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