W10 Hybrids & Social Business

Hybrids --have 2 legal entities --one for-profit and the other non-profit. Keys to both are social missions and the clear integration of practices or infrastructure from both sectors. They can be extremely successful, but they also have trade-offs, for instance, the profit driving activities and the social activities conflict so one overcomes the other. Pure hybrids --are still few in number. 

What makes hybrids so successful it that it produces both social value and commercial revenue through a single, unified strategy --rather than take a nonprofit model and add a commercial revenue stream—or take a for-profit model and add a charity or service program. Early on social innovation was through organizations that primarily pursue a social mission but rely significantly on commercial revenue to sustain operations --and hybrids existed in certain sectors, such as job training, health care, and microcredit. In recent years new sectors have taken shape in environmental services, consulting, retail, consumer products, catering, and information technology.  

Social Business --looks to blend social value with profitability. Seeks to solve a social problem by using business methods; including the creation and sale of products or services. There are two kinds of social business.*Type I --is a non-loss, non-dividend company devoted to solving a social problem and owned by investors who reinvest all profits in expanding and improving the business. The investors and owners don’t earn a profit, a dividend, or any other form of financial benefit. *Type II --is a profit-making company owned by poor people, either directly or through a trust that is dedicated to a predefined social cause. 7 Principles of social business: 

1. The business objective is to overcome poverty, or one or more problems (such as education, health, technology access, and environment) that threaten people and society—not to maximize profit. 

2. The company will attain financial and economic sustainability. 

3. Investors get back only their investment amount. No dividend is given beyond the return of the original investment. 

4. When the investment amount is paid back, profit stays with the company for expansion and improvement. 

5. The company will be environmentally conscious. 

6. The workforce gets market wage with better-than-standard working conditions. 

7. Do it with joy!!!

I was effected by Peter Singer's speech on effective altruism --it would be difficult no to be [https://youtu.be/Diuv3XZQXyc]. Effective Altruism --combines heart (empathy) & head (effective/well-directed). Whether it's physically stepping over -walking around -looking past a child that is dying in the street OR not taking part-contributing to organizations who are successfully combating social issues-- it is the same.