Yunus Centre Social Business Presentation


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Yunus Centre Social Business Presentation

  1. 1. Document number Dhaka, 2011 Creating A World Without Poverty Yunus Centre – Social Business
  2. 2. <ul><li>A. Yunus Centre At a Glance 4 </li></ul><ul><li>B. The Concept Of Social Business 8 </li></ul><ul><li>C. Examples Of Existing Social Businesses 17 </li></ul><ul><li>D. Future Of Social Business 24 </li></ul><ul><li>E. Get Involved 27 </li></ul>
  3. 3. A. Yunus Centre at a Glance
  4. 4. Yunus Centre Statements Our Vision Our Mission Putting poverty into poverty museums Promoting and developing Social Business to put poverty into poverty museums by year 2050
  5. 5. <ul><ul><li>Promoting Social Business </li></ul></ul><ul><ul><li>Social Business Centres, institutes, and chairs </li></ul></ul><ul><li>Social Business Funds </li></ul><ul><li>Creation of SB partnerships </li></ul><ul><li>Grameen Social Business website </li></ul><ul><ul><li>International Scheduling </li></ul></ul><ul><ul><li>Media, press releases </li></ul></ul><ul><ul><li>Yunus Centre website </li></ul></ul>Yunus Centre Key Assignments <ul><ul><li>Archiving </li></ul></ul><ul><ul><li>Documentation </li></ul></ul><ul><ul><li>Photos and films </li></ul></ul><ul><ul><li>Gifts and prizes </li></ul></ul><ul><ul><li>Yunus Centre Forum </li></ul></ul><ul><ul><li>Social Business Day </li></ul></ul><ul><ul><li>Social Business Plan Competition </li></ul></ul>Centre of Social Business International Secretariat Events Yunus Centre Library
  6. 6. Yunus Centre - Social Business <ul><ul><li>Grameen Bank, Grameen Danone, Grameen Veolia, Grameen Yukiguni Maitake, Grameen Intel, Grameen Uniqlo, Grameen Fibreglass, Grameen Healthcare Services, Grameen Distribution, etc. </li></ul></ul>Social Businesses <ul><ul><li>Yunus Social Business Centre @ University of Florence </li></ul></ul><ul><ul><li>Social Business Chair at HEC, France </li></ul></ul><ul><ul><li>Yunus Centre at AIT, Thailand </li></ul></ul>University Collaborations <ul><ul><li>Yunus Fund Monaco </li></ul></ul><ul><ul><li>Grameen Credit Agricole Microfinance Foundation </li></ul></ul><ul><ul><li>In process: IDB, JICA Social Business Fund </li></ul></ul>Social Business Funds <ul><ul><li>East Timor </li></ul></ul><ul><ul><li>Kohlapur, India </li></ul></ul><ul><ul><li>Caldas (with GCL) </li></ul></ul><ul><ul><li>Haiti (with GCL) </li></ul></ul>Holistic Social Business Movements Yunus Centre Social Business
  7. 7. B. The Concept of Social Business
  8. 8. Social business is the missing piece to combine the market with the fight against poverty and other social ills Current economic theory only postulates a single dimensional human being – The profit maximizer Grameen's Answer The Need for Social Business
  9. 9. <ul><ul><li>Grameen Bank </li></ul></ul>Addressing the poor <ul><ul><li>Precursors: </li></ul></ul><ul><ul><li>Grameen Shakti </li></ul></ul><ul><ul><li>Grameen Shikka </li></ul></ul>Sustainability <ul><ul><li>Grameen Danone </li></ul></ul><ul><ul><li>Grameen Veolia </li></ul></ul><ul><ul><li>Others </li></ul></ul>Social Business Social Business Background
  10. 10. A social business is a non-loss, non-dividend company designed to address a social problem. The profits are used to expand the company’s reach and improve the products and/or services Social Business Definition – Type I
  11. 11. 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. Environmentally conscious 6. Workforce gets market wage with better working conditions 7. …do it with joy Social Business Principles
  12. 12. Investment Product Sales Profit Cycle of Social Business Return of initial investment Initial investment Reinvestment Source: Yunus Centre Identifying a social need How Does Social Business Work?
