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Social Business Enterprises - Maximising Social Benefits or Maximising Profits? The Case of Grameen-Danone Foods Limited

A. K. Ghalib & F. Hossain

Brooks World Poverty Institute - BWPI Working Papers. Manchester: Brooks World Poverty Institute, University of Manchester; 2008. Working Paper No. 51.

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Abstract

Where the concepts of free markets and capitalism have been lauded to bring freedomand choice, they have been held responsible for bringing much worldwide social andeconomic disparity. Critics have blamed them for widespread crime, corruption andpoverty. Wary of such consequences, entrepreneurs have come with an innovativesolution: running businesses on a no-loss basis, combined with a social and moralcause. This paper looks at the core concepts that lie at the heart of capitalism and freemarkets, and redefines the enterprise as an entity that not only operates to maximiseprofits, but also works towards a righteous cause. The paper discusses the basicfeatures of a social business enterprise (SBE) and provides an illustration of thetheoretical framework; the second part of the paper presents the case of Grameen-Danone Foods Limited (GDFL), a social business enterprise. It carries a detailedanalysis of its rationale, incorporation, product, operations, and the challenges itcurrently faces. The paper concludes with a note on the benefits which such a socialenterprise brings, and surmises future prospects.

Bibliographic metadata

Type of resource:
Content type:
Working paper number:
51
Publication date:
Total pages:
16
Abstract:
Where the concepts of free markets and capitalism have been lauded to bring freedomand choice, they have been held responsible for bringing much worldwide social andeconomic disparity. Critics have blamed them for widespread crime, corruption andpoverty. Wary of such consequences, entrepreneurs have come with an innovativesolution: running businesses on a no-loss basis, combined with a social and moralcause. This paper looks at the core concepts that lie at the heart of capitalism and freemarkets, and redefines the enterprise as an entity that not only operates to maximiseprofits, but also works towards a righteous cause. The paper discusses the basicfeatures of a social business enterprise (SBE) and provides an illustration of thetheoretical framework; the second part of the paper presents the case of Grameen-Danone Foods Limited (GDFL), a social business enterprise. It carries a detailedanalysis of its rationale, incorporation, product, operations, and the challenges itcurrently faces. The paper concludes with a note on the benefits which such a socialenterprise brings, and surmises future prospects.

Record metadata

Manchester eScholar ID:
uk-ac-man-scw:69093
Created by:
Hossain, Mohammad Farhad
Created:
23rd October, 2009, 15:38:33
Last modified by:
Hossain, Mohammad Farhad
Last modified:
23rd October, 2009, 15:38:33