danone.communities expliqué aux juristes du DJCE de Montpellier

DCJE Montpellier 23 février Analyse et correction du cas pratique " Naandi Foundation "

Exploring new models through social business

Social Innovation quizz SICAV & FCPR Muhammad Yunus Entrepreneur social Microcredit Vitamine A, Iron, Zinc Ecosystem Dolima « Mane pusti » Social Business GAIN Développement Durable Mécénat KPIs Fondation BOP Blended Value Triple Bottom Line

World is under pressure

World is under pressure terrorism governance new regulations ISR increase globalization : poverty issues Economical crisis GMO water access protection ofnatural water intensive agriculture packaging impact human rights social progress malnutrition obesity public health New technologies global warming education access demography

Do companies respect the law?
Do they pay taxes?
Do they create shareholder value?
Civil society new expectations
Do you create social value for local communities?
What about your ecological footprint?
How do you develop staff ?
Are your company values just window-dressing?
15 years ago Today

On the road of the dual project

Once upon a time, a gene

Sustainable Development as part of Danone history 1985 First agreement signed with IUF* 1972 Antoine Riboud Dual commitment 2007 Diversity Convention Signed with IUF Danone Way fundamentals 1997 Groupe DANONE values 2001 DANONE Way Fundamental Social Principles 2005 Food, Nutrition & Health Charter 1996 Business Conduct Policies Charter for environment 1998 Support of Ramsar International Convention for Protection of wetlands 2004 Groupe DANONE Groundwater Resources Protection Policy *IUF : International Union of Food workers 2008 Supporting Life Danone Fund for Nature Ecosystem 2006 Danone Communities Danone Way Innovation SD & DNA Co-creation

Danone Social Innovation Overall credibility coming from streams consistency within each program PEOPLE HEALTH 4 ALL danone. communities NATURE DANONE for NATURE DANONE INSTITUTES ECOSYSTEME Danone Supporting Life

Exploring new models through social businesses

Bring health through food to as many people as possible. Once upon a time, a mission

Once upon a time, 2 people Explore new community based business for/with social impact

What is a Social Enterprise?
A social business company (“Social Enterprise”) is a company which applies market-based strategies to achieve a social purpose rather than being driven by the need to maximise profit for shareholders and owners . Sustainability of the company indicates that it is running as a business. The objective of the company is to achieve social goals
Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose remains central to their operation.
Their aim – to accomplish targets that are social and/or environmental as well as financial – is often referred to as the triple bottom line (abbreviated as " TBL " or " 3BL ", and also known as " people, planet, profit " or " the three pillars ").
Profit making by an Social Enterprise shall be consistent and desirable because :
To generate enough surplus to pay back the invested capital to the investors as early as possible
To generate surplus for (i) expansion, (ii) improvement of quality, (iii) increasing efficiency through introducing new technology, (iv) innovative marketing to reach the deeper layers of low-income people and disadvantaged communities and (v) undertake research and experimentation to improve and diversify products and services.
The profit from a Social Enterprise could be used to support a social aim, such as funding the programming of a non-profit organization. Moreover, a business could accomplish its social aim through its operation by employing individuals from disadvantaged backgrounds or lending to micro-businesses that have difficulty in securing investment from mainstream lenders.

Seven Principles of Social Business
These were developed by Prof. Muhammad Yunus at the World Economic Forum in Davos, January 2009:
Business objective will be to overcome poverty , or one or more problems such as education, health, technology access and environment, which threaten people and policy; not profit maximization;
Financial and economic sustainability;
Investors get back their investment amount ; no dividend is given beyond investment money;
When investment amount is paid back, company profit stays with the company for expansion and improvement ;
Environmentally conscious;
Workforce gets market wage with better working conditions ;
… ..do it with joy.

Legal specificities of Social Enterprise?
Legal form? NO  It is what a business does with its profits that determines whether it is a social business company, rather than its specific legal structure.
Specific clauses in the by-laws or the shareholders agreement?
-> purpose of the company : needs to have positive social objectives;
-> impact of the business on people or environment , rather than the amount of profit made
in a given period, measures the success of social business  need to draft a way to mesure this impact
Dividends:
-> Pr Yunus: non-profit distribution : investors cannot take profits out of the enterprise as dividends.
-> Others: there is no benefit in restricting a company's ability to distribute profit to investors; this may in fact serve to reduce a business's access to much-needed capital.
Capital restrictions may then compromise the company's ability to achieve its social aims.
Idea developed by Daniel Hurstel (“La Nouvelle Economie Sociale”) to amend Article 1832 of French Civil Code: Art. 1832 C.Civ: “ La société est instituée par deux ou plusieurs personnes qui conviennent par un contrat d’affecter à une entreprise commune des biens ou leur industrie en vue de partager le bénéfice ou de profiter de l’économie qui pourra en résulter ”  does not fit with the objective of social enterprise which is not about “sharing the profits” but rather “using the profits to accomplish a social goal ”

