2017.03 Project Sustainability Through Social Business
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This document discusses social business and its key principles as outlined by Muhammad Yunus. It defines social business as a non-dividend company created to solve a social problem and addresses the seven principles of social business established by Yunus, including having a social objective rather than profit maximization. The document also examines types of social business, key aspects like dignity and empowerment, definitions of related terms, social business initiatives around the world, and considerations for measuring social impact.
2017.03 Project Sustainability Through Social Business
- 3. 🔥
- 5. •What are you passionate about? •What problems do you really care?
- 6. •What are you passionate about? •What problems do you really care? •if you had a magic wand, how would you change that problem? why?
- 7. situation
- 8. Project
- 13. tyranny
- 14. dependency
- 18. social business
- 20. MuhammadYunus
- 21. MuhammadYunus
- 22. MuhammadYunus
- 23. MuhammadYunus
- 24. MuhammadYunus
- 25. What is a Social Business?
- 27. (Yunus) Social Business • Non-dividen company created to solve a social problem.
- 28. (Yunus) Social Business • Non-dividen company created to solve a social problem. • Follows “7 Principles of Social Business”
- 29. (Yunus) Social Business • Non-dividend company created to solve a human problem. • Follows “7 Principles of Social Business” • Concrete definition.
- 30. 7 principles (2009) Draft them Prof Yunus 2009 World Economic Forum http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html
- 31. 7 principles (2009) Draft them Prof Yunus 2009 World Economic Forum http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html
- 32. 7 principles (2009) Draft them Prof Yunus 2009 World Economic Forum http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html 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.
- 33. 7 principles (2009) Draft them Prof Yunus 2009 World Economic Forum http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html 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.
- 34. 7 principles (2009) Draft them Prof Yunus 2009 World Economic Forum http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html 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.
- 35. 7 principles (2009) Draft them Prof Yunus 2009 World Economic Forum http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html 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.
- 36. 7 principles (2009) Draft them Prof Yunus 2009 World Economic Forum http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html 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. Gender sensitive and environmentally conscious.
- 37. 7 principles (2009) Draft them Prof Yunus 2009 World Economic Forum http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html 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. Gender sensitive and environmentally conscious. 6. Workforce gets market wage with better working conditions.
- 38. 7 principles (2009) Draft them Prof Yunus 2009 World Economic Forum http://www.grameencreativelab.com/a-concept-to-eradicate-poverty/7-principles.html 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. Gender sensitive and environmentally conscious. 6. Workforce gets market wage with better working conditions. 7. ...do it with joy.
- 40. Kinds of Social Business
- 41. Kinds of Social Business • Type I • Non Dividend company created to solve a human problem
- 42. Kinds of Social Business • Type I • Non Dividend company created to solve a human problem • Type II • Profit Maximizing business owned by the poor or disadvantaged.
- 44. dignity
- 45. empowerment
- 46. what poverty is?
- 47. “poverty is lack of access to opportunities”
- 52. definitions
- 58. social business social enterprise social entrepreneurship definitions ngo hybrid ngo Non - for profit
- 60. social business social enterprise social entrepreneurship social innovation definitions ngo hybrid ngo Non - for profit Inclusive business
- 61. social business social enterprise social entrepreneurship social innovation definitions ngo hybrid ngo hybrid value chain Non - for profit Inclusive business
- 62. social business social enterprise social entrepreneurship social innovation definitions ngo hybrid ngo hybrid value chain Non - for profit Inclusive business ¿?
- 68. “Applying business principles to social problems can increase effectiveness and financial sustainability ” - BCG
- 69. “Success (in social business) means delivering real social impact and doing so self-sustainably” - BCG
- 70. around the world
- 73. • Yunus Social Business is a non-profit venture fund. • They believe that business can be used to solve human problems. • Turn donations into investments in social businesses that solve problems on the field. http://www.yunussb.com/
- 77. http://www.grameencreativelab.com/ • The Grameen Creative Lab's vision is to serve society’s most pressing needs. • It’s mission therefore is to accelerate social business.
- 79. Past Editions • 2009 & 2010 Wolfsburg, Germany • 2011 & 2012 Vienna • 2013 Kuala Lumpur • 2014 Mexico City • 2015 Berlin
- 84. +
- 91. September 28, 2016 Ottawa, Canada
- 92. September 28, 2016 Ottawa, Canada
- 93. September 28, 2016 Ottawa, Canada +
- 99. what do we?
- 102. how?
- 126. CIC Community Interest Company UK (2005) Social Business Initiative (2011)
- 127. CIC Community Interest Company UK (2005) Social Business Initiative (2011) L3C Low Profit Limited Liability Company US* (2008)
- 128. CIC Community Interest Company UK (2005) Social Business Initiative (2011) L3C Low Profit Limited Liability Company US* (2008)
- 129. CIC Community Interest Company UK (2005) Social Business Initiative (2011) L3C Low Profit Limited Liability Company US* (2008) +?
- 130. discussion
- 135. Important aspects of SB important elements
- 136. social impact
- 137. Social Impact Models
- 138. Embedded • Social impact activities directly create revenue for the business.
