In my spare time during the past three weeks, one of the books I’ve been reading is “A World Without Poverty,” by Dr. Muhammad Yunus. To say that I’ve learned a lot would be a tremendous understatement. Not only have I acquired a newfound appreciation for the power of micro-credit but I have acquired a deeper understanding of my human obligation to seriously invest in and improve the lives of those less fortunate than I am.
Dr Yunus, in his book, discusses not only the founding and success of Grameen Bank but perhaps more importantly, he makes a case for a new form of business entity, a social business, a business whose success is measured by a double bottom line- social impact plus financial sustainability. He asserts that this new business entity will have a primary objective of making a difference in the lives of poor via poverty alleviation, healthcare, renewable energy, information technology etc. but additionally, it must be sustainable, meaning it is to become self funded. Relying not on donations but on generating its own revenues via basic business operations, as any profit maximizing business would do.
In October 2005, in an auspicious meeting between Dr. Yunus and Franck Riboud, CEO of Groupe Danone, the first multinational social business, Grameen Danone Foods Ltd. was born. Groupe Danone, the multibillion dollar French food corporation known to Americans by the Dannon brand name, so believed in the idea of utilizing its resources as a nutrition powerhouse to aid in the basic food needs of poor Bangladeshi children that they have invested millions into research and development, human resources and working capital to bring to market affordable, nutritious, yogurt to poor Bangladeshi children. The yogurt, called Shakti Doi is made from pure cream milk, fortified with vitamins and minerals specially suited for often malnourished Bangladeshi children. It is priced at Taka 5 (about 5 cents) and is affordable even to the poorest families.
Grameen Danone Foods is a true social business with a primary objective of aiding the health of young children in Bangladesh while becoming self-sustaining, meaning almost all profits in the business are reinvested into the expansion of the business. Shareholders do not share in the profitability of the business (no dividends) but rather all profits are reinvested into expansion. They have invested in it simply because they believe in its mission. Pretty cool and wholly commendable.
Image Sources: strategy-business.com, guim.co.uk,
Contributor Profile: Naiomi
Naiomi is passionate about business for good and the field of social entrepreneurship. As co-founder of SocialEarth, she hopes to help create an uplifting and informative news source for anyone interested in helping those less fortunate.
Twitter: @naiomibisram
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[...] Naiomi placed an observative post today on A World without Poverty + First Multinational Social Business …Here’s a quick excerptGroupe Danone, the multibillion dollar French food corporation known to Americans by the Dannon brand name, so believed in the idea of utilizing its resources as a nutrition powerhouse to aid in the basic food needs of poor Bangladeshi … Grameen Danone Foods is a true social business with a primary objective of aiding the health of young children in Bangladesh while becoming self-sustaining, meaning almost all profits in the business are reinvested into the expansion of … [...]
[...] Naiomi added an interesting post on A World without Poverty + First Multinational Social Business …Here’s a small excerptIn my spare time during the past three weeks, one of the books I’ve been reading is “A World Without Poverty,” by Dr. Muhammad Yunus. To say that I’ve. [...]
[...] Naiomi placed an interesting blog post on A World without Poverty + First Multinational Social Business …Here’s a brief overviewGroupe Danone, the multibillion dollar French food corporation known to Americans by the Dannon brand name, so believed in the idea of utilizing its resources as a nutrition powerhouse to aid in the basic food needs of poor … The yogurt, called Shakti Doi is made from pure cream milk, fortified with vitamins and minerals specially suited for often malnourished Bangladeshi children. It is priced at Taka 5 (about 5 cents) and is affordable even to the poorest families. … [...]
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