There are countless businesses out there right now, and quite a lot of them would have you know that they’re in the picture purely for profit. This is entirely fine in the grand scheme of business ethics and strategy, but is focusing on nothing but profit the only way to achieve success? Not necessarily. In fact, with the emergence of more and more not-for-profit organizations proving that philanthropy is not dead and that it can be a force for good, businesses should be looking in this direction, at least partially, anyway.
So what is social business? What makes this so special?
Addressing Social Objectives are the Reason for Their Existence
Rather than a purely profit-driven motive, social businesses are in business to help solve a problem that is impacting society as a whole, a group of people, or even its own company or niche of business.
Attempting to enhance the way people function in a particular group is something that can never go without notice, but it often does.
While a company doesn’t often dedicate 100 percent of its resources to solving this social problem, it will focus one or more of its team to get the job done.
If the objective is finally met and solved, businesses will often find that their profits will increases due to the ease-of-use that their employees or community find amongst them.
So really, while the objective isn’t necessarily to make money, it could very well happen.
Companies that are entirely focused on social business most often will not make a considerable amount of money, and with the modest profit that is met due to accomplishing their objective, it goes right back into the fund dedicated to maintaining this social presence.
A Social Business May Not be Just a Business
Charities and other organizations that are dedicated to helping a cause may also engage in social business activities. While some companies may bring forth a new technology or tool to help bring their goals to new heights, charities may be involved purely to raise money for their groups.
Since a charity’s main goal is to provide less-than-fortunate individuals rather than conduct business, its methods are usually self-sufficient and require little effort to continue, such as incorporating a virtual donation widget on its website or websites that might be interested in helping people.
So as you can see, a social business is a necessity in our culture, not only to help a certain cause, but to also work toward something that could very well be a part of us all. Without social business, the way we bank or the way we enhance our communities might be vastly different than without.
So what is social business, you might ask? A tangible business structure that should be considered by even the largest of corporations.