- 141. Integrated • The company runs related services o programs to fund its social enterprise works. • Cross- subsidize
- 143. External • The activities that generate money are distinct from the social impact activities. • Operate 2 very distinct enterprises • Difficult to keep focus on impact.
- 145. Social Impact Models • Embedded • Integrated • External
- 146. Integrated Impact and business model • Impact, first priority. • Business as a need. • The more people reaches the more impact, the more revenue, the more growth.
- 147. Value Chain Impact
- 148. Impact on Sourcing
- 149. Impact on Operations
- 150. Impact on Sales
- 151. Value Chain Impact • Impact on sourcing • Impact on operations • Impact on sales / distribution
- 152. IMPACT measurement
- 153. Measuring Social Impact Stanford Social Innovation Review https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact
- 154. Measuring Social Impact Stanford Social Innovation Review https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact
- 155. Measuring Social Impact Stanford Social Innovation Review https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact
- 156. Measuring Social Impact Stanford Social Innovation Review https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact
- 157. Measuring Social Impact Stanford Social Innovation Review https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact
- 158. Expected Returns • Methods weigh the anticipated benefits of an investment against its costs.
- 160. Guide
- 161. Theory of Change
- 162. Theory of Change • Outline the intended process for achieving social impact, often using a logic model, • A tool that maps the linkages between input, activities, output, outcomes, and ultimately impact
- 163. Mission Alignment Methods • Measure the execution of strategy against the project’s mission and end goals over time, • Rubrics such as scorecards to monitor performance metrics.
- 168. (quasi)-Experimenta methods • Randomized control trials, simmers • Social Impact bonds
- 169. Social Impact Bond • Is a contract with the public sector in which a commitment is made to pay for improved social outcomes that result in public sector savings.
- 170. Measuring Social Impact Stanford Social Innovation Review https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact
- 171. Stanford Social Innovation Review https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact
- 172. Measuring Social Impact • Social Return on Investment • Theory of Change • Mission alignment methods • Experimental and quasi-experimental methods Stanford Social Innovation Review https://ssir.org/articles/entry/how_impact_investors_actually_measure_impact
- 174. Lean Data • From compliance to collaboration. Actionable. • From investor first to customer first. Meaningful • From reporting requirements to better business decision making. Applied. • From resource-heavy and expensive to cost efficient. Fast & Affordable. http://acumen.org/ideas/lean-data/
- 177. reflection
- 178. •why is it important to measure the intended impact?
- 179. •why is it important to measure the intended impact? •What if we don’t measure?
- 180. •why is it important to measure the intended impact? •What if we don’t measure? •What are the potential challenges to measure?
- 181. business model
- 182. Business Model • A business model describe the rational for how an organization creates, delivers and captures value. — “Alex Osterwalder” • Turning hypothesis to action
- 183. Product Companies • Traditional buy-sell Credit: http://businessmodelzoo.com/
- 190. Market Companies • Matching buyers an seller. • Take a “slice of transactions”
- 192. Business Models • Product Companies • Service Companies • Platform Companies • Market Companies Credit: http://businessmodelzoo.com/
- 194. Turning your Business Model to Action
- 196. Template Business Model Canvas
- 200. The Need for a Lean Approach • Lean is a mindset and as et of methods initially created to help companies learn faster and eliminate waste. • Now it’s been used to tackle the most pressing problems.
- 201. Why Lean? • 1 It favors experimentation over elaborate planning • 2 It priorities customer feedback over intuition • 3 It emphasize iterative design over traditional “bid design up front” development
- 202. • As Lean practices spread, they’re turning the conventional wisdom about Entrepreneurship on it’s head. - Steve Blank
- 203. • “Charities will do well to change mindset and become more entrepreneurial sooner rather than later.”
- 211. Activity
- 212. reflection
- 213. • What do these situations have in common?
- 214. • What do these situations have in common? • How could have been avoided?
- 215. • What do these situations have in common? • How could have been avoided? • Have you ever experienced something familiar? What happened? Why did you have that experience? What would you do different the next time?
- 216. What Lean does differently?
- 221. How to build a successful Social Business?
- 222. 1. Choose the right focus area 2. Designing a successful Business Model 3. Continuously learning and adapting 4. Building efficient and sustainable operations. 5. Managing for impact.
- 229. purpose
- 230. challenge
- 234. before…
- 240. Looking forward • çlooking forward
- 241. imagine
- 244. Social Business
- 245. v
- 246. vSocial Business
- 247. balance
- 248. zz alignment
- 250. 0 poverty 0 unemployment 0 net carbon emissions (c02) - 2050 , Muhammad Yunus
- 254. Room 208 AIT Extension Building [email protected] [email protected] @parra___
- 256. • As countries like Bangladesh move towards middle-income status, and with aid money drying out, charities will have to convert to social enterprises in order to address challenges in human development
- 257. • the 1.2 billion people currently living in extreme poverty cannot be met by either traditional development or social enterprise alone. The ideal scenario may be where the two can work together
- 258. • States have cut financial commitments to countries with growing economies – the UK’s Department for International Development (DfID) decided to stop bilateral aid to India and South Africa by this year – in favour of investing in social enterprise schemes 2013