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Social Business / Bop

Social business

Social business is a model seaking above all to make project leaders and their activities self-sustaining.

Companies involved in social business try to meet social objectives in an innovative way. They link profitability to sustainability: this is why the major part of the dividends are totally reinvested in the activity. These companies play a key role in poverty alleviation and development.

Muhamad Yunus was the first to theorize
Read "Creating a World without Poverty - Social Business and the Future of Capitalism"
Muhammad Yunus.
BoP Strategies

BoP strategies (base of the pyramid), mostly initiated by multinationals, target vulnerable populations of emerging countries which are considered a high potential market and constitute a huge economical and social opportunity.

New production, distribution, marketing and sales models are implemented by blue chip companies to access these markets.

The idea is about creating products for the local market, made with local raw materials as much as possible, employing local labs. This unables the empowerment of the local population.

C.K. Prahalad is one of the major theorists of this issue
Read "The Fortune at the Bottom of the Pyramid: Eradicating poverty through profits"
C.K. Prahalad.

Those approaches of poverty alleviation are slightly different in theory, but they actually aim at the same objectives in concrete terms.

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