Social Business Solves Malnutrition: Grameen Danone Food Ltd
1. Social Business to solve social problem: Grameen Danone
Food Limited (GDFL) in Bangladesh to solve malnutrition
problem
Md Rokunuzzaman
M185541
Master Student
IDEC, Hiroshima University
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2. Flow of the Presentation
Introduction to Social Business
Social businesses in Bangladesh
Social problem (malnutrition) in Bangladesh
Grameen Danone Food Limited (Shokti Doi)
Connection with SDG
References
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3. Social Business
Social Business is a business concept pioneered by Professor Dr.
Muhammad Yunus: Founder of Grameen Bank (Village Bank), awarded
Novel Peace Prize in 2006 along with his Founded Grameen Bank.
Social Business is designed and operated as a business enterprise with
products, services, customers, markets, expenses, and revenues having
social mission at its core.
Dedicated to solving social problems by providing essential products
and services like healthcare, safe water or clean energy to the poor.
(Yunus & Weber, 2007)3
4. Figure: Comparison among social business, not-for-profit organization and profit-
maximizing business (Source: Yunus, 2010)
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5. Social Business can be characterized by the following properties:
A self-sustainable enterprise that sells goods or services; generates profit and aims
to be financially self-sustaining.
The investors never receive dividends but could recoup invested amount if they
desire.
Profit could be either reinvested to expand the business or passed on to target
groups by lowering the price of products or services.
Why Social Business?
Globally Business is thriving and bring prosperity. Business has huge potentials to
contribute to solve social problems.
Donation Money has only one life but social business money has endless life. In
addition, when donation fund fall short, the good works stop. Conversely, Social
businesses don’t need to depend on donation for it`s continuation.
(Yunus & Weber, 2007)
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6. • Who invest in social business
• Generous individuals, organization or government agencies.
• Investors/donors became owner of the business and run the business.
Social businesses in Bangladesh
Grameen Danone Food Ltd. (produce and sell fortified yogurt at lower
price in rural areas)
Grameen Veolia Water Ltd. (Supply drinking water to local area)
Grameen Eye Hospitals (Provide affordable eye treatment to poor people)
Grameen UNIQLO (Clothing retailer, generate profit to invest in social
business)
(Mohammed, Hossain, Russel, & Robidas, 2019)
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7. Social problem (malnutrition) in Bangladesh
Bangladesh is a country with a population of about 162 million (World
Bank, 2018). Land area are 147,570 square kilometres, one of the densely
populated country in the world.
According to Bangladesh Demographic and Health Survey 2017-18 by
National Institute of Population Research and Training (NIPORT):
6 months to 18 years old population are about 60 millions
Under 5(6 months to 59 months) children are nearly 15 millions
• 31% of children under five years of age are stunted (height-for-age).
• 8% of children under five years of age are wasted (weight-for-height).
• 22% of children under five years of age are underweight (weight-for-age).
Save
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8. Grameen Danone Food
Limited
• Grameen Danone Food LTD popularly known
as Grameen Danone is a Social Enterprise (SE)
founded by Danone and Grameen Bank as a
50-50 joint venture in 2007 (Yunus et al.,
2010).
• Established with the aim of fighting
malnutrition and creating employment
opportunities in rural communities (Yasmin,
2016).
• Grameen Danone manufactures and
distributes a fortified yogurt called `Shokti+
Doi' (strength yogurt) which has been
designed to provide children with many of
the key nutrients (proteins, vitamins, Iron,
Calcium, Zinc etc.) that are typically missing
from their diet in rural Bangladesh (Danone
communities). 8
Cont.
(Source: Danone communities website)
9. 100,000 cups of yogurt sold daily
300,000 beneficiaries
475 farmers living better by selling their
milk to Grameen Danone
250 micro-entrepreneurs.
Yogurts are sold at low price (10 BDT/50
ml Pouch) in the rural area but at regular
price (40 BDT/80 ml Pouch) in urban
arear.
A single 60g cup provides 30% of a
child`s daily requirement of vitamin A,
Iron, Zinc and Iodine.
Company also sell yogurt in city market
at regular price. 80% of the company
profit comes from urban sales.
(Source: Danone communities website)
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10. Connections with SDG
Goal 2. End hunger achieves food security and improved nutrition
and promotes sustainable Agriculture.
Targets:
By 2030, end hunger and ensure access by all people, in particular, the
poor and people in vulnerable situations, including infants, to safe,
nutritious and sufficient food all year round.
By 2030, end all forms of malnutrition, including achieving, by
2025, the internationally agreed targets on stunting and wasting in
children under 5 years of age and address the nutritional needs of
adolescent girls, pregnant and lactating women and older persons.
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11. References
• Hoque, S. (2014). Social Business: A Revolutionary Idea in the Field of Poverty Alleviation. IIUC Studies,
8(December), 81–94. https://doi.org/10.3329/iiucs.v8i0.20404
• Mohammed, B., Hossain, S., Russel, A. H., & Robidas, L. C. (2019). Structural Evolution and Influence of
Social Business to Eradicate the Social Problems in Bangladesh : A Global Perspective
StructuralEvolutionandInfluenceofSocialBusinesstoEradicatetheSocialProblemsinBangladeshAGlobalPer
spective. (August).
• National Institute of Population Research and Training (NIPORT), 2019, Bangladesh Demographic and
Health Survey, 2017-18, Dhaka, retrieved from https://dhsprogram.com/publications/publication-
PR104-Preliminary-Reports-Key-Indicators-Reports.cfm
• World Bank, 2018, Retrieved from https://data.worldbank.org/indicator/SP.POP.TOTL?locations=BD
• Yasmin, Nur Nahar (2016). “Sustainability of a Social Business: A Case Study on Grameen Danone Foods
Limited”. In: Asian Business Review 6.3, pp. 167– 174.
• Yunus, Muhammad and Karl Weber, 2007. “Creating a World without Poverty: Social Business and
Future Capitalism”. Public Affairs, New York.
• Yunus, Muhammad, BertrandMoingeon, andLaurenceLehmann-Ortega(2010). “Building social business
models: lessons from the Grameen experience”. In: Long range planning 43.2-3, pp. 308–325.
• Danone Communities , Retrieved from
http://www.danonecommunities.com/index.php/portfolio_page/grameen-damone-food-limited/
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