MANDAL Social Development Through Benevolent Business Kalyan Sankar Mandal The author argues that along with the government and the NGOs, which are presently expected to meet the social developmental needs of the people, benevolent businesses should be promoted to fulfill the social developmental needs Such steps will endow social development and promote efficiency in meeting the social developmental goals Kalyan Sankar Mandal undertook this work at the Centre for Studies in Social Sciences Calcutta (CSSSC) as ICSSR Senior Fellow Before joining CSSSC, he was professor of sociology, Public Policy and Management Group at the Indian Institute of Management Calcutta (IIMC) He taught at IIMC for more than 25 years Before joining IIMC, he taught at the Tata Institute of Social Sciences, Mumbai and at the Gokhale Institute of Politics and Economics, Pune During the academic year 2013–14 he was Visiting Professor (ICCR Chair), at the University of Lund, Sweden He did his doctoral research at the Department of Humanities and Social Sciences, Indian Institute of Technology, Bombay The major area of his research interest is sociology of poverty, social welfare and social policy, including business solutions for poverty He is associated with a couple of NGOs and a not-for-profit company engaged in mitigating child malnutrition among the poor through social business Environmental and Social Sustainability for Business Advantage Collection Robert Sroufe, Editor Robert Sroufe, Editor SOCIAL DEVELOPMENT THROUGH BENEVOLENT BUSINESS This book points out that apart from usual “profit-maximizing business,” there are some other types of business models that serve social causes with profit The author discusses some such business models, namely, social business, compassionate business, microcredit-based business, cooperative business, bottom-of-the-pyramid business, and social welfare business The common point of all these business models is that they alleviate poverty and promote social development in a self-sustaining manner The text identifies the main principles followed by these business models and suggests principles of benevolent business Thus gives an idea about how to design a successful benevolent business Environmental and Social Sustainability for Business Advantage Collection Social Development Through Benevolent Business Kalyan Sankar Mandal Social Development Through Benevolent Business Social Development Through Benevolent Business Kalyan Sankar Mandal Social Development Through Benevolent Business Copyright © Business Expert Press, LLC, 2018 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means— electronic, mechanical, photocopy, recording, or any other except for brief quotations, not to exceed 250 words, without the prior permission of the publisher First published in 2018 by Business Expert Press, LLC 222 East 46th Street, New York, NY 10017 www.businessexpertpress.com ISBN-13: 978-1-63157-672-0 (paperback) ISBN-13:  978-1-63157-673-7 (e-book) Business Expert Press Environmental and Social Sustainability for Business Advantage Collection Collection ISSN: 2327-333X (print) Collection ISSN: 2327-3348 (electronic) Cover and interior design by S4Carlisle Publishing Services Chennai, India First edition: 2018 10 Printed in the United States of America Dedication Tirtha Samya Debashree & Saurav Abstract This book points out that apart from usual “profit maximizing business,” there exists other types of business models whose primary goal is to serve social causes and not just profit maximization However, as we are schooled under the self-interest serving nature of human beings under capitalism, we are generally oblivious about the not-so-common existence of business models aimed at serving social goals The book discusses with examples, business models that aim at serving social goals in a self-sustaining manner Thus, the business models discussed in this book are social business, compassionate business, microfinance-based business, cooperative business, business aiming at “Bottom of the Pyramid,” and social welfare business The common point of all these business models is that they promote benevolence to society through business, which is not necessarily true for an usual profit maximization business All these business models alleviate poverty and promote social development in a self-sustaining manner The book identifies the main principles followed by these business models and based on the principles identified, it suggests a unique business model which we call as “benevolent business model.” Thus, through this book, the students not only become aware and acquainted with the winning principles of social purposes-serving business models, most importantly, they will also get an idea about how to design a successful benevolent business The author argues that along with the government and the NGOs, which are presently expected to meet social developmental needs, benevolent businesses should be promoted for meeting social developmental needs of the people, particularly of the poor Keywords Benevolent business, Bottom of the pyramid business, ­Compassionate business, Cooperative