Many will argue that in the post Great Recession economy, the non-profit business model is broken and not sustainable. Others will argue that the trend in the for-profit sector is also evolving through consumer demand for transparency, corporate social responsibility, and the growth of social enterprises.
David Bartram and Melanie Yap write this article for The Guardian that makes a provocative case.
Here’s an excerpt:
Social business was a term first coined by Muhammad Yunus to describe cause-driven businesses whose success is measured by their social rather than financial impact. As a concept, it has been increasingly embraced by a range of socially driven organisations looking to establish their purpose.
Social businesses differ from social enterprises in that they are genuinely self-sufficient and do not rely on grants and philanthropy to deliver social impact. Despite the rise of social business however, many still question whether an organisation can successfully deliver both financial and social returns.
The social business of today has evolved from being solely based on the cause, to being profit driven as well. Such businesses are recognising that to be sustainable in today’s world, they need to deliver effectively and efficiently. Having a social mission matters little to service users and customers if the end product does not meet their exacting standards.