Over-Socialized: Defining Social Business terms.

This post references core ideas in parsing out the social business terminology milieu. The background is from Dr. Yunus' discussion defining Social Business via this excerpt from the online version of his book.)

The terminology for socially conscious business models is confusing because the ideas are enjoying a wider audience and the specifics of implementing social ventures are in process. One service of the ASBG is to encourage more specificity in the discourse so that terms become distinct, not interchangeable.

This is not just an exercise in semantics; clarity is always helpful in moving ideas forward. Two examples for you:

1. Precise definitions help discourage green-washing and hype. If there is general acceptance of precise definitions of the language of business related social activity - social ventures, social businesss, corporate social responsibility, social entrepreneurship, social-profit companies (see .pdf of Philip and Sandy Berber's ideas), then it encourages those who use such terms to be accountable to what they really mean.
   
   
2. Practically speaking, as social venture funds proliferate and begin to approach investors for funds it will be important for all players to be in agreement as to what terms mean. An investor who is interested in helping a social business grow may not be as interested in a non-profit angle and vice versa.
   

Dr. Yunus provides a framework for this:

Social Entrepreneurship is a broad category that includes social business (as defined below) as well as other social ventures that may or may not be for-profit, or self-sustaining.

According to Dr. Yunus, there are two types of social businesses:

1. Companies that focus on providing social benefit rather than maximizing profit for their owners, and are owned by investors seeking social benefit rather than monetary return. The nature of the product or service of the company creates social benefit.

2. Companies that are owned by poor or disadvantaged. Their goods or services may or may not create direct social benefit.

He also points out that social businesses must work toward and achieve sustainability. One of the most innovative of his proposals (at least for US business) is that social investors would agree to forgo earning monetary interest on their investment in businesses that produce a social profit or benefit. Within the ASBG we wrestle with questions about the practicality in the U.S. of a pure social business model as defined by Dr. Yunus, given our system's rigid bifurcation between for-profit and non-profit business "containers".

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Of course this is all distinct from Social Media, further proof that "social" may be the most overused term on the web right now, even being paired up with "community" for a dose of double exposure. How many online social communities can you name in 5 seconds or less? The latent introvert in me cringes a bit.

Even so, social media has its place in the Social Entrepreneur's toolbox, but I'll let someone else tackle manifesting the good karma and synergy via social media for social business ventures.

OK, if you made it this far and would like more info, here is the background reference from the top of the post - read the excerpt from the online version of his book.

Thanks for all you do-
Kala

Kiva and Microplace, Ebay's mfi play

If you are interested in Kiva's idea of personalized microlending, below is some commentary on a twist to their model.

This article compares Microplace with Kiva and in the process points out a few of the challenges of the business model :
from the post Submitted on www.nextbillion.net by Rob Katz on October 24, 2007 - 09:30.

"As P2P Lending News explains, [t]he big difference between MicroPlace and Kiva...is that loans will be securitized (and therefore potentially trade-able), and lenders will earn interest. Unlike Kiva, lenders on MicroPlace invest in microfinance by purchasing securities. Funds generated by these sales are then invested in microfinance institutions around the world. MFIs, in turn, solicit clients, make loans and collect payments - they do their normal day-to-day business.

Once client payments are in, the institutional investors receive their loan (plus interest) who can then pay back their investors - people who purchased those original securities. It's not as simple a model as Kiva's, but its differences are very important."

check out the post for full text. muy interesante...


best to you all -

Kala

The Holidays: Request permission to retreat

Happy December everyone - you are all caring busy people, I would like to offer you the following food for thought for the holidays, and as always thanks for all you do:

Here is an excerpt article from an article (link follows below) describing the relationship between the Winter Solstice and our energy level:

In agrarian cultures, people spend the shortest, darkest days indoors by the fire, eating warm, slow-cooked, nourishing food and sharing stories with their families.

Doesn't that sound nice?

OK, snap out of it! The holidays are coming! Don't you have 100 things to do?

If the following describes your descent into the holidays, this missive is for you. (If not, congratulations! You may return to your natural Zen state):

An edgy feeling that surfaces around mid-October, grows throughout the fall until suddenly its early December and time to countdown to the holidays. A hectic Thanksgiving may kick off the season of stress, including rushed travel to attend the family dinner - a trip laden with too much food and too many emotions, the least relaxing four day weekend of the year.

For years I thought, am I just a grinch? Why don't I enjoy the holidays more? Why can't I be more "festive" like all the cute, happy shoppers in the Target ad?

This year, in spite of my ungrateful interior grumbling, for once I got an answer.

I woke up Sunday morning feeling irritable and annoyed for no specific reason, although it was definitely related to my To Do list of tasks that would ostensibly result in the spreading of cheer. My hippie church is warm and inclusive of all types, even holiday grinches, but I could not go. Even there they have resorted to circulating multiple clipboards during the service to encourage sign up for various worthy causes, each of which I "should" be supporting and guiltily pass on because my To Do cup already runneth over.

Instead I took my grinchy closed-up heart to yoga.

ah, yoga. It is the Answer precisely because it solves all the small problems. Here was the answer offered to my own little egocentric holiday bad attitude dilemma.

The instructor pointed out that with the approach of the winter solstice in this hemisphere we naturally experience winter as a time for drawing your energy in. If you look at nature it becomes so obvious it almost seems simplistic- leaves are shriveling, days are shorter, the cool air naturally leads us to fold our arms to keep warm. Our agrarian forbears (which in my case are not too many generations gone) knew this and would literally view our current holiday scramble as unstable behavior.