business, Microcredit based business, Profit ­ maximization business, Social business, Social development, Social ­ ­welfare business Contents Preface xi Acknowledgments xiii Chapter Introduction Chapter Social Business .15 Chapter Compassionate Business 41 Chapter Business Based on Microcredit .55 Chapter Cooperative Business 63 Chapter Bottom of the Pyramid Business 69 Chapter Social Welfare Business 79 Chapter Benevolent Business .95 References 105 Index 109 102 SOCIAL DEVELOPMENT THROUGH BENEVOLENT BUSINESS Benevolent Business Helps the Poor to Overcome Poverty A business which may or may not aim at serving a social purpose but is owned by the poor and helps the poor to overcome poverty by generating income to them may be considered as benevolent business The poor may undertake income generating activities through microcredit or forming a cooperative Unlike a commercial business which aims at giving higher dividend to its owners, a cooperative business, for instance, may aim at giving maximum price to the producers by providing high quality products to the consumers by manufacturing value-added products Thus, benefiting both the producers and the consumers As for example, the milk cooperative Amul worked hard to provide high quality product to the customers at the same time provided maximum price of the milk to the farmers, not for maximize dividend as is done under commercial business It achieved this by manufacturing value-added products to give higher price to the farmers Further, benevolent business helps the poor to overcome poverty also by providing better quality product and service at a reduced price To sum up, a benevolent business is a business that aims at serving a social cause in a self-sustaining manner The guiding principle of benevolent business is compassion and not profit maximization This business may not pay any dividend The benevolent business should be self-sustaining or more Any profit made by this business does not go to any individual, but ploughed back into the business for serving a social cause better Benevolent business gets its capital from donation, loan or from some other sources It practices cost cutting and frugal entrepreneurship and strives to make goods and services affordable to the poor, including providing free service to the needy through cross subsidy It strives to become a high volume business expanding to cover more people, particularly the poor Benevolent business aims at alleviating poverty It may be mentioned that in our examples of benevolent business we have included microfinance based business, BOP business and social welfare business which are profit maximization business but serves social cause in the process of earning a profit Thus, they are examples of benevolent business However, being profit maximization business some of the characteristics mentioned above may be only partly applicable to those business models Benevolent Business 103 Presently it is assumed that promoting social development is primarily the responsibility of the government Apart from the government, the NGOs also play a role, a subsidiary role than the government, in promoting social development On the other hand, business sector which aims at earning a profit and maximizing profit is not expected to play any role in promoting social development We have shown in our preceding discussion that apart from just profit maximizing business, there exist some different types of business models We have discussed examples of some such business models The business models we have discussed either specifically aim at promoting social development or in the process of earning a profit they alleviate poverty or serve social causes These business models bring benevolence of society Thus, we have called these business models as the models of benevolent business We recommend that along with the government and the NGOs, the benevolent business should be promoted for the advancement of social development By promoting social development in a self-sustaining manner, the benevolent business models will be helpful in overcoming the problem of scarcity of fund for social development This will be particularly helpful for the developing countries which suffer from resource crunch in meeting the social developmental needs This will also be a way out of the situation where due to the advancement of policy of liberalization government is increasingly limiting its role in social development Finally, as unlike the government and the NGO sector, business sector is exposed to market competition, the benevolent business will be more efficient than the government and the NGO sector in promoting social development Thus, we suggest that the government, the NGOs and the benevolent business jointly should be engaged in the promotion of social development References Anupindi, R., and Sivkumar, S 2007 “ITC’s e- Choupal: A Platform Strategy for Rural Transformation”, in Quelch, J., Rangan, V.K., B ­ arton, B., Herrero, G (eds.) Business Solutions for the Global Poor John Wiley & Sons, Inc., San Francisco Arndt, H.W 1983 “The Trickle-Down Myth.” Economic Development and Cultural Change 32 (1):1–10 Bandyopadhyay, T 2016 Bandhan – The Making of a Bank Penguin, Gurgaon Banerjee, A., Duflo, E., Glennester, R., and Kinnan, C 2015 “The Miracle of Microfinance? Evidence from a Randomized Evaluation”, American Economic Journal: Applied Economics 7(1):22–35 Beejal, K., Vijay, M.R., Bharali, R., Karothiya, R., and Samanta, S 2008 Business Plan for Low-cost Baby Food (Nutrimix) A project report submitted to Indian Institute of Management Calcutta and Child in Need Institute (mimio.) Birchall, J 2003 Rediscovering the Cooperative Advantage: Poverty Reduction through Self-help International Labour Office, Geneva Brainard, L., and LaFleur, V 2006 “The Private Sector in the Fight against Global Poverty”, in Brainard, L (ed.) Transforming the Development Landscape: The Role of the Private Sector Brookings Institution Press, New York Dees, J.G 1998 “Enterprising Nonprofits,” Harvard Business Review, The January February 1998 issue, 55–57 Dees, J.G 2012 “A Tale of Two Cultures: Charity, Problem Solving, and the Future of Entrepreneurship,” Springer Science + Business Media B.V 2012, Published online: 17 August 2012 link.springer.com/arti cle/10.1007%2Fs10551-012-1412-5 Florence, P.S 1972 “Cooperatives” in International Encyclopedia of Social Sciences, Vol 3and 4, The Macmillan Company & The Free Press, New York 106 REFERENCES Goulet, D.1992 “Development: Creator and Destroyer of Values.” World Development 20(3):467–475 Grember, K V et al 2017 2017 Global Hunger Index: The inequalities of hunger, International Food Policy Research Institute, Washington Hewavitharana, B 2004 “Framework for Operationalizing the Buddhist Concept of Gross National Happiness” in Ura, K., Galay, K (eds.) Gross National Happiness and Development Proceedings of the First International Seminar on Operationalization of Gross National Happiness The Centre for Bhutan Studies, Thimpu (mimio.) Hunt, D 1989 Economic Theories of Development An Analysis of Competing Paradigms Harvester Wheatsheaf, Hertfordshire Ingham, B 1993 “The Meaning of Development: Interactions between ‘New’ and ‘Old’ Ideas.” World Development 21 (11):1773–1786 International Cooperative Alliance 1995 “Statement on the Cooperative Identity”, Report of the 31st Congress, Manchester, in Review of International Cooperation, 88.3 Kurien, V 2005 (as told to Gouri Salvi) I Too Had a Dream Roli Books, New Delhi Leonard, H.B 2007 “When Is Doing Business with the Poor is Good for the Poor: A Household and National Income Accounting Approach”, in Quelch, J., Rangan, V.K., Barton, B., Herrero, G (eds.) Business Solutions for the Global Poor John Wiley & Sons, Inc., San Francisco Marx, K 1977; org.1859 ‘Preface.’ A Contribution to the Critique of Political Economy Progress Publisher, Moscow Mehta, P.K., and Shenoy, S 2012 Infinite Vision: How Aravind Became the World’s Greatest Business Case for Compassion Collins Business, Noida Microcredit Summit Campaign 2016 http://www.microcreditsummit org/what-is-microfinance2.html Nandi Foundation 2011 HUNGaMA Fighting Hunger & Malnutrition: The HUNGaMA Survey Report – 2011 Nandi Foundation, Hyderabad https://www.cse.iitb.ac.in/~sohoni/TD604/HungamaBKDec11LR.pdf Novogratz, J 2009 The Blue Sweater: Bridging the Gap between Rich and Poor in an Interconnected World Rodale, New York REFERENCES 107 Prahalad, C.K 2005 The Fortune at the Bottom of the Pyramid: Eradicating poverty through profits Wharton School Publishing/Pearson E ­ ducation, Delhi Prahalad, C.K., and Hammond, A 2002 “Serving the World’s Poor Profitably”, Harvard Business Review September 2002, 1–16 https://hbn org/2002/09/serving-the-worlds-poor-profitability Prahalad, C.K., and Hart, S.L 2002 “The Fortune at the Bottom of the Pyramid”, Strategy + Business Issue 26, 1–16 Prahalad, C.K 2007 In the ‘Forward’ of the book, Business Solutions for the Global Poor: Creating Social and Economic Value John Wiley and Sons, SanFrancisco Quelch, J., Rangan, V.K., Barton, B., Herrero, G (eds.) 2007 Business Solutions for the Global Poor: Creating Social and Economic Value John Wiley and Sons, SanFrancisco Sachs, J 2012 “Introduction” in Helliwell, J., Layard, R., and Sachs, J (eds.) World Happiness Report Adopted by the UN member states at Rio+20 summit in Rio de Janeiro in June 2012 http://www.earth columbia.edu/sitefiles/file/Sachs%20Writing/2012/World%20 Happiness%20Report.pdf Salamon, L.M., Anheier, H.K., List, R., Toepler, S Sokolowski, S.W., and Associates.1999 Global Civil Society Dimensions of the Nonprofit Sector The Johns Hopkins Center for Civil Society Studies, Baltimore Sen, A 1983 “Development: Which Way Now.” Economic Journal 93(372): 745–762 Sen, A 2003 “Radical Needs and Moderate Reforms” in Dreze, J., and Sen, A (eds.) Indian Development: Selected Regional Perspectives ­Oxford University Press, New Delhi Singh, Y 1973 Modernization of Indian Tradition Thomson Press (India) Limited, New Delhi Smith, A 1937; org 1776 An Inquiry into the Nature and Causes of the Wealth of Nations The Modern Library, New York Sriram, M.S 2011 Profit or Purpose: The Dilemma of Social Enterprises Working Paper No 2011-08-02, August 2011, Indian Institute of Management, Ