Are you a social business? What does this mean to you? Do you have some aspect of it to give back or contribute to your community?
Social Business – A for-profit business established for the primary purpose of fulfilling a social mission. Social businesses either dedicate a significant portion of profits to a social cause, or the business operations themselves address a social issue. The key difference between a social business and a traditional business is its reason for existence. A social business is formed primarily to solve a social problem rather than to generate income for its owners, even though the business may be quite profitable.
As I did some more research, I was reading or which Dave stated in his summary that, Social businesses, could be a hybrid. As I do expect investors to invest in my business, I also have to respect them giving or investing and their expectations of what their return will be.
If our economy continues the and return on people’s investments is low, I did would feel that I would like to give them a better return on their investment, otherwise why would they? Simply for a tax write off?
Of is the best way just be a regular business, and have a Philanthropy or do good in giving, like 1-5% of the profits? This is what most companies end up doing, for a variety of reasons. Just for doing Good, also for what they are passionate about and tax reasons too!
Perhaps a purpose driven business is what we all should aim for. Here’s some ideas:
- Employees become shareholders
- Doing good is a business strategy
- Be sustainable for grow
- Having a triple bottom line
To read more about Cause Capitalism check out this blog.