The article in the url link below reviews a new book by Muhammad Yunus (“Creating a World Without Poverty: How Social Business Can Transform Our Lives”), the 2006 winner of the Nobel Peace Prize (Issues: Loans, p188). The book is a detour from the idea that made Yunus famous, microfinance, focusing instead on:
“his other big idea: that of ''social business''.”
His idea of social entrepreneurship, or “social business” as he terms it, is described as “a new sector of the economy made up of companies run as private businesses but making no profits” and sounds a lot like Bill Gates’ “creative capitalism” (http://www.gatesfoundation.org/MediaCenter/Speeches/Co-ChairSpeeches/BillgSpeeches/BGSpeechWEF-080124.htm). Similar to Gates, Yunus envisages businesses that:
“… focus on products and services that conventional companies do not find profitable, such as healthcare, nutrition, housing and sanitation for the poor. It is predicated on the view that investors will be happy to get zero return as long as they can see returns in social benefits.”
Whereas the reviewer thinks Yunus’ idea of microfinance is effective because it involves “harnessing market forces to overcome a market failure,” he is skeptical that altruism constitutes sufficient incentive to mobilize the private sector as a whole:
“The genius of microfinance was in getting the profit motive to work for the very poorest. The drawback of social business is that it depends on the kindness of strangers.”
Take care
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther
Poor returns.
By ALAN BEATTIE
578 words
2 February 2008
Financial Times
Surveys MAG1
Page 33
http://www.ft.com/cms/s/0/7c524468-cd51-11dc-9b2b-000077b07658.html
