages to narrowingdown the existing definition of a social business—many people precede him in definingit, since the form first cropped up in theVictorian era—but he considers it a newform of economic organization that links asocial, ethical, or environmental objectivewith a commercial or financial one. He alsolays out a road map for how these new firmscan grow and prosper. Indeed, I found muchto admire here and in the man, whose workI have long respected.

The book is a refreshingly easy read.Yunus might have started life as a professor,but he certainly doesn’t write like an academic.Instead he fills his book with practical examples,tactics, ideas, and insights—especiallyin his chapter on launching a socialbusiness, where he repeatedly stresses theneed for social business to be “at least as wellmanaged as any profit-maximizing business”and notes the importance of speed, planning,regular reevaluation of plans, and understandingone’s market. He also provides many glimpses of the compelling genius behindGrameen Bank, which, together withYunus, won the Nobel Peace Prize in 2006. We meet Yunus “the master salesman,”astutely aware of the brandhe has created and its value—especiallyto large corporate partners.We peer into the mind of a visionarythinker who sees boundlesspossibilities and constantlyenables and energizes thosearound him—he was one of thefirst to see the untapped potentialof those living at the bottom ofthe pyramid. But we also gain access to thepractical genius who understands that everylong journey begins with “a small step.”

PDF Building Social Business The New Kind Of Capitalism That Serves Humanitys Most Pressing Needs Muhammad Yunus Building Social Business: The New Kind of Capitalism That. His new book, Building Social Business, is a manifesto for those who care deeply about solving the society's 'wicked' problems - poverty, illiteracy, malnutrition, global. Building Social Business. Public Affairs, 2010. First Edition:2008. Copyright © 2010 by Muhammad Yunus. Published by Public Affairs, a member of the Perseus Group LLC.

Building Social Business By Muhammad Yunus Pdf

All that said, I was troubled by the book.One of Yunus’s core ideas—his definition of asocial business—is simply too rigid and dogmatic;it may cause unintended harm to objectivesYunus holds dear. Too many organizationsfall outside Yunus’s definition of asocial business. He dismisses cooperativesfounded in the United Kingdom in the mid-1800s, for instance, though many people, includingme, consider them prime examples ofsocial businesses. No, “[a cooperative is] not… social business,” he writes. “Some peoplethink that a social business is a kind of nonprofit organization. This is not correct.” Butthe highly successful and well-known Ben & Jerry’s and The Body Shop aren’t social businesseseither, according to Yunus. Yet I amcertain that The Body Shop’s founders, Anitaand Gordon Roddick, saw it very much as asocial business. And should Yunus’s definitioninfluence tax policy, some social businesseswould lose out.

Yunus would also exclude the EthicalProperty Company, a U.K. firm lending onlyto social change organizations—eventhough it works hard to strike the right balancebetween shareholders, clients, andstaff interests. Isn’t this balance preciselywhat we should encourage in our currentlyunbalanced economy? JustGiving, a profit-seekingsocial business that facilitates charitablegiving, would be out, too—eventhough it has proven more successful inraising money for charity (more than £500million) than all its competitors combined.So are we to ignore the benefit of this firm’scontribution and strike it from the roster,merely because it also generates returns for its management, staff , and equity investors?Perhaps this incentive has helped bringabout the social benefi ts. And the results shouldstill matter.

Building Social Business Yunus Pdf Free

Yunus’s definition of social business does not withstand scrutiny,either. He includes large corporatepartners who have createdsocial business joint ventures withGrameen merely because they receiveno direct financial return(not even 1 percent—a Yunusrule). But to suggest that they getno financial reward is misleading. They receive substantial corporate social responsibilitybenefits (an expenditure thusavoided), and one partner, the French companyVeolia Water, even derives substantialresearch and development and market researchbenefits from its work. I do not begrudgeVeolia these gains and am delightedthat they work with Grameen, but let us notpretend that these returns differ in any substantiveway from dividends, interest, or capitalgains. Huge multinational corporations can also forgo current income on certain investments,but struggling social enterprisesmay need to raise capital from investors whoinsist upon a fi nancial return. Why penalizethese organizations merely because theylack Yunus’s exceptional access to largecorporations?

Social business network

Furthermore, Yunus’s brand of socialbusiness allows profits to be earned, butonly if totally owned by the poor. But hedoesn’t say how poor these “poor” must be,and isn’t clear about what happens if thesocial business succeeds and the ownersbecome less poor. Are these social businessesthen disqualified? There is some problemwith a model when success leads todisqualification.

My last objection to Yunus’s definition:His limitations will severely constrain activityand discourage innovation. By insistingonly on nil-return-seeking capital, he greatlyrestricts the available capital sources. Thishandicaps those of us who seek to encouragemore capital into the sector. Even withoutYunus’s rules, the pool seems far too small—why on earth should we further limitthe capital available to them?

My company, ClearlySo, seeks to build abroad church within the sector—not to excludethe many wonderful and innovativeventures on what feel like technicalities.Perhaps that is why I take such umbrage atYunus’s definition. Still, I consider the booka vital contribution to the exploration of socialbusiness.

Social Business Examples

Rodney Schwartz is CEO of ClearlySo, an onlinemarketplace for social business and enterprise,commerce, and investment. He is the main author ofClearlySo’s “Social Business Blog” and lectures on socialfinance at the University of Oxford’s Saïd BusinessSchool. He also advises leading U.K. social businessesand enterprises, sits on the board of the Ethical PropertyCompany, and is chairman of Green Thing. Heserved as chairman of JustGiving from 2003 to 2006.