“I am proposing to create another kind of business, based on selflessness that is in all of us. I am calling it Social Business.” Prof. Muhammad Yunus
Prof. Muhammad Yunus
About The Environmental Crisis
Today, our world is facing an environmental crisis of global outreach. At Yunus Environment Hub, we believe that the concept of social business bears the potential of tackling many of the environmental challenges ahead by combining the creativity and adaptability of business entrepreneurs with a purpose for sustainable impact.
Indicated by the Earth Overshoot Day, we are using resources that would require 1.7 earths to sustainably satisfy our consumption
According to a report launched by Ellen MacArthur Foundation, there may be more plastic than fish in the oceans by 2050
One serving of beef has the same carbon footprint as 40-60 servings of rice or vegetables (Source: University of Michigan)
According to the UN, 1 million animal and plant species are threatened with extinction within the next decades
Indicated by the World Bank, only 7% of the world‘s low-income households have access to clean fuels
The Concept
Social Business is a cause-driven business. In a Social Business, the investors/owners can gradually recoup the money invested, but cannot take any dividend beyond that point.
Purpose of the investment is purely to achieve one or more social objectives through the operation of the company, no personal gain is desired by the investors. The company must cover all costs and make a profit, at the same time achieve the environmental or social objective, such as providing safe drinking water, introducing renewable energy, preventing plastic pollution, reducing CO2 emission or providing health care, housing or financial services for the poor in a business way.
The impact of the business on people or the environment, rather than the amount of profit made in a given period measures the success of social business. Sustainability of the company indicates that it is running as a business. The objective of the company is to achieve social goals.
The Principles
Nobel Peace Prize Laureate Prof. Muhammad Yunus defines the concept of Social Business by seven 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. Gender-sensitive and environmentally conscious
6. Workforce gets market wage with better working conditions
7. Do it with joy