Question

What is social business? Discuss its advantages using relevant examples.

Answer 1

Social Business can be defined as a cause driven establishment whose primary objective in doing business is for the upliftment and well being of the society along with making profit. Thus an organisation serving common good by recognizing a social problem already existing and working on the improvement on the circumstances can be said to be doing a social business. The people doing such business are known as the social entrepreneurs and they try to implement the best entrepreneurship techniques to bring in the desired social change along with the involvement of the local community.

The specific advantages of a social business are as follows:-

1) It creates a huge level of employment opportunities for a society in need.

2) It leads to a positive change in the society leading to a community upliftment.

3) People or the employees are motivated to work freely and thus they give their hundred percent leading to increased profit for the company.

4) The employees and the community are open to innovate and bring new changes in the existing processes to make them more efficient.

5) Creates a goodwill and loyalty about the company among people for a long run period.

Examples :- Many handicraft companies (like Faire Collection) have employed disadvantaged people at a fair wage for specific tasks. TATA steel in India have built an entire city of Jamshedpur(TATANAGAR) centering their steel plant TISCO by providing employment to local people and training them accordingly.