1 2010-07-25 Yunus Centre SB presentation v13.ppt "A4rb_standard" – 20100111 – do not delete this text object! Asian Development Bank Document number 1

12010-07-25 Yunus Centre SB presentation v13.ppt

Asian Development Bank

Yunus Centre Dhaka, 2012

Social Business: A way to solve society's most pressing problems

Muhammad Yunus


Our Vision

Our Mission

Putting poverty into poverty museums

Promoting and developing Social Business to put poverty into poverty museums by year 2050

Yunus Centre Statements


• Promoting Social Business• Social Business Centres, institutes, and

chair• Social Business Funds• Creation of SB partnerships• Grameen Social Business website

Centre of Social Business International Secretariat

• International Scheduling • Media, press releases • Yunus Centre website

Yunus Centre Key Assignments

Events Yunus Centre Library• Archiving• Documentation• Photos and films• Gifts and prizes

• Yunus Centre Forum• Social Business Day• Social Business Plan Competition


• Grameen Bank, Grameen Danone, Grameen Veolia, Grameen Yukiguni Maitake, Grameen Intel, Grameen Uniqlo, Grameen Fibreglass, Grameen Healthcare Services, Grameen Distribution, etc.

Social Businesses

• Yunus Social Business Centre @ University of Florence

• Social Business Chair at HEC, France

• Yunus Centre at AIT, Thailand

University collaborations

• Yunus Fund Monaco• Grameen Credit Agricole

Microfinance Foundation• In process: IDB, JICA Social Business

Fund

Social business funds

• East Timor• Kohlapur, India• Caldas (with GCL)• Haiti (with GCL)

Holistic Social Business Movements

Yunus Centre Social Business

Yunus Centre - Social Business


A social business is a non-loss, non-dividend company designed to address a social problem.

The profits are used to expand the company’s reach and improve the products and/or services

What is Social Business?

Yunus Centre


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 sustainability3. Investors get back their investment amount only.

No dividend is given beyond investment money4. When investment amount is paid back,

company profit stays with the company for expansion and improvement

5. Environmentally conscious6. Workforce gets market wage with better

working conditions7. …do it with joy

Social Business Principles


Social business is the missing piece to combine the market with the fight against poverty and other social ills

Current economic theory only postulates a single dimensional human being – The profit maximizer

Grameen's Answer

The Need for Social Business


• Grameen Bank

Addressing the poor

• Precursors: – Grameen Shakti– Grameen Shikka

Sustainability• Grameen

Danone• Grameen Veolia• Others

Social Business

Social Business Background


Social Business / Social EnterpriseSocial

Business

Social Enterprise

Using skills drawn from business world to fight social problems

Valuation of “social profit” and the Triple Bottom Line (social, environmental, economic)

Venture is self-sustainable

Dividends owed to investors

Financial profit reinvested for the benefit of the company


Investment

Product

Sales

ProfitCycle of Social

Business

Return of initial investment

Initial investment

Reinvestment

Source: Yunus Centre

Identifying a social

need

How Does Social Business Work?


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

Example: Grameen Danone

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 Bank

Social Business Types

122010-07-25 Yunus Centre SB presentation v13.pptSource: Yunus Centre

Int. Social Business Partnerships


Social Business Funds1 Definition• 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

2 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

4 Future of Social Business Funds

• 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

3 Purpose of Funds

• 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

Overview


Further Initiatives

Social Stock Exchange Social MBA coursesNext

Initiatives

SB Ratings & Journals Social Impact Indicators

SB Regulations

To exchange news and research about social business

To measure the social impact of the social businesses

To measure the performance of the social businesses

To teach about social business as an alternative to profit maximization businesses

To regulate the social businesses´ practices


Grameen Social Business Network

Potential Projects:

Grameen Creative Lab / Social Business Centres: • Germany,• Argentina, • South Africa, • Tanzania

Projects:

• China, • East Timor,• Albania

• India,• Russia,• Pakistan,

• Haiti,• Ghana

• Colombia, • Bangladesh, University

Partnerships: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

162010-07-25 Yunus Centre SB presentation v13.pptSource: Yunus Centre

Thank You!

For more information on social business, please contact the Yunus Centre:

[email protected]/YunusCentreTwitter.com/YunusCentre

mailto:[email protected]

Documents

1 2010-07-25 Yunus Centre SB presentation v13.ppt "A4rb_standard" – 20100111 – do not delete this text object! Asian Development Bank Document number 1