FACT that YOU Should know: 94% of the world income goes to 40% of the population 60% of peoples live on only 6% of the world income  Poverty - Makes people live of difficulty and unhappiness - Leads hopeless - Creates economic refugees - Leads to conflicts between peoples over scarce resources

*Growth is extremely important in bringing down poverty “Pro-poor growth” VS. “anti-poor growth” objectiveGenerate spin in economy Poor people drawn into spin Poor people (actors) Generate economy * The poor can be self-employed and create job for others Capitalism is a half-developed structure Mainstream free-market theory: One dimensional concerned only maximum profit Free-market competition, victory is measured purely by profit. Failure to capture the essence of what it is to be human

Could CSR be the tool to solve the problem? The answer is NO CONFLICT OF INTEREST: “Triple bottom line” Financial : Social : Environmental benefits Company should be measured only bottom line calls “Financial Profit” The problem lies with very NATURE OF BUSINESS, It is CENTER OF CAPITALISM Who’s responsible for this social problem?

Poverty is a cause lead to other social problems. So we should consider changing from Corporate Social Responsibility (Weak CSR) Impossible to solve a problems Government, NGO, alone doesn’t provide the answer Do no harm to people or the planet good for people and the planet Activity creating Who’s responsible for this social problem?

Book Review: New idea of business solve the world’s social ills The company itself earn a profit: Sustainable business The proper combination of Non-profit organization and profit-maximizing business(PMBs)

Social business and the future of capitalism What is It?? The company is providing a product or services that generates revenue even as it benefits the poor or society at large: SOCIAL-BENEFIT PRICIPLE An Alternative Social business structure  owed by poor people ex. Grameen Bank also paid dividends to the poor What is Social Business??

Why would investors put their money into social business?? Self-sustaining : No need to pump in money every year, it continues to grow on its own. You get more Social benefits for your money Invertors get their money back and can also reinvest Exciting opportunity to leverage your own business skill and creativity to solve social problems.

Who will invest in social business?? Foundation can be a great source of funds for social business Commercial lending institutions will be sources of funds for social businesses New kinds of financial institutions can be created as required to cater to the financing needs of social businesses

Example of successful social business Grameen ex. Bank, Telecom, Cyber net, Health care, Energy, Grameen Danone Whole foods Market “The World Bank” VS. “Grameen Bank” Encourage people to make their own decisions Want our borrowers to feel important Evaluate employees by the impact of his work has made Give them money and also ideas, expertise, plans, principles Borrowers seems to bear the suffer alone if it doesn’t work out as planned Evaluate employees by amount of loans he has successfully negotiated

Should open to both govern and private investors, which following social business model Should work through govern, NGOs, and social business Should open social business window besides existing International Finance Corp. Suggestions from Yunus to The World Bank Evaluation of staff should be related to quality of work ex. Help borrowers move out of poverty instead of amount of loans Should grade all projects each year on the basis of poverty reduction, same basis for every countries The president of the World Bank should have candidates from over the world, selected by search committee

GRAMEEN DANONE - A Social Business  Initial fund = 75 million taka ($1.1 million)  Equally investment by DANONE and group of 4 Grameen companies  Objective : To reach malnourished children with fortified yogurt  Mission : Reduce poverty by - a unique proximity business model which brings daily healthy nutrition to the poor -design a manufacturing and distribution model that involves local communities Example of successful social business

GRAMEEN DANONE - A Social Business  Reduce poverty : improve the economic conditions of the local bottom class population by Example of successful social business Upstream involving local suppliers (farmers) and helping them to improve their practices Production involving local population via a low cost/labor intensive manufacturing model Downstream contributing to the creation of jobs through the distribution model

GRAMEEN DANONE - A Social Business Enterprise  The joint venture will aim at sharing the benefits with its community of stakeholders  The joint venture would pay the investors a 1% annual dividend on their original investment  To increase production and sell the yogurt to everybody. sell a higher-priced yogurt to more affluent consumers.  Profits from sales could help subsidize expansion of the business to benefit the poor

IT Can help the poor by : Expanding their markets through e-commerce and cutting middleman Promoting self-employment among the poor such as a cell phone and an internet connection. Bringing education, knowledge, and skill training to the poor. The power of IT Social Business and the IT Revolution Create “the Center for International Initiatives for IT Solutions to End Poverty”(ISEP) The IT Revolution and Democracy

Hazards of Prosperity Economic Inequality and the struggle over Global Resources “the Growth Dilemma” Economy growth has improved the standard of living of people. But Growth also creates problems. Making a space for a new set of voices. Finding a way to solve the Growth Dilemma.

Putting poverty in museums A better world starts with Imagination creating a wish list of your dream world The ultimate goal is “To relegate poverty to poverty museums”