Mandy - the yogista - encouraged everyone to try to be more aligned with the season's natural rythym by the following general guidelines (what this looks like in practice is different for everyone):

• Guard against overstimulation.
• Protect your energy and be choosy about where you spend it.
• Disidentify from holiday tasks as a validator to help dissolve the guilt about making the shift. (this last from Kala the yogista wanna-be)
  

Below is an excerpt, (followed by a link to the rest of the article) that describes the timing of the holidays from the Eastern perspective.

The incongruity between winter's restful, introspective, yin nature and the frenetic way many Americans spend their holidays can contribute to seasonal affective disorder, depression, exhaustion, and other manifestations of what is known in TCM as shen (or spiritual) disharmony.

"Winter solstice, just three or four days before Christmas, is the darkest, most yin day of the year," says Cohen. "Instead of turning inward, we're celebrating with excess and yang activity. This artificiality creates stress, and many people dread the season as a result."

http://www.yogajournal.com/health/101

So whether you are a yoga guru or don't know your yin from your yang, the idea is that if you are subject to holiday stress you may be fighting a deeper instinct than just perverse grinchiness.

Happy holidays to you all, I know this won't make your "to do" list disappear, and you probably don't want it to anyway. Even at my grinchiest I realize many of the tasks and errands around the holidays represent celebrating love and connection. Just look at it as encouragement to be choosy about being busy and to make space for some quiet and restoration before New Years!

peace and quiet,

Kala

Read Dr. Yunus' recent book online!

Oh happy day!

Dr. Yunus' book is online and searchable at Google Books Beta

direct link here:

http://books.google.com/books?id=p_o1sQKssuUC

Don't just do something! Sit there!*

*quote from a Zen funny guy...

In this post: action vs. talk, value of both, intention of ASGB, Social Action Forum

The ASBG was started because I wanted to talk with smart, interesting people about Yunus' work. I also kept meeting people that I felt like should meet each other and the group idea seemed to work for both scenarios - interesting discussion and connecting people.

When you get a group of energetic, passionate people in the same room talking about really Big Ideas, there is a natural desire to "do something". We had a series of discussions around what to "do" and its possible that some feel we are not doing enough.

I understand that.

What draws me to Yunus' work is that it is so practical in its applications - while others theorized about how to bring the bottom half (in terms of income) of the population into the economy, he has been doing it for 20 years via his work with microcredit. Now he's at it again, proposing an evolutionary change for capitalism as a whole.

All talk, ? action

Yunus' ideas about social business as a new dimension of capitalism are new to us and it makes sense that they would be discussed and debated prior to action. He has actually been talking about capitalism's next steps for several years - I saw him at a talk at the LBJ school in 2003, before he won the Nobel Prize, there were maybe 20 students in attendance. Later, he wrote his book, and it has spurred conversations all over the world.

Meeting and discussing Big Ideas creates an energy that has stand-alone value, whether the result is an immediately actionable project or not. I think the people that have attended our meetings would back me up on that.

In addition, there are some people in our group that are actively involved in social business experiments. Part of the reason I started the blog was to lift up their activities to the group and beyond.

For 2009, I'd like to explore creating a Social Action Forum and how we may create one or more of them here in Austin. More on that soon in an upcoming post.

My ongoing intention for the group is to facilitate a meeting space and if needed provide a framework for conversation, but not to "lead" the group per se. My personal intention is to practice enjoying the process and to not become attached to forcing an outcome that does not evolve naturally from the group's collective ideas.

Thanks to all of you for what you do!

Best,
Kala

Austin Social Biz Group: What is it??

Hello and welcome to the Austin Social Business Group Blog!

The Austin Social Business Group is a diverse group of people brought together by a curiosity about "What's Next?" for business’ role in social benefit.

The foundation of our interest lies in Nobel Peace Prize Winner Dr.Muhammad Yunus' ideas of social business as detailed in his book "Creating a World Without Poverty: Social Business and the Future of Capitalism".

Dr. Yunus proposes that traditional definitions of Capitalism are too narrow. To view an individual (in the economic sense) as a being solely focused on profit maximizing ignores other aspects of our humanity: spirituality, emotion; national, community and cultural affiliations.

What is a Social Business?

Social business is a term used in many contexts and is often confused with social entrepreneurship. The two terms are related but are not synonymous. Social businesses are a for-profit subset of social entrepreneurship, as are innovative non-profits that provide a social benefit.

The ASBG adopts Dr. Yunus’ definition of Social Business to provide a common starting place for our discussions:

• Social businesses are for-profit companies that focus on providing social benefit rather than maximizing profit for their owners, and are owned by investors who seek social benefit and forgo monetary dividend in return for social dividends. The nature of the product or service creates social benefit.
  
  or
  

• Social businesses are also for-profit companies owned by poor or may or may not create direct social and build wealth in struggling
  disadvantaged people. Goods or services benefit but the companies create jobs communities.

Much of the ASBG discussions focus on social business funding in the United States as a work in progress, influenced by factors unique to our economy and culture.

Since its inception in the Fall of 2007, the ASBG has met monthly to discuss and create community around Social Business concepts. At a time when large companies are exploring ways to re-invent traditional ideas of corporate social responsibility, our interest focuses on how social investors and small business owners in Austin may influence society and become agents of positive social change in our community.

The interests and enthusiasm of ASBG members determines our activities. We provide an open platform for participation. We also provide encouragement and moral support to our members working on social business projects or considering ways to incorporate social business principles into their work.


The ASGB meets on the 4th Monday of each month, (in November and December the meeting date may change due to the holidays).


If you would like to join our group email list and receive notification of meetings, please email ASBG founder and facilitator Kala Philo, owner of Walkie Talkie Productions LLC, at
kalaphilo@gmail.com.