Social Business is a non-loss, non-dividend and financially self-sustainable business designed to address one or more social problems. It is about making complete sacrifice of personal financial gain from business. Social Business is a cause-driven business rather than profit driven. And also it is neither a profit-maximizing business nor a non-profit system. Because like other profit-maximizing businesses, the crucial aim of a social business is not to maximize profit but generating profits is desired. Moreover business owners/ Investors are not receiving any dividend out of the business profits, they will get back their investment amount only. As it is self-sustainable in nature, is not dependent on any types of subventions and private or public grants to survive and to run. Dr. Yunus' quote: "A charity dollar has only one life; a social business dollar can be invested over and over again"….according to this moral, funds are not spent in social business, …show more content…
CSR is a company’s sense of responsibility towards the community and environment both ecological and social as well as ethical in which it operates. CSR includes some values like risk management, corporate philanthropy etc. the actual goal of CSR in not directly social well-being centric; but promoting sustainable business models, compliance and providing funds- which are revolving around their ultimate goal – profit making, when social business has social objectives in its core.
NGOs are groups of organizations engaged in a wide range of activities. Some may have charitable status, while others may be registered for tax exemption based on recognition of social purposes, or for political, religious, or other interests. NGOs run their system according to traditional business models. And social Business is a new category of business. It does not stipulate the end of the existing type of profit making business. It widens the market by giving a new option to
The basic definition of social responsibility is that all companies should embrace more than just the focus of maximizing profits, and should have as part of their business model the goal to have a positive impact upon the society in which they operate. (Investopedia, 2014) Some businesses believe that social responsibility can only be applied to individuals and not to a corporation or business entity, and that the social responsibility of business is only to maximize the profits of the company for the shareholders of the organization. By maximizing the profits of a business, society as defined by these companies, is benefiting because the business is successful adding value to the entire society in which the company is operating.
Corporate social responsibilities (CSR) have a different meaning in different company but in my view CSR is the concept which is the ability one of the companies can do for society. As the company responsibilities toward the society and environment in the way operate their business. CSR is about how companies manage the business processes to produce an overall positive impact on society. CSR also known as a “corporate citizenship” and with do that CSR is not provide an immediate financial benefit to the company but promote positive social and environmental change. (www.investopedia.com/terms/c/corp-social-responsibility). CSR is a high profile nation which the business world perceives as a strategic (Economist, 2008; Porter & Kramer, 2006)
Corporate Social Responsibility is the obligation from corporations to utilize their resources to aid and benefit the larger society. The four components of CSR are economic, legal, ethical, and philanthropic. Social Responsibility is a fundamental force in the wealth creation process. If correctly demonstrated, CSR should heighten competitiveness and boost the value of wealth creation to society. A company's CSR Initiatives directly represent who the company is and what it believes it. The m...
Corporate Social Responsibility (CSR) is the set of regulations that an organization makes to protect and increase the society in which it functions. There are three areas of social responsiblity: Organizational stakeholders, the natural environment and general social welfare.
I’ve always had that predominant perception that one can always rely on sympathy sales when running a Social Enterprise, “After all we are doing a good deed, society would see our hard efforts and lend us a hand won’t they?” That was my very own opinion towards running a Social Enterprise. Thankfully, this fallacy I had in my head was struck down by Debra’s sharing. I now understand that even though it is important for a Social Enterprise to be profit-orientated and to have a firm social cause to work in. We must not only take into consideration about the social mission that we are working towards but to also consider the consumers that we are serving to always ensure that we provide a service that is worthy enough to satisfy them to ensure that they will come back to bring business to us again.
According to Mike Peng, Corporate Social Responsibility (CSR) is the consideration and response to issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with traditional economic gains the firm seeks. CSR is a way in which a company seeks to achieve a balance between profit, environmental concerns and social imperatives. This is known as the ‘Triple-Botto...
I begin this essay by defining CSR, there are many definitions for this term by various different theorists, and EU says that CSR is "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis." On the other hand, Sloman et al. define it as "The concept in which a firm takes into account is the interests and concerns of a community rather than just its shareholder". Davis and Blomstrom (1966), say it "Refers to a person’s obligation to consider the effects of his decisions and actions on the whole social system". These definitions differ from one another in many ways but they agree that CSR involves taking the environment into account and therefore, one must look take social responsibility.
Social economy mainly includes cooperative, not for profit, and voluntary activities which make this concept similar to third sector of society that includes citizens associations and foundations. Third sector is defined by reference to the public sector (state, government, public administration) and the private sector (com...
CSR is a concept where company involves in social and environmental in their business operations. This is done to achieve a balance of economic, environmental and social obligations.in simple terms giving a hand for those who are not capable of achieving with their objectives and attending to them so that they could make those objectives a reality. This could improve organizations cooperate image which would also leads to attain a high market share.
CSR can relate to social, environment and profit goals. CSR enhances awareness of human, environmental and social issues and places pressure on organizations to adopt procedures and policies that are good for stakeholders wellbeing. Scholars have different definitions for CSR as seen below:
Social responsibility is the part of the framework of an organization or individual which makes up an obligation to act for the benefit of society. There are many different ways act out social responsibility. The social responsibilities of a business can be classified according to the businesses relationships to the general public, customers, employees and investors. The companies that make their product or service with the rooted mindset of benefiting the community and the world around them do this by providing things like scholarship funds, all natural products, biodegradable storage, and or just by treating the consumer as well as the employees as individuals rather than a corporate dollar sign. Businesses may exercise
CSR is the obligation of business to promote and to protect the interest of shareholders.
These endeavors are controlled by shareholders either givers or poor people, and givers recover their underlying speculation, however any extra benefits made by the undertaking are furrowed once again into the work. To show his concept of a social business, Muhammad Yunus weaves through the book the intriguing contextual analysis of Grameen Danone, a joint endeavor amongst Grameen and the French multinational sustenance item organization Danone. Muhammad Yunus sees numerous sources from which these new social organizations can start: existing organizations, establishments, the World Bank and different offices, government improvement reserves, fruitful business people searching for a next movement, well off retirees, and late school graduates. In fact, these sources hold guarantee. Muhammad Yunus likewise trusts that social organizations would urge more individuals to give back: Many would discover building up and working in a social business more appealing than working for a philanthropy, given the renowned society agrees business people well beyond their money related achievement. Muhammad Yunus addresses the handy obstacles of making social organizations by compactly depicting the strides that must be taken if social organizations are to end up standard foundations. Advocates must build up an arrangement of lawful meanings of social business, alongside tax assessment and administrative principles. Social business benchmarks should then be set up and ensured. Muhammad Yunus trusts that distinctive sorts of autonomous accreditation and appraisals organizations will spring up to meet the requests of potential financial specialists and shoppers. I would include that legislature, guaranteeing offices, and the sheets of
There are now several concepts of CSR and its definition, along with the meaning across corporations. In my opinion, and according with our textbook in page 11. CSR is about a particular set of business and strategies that deal with social issues. In addition, we can clearly perceive that CSRs application along corporations has increase in the past decade due to the several local, and international regulations in order to enforce business to act responsible.
Social entrepreneurs drive social innovation and transformation in various fields including education, health, environment and enterprise development. They pursue poverty alleviation goals with entrepreneurial zeal, business methods and the courage to innovate and overcome traditional practices. A social entrepreneur, similar to a business entrepreneur, builds strong and sustainable organizations, which are either set up as not-for-profits or companies.