Welcome

McGill School of Continuing StudiesWebinar SeriesOctober 1, 2013

12:00 PM – 1:00 PM

Social BusinessOdyssey of the Third Millennium

Dr. Bernardo JavalquintoChairman, ENS Global School of Social Business

Ph.D. in Political Economy, SMC University, Switzerland,

MBA–UGM/MIT thesis directed by Dr. Maital PhD, Sloan School MIT, CUM LAUDE,

BSc in Economics, University of Maryland, USA

Can social objectives be achieved more efficiently and effectively by

adopting a social business format that is sustainable?

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Housekeeping

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This is the story of what we're doing to Human Beings, Biodiversity and the EARTH we live on.

Told from the point of view of the ECONOMY

What is a social business?

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• The vision of Prof. Muhammad Yunus, Nobel Peace Prize winner,

is that many global problems we face today can be solved through

the creation of Social Business.

• This is a form of business that is mainly driven by a cause, rather than

by traditional business school objectives such as profit maximization

with minimal investment and cost reduction.

• The social business concept goes far beyond accomplishing personal

or investor goals. It is focused on the human being and seeks to

achieve one or more social objectives through a company

What is a social business?

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What is a social business?

1. A social enterprise yielding no losses, no dividend,

company designed to address a social problem?

2. Proceeds will be used to expand the scope of the

company and improve products and / or services.

3. Increased productivity.

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7 Principles of Social Business

1. The objective is to overcome poverty, or other problems such as access to education, healthcare and technology.

2. Financial and economic sustainability.

3. Investors recover only the amount invested. No dividend is given beyond investment money.

4. When investment amount is amortized, business benefits remain in the business for expansion and improvement

5. Environmentally conscious

6. Improved workforce, better market wage with better working conditions

7. Do everything with joy

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Have you ever stopped to think where do we really live?

Let’s Look at The Big Picture

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We are here

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Autor: NASA

Pale Blue Dot

The point of light located in the

central part of the image is Earth

Picture taken at a distance of

six billion kilometers,

by the Voyager I spacecraft on

its journey to infinity

Source: Carl Sagan

http://fettss.arc.nasa.gov/collection/details/the-pale-blue-dot/

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Please insert data about poverty and related issues in the

World

Specific regions or countries example South America and illustrate

With data from OECD with graphs

Then give the example of Canada. Then there would be a link to

Next slide

Source: http://www.indexmundi.com/map/?v=69

80%

CHADUSA 15.1%

CA 9.8%

PERU 31.3

POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

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Country Name Population below poverty line (%) Year of Estimate

Chad 80 2001Haiti 80 2003Liberia 80 2000

Congo, Democratic Republic of the

71 2006

Sierra Leone 70 2004

Nigeria 70 2007Suriname 70 2002Swaziland 69 2006Zimbabwe 68 2004Burundi 68 2002

Sao Tome and Principe 66 2009

Zambia 64 2006Niger 63 1993Comoros 60 2002

Source: http://www.indexmundi.com/map/?v=69

POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

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Honduras 60 2010Namibia 56 2012Senegal 54 2001

Mozambique 54 2008

Guatemala 54 2011Malawi 53 2004Mexico 51 2012Bolivia 51 2012Kenya 50 2000Eritrea 50 2004

Madagascar 50 2004

South Africa 50 2000

Lesotho 49 1999

Gambia, The 48 2012

Cameroon 48 2000Source: http://www.indexmundi.com/map/?v=69

POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

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Turkey 17 2010Jamaica 17 2009Japan 16 2007Germany 16 2010Belgium 15 2007Chile 15 2009

United States 15 2010

Morocco 15 2007

Korea, South 15 2006

Vietnam 15 2010Jordan 14 2002

United Kingdom 14 2006

Hungary 14 2010Denmark 13 2011China 13 2012

Source: http://www.indexmundi.com/map/?v=69

POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

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Russia 13 2010Albania 13 2008Indonesia 13 2011Slovenia 12 2008Syria 12 2006Azerbaijan 11 2009

