Social Business: Odyssey of the Third Millennium Can social objectives be achieved more efficiently and effectively by adopting a social business format that is sustainable? The vision of Prof. Muhammad Yunus, Nobel Peace Prize winner, is that many global problems we face today can be solved through the creation of Social Business. This is a form of business that is mainly driven by a cause, rather than by traditional business school objectives such as profit maximization with minimal investment and cost reduction. The social business concept goes far beyond accomplishing personal or investor goals. It is focused on the human being and seeks to achieve one or more social objectives through a company.

1. Welcome
McGill School of Continuing Studies
Webinar Series
October 1, 2013
12:00 PM – 1:00 PM

2. Social Business
Odyssey of the Third Millennium
Dr. Bernardo Javalquinto
Chairman, ENS Global School of Social Business
Ph.D. in Political Economy, SMC University, Switzerland,
MBA–UGM/MIT thesis directed by Dr. Maital PhD, Sloan School MIT, CUM LAUDE,
BSc in Economics, University of Maryland, USA
Can social objectives be achieved more efficiently and effectively by
adopting a social business format that is sustainable?

3. 3
Housekeeping
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4. 4
This is the story of what we're doing to Human
Beings, Biodiversity and the EARTH we live on.
Told from the point of view of the ECONOMY
What is a social business?

5. 5
• The vision of Prof. Muhammad Yunus, Nobel Peace Prize winner,
is that many global problems we face today can be solved through
the creation of Social Business.
• This is a form of business that is mainly driven by a cause, rather than
by traditional business school objectives such as profit maximization
with minimal investment and cost reduction.
• The social business concept goes far beyond accomplishing personal
or investor goals. It is focused on the human being and seeks to
achieve one or more social objectives through a company
What is a social business?

6. 6
What is a social business?
1. A social enterprise yielding no losses, no dividend,
company designed to address a social problem?
2. Proceeds will be used to expand the scope of the
company and improve products and / or services.
3. Increased productivity.

7. 7
7 Principles of Social Business
1. The objective is to overcome poverty, or other problems such as access to
education, healthcare and technology.
2. Financial and economic sustainability.
3. Investors recover only the amount invested. No dividend is given beyond
investment money.
4. When investment amount is amortized, business benefits remain in the
business for expansion and improvement
5. Environmentally conscious
6. Improved workforce, better market wage with better working conditions
7. Do everything with joy

8. 8
Have you ever stopped to think where do we really live?
Let’s Look at The Big Picture

9. 9

10. 10
We are here

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Autor: NASA
Pale Blue Dot
The point of light located in the
central part of the image is Earth
Picture taken at a distance of
six billion kilometers,
by the Voyager I spacecraft on
its journey to infinity
Source: Carl Sagan
http://fettss.arc.nasa.gov/collection/details/the-pale-blue-dot/

12. 12
12
Please insert data about poverty and related issues in the
World
Specific regions or countries example South America and illustrate
With data from OECD with graphs
Then give the example of Canada. Then there would be a link to
Next slide
Source: http://www.indexmundi.com/map/?v=69
80%
CHAD
USA 15.1%
CA 9.8%
PERU 31.3
POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

13. 13
Country Name Population below poverty line (%) Year of Estimate
Chad 80 2001
Haiti 80 2003
Liberia 80 2000
Congo, Democratic
Republic of the
71 2006
Sierra Leone 70 2004
Nigeria 70 2007
Suriname 70 2002
Swaziland 69 2006
Zimbabwe 68 2004
Burundi 68 2002
Sao Tome and Principe 66 2009
Zambia 64 2006
Niger 63 1993
Comoros 60 2002
Source: http://www.indexmundi.com/map/?v=69
POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

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14
Honduras 60 2010
Namibia 56 2012
Senegal 54 2001
Mozambique 54 2008
Guatemala 54 2011
Malawi 53 2004
Mexico 51 2012
Bolivia 51 2012
Kenya 50 2000
Eritrea 50 2004
Madagascar 50 2004
South Africa 50 2000
Lesotho 49 1999
Gambia, The 48 2012
Cameroon 48 2000
Source: http://www.indexmundi.com/map/?v=69
POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

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15
Turkey 17 2010
Jamaica 17 2009
Japan 16 2007
Germany 16 2010
Belgium 15 2007
Chile 15 2009
United States 15 2010
Morocco 15 2007
Korea, South 15 2006
Vietnam 15 2010
Jordan 14 2002
United Kingdom 14 2006
Hungary 14 2010
Denmark 13 2011
China 13 2012
Source: http://www.indexmundi.com/map/?v=69
POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

