Social business
The second annual Social Business Day was observed on June 28 in Dhaka. Having been invited by Dr. Muhammad Yunus I attended that celebration. The theme for this year's event was "Achieving the Millennium Development Goals through Social Business." More than 500 participants from 15 countries took part.
Among those who spoke on their experiences on social business were the Regional Functions and Country Management, Asia Pacific, Saori Dubourg -- President of BASF; Eric Lesueur, Project Director, Veolia Water; and Corinne Bazina, CEO, Grameen Danone.
Dr. Yunus and Thomas Stelzer, the UN Assistant Secretary General for Policy Coordination and Inter-Agency Affairs Department of Economic and Social Affairs, expressed the hope that it would be possible to fulfill the MDG targets through social business.
If I had not been present, I would have been in the dark about many sides of social business. The entire world is trying to find out solutions to problems through this experiment. Social business is an inspiring and target-achieving idea of Dr. Muhammad Yunus.
Muhammad Yunus wants a business world through which it will be possible to remove the problems of the society through a practical, not-for-profit system.
The aim of social business is to help the poor people of the state. The new concept of business is that the investor will be eligible to withdraw that money after the expiry of the scheduled time.
The profits that will come from the investment shall be utilised in ensuring education and health-care for the poor and destitute. If we can put this idea into practice, then it will not take long to implement social change. It is possible to get the world free from the curse of poverty by fulfilling the target of the MDG through social business.
Dr. Muhammad Yunus thinks that the poor do not create poverty. Therefore, the rich people of the society should invest more in social business for solving the problems. The deficit in food occurs because of poverty, unemployment increases and a social crisis is created. Only social business can show the path to overcome these national problems.
The investor in this new type of business will earn profit. Social business may be not-for-profit -- but the business can be carried on only through assuring the return of the invested principal money. The main object of social business is to build up a developed society with the profits from business. It is also a target fixed by the UN for fulfilling the MDG within 2015. We can adopt initiatives to fulfill the development targets within 2015 through social business. We are to bear in mind that reducing the rate of the child deaths is one of the 8 canons of the UN declared Millennium Development Goal.
Social business is a new concept. Therefore, through observance of the Day, the general people can be informed about it. There is no alternative to social business to remove poverty and build a happy Bangladesh.
Social business has seven principals:
-The objective of business will be to overcome poverty, not profit maximisation;
-Financial and economic sustainability;
-Investors get back their invested amount only. No dividend is given;
-When invested amount is paid back, company profit stays with the company for expansion and improvement;
-Environmental consciousness;
-Workforce gets market wage with better working conditions; and
-Do it happily.
If these principles are followed then it will be easy to fulfill the MDG targets. The member states promised to fulfilled the aims and objective of MGD by 2015.
Building partnerships for development all over the world will make it easier to fulfill the MDG targets provided the concept of social business is utilised. For a developing state like Bangladesh this is undoubtedly an important topic. Achieving the targets will be a real challenge.
For countries like ours, it is necessary to adopt social business to fulfill the objectives. Objective no. 8 of the MDG envisages building of partnerships for development all over the world. Business and monetary arrangements will be managed on the basis of rules and regulations -- which will be reasonable and impartial. Good administration, development and reduction of poverty internationally have been incorporated. Dr. Muhammad Yunus is giving emphasis on this in particular so that differences are removed.
In the greater interest of society and state, let us come forward to extend cooperation to social business from our own respective positions.
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