Muhammad Yunus - The Social Business Model

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. The purpose of the investment is purely to achieve one or more social objectives through the operation of the business, no personal gain is desired by the investors. The company must cover all costs and can make profit, at the same time achieving the social objective that it set out to achieve i.e healthcare for the poor, housing for the poor, financial services for the poor, nutrition for malnourished children, providing safe drinking water, introducing renewable energy.

The impact of the business on people or environment, rather than the amount of profit made in a given period measures the success of social business. Sustainability of the business indicates that it is running as a business. The objective of the business is to achieve social goal or social goals.

The Yunus Centre is an excellent resource for teachers and pupils. Click here for the website

Watch a video here