7 principles of the social businesses
Updated: Mar 3
Muhammad Yunus, the creator of the concept of social businesses, described this type od economical activities as being:
Created and designed to address a social problem
A non-loss, non-dividend company that it is financially self-sustainable and profits realized by the business are reinvested in the business itself or used to start another social business, with the aim of increasing social impact
Let's see the 7 principles for the social businesses:
Business objective will be to overcome technology access, environment, education, poverty and/or health, 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
Gender sensitive and environmentally conscious
Workforce gets market wage with better working conditions
… do it with joy
How do you perceive the social business?