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Russia 13 2010
Albania 13 2008
Indonesia 13 2011
Slovenia 12 2008
Syria 12 2006
Azerbaijan 11 2009
Netherlands 11 2005
Georgia 10 2010
Canada 9 2012
Bahamas, The 9 2004
Greenland 9 2007
Serbia 9 2010
Czech Republic 9 2010
Sri Lanka 9 2010
Kazakhstan 8 2009
Source: http://www.indexmundi.com/map/?v=69

17. 17
Thailand 8 2009
Mauritius 8 2006
Switzerland 7 2010
Montenegro 7 2010
France 6 2004
Austria 6 2008
Ireland 6 2009
Lithuania 4 2008
Malaysia 4 2009
Tunisia 4 2005
Taiwan 1 2010
Source: http://www.indexmundi.com/map/?v=69
POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

18. 18
Did you know?
- 10 % of the Canadian population lives in poverty according to
reports by the Organization for Economic Co-operation and
Development (OECD),
- the rate of poverty in Canada, is among the highest of the
OECD member nations.
Source: http://business.financialpost.com/2013/02/04/canadas-social-score-dragged-down-by-poverty-inequality-conference-board-of-
canada/

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• Capitalist economy focuses only on maximum
profit, minimal investment and quick return
• This system excludes: the welfare of human
beings, environmental impacts, reinvestment
in education & technology and any non-
monetary value added.
The Current Capitalist System

20. 20
• Access to quality education?
• Care for the elderly?
• Quality of life?
• Household debt?
• Good moral and ethical values?
• Human decency and respect?
• Loss of identity?
• Corruption?
• Alcohol and drugs?
• Crime?
• Hygiene and sanitary conditions?
• Environmental Protection?
The Results

21. 21
The current global economic and financial system creates
and perpetuates poverty
• Who can you trust?
• No Solidarity exists
• Underdeveloped countries cannot improve –
development is an impossible dream
• No fair wages in underdeveloped regions
The Results of the Capitalist Economy

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• So, what is going on?
• How did we reach this point?
• Is there any solution other than the classic economy?
Muhammad Yunus
“SOCIAL BUSINESS "
The Results of the Capitalist Economy

23. 23
Earth is the only planet in universe that supports life.
It is time do our part and help support life.
What’s Next?

24. 24
Poverty creates boundaries that prevent people from
realizing their full potential and contributing to society.
This is a waste of human potential.
• Is it possible to reverse this?
• Has this been done before in other places?
• What are the results?
Need answers and Examples here: How? Where?
Solutions

25. 25

26. 26
JAPAN

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28. 28
United States

29. 29
GERMANY

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GLOBAL STRATEGIES

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INVESTMENTS

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Social Business is the solution
“Social Business“ is a viable alternative. It is noble, fair and
generous.
• We see the difficulties the world is facing on TV, news
• Start a social business today, it is the only solution
• Growth with social business is possible
• People also grow, reinvesting profits in the business

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The current capitalist system was unable to focus on the HUMAN BEING,
only on profits. The economic crisis in the US and in Europe was predictable
because of the lack of social responsibility in the current system.
Creating a "SOCIAL BUSINESS“ is the first step towards a solution.
"When people have the will to change, the economy will also change”
Social Business should be an essential part of the growth-development formula.
Create a Social BUSINESS! It is a commitment to change, it is a cause.
Social Business is the solution

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HUMANA PRIMUM ... The human first
- “Humanizing Capitalism”
The Goal of a Social Business

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The human being is first. The true capital lies in each of us, we are
what matters. We must educate ourselves, learn, and have respect
for each other.
We are born equal.
We have not been generous, let’s give opportunities to all.
There is still time!
Humana Primum

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What we do
Currently our universities offer Certificates: in Entrepreneurship
and Microenterprise
In Chile we are working on introducing Graduate level programs in
social business: Diploma and MBA.

37. 37
Universities and Social Business
Educational Institutions implementing Social Business Programs

38. 38
Worldwide companies implementing Social Business
Please provide examples of
what these companies do

39. 39
It is immoral to profit at the expense of
men, women, children, elderly, and
disadvantaged people, in order to
reach maximum profit.
Source: http://www.casadellibro.com/libro-las-empresas-sociales/9788449324956/1825008#
The citation is in this book which I do not have
at the moment to cite properly so let leave it
Like this…..tks

40. 40
QUESTIONS?

41. 41
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Social Business presented by
Dr. Bernardo Javalquinto
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