Social business

Social business

Social business is a term that is defined its initiator, Muhammad Yunus, to describe companies who are established to solve and/or mitigate social and environmental challenges.  These issues include poverty alleviation, provision of medical care to disadvantaged groups, access to clean energy and water, access to finance. Moroever these businesses are environmentally sustainable and operate a fair pay scheme for their employees.

According to Yunus, social business investors will receive no dividend of their deposits. Profits are reinvested back into the organisation to further its activities, and achieve greater social and environmental impacts.