Social Business A Social Duty Discussion
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“This is S!”
Muhammad Yunus is one of my heroes. He has come up with 2 interventions for hunger and poverty. One of those is Social Business. Please discuss how social business can impact hunger and poverty. Do you think it’s something large businesses should have to do to give back to their communities?
In this week’s discussion, we are learning about the importance of Social Business. Muhammad Yunus has been a major factor in being apart of slowly solving the issues of hunger and poverty. Muhammad Yunus believes in conventional banks. Conventional banks are the banks that are interested in helping these new borrowers and what they have planned to help themselves for their futures. In the powerpoint, we understand that Yunus helps people that are poor. He lends $27 dollars to forty-two women to help them in any way, And they were able to profit off of it. Businesses like Toms shoe company is also another helping hand company that cares and wants to find a way to end hunger and poverty. Yunus believes that it takes a lot of courage to help these people in need. Social Business can be the gateway to impact hunger and poverty. Yunus explains that people have to beg for the things that they need and it is not their fault. One thing that stood out to me the most was when Yunus discussed that poor people are not poor, they are poor because of the broken system. Society believes that they are poor because they are lazy and are not doing anything in their power to improve. But it is because of the system, they are not able to get the opportunities that they need to success. It is not fair for them to say that they are poor when there are not people helping them. And that was the reason that created poverty; it is not internally developed. But Social Business can help hunger and poverty because this program is the one doing as much as they can to help anyone in need of aid. Instead of causing the problem, you can design a business to solve the problem. And that is what social business is about.
We learned in the Social Business power point that social business is a type of investment where the investors only get back their investment amount and receive no dividend on top of this. That means that all of the profits beyond the investment amount stay within the company which allows for growth and further access to funds that they would otherwise struggle to obtain. This business model works with the goal of ending poverty and achieving equity. This in itself impacts poverty and hunger because it allows these groups of people who are receiving the investments the opportunity to grow their own income and the income of anyone else employed by the business, which will allow them better access to their necessities such as food. In addition, many of the companies that are supported by the social business model are doing work that is also contributing to solving the problems of poverty and hunger. For example, on the Yunus Social Business website they work with companies such as PlantVerd who are working to restore rainforests in Brazil, Provi who work to help young people obtain a higher education, and Impact Water who work to bring clean drinking water into schools in Uganda. Investing in companies who are working to help environmental damage, provide more access to opportunity for people and bring in basic necessities such as clean water will help us grow more food, raise generations that are more able to provide for themselves, and help impoverished communities.
I do think that this is something that large companies should have to do to give back to their communities. I think that especially when we consider that it is an investment and not a donation, it seems hard to think of a reason why they should not do it. TOMS for example is a social business model and they say on their website that they invest 1/3 of their profits into grass roots businesses. They are able to invest in businesses working to promote change and create progression at the roots. It also seems apparent that this is not something that has hindered the success of their own business. So, yes, if large businesses have the funds to invest in this way, I do think that it should be considered their civic duty.