  13. 13. Type I Type II Definition: Refers to a social business that focuses on providing a product and/or service with a specific social, ethical, and/or environmental objective Example: Grameen Danone Definition: Is a profit-oriented business that is owned by the poor, who can gain through receiving direct dividends or by some indirect benefits Example: Grameen Bank Social Business Types
  14. 14. Source: Yunus Centre Int. Social Business Partnerships
  15. 15. C. Examples of Existing Social Businesses
  16. 16. Example – Grameen Bank Overview <ul><ul><li>Grameen Bank offers financial services for poor women to fight poverty in rural Bangladesh (Only in Bangladesh) </li></ul></ul>Model <ul><ul><li>Grameen Bank provides micro-loans to poor women for the initiation of income-generating activities </li></ul></ul>Structure <ul><ul><li>More than 8 million borrowers </li></ul></ul><ul><ul><li>2,563 branches </li></ul></ul><ul><ul><li>More than 8 billion US$ disbursed </li></ul></ul>Opinions <ul><ul><li>&quot;The only place where poverty should be is in museums&quot; </li></ul></ul><ul><ul><li>&quot;The poor themselves can create a poverty-free world…&quot; Prof. Yunus </li></ul></ul>
  17. 17. Example – Grameen Danone Overview <ul><ul><li>For Bangladesh: Fight malnutrition among children and women </li></ul></ul><ul><ul><li>For Danone: Affordable products for poor, capture new market segments </li></ul></ul>Model <ul><ul><li>Product: Affordable yogurt containing 12 nutrients missing from malnourished children </li></ul></ul><ul><ul><li>Price: Cross-subsidization </li></ul></ul>Structure <ul><ul><li>Grameen Social Business Joint Venture </li></ul></ul><ul><ul><li>Grameen Group: G.Byabosha Bikash, G. Kaylan, G. Shakti & G. Telecom </li></ul></ul><ul><ul><li>Danone Group </li></ul></ul>Opinions <ul><ul><li>&quot;If a child eats 2 cups of yogurt per week, in 9 months he/she can gain the missing nutrients in his/her diet.&quot;Prof. Yunus </li></ul></ul>
  18. 18. Challenges Faced By Grameen Danone <ul><li>Target Market – how to ensure that the poor get the yogurt </li></ul><ul><li>How to ensure participation of local suppliers </li></ul><ul><li>2007 food crisis – increase in the price of milk </li></ul><ul><li>Lack of general infrastructure </li></ul>
  19. 19. Example – Grameen GC EyeCare Hospitals Overview <ul><ul><li>For Bangladesh: </li></ul></ul><ul><ul><li>To provide access to affordable eye-care for rural Bangladeshis </li></ul></ul><ul><ul><li>To eliminate needless blindness </li></ul></ul>Model <ul><ul><li>Product: Access to affordable treatment of cataracts and other eye diseases </li></ul></ul><ul><ul><li>Price: Cross-subsidization, flexible pricing </li></ul></ul>Structure <ul><ul><li>Grameen Social Business Joint Venture </li></ul></ul><ul><ul><li>Grameen Group: </li></ul></ul><ul><ul><li>Grameen Healthcare Services </li></ul></ul><ul><ul><li>Green Children Foundation </li></ul></ul>Opinions <ul><ul><li>“ … we must create an affordable healthcare system for the poor in Bangladesh ” . Prof. Yunus </li></ul></ul><ul><ul><li>“ We expect this system to serve all of the people of Bangladesh, no matter what their income level is… ” . Prof. Yunus </li></ul></ul>
  20. 20. Challenges Faced By Grameen GC EyeCare Hospitals <ul><li>How to ensure that doctors remain at the hospital </li></ul><ul><li>Ensure that the service is affordable to the poor </li></ul>
  21. 21. Example – Grameen Caldas Overview <ul><ul><li>For Colombia: Overcome poverty in the depressed region of Caldas after coffee crisis </li></ul></ul>Model <ul><ul><li>Product: Pool of social businesses addressing the social needs of the region </li></ul></ul><ul><ul><li>Microfinance projects </li></ul></ul><ul><ul><li>Place: Region of Caldas in Colombia </li></ul></ul>Structure <ul><ul><li>Grameen Social Business Joint Venture </li></ul></ul><ul><ul><li>Grameen Group: Grameen Creative Lab (Wiesbaden) </li></ul></ul><ul><ul><li>Government of Caldas, Colombia </li></ul></ul>Opinions <ul><ul><li>&quot;In ten years there is not going to be extreme poverty in Caldas ” . Mario Aristizábal,Governor of Caldas </li></ul></ul><ul><ul><li>“ All business does not have to be done only to maximize profit, there can be other businesses, businesses aimed exclusively at solving problems ” . Prof. Yunus </li></ul></ul>
