The Business Case of Social Business

Bachelor Thesis from the year 2010 in the subject Business economics - Business Ethics, Corporate Ethics, grade: 1,5, EBS European Business School gGmbH, language: English, abstract: During recent years, much has been written about Corporate Social Responsibility(CSR), sustainability, sustainable and ethical supply chains, and the power oforganizations that reaches beyond their core business activities. Social Business, a rathernew form of using corporate power in order to act in a socially desirable manner, wasfirst established by Professor Yunus, Noble Peace Prize winner (2006). It is in contrastto charity because it is not a donation or charitable giving but a real investment into abusiness. The important difference is that with a social business the entrepreneur or theparticipants in a social venture business do not intend to maximize profits but willalways reinvest profits into the business and will keep costs and prices low so a broadrange of non-affluent consumers can afford the product or service (Yunus, Bertrand, &Lehmann-Ortega, 2009, p. 5). Yunus (2006) calls this "doing business for others insteadof for oneself" (p. 4).Since Social Business is a very new concept, little has been written about it yet. There isnot even a generally accepted and shared definition of the term "Social Business".Millions of small social start-ups, whose founders intend to do something sociallybeneficial and who only take out from the business the money they need for t...