It has rightly been said that beginnings are the manifestations of the ends. This book is a potential beginning of a new kind of business with a new way of thinking.
In the 21st century one thing that is most visible is globalization and one thing that is having an effect on our lives, probably more than anything else is its manifestations. It has impacted every aspect of human life; communication, travel, conversations, thinking processes, work, work places, work choices, technology and the list is unending. This book by Nobel peace prize (2006) winner Muhammad Yunus explores the possibility of how a new genre of business called Social business has the potential to eradicate poverty with the support of all the new ways that globalization has produced. The book is full of first hand experiences of the author and Grameen bank, an organization author co-founded and that shared the Nobel Prize with him in 2006. These experiences which flow in the form of intense and fascinating anecdotes, at times looks like a travelogue of the author. And this is clearly the USP of the book. Yunus’s experiences travels from rural Bangladesh to ultra urban cities of the United States and Paris. The book speaks shares his conversations with, one hand, the CEO of one of the largest multinationals of the world and on the other with a humble borrower of 10 dollars or less in a small village of Bangladesh. The experiential richness of the author and his organization, which is based on optimism and trust in human capabilities more than any other thing, is really the strength of this book. Besides critically analyzing the world situation today in terms of economics, politics and the diverse interventions, the author not only informs the reader of the present dichotomies of time and conflicts of resources but also teaches the reader to dream, and dream big. It encourages generosity, objectivity and goodness in the way we look at the destitute anywhere in the world and understand their situations. It tells the reader to go beyond what may have long been considered as ‘obvious’; the poor are poor because of their own actions. Yunus strongly argues that the “poverty is not caused by poor” (Yunus, Ashoka Changemaker video) alone but by the systems that the non- poor have created for them. By doing this he, almost in a revolutionary jest, puts the onus of fighting poverty with all means available, on everyone; policymakers, corporates, governments, non-governments, media, law enforcing agencies, research organizations and also the poor.
In essence, the author’s belief is: We all have created the situation of poverty and we all have to fight it to save its victims (the poor).This is a collective responsibility and it needs a collective effort. (Yunus, Ashoka video)
In his argument of creating a collective to fight poverty, Yunus redefines the way business is thought of in its conventional sense, with the primary objective being maximization of profits. In doing so he also suggests a new kind of business called the Social Business. According to him Social businesses would be a conscious based as opposed to skills-based, which is the case of modern profit –maximizing business enterprises. This new way of doing social business will use all the ‘goods’ of capitalism and would avoid all the ‘bads’ of capitalism. ‘Goods’ according to him may include the modern technology, media, promotional methods to reach masses, internet and education while ‘bads’ that may be avoided are exorbitant pricing policies, selfish profit making tendencies at the cost environment degradation, ostentation in the production and packaging, production of unhealthy products and services , and economic and social suppression of the weak by the strong. This is the thesis of the author, which he terms as ‘Robinhood style of doing business’, in which he emphasis the creation of social business which will use all the modern ways of business management, business technology and business models .But it will also differ in few fundamental ways; there will a clear differentiation between the poor and non-poor while extending products and services to them in terms of pricing policies, content- designing, production and distribution. The products and services would be designed to fulfill specific needs of the poor of a particular geographical location or those in a particular socio-economic need. However, borrowing the principles and management techniques of modern business enterprise, these products and services would also be made available for sale to those who are not poor and can afford a normal price (market price).This will make the social business unique, viable and self sustaining.
In terms of the communication technique the author suggests a strong community- participatory approach in the whole process of planning, producing, promoting and distributing the social business’s products and services leading to the creations of employment opportunities at the local level while at the same time boosting the local economy and self-confidence of the members in their own ability of actively creating opportunities for themselves by running social businesses rather than passively waiting for the opportunities to be created for them. Credit-practices of Grameen Bank where beggars were given small loans to buy groceries and sell them while they beg door and door, besides other practices such as working with poor women to provide loans for establishing telecommunication services as a business avenue without any collateral, and with a huge multinational corporate like Dannone to create a healthy Yogurt for the poor children, are truly innovative practices which have multiple impact on the society in general and the poor who are beneficiaries of such practices, in particular. On one hand, such practices create work for the poor and make them self reliant and on the other, it also infuses trust and confidence, which they lack most, in the deprived communities of developing world. As a result of this a new kind of solidarity is built. This opens new avenues of hope and brotherhood, amongst the community- members. With such multi-level communication efforts, the results are not only visible in terms of economic development but it also leads to mental and psyocogical development, which is necessary to fight a curse like poverty in all its innumerable forms.
