Asian Development Bank

1. Social Business: A way to solve society's most pressing problems Muhammad Yunus Asian Development Bank Yunus Centre Dhaka, 2012 Document number

2. Yunus Centre Statements Putting poverty into poverty museums Our Vision Promoting and developing Social Business to put poverty into poverty museums by year 2050 Our Mission

3. Yunus Centre Key Assignments Centre of Social Business Events International Secretariat Yunus Centre Library • Promoting Social Business • Social Business Centres, institutes, and chair • Social Business Funds • Creation of SB partnerships • Grameen Social Business website • International Scheduling • Media, press releases • Yunus Centre website • Archiving • Documentation • Photos and films • Gifts and prizes • Yunus Centre Forum • Social Business Day • Social Business Plan Competition

4. Yunus Centre - Social Business Social Businesses University collaborations • Grameen Bank, Grameen Danone, Grameen Veolia, Grameen Yukiguni Maitake, Grameen Intel, Grameen Uniqlo, Grameen Fibreglass, Grameen Healthcare Services, Grameen Distribution, etc. • Yunus Social Business Centre @ University of Florence • Social Business Chair at HEC, France • Yunus Centre at AIT, Thailand Yunus Centre Social Business Holistic Social Business Movements Social business funds • Yunus Fund Monaco • Grameen Credit Agricole Microfinance Foundation • In process: IDB, JICA Social Business Fund • East Timor • Kohlapur, India • Caldas (with GCL) • Haiti (with GCL) 4

5. What is Social Business? A social business is a non-loss, non-dividend company designed to address a social problem. The profits are used to expand the company’s reach and improve the products and/or services Yunus Centre

6. Social Business Principles 1. Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization 2. Financial and economic sustainability 3. Investors get back their investment amount only. No dividend is given beyond investment money 4. When investment amount is paid back, company profit stays with the company for expansion and improvement 5. Environmentally conscious 6. Workforce gets market wage with better working conditions 7. …do it with joy

7. The Need for Social Business Grameen's Answer Current economic theory only postulates a single dimensional human being – The profit maximizer Social business is the missing piece to combine the market with the fight against poverty and other social ills

8. Social Business Background Sustainability • Grameen Bank • Precursors: • Grameen Shakti • Grameen Shikka • Grameen Danone • Grameen Veolia • Others Addressing the poor Social Business

9. Social Business / Social Enterprise Using skills drawn from business world to fight social problems Valuation of “social profit” and the Triple Bottom Line (social, environmental, economic) Venture is self-sustainable Dividends owed to investors Financial profit reinvested for the benefit of the company

10. How Does Social Business Work? Initial investment Investment Reinvestment Return of initial investment Cycle of Social Business Profit Product Identifying a social need Sales Source: Yunus Centre

11. Social Business Types Type I Type II Definition: Refers to a social business that focuses on providing a product and/or service with a specific social, ethical, and/or environmental objective Example: Grameen Danone Definition: Is a profit-oriented business that is owned by the poor, who can gain through receiving direct dividends or by some indirect benefits Example: Grameen Bank

12. Int. Social Business Partnerships Source: Yunus Centre

13. Social Business Funds Definition How it works 1 2 • Social business funds are created to provide financing for social businesses in a pre-determined sector or location • Social business funds function as Social Businesses themselves • Investors do not get any dividends • The fund borrowersmust repay their loan amount, with interest, and the fund, in turn, pays back the investors • The interest paid by the borrowers will help defray the administrative cost Overview • Once established, the fund will raise additional capital from investors enabling it to expand its reach • Additionally, the loan amounts repaid by the borrowers will go to replenishing the fund • To finance the development and creation of new Social Businesses • To expand the scope of an existing Social Business • To replicate an established Social Business or to convert an existing entity Future of Social Business Funds Purpose of Funds 4 3

14. Further Initiatives SB Regulations • To regulate the social businesses´ practices Social MBA courses Social Stock Exchange Next Initiatives • To measure the performance of the social businesses • To teach about social business as an alternative to profit maximization businesses SB Ratings & Journals Social Impact Indicators • To exchange news and research about social business • To measure the social impact of the social businesses

15. Grameen Social Business Network Projects: • Colombia, • Bangladesh, • Haiti, • Ghana • University Partnerships: • CSU CI, HEC, NSU, • University of Glasgow, Caledonian University, • Kyushu University, Rikkyo University, Asian Institute of Technology, Bocconi University, • University of Florence, European Business School, European Institute of Design, • Kathmandu University, • Zayed University • National University of Singapore, • University of Kebangsaan, • Okan University • Grameen Creative Lab / Social Business Centres: • Germany, • Argentina, • South Africa, • Tanzania Potential Projects: • India, • Russia, • Pakistan, • China, • East Timor, • Albania

16. Thank You! For more information on social business, please contact the Yunus Centre: info@yunuscentre.org Facebook.com/YunusCentre Twitter.com/YunusCentre Source: Yunus Centre