Grameen Danone, a model of Social Enterprise :
Grameen Danone is the first project implemented as a joint venture between Grameen Trust and the Danone Group.
The first plant was inaugurated on 7 November 07 by French football icon Zinedine Zidane. It is a small plant on only 7,000 sq ft (650 m2) at an area cost of USD 1.00 million approximately. Its production capacity is 3,000 kg yogurt per day with a maximum of 10.000 kg. Currently its production of yogurt is designed for children but it is suitable for adults.
Yogurt is manufactured from fresh milk, cornstarch, date molasses, sugar and micro nutrients (vitamin, iron. protein, iodine, zinc, calcium, etc.). The product is branded “SHOKTI DOI”, meaning 'energy yogurt’. A single 80-gram cup provides 30 percent of a child’s daily requirements of vitamin, iron, zinc and iodine. The cost of production is approximately 5 cents (USD) per cup which is sold for Taka 7 only .
Rural women as well as tiny shops in rural areas are engaged in the product selling process. In order to procure milk from local sources, the project is actively considering developing about 500 mini-dairy farms with 3-5 cows each. Such farms will be supported with micro credit by the Grameen Bank.

Bangladesh, one of the world’s poorest countries T otal population in Bangladesh is 160 million. 60% of Bangladeshi households live on less than 2€/day. (2007) 40% of Bangladeshi population is living under poverty level (2009). Bangladesh is ranked 146th by the UNDP in terms of human development (2009). 11% 16% 22% 14% 37% € 2.9-4.1 a day (233-333Tk) € 2-2.9 a day (167-232Tk) > €4.1 a day (>333Tk) € 1-2 a day (83-166Tk) Grameen Danone Project Sources : 2004 statistical yearbook of Bangladesh, 2005 estimates on total population, household income per day A B C D E

1/ To bring health through nutrition at very affordable price for all Bangladeshi children 2/ To improve living conditions of the poorest of the community by involving them in all stages of the business model (supply, production, sales), creating jobs and improving local competencies 3/ To preserve non-renewable resources as much as possible 4/ To be profitable to ensure economic sustainability Grameen Danone Foods’ objectives

Shokti+, a fortified yoghurt to meet nutritional needs of Bangladeshi children. Shokti+ doï literally means “yogurt to give strength”. It is a yoghurt enriched with micronutrients. A single 60g cup provides 30% of a child's daily requirements of vitamin A, iron, zinc and iodine. Price per cup of Shokti+ has been designed for the poorest families to be able to afford it regularly. Price is 7 BDT for 60g, or 5 BDT for a pouch of 40g. Shokti+ is produced by Grameen Danone Foods Ltd in a small modern factory in Bogra, built with the Danone know-how on quality and food safety. Product of Grameen Danone: an enriched yoghurt for all

Once upon a time , a project of a local community based social business

Naandi Foundation case

On 28 July 2010: the General Assembly of the United Nations adopted a resolution calling on States and international organizations to provide financial resources, build capacity and transfer technology, particularly to developing countries, in scaling up efforts to provide safe, clean, accessible and affordable drinking water and sanitation for all.
The Assembly declared that “ safe and clean drinking water and sanitation is a human right essential to the full enjoyment of life and all other human rights ”.
Today:
884 million people with no access to safe drinking water and more than 2.6 billion lack access to basic sanitation;
1.5 million children under 5 years old die each year as a result of water- and sanitation-related diseases.
Access to clean water is a human right:

http://www.danonecommunities.com	543
http://new.danonecommunities.com	18
http://translate.googleusercontent.com	4
http://web1.groupereflect.net	3
http://lespiedssurterre.danone.com	2
http://webcache.googleusercontent.com	1
http://downtoearth.danone.com	1
http://danone2.groupereflect.net	1

danone.communities expliqué aux juristes du DJCE de Montpellier

by danone communities on Mar 09, 2011

Accessibility

Categories

Tags

Upload Details

Usage Rights

8 Embeds 573

Statistics

danone.communities expliqué aux juristes du DJCE de Montpellier — Presentation Transcript