Author’s detailed description of how rural women, children and men were involved in the process of designing and launching successfully, a dairy product by a multinational like Danone in collaboration with a grassroots organization like Grameen also breaks many stereotypes of ‘incompatibility in collaboration between a highly professional, profit making company based in the modern west and that of a people-based, non-profit based in the rural east. This sends a very powerful message of untapped, potential collaborations between thousands of other non- government organizations working at grassroots and that of private business enterprises working only for profit, to create a broader wellbeing of the humans, guarding them both from man-made as well as miseries. This message can set a paradigm shift in the way inter- sectoral collaborations are perceived across the world. The recognition of certain ‘economic blinds spots’ such as entrepreneurship is only for ‘some’ and self employment is ‘special’ as opposed to being a natural way of making a life are also eye opening with a metaphorical example of bonsai tree which grows big if planted in a big base, a field or grows small if planted in a small base, a pot. Also the description of the Sixteen decisions of Grameen bank, to work with the poor, mentioned in the book provides a rare insight of an organization and an individual with a vision to address small things to bring big sustainable results in the long terms for the most needy. It also raises an important issue of human resource management and practices for the optimal results.
The author’s extension of the meaning of ‘development’ from being mere reference to campaigns, practices and theories to that of a mission of turning on the ‘energy of creativity’ of each person and not just get materialized results delivered is thought provoking. It takes into account the human nature with all its complexities; need of appreciation, dignity, respect and urge to achieve rather than receive. This provides a fresh and scientific ways to relook at the contemporary development practices and question them on the parameters which are more humane rather than just being quantitative or qualitative.
At a personal level while reading this work I felt that the author made a strong case in suggesting ways to fight and overcome poverty. Author’s personal experiences of working in some of the most toughest socio-economic working-terrains and times, and yet creating a highly successful enterprise (Grameen Bank and family enterprises), running successfully in Bangladesh and with its training impact across the world, with some of the path breaking interventions and unprecedented results further strengthens the author’s outrageously hopeful, simple and yet strategic and logical outlook towards creating a world without poverty. I feel encouraged and excited in reading his ideas. It certainly gives me hope and sets a strong example of modern-yet- grass rooted model to work with poor while making use all the modern facilities. I also found the depth and breadth of author’s experiences, opinions and discussions ranging from national and international agencies, like United nations, Association like SAARC and the new roles that they can take, government machineries and how they can be employed into more innovative ways to produce more creative and relevant results. All such discussions and references looked perfectly cohesive in his line of arguments to promote social business and how social business can play a pivotal role in the modern endeavors to eradicate poverty.
However with all the optimist enthusiasm, strategic collaborations and practical examples and suggestions with which the author puts forward the idea of social businesses, I found a range is issues which remains unaddressed. These issues are important to be able to fully achieve the intended results. One of these issues is the absence of clear ways in which a social business will come into being. From what the author says a social business requires a combination of grass root experiences and awareness of grass root realities while at the same time , it also requires modern infrastructure and human resource to address these realities in some positive way. In the book such an example is seen in the collaboration between Grameen bank and Dannone. However it is very clear that such collaboration would remain one in thousand if not in a million, in the absence of any norm that will facilitate such collaboration. The fact that the author was surprised( he reconfirmed and repeated his question to ensure that his idea to form an alliance for social business, a non-profit maximizing business is correctly understood and interpreted) when Danone agreed to work with Grameen to form a social business. This ‘surprise’ clearly reflects the present indifferent attitude of profit making big business houses who own the financial resources as well as the trained human resources , who can carry out the research and establish the infrastructural facilities to run a social business. If the author, being a co-founder of a bank as big as Grameen with a whole family of group of companies attached to it and with a tag of Winner of Nobel Peace Prize, had to ‘surprisingly’ reassure an agreement of a multinational for a social business, it cannot be easily assumed that subsequent collaborations between other non-profits and profit making firms would be an easy task. We would probably need to set systemic norms to bring such development-corporate alliances to produce social business projects. The book did not help me in understanding any such process of norm setting and its dynamics. Also the dilemma of grass root organizations to negotiate with rich corporates or to give in to their ‘selfish’ demands, to acquire finance, needs more elaboration. It is not enough to expect all corporates to invest only for ‘the good on a no loss basis social business’ which author describes. One of my observations in the book in relation to author’s experiences is that he seems to have enjoyed several luxuries (one being a Nobel peace winner, second being a co-founder of large bank) while ensuring that the rights decisions in terms of research, production and distribution are taken, which are first in favor of the poor before it fulfils any other objective. Such luxuries may not be available to small grass root organizations who want to convert themselves into social business.
Despite all theses weaknesses I still believe that the thesis of the author and the idea of a social business that he is trying to promote through his writings and work is a good idea. For it takes into account the human being’s deepest urge to serve and do good and not just live for one’s own self and gather materialistic assets. Humans are naturally yearning beings and this characteristic takes their imagination beyond the tangibles to which the modern, conventional business is restricted. The spirit of social business can provide a spark which can lighten the natural human-enterprising potential to go to new paradigms of development. Idea of social- business, with gradual development and with use of scientific research, managerial practices and community participation, can take off to act as a new tool to fight poverty and empower marginalized community. I shares this hope in the book and do believe that social business can define the future of capitalism. I also believe that the inclusion of concepts of social entrepreneurship and social business as regular courses and programs in universities and colleges would go a long way in creating a more informed awareness to develop the social businesses which the author is extending as an alternative way of developing marginalized communities.
