Capitalism as a concept is founded on “free economy” guided by a free price system and free access to markets. Many of the ills facing present day society such as unemployment, poverty, rising disparities of income, malnutrition, high polluted environment are getting increasingly linked to this corporate philosophy. Alternatives such as social business enterprises have been suggested and practiced by some of the enlightened entrepreneurs. This paper examines the tenets of social business, which advocates enhancing values to society, and the social benefit to all the stakeholders.
This is an exploratory study and presents the origin, the rationale of the development of the strategic business model and its implementation. The model, based on the philosophy of social business, has been developed and practiced by Grameen Danone Foods Limited. The study has been conducted entirely on the basis of information and data available in the public domain.
The findings show an encouraging contribution towards enhancing social benefits to society. These are visible in meeting the needs of the children suffering from malnutrition, in the generation of employment and providing a rare dignity to the poor of the poorest. The shortfall in business results is traced to missing economy of scale of operations.
Social business is a new and a bold concept. It has faced many hurdles in its journey to meet objectives. The solutions it has discovered are sure to benefit many researchers, entrepreneurs, social‐welfare oriented societies, non‐profit organizations, national planners, regulators and society‐leaders.
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