social business models
TRANSCRIPT
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Social Business Models“Do the Reverse”
Dr Alessandro Giudici – Lecturer in Strategye-mail: [email protected]
Cass’ CENTIVE Research Centre: http://www.cass.city.ac.uk/research-and-faculty/centres/centive/business-models
#centive
@cassbusiness
@giudicialex
“What kind of world is this? Should we leave everything to the decisions of the profit-maximizers so that their benefits is what decides the world? Or there is something else to bring in? That’s the basic question.”
Commonwealth Club, 2008
www.youtube.com/watch?v=_mbEsSQZ5yw
“Everything we have done is the reverse of conventional. They go to the city; we go to the village. They go to men; we go to women.
They say people should come to the bank; we say the bank should go to the people.They say you need to be job seekers; we say you need to be job creators. Everything has to be done in the opposite if we are to save ourselves.
Everything has to be done in the reverse way.”
2016 World Economic Forum
http://www.huffingtonpost.com/ashoka/muhammad-yunus-how-to-cha_b_9057968.html
Muhammad Yunus2006 Nobel Peace Prize
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www.e4impact.org
www.impacthub.net
Foster sustainable development through impact entrepreneurship
“We believe a better world evolves through thecombined accomplishments of creative, committed, andcompassionate individuals focused on a commonpurpose.”
www.ashoka.org
SO… WHAT IS
A SOCIAL BUSINESS?
Some Examples
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DO YOU KNOW THEM?
cooperative
all profits donated
WHAT ABOUT?
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WHAT ABOUT?
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DEFINITION OF SOCIAL BUSINESS (Yunus, Moingeon & Lehmann-Ortega, 2010)
• A Social Business is a self-sustaining company that sells goods orservices and repays its owners’ investments, but whose primarypurpose is to serve society and improve the lot of the poor.
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Profit People
Planet
BearableViable
Sustainable
Equitable
PURPOSE
THE QUADRUPLE BOTTOM LINE
• At the roots of any economic activity there is a moral choice about whether thepredominant focus of the organization is about value creation or value appropriation.
• “The decision to start a social venture is often motivated by an individual’s ethical andmoral perceptions (Kickul and Lyons 2012; Miller et al. 2012; Smith, Kistruck & Cannatelli,2012).
WHAT IS THE HIGHER PURPOSE?
www.consciouscapitalism.org
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STRATEGY=
VALUE
CREATION
(for customers/
beneficiaries)
VALUE
APPROPRIATION
(uniqueness/
differentiation)
TOUGH CHOICES
(trade-offs)
(SOCIAL) BUSINESS MODELS & STRATEGY
PURPOSE
www.businessmodelzoo.com
EXAMPLES www.tengry.co.uk
Nancy Johnston
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EXAMPLES www.social-bite.co.uk
EXAMPLES www.zaacoal.com
Sulley Amin Abubakar
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EXAMPLES www.bisaworld.com
Daniel D. Tuackly
THE RISKS OF MISSION DRIFT
• Although it might be possible to temporarily develop win-win scenarios and combinegoals, conflicts will inevitably arise when trade-offs between value creation andappropriation surface – generally after a certain growth threshold – unlessappropriate governance mechanisms are in place to counter-balance them.
• Any perceived shift or ambiguity may lead to a loss of legitimacy amongstakeholders.
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A TYPOLOGY OF SOCIAL BUSINESS MODELS(Santos, Pache & Birkholz, 2015)
BUILDING SOCIAL BUSINESS MODELS (Yunus et al., 2010)
• Yunus et al. (2010) identify five lessons in building social business models from theexperience of Grameen Bank:
• Similarities with conventional business model innovation
1. Challenging conventional wisdom and basic assumptions
2. Finding complementary partners
3. Undertaking a continuous experimentation process
• Specificities of social business models
4. Favouring social profit-oriented shareholders
5. Clearly specifying the social profit objective
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USEFUL RESOURCES
• UK Government (www.gov.uk/government/publications/community-interest-companies-business-activities)
• Impact Hub (www.impacthub.net)
• UnLtd (unltd.org.uk)
o https://unltd.org.uk/wp-content/uploads/2012/11/Creating_Social_Enterprises_v1_0FINAL020909.pdf
• Social Enterprise UK (www.socialenterprise.org.uk)
• School for Social Entrepreneurs (www.the-sse.org)
o www.the-sse.org/about-school-for-social-entrepreneurs/glossary
• Ashoka UK (uk.ashoka.org)
• The Guardian
o www.theguardian.com/us/sustainable-business
o www.theguardian.com/sustainable-business/social-enterprise-blog
• Big Society Capital (www.bigsocietycapital.com)
• Social Investment Business (www.sibgroup.org.uk)
• Royal Bank of Scotland
o http://www.inspiringenterprise.rbs.com/inspiring-social
• ClearlySo (www.clearlyso.com)
o www.clearlyso.com/what-is-a-social-enterprise-2
USEFUL RESOURCES
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KEY REFERENCES
• MacMillan, I.C., Thompson, J.D. 2013. The Social Entrepreneur’s Playbook. WhartonDigital Press: Philadelphia, PA.
• Santos, F. M. 2012. A positive theory of social entrepreneurship. Journal of BusinessEthics, 111(3): 335-351.
• Santos, F., Pache, A., Birkholz, C. 2015. Making hybrids work: Aligning business modelsand organizational design for social enterprises. California Management Review, 57(3): 36-58.
• Yunus, M., Moingeon, B. & Lehmann-Ortega, L. 2010. Building Social Business Models:Lessons from the Grameen Experience. Long Range Planning, 43: 308-325.
THANK YOU!
Q&A