Zariatul Hafsa

Social business is a type of enterprise that primarily aims to solve social problems rather than generate profit. Its core features include serving the community through business, returning investments to investors without distributing profits, reinvesting all surplus into the business, and contributing to the welfare of society. This model is self-sustaining and environmentally friendly.
The concept of social business was pioneered by Dr. Muhammad Yunus, who initially established Grameen Bank, a microfinance institution aimed at poverty alleviation. In recognition of his remarkable contribution to combating poverty, he was awarded the Nobel Peace Prize in 2006. According to him, social business is an economic initiative focused on human welfare instead of profit maximization.
Background of Social Business:
In 2006, driven by the urge to contribute to social welfare, Dr. Yunus partnered with French multinational food company Danone to establish Grameen-Danone Foods Ltd., his first social business initiative. The goal was to reduce child malnutrition in Bangladesh. Instead of distributing profits among investors, any surplus was reinvested into the business to further serve the community.The success of this project gave social business international recognition as a viable economic model. That same year, Yunus Social Business (YSB) was established by Dr. Yunus along with Saskia Bruysten and Sophie Eisenmann. Headquartered in Berlin, Germany, the organization operates across Bangladesh, Brazil, Colombia, India, Kenya, and Uganda.
Book on Social Business:
In 2008, Dr. Yunus published a notable book titled “Creating a World Without Poverty: Social Business and the Future of Capitalism”. In it, he highlights the limitations of traditional capitalism and the necessity for social business to fill the gaps in the economic system.
Seven Principles of Social Business by Dr. Yunus:
1. The primary goal is to solve social problems, not to make a profit.
2. The business must be financially and economically sustainable.
3. Investors get back only their initial investment, no dividends.
4. Any profit is reinvested into the business for expansion and improvement.
5. The business must be environmentally conscious.
6. Fair wages and good working conditions for employees.
7. Work should be carried out with joy and a sense of purpose.
Examples of Social Business Initiatives:
1. Grameen-Danone Foods Ltd.: A joint venture between Grameen (Bangladesh) and Danone (France), aiming to reduce malnutrition among children by producing affordable, nutritious yogurt called “Shakti Doi.”
2. Grameen Shakti: Has installed over 2 million solar home systems in rural areas, promoting clean and sustainable energy.
3. Grameen-Uniqlo: In partnership with Japan’s Uniqlo, provides quality clothing at affordable prices.
4. Grameen Eye Care Hospital: Offers affordable eye care services, along with creating employment opportunities for many.
Social business stands as a practical initiative against poverty and social challenges. It combines entrepreneurship with a mission for human welfare. Today, the concept of social business is increasingly recognized worldwide as a transformative and sustainable economic approach.

The writer is a student of the  Institute of Social Welfare and Research, University of Dhaka
Member, Bangladesh Tarun Column Lekhok Forum, DU branch