Netherlands 11 2005

Georgia 10 2010Canada 9 2012

Bahamas, The 9 2004

Greenland 9 2007Serbia 9 2010

Czech Republic 9 2010

Sri Lanka 9 2010

Kazakhstan 8 2009

Source: http://www.indexmundi.com/map/?v=69

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Thailand 8 2009

Mauritius 8 2006

Switzerland 7 2010

Montenegro 7 2010

France 6 2004

Austria 6 2008

Ireland 6 2009

Lithuania 4 2008

Malaysia 4 2009

Tunisia 4 2005

Taiwan 1 2010

Source: http://www.indexmundi.com/map/?v=69

POVERTY EXISTS IN DEVELOPING NATIONS AS WELL AS DEVELOPED

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Did you know?

- 10 % of the Canadian population lives in poverty according to

reports by the Organization for Economic Co-operation and

Development (OECD),

- the rate of poverty in Canada, is among the highest of the

OECD member nations.

Source: http://business.financialpost.com/2013/02/04/canadas-social-score-dragged-down-by-poverty-inequality-conference-board-of-

canada/

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• Capitalist economy focuses only on maximum profit, minimal investment and quick return

• This system excludes: the welfare of human beings, environmental impacts, reinvestment in education & technology and any non-monetary value added.

The Current Capitalist System

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• Access to quality education?• Care for the elderly?• Quality of life?• Household debt? • Good moral and ethical values?• Human decency and respect?• Loss of identity?• Corruption? • Alcohol and drugs?• Crime? • Hygiene and sanitary conditions?• Environmental Protection?

The Results

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The current global economic and financial system creates and perpetuates poverty

• Who can you trust?• No Solidarity exists• Underdeveloped countries cannot improve –

development is an impossible dream• No fair wages in underdeveloped regions

The Results of the Capitalist Economy

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• So, what is going on?• How did we reach this point?• Is there any solution other than the classic economy?

Muhammad Yunus“SOCIAL BUSINESS "

The Results of the Capitalist Economy

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Earth is the only planet in universe that supports life.

It is time do our part and help support life.

What’s Next?

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Poverty creates boundaries that prevent people from realizing their full potential and contributing to society. This is a waste of human potential.

• Is it possible to reverse this?

• Has this been done before in other places?

• What are the results? Need answers and Examples here: How? Where?

Solutions

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JAPAN

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United States

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GERMANY

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GLOBAL STRATEGIES

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INVESTMENTS

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Social Business is the solution

“Social Business“ is a viable alternative. It is noble, fair and generous.

• We see the difficulties the world is facing on TV, news• Start a social business today, it is the only solution• Growth with social business is possible• People also grow, reinvesting profits in the business

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The current capitalist system was unable to focus on the HUMAN BEING,only on profits. The economic crisis in the US and in Europe was predictable because of the lack of social responsibility in the current system.

Creating a "SOCIAL BUSINESS“ is the first step towards a solution.

"When people have the will to change, the economy will also change”

Social Business should be an essential part of the growth-development formula.

Create a Social BUSINESS! It is a commitment to change, it is a cause.

Social Business is the solution

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HUMANA PRIMUM ... The human first

- “Humanizing Capitalism”

The Goal of a Social Business

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The human being is first. The true capital lies in each of us, we are what matters. We must educate ourselves, learn, and have respect for each other.

We are born equal.

We have not been generous, let’s give opportunities to all.

There is still time!

Humana Primum

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What we do

Currently our universities offer Certificates: in Entrepreneurship and Microenterprise

In Chile we are working on introducing Graduate level programs in social business: Diploma and MBA.

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Universities and Social Business

Educational Institutions implementing Social Business Programs

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Worldwide companies implementing Social Business

Please provide examples of

what these companies do

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It is immoral to profit at the expense of men, women, children, elderly, and disadvantaged people, in order to reach maximum profit.

Source: http://www.casadellibro.com/libro-las-empresas-sociales/9788449324956/1825008#

The citation is in this book which I do not have

at the moment to cite properly so let leave it

Like this…..tks

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QUESTIONS?

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Dr. Bernardo Javalquinto

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