How are organisations adopting the concept of Social Business?

4 Nov

There are many organizations today concentrating on creating social benefits. Social business functions as the traditional profit maximization business. A social business aims for cost recovery though it focuses on creating products or services that provide a social benefit. How to provide a social benefit? There are many ways. For a few examples:


  •  A social business that produces and sells high quality and nutritious to the poor. Without the expensive packaging and advertisements, the products are in a low price. And these companies do not focus on profits.
  • A social business that designs and markets health insurance policies that the poor are able to afford.
  •   A social business that develops renewable-energy systems and sells them at reasonable prices to rural communities that can’t afford energy.
  • A social business that recycles garbage, sewage, and other waste products that would generate pollution in poor or politically powerless neighborhoods.


In these cases or other kinds of social business, the company is providing a product or service that generates sales revenue even as it benefits the poor or society. Rather than seeking to amass the highest level of profit to be enjoyed by investors, the social business seeks to achieve a social objective.



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