Lesson – 6 Principles of Social Business

Cause-driven

A social enterprise is a businesses without a profit maximization purpose where the purpose is to overcome or alleviate a global or local social issue such as environment, health, education or technology access.

Financial and economic sustainability

As any other business, financial numbers and cash flow must be in line with what is expected and sustainable in the long-term.

Investor returns

Investors will receive a return on their investment amount only — no dividend.

Workforce will receive market wage and better working conditions

More emphasis on well-being at the workplace is given, fostering long-term relationships with employees and striving for their happiness.

The profit generated stays in the company

Once the investments are paid back, profit will stay with the company for expansion and improvement.

Co-operation

Formal or informal relation by two or more actors work jointly to solve a social problem, share resources, assets and risks and may create value for mutual benefit and for a society as a whole.