A collection of resources providing an introduction to social innovation and enterprise for budding social innovators, future investors and enablers of their efforts, policy makers, and anyone else interested in learning more about the novel ways that some of the world's most pressing problems are being addressed.
Monday, September 19, 2011
How do we get more "Danones" in the world?
The article "Danone Expands Its Pantry To Woo the World's Poor" is a tantalizing taste of the interesting (and I'd say inspiring) partnership between Danone and Muhammad Yunus. This partnership, along with the whole concept of social businesses, is fleshed out more in Yunus' book "Creating a World Without Poverty: Social Business and the Future of Capitalism" http://www.amazon.com/Creating-World-Without-Poverty-Capitalism/dp/1586484931
I found this book especially helpful in delineating social businesses from non-profits, socially- responsible businesses, and even social enterprises. Yunus argues that the current legal definitions available to organizations are inadequate, and we need a new legal category for social businesses. They aren't non-profits because they are revenue- generating ventures. But they are not traditional businesses because they don't seek to maximize profit for their shareholders, only to generate enough profit so that a) the organization is financially sustainable and b) it can plow profits back into the organization to help maximize its social mission. I think a new legal definition makes a lot of sense and will help to clear up much confusion about the main purpose of an organization. As things stand now, we risk having well- intending individuals haphazardly trying to generate revenue with grant funding or businesses facing down angry shareholders as they somehow try to maximize profit and fund "socially conscious" ventures.
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