  22. 22. Challenges Faced By Grameen Caldas <ul><li>Working with governments: bureaucracy/red tape </li></ul><ul><li>SB regulations do not exist: </li></ul><ul><li>How does the govt. of Columbia </li></ul><ul><li>regulate the project? </li></ul><ul><li>Ground breaking project: </li></ul><ul><li>lack of institutional know-how </li></ul>
  23. 23. Grameen Social Business Network Potential Projects: <ul><li>Grameen Creative Lab / Social Business Centres: </li></ul><ul><li>Germany, </li></ul><ul><li>Argentina, </li></ul><ul><li>South Africa, </li></ul><ul><li>Tanzania </li></ul>Projects: <ul><li>University Partnerships: </li></ul><ul><li>CSU CI, HEC, NSU, </li></ul><ul><li>University of Glasgow, University of Glasgow Caledonian, </li></ul><ul><li>Kyushu University, Rikkyo University, AIT, Bocconi University, </li></ul><ul><li>University of Florence, European Business School, </li></ul><ul><li>Kathmandu University, Franklin University, UPENN, </li></ul><ul><li>McGill, Zayed University </li></ul><ul><li>China, </li></ul><ul><li>East Timor, </li></ul><ul><li>Albania </li></ul><ul><li>India, </li></ul><ul><li>Russia, </li></ul><ul><li>Pakistan, </li></ul><ul><li>Haiti, </li></ul><ul><li>Ghana </li></ul><ul><li>Colombia, </li></ul><ul><li>Bangladesh, </li></ul>
  24. 24. D. Future of Social Business
  25. 25. Social Business Funds 1 Definition <ul><ul><li>Social business funds are created to provide financing for social businesses in a pre-determined sector or location </li></ul></ul><ul><ul><li>Social business funds function as Social Businesses themselves </li></ul></ul><ul><ul><li>Investors do not get any dividends </li></ul></ul>2 How it works <ul><ul><li>The fund borrowers must repay their loan amount, with interest, and the fund, in turn, pays back the investors </li></ul></ul><ul><ul><li>The interest paid by the borrowers will help defray the administrative cost </li></ul></ul>4 Future of Social Business Funds <ul><ul><li>Once established, the fund will raise additional capital from investors enabling it to expand its reach </li></ul></ul><ul><ul><li>Additionally, the loan amounts repaid by the borrowers will go to replenishing the fund </li></ul></ul>3 Purpose of Funds <ul><ul><li>To finance the development and creation of new Social Businesses </li></ul></ul><ul><ul><li>To expand the scope of an existing Social Business </li></ul></ul><ul><ul><li>To replicate an established Social Business or to convert an existing entity </li></ul></ul>Overview
  26. 26. Further Initiatives Social Stock Exchange Social MBA courses Next Initiatives SB Ratings & Journals Social Impact Indicators SB Regulations <ul><ul><li>To exchange news and research about social business </li></ul></ul><ul><ul><li>To measure the social impact of the social businesses </li></ul></ul><ul><ul><li>To measure the performance of the social businesses </li></ul></ul><ul><ul><li>To teach about social business as an alternative to profit maximization businesses </li></ul></ul><ul><ul><li>To regulate the social businesses´ practices </li></ul></ul>
  27. 27. E. Get Involved
  28. 28. &quot;Building Social Business&quot; New Book! The book examines the roles of social businesses in today ’ s global economy 3. Provides the background, challenges, and successes of specific social businesses 2. Explains the principles of social business 1. Begins where Creating a World Without Poverty ended
  29. 29. Get Involved With Social Business <ul><li>Be a distributor </li></ul><ul><ul><li>Tell others about your experience here </li></ul></ul><ul><li>Be informed </li></ul><ul><ul><li>Learn about social business activities that are happening via the Grameen Social Business website </li></ul></ul><ul><li>Be part of a network </li></ul><ul><ul><li>Find out what other social business institutions, creative labs, etc. are doing in your area and network with them </li></ul></ul><ul><li>Be active </li></ul><ul><ul><li>Organize a social business club or host a debate to discuss the principles of social business </li></ul></ul>Simply Start!
  30. 30. Thank you very much!!! Your Yunus Centre...,, Twitter, Facebook
  31. 31. F. Backup
  32. 32. Example – Grameen Intel Overview <ul><ul><li>For Bangladesh: </li></ul></ul><ul><ul><li>Fight the lack of access to gynaecological services </li></ul></ul><ul><ul><li>For Intel: </li></ul></ul><ul><ul><li>Develop affordable services for the poor </li></ul></ul><ul><ul><li>Capture new market segments </li></ul></ul>Model <ul><ul><li>Use of technology to transmit patient ’ s diagnosis to local healthcare centres for analysis </li></ul></ul><ul><ul><li>Detection of pregnancy complications </li></ul></ul>Structure <ul><ul><li>Grameen Social Business Joint Venture </li></ul></ul><ul><ul><li>Grameen Trust </li></ul></ul><ul><ul><li>Intel Corporations </li></ul></ul>Opinions <ul><ul><li>“ Technology offers the means for scaling up our efforts towards global change and progress ” . Craig Barrett (Intel CEO) </li></ul></ul>
  33. 33. Example – Grameen BASF Overview <ul><ul><li>For Bangladesh: </li></ul></ul><ul><ul><li>Exposure to Malaria and Dengue </li></ul></ul><ul><ul><li>More than 30% of population undernourished </li></ul></ul><ul><ul><li>For Veolia: </li></ul></ul><ul><ul><li>Capture new market segments </li></ul></ul><ul><ul><li>Affordable products for the poor </li></ul></ul>Model <ul><ul><li>Product: </li></ul></ul><ul><ul><li>Mosquito net impregnated with insecticide </li></ul></ul><ul><ul><li>Multi micronutrient sachets </li></ul></ul><ul><ul><li>Price: </li></ul></ul><ul><ul><li>375 Tk mosquito net </li></ul></ul><ul><ul><li>2 Tk sachet </li></ul></ul>Structure <ul><ul><li>Grameen Social Business Joint Venture </li></ul></ul><ul><ul><li>Grameen Group: </li></ul></ul><ul><ul><li>Grameen Trust </li></ul></ul><ul><ul><li>BASF Germany </li></ul></ul>Opinions <ul><ul><li>“ BASF Grameen Ltd. Combines business sense with social needs ” . Prof. Yunus </li></ul></ul><ul><ul><li>&quot;Sustainable development is key for BASF – that´s why we engage in social business ” . Dr. Jurgen Hambrecht (CEO BASF SE) </li></ul></ul>
  34. 34. Example – Grameen OTTO Overview <ul><ul><li>For Bangladesh: </li></ul></ul><ul><ul><li>Given the poor good working conditions in the garment industry in Bangladesh </li></ul></ul><ul><ul><li>Grameen Otto will set a socially and environmentally responsible factory focusing on export </li></ul></ul>Model <ul><ul><li>Factory: </li></ul></ul><ul><ul><li>Will produce clothing for export, under socially and ecologically sustainable conditions </li></ul></ul><ul><ul><li>The ecologically-optimised factory will pay special attention to the use of renewable energies </li></ul></ul>Structure <ul><ul><li>Grameen Social Business Joint Venture </li></ul></ul><ul><ul><li>Grameen Trust </li></ul></ul><ul><ul><li>Otto Group </li></ul></ul>Opinions <ul><ul><li>&quot;Poor people do not ask for charity, as charity is not a solution for poverty. They want to work in order to earn their livelihood. The Grameen Otto Textile Company creates work for the poor. It will act as an example against poverty in the world.&quot; Prof. Yunus </li></ul></ul>
  35. 35. Example – Grameen Reebok Overview <ul><ul><li>For Bangladesh: </li></ul></ul><ul><ul><li>Fight the parasites and diseases which enter through bare feet, such as the hookworm </li></ul></ul><ul><ul><li>For Adidas: </li></ul></ul><ul><ul><li>Develop affordable products for the poor </li></ul></ul><ul><ul><li>Capture new market segments </li></ul></ul>Model <ul><ul><li>Product: </li></ul></ul><ul><ul><li>Affordable shoe for poor people </li></ul></ul><ul><ul><li>Price: not defined yet </li></ul></ul><ul><ul><li>Place: Bangladesh </li></ul></ul>Structure <ul><ul><li>Grameen Social Business Joint Venture </li></ul></ul><ul><ul><li>Grameen Group </li></ul></ul><ul><ul><li>Adidas </li></ul></ul>Opinions <ul><ul><li>“ Grameen and Adidas have agreed to create a social business to produce affordable shoes for the poor in Bangladesh, to decrease the incidence of hookworm and other parasitic illnesses in Bangladesh ” . Prof. Yunus </li></ul></ul>
  36. 36. The End.