Social Business and the environment : AfforestationSocial Businesses could also be created to fight against climate change. Social business investors, with a strong environmental commitment, could invest in a company which plants trees, increasing the space under forest cover and oxygen in the atmosphere. Entire tracts of land where forests once existed could be regenerated through social business. Other potential areas can also be brought under forest cover through social business.
No, it does not avoid profit. The first aim of social business is to achieve the social objective in a financially sustainable way. It should not give up social objective to make profit beyond sustainability. Making profit without sacrificing social objective is welcome. Social businesses do not give dividends to the investors, all the profit is reinvested in the company for expansion and improving the quality of the product or service.
Social business is an investment opportunity with "non-monetary returns". Among these returns the most important one is the "gratification" derived from helping others. People who are doing good for society becomes role models for others, particularly young generation. Society as a whole gives them special recognition. Besides there is a personal satisfaction that one's life has touched other people's lives.
There are third-party sources that will come and assess the impact of the social business. For example, to measure the impact of Shakti Doi, the fortified yogurt that we are producing in Bangladesh, an international organization called GAIN (Global Alliance for Improved Nutrition), has been commissioned to continuously measure the impact on the mal-nourished children eating the yogurt.
In a profit-maximizing company, you measure success by the amount of profit made in a given year and developing the prospect of earning more in future years. In a social business company, you measure success by the success achieved in reaching the social goal in specific measurements (reducing the number of malnourished children, reducing the death of infants, number of people receiving safe drinking water, etc).
No, anyone, any institution, can invest.
Yes, the same laws that govern a PMB applies to social businesses as well, because there is no other law as yet.
Yes, since there is no category of business in the company law known as social business, it will appear to the tax authority as a PMB and will be treated as such.. Social businesses will be taxed the same way as the PMBs.
If you have the motivation, drive and a good idea for a social business, you can apply to a social business fund for financing.
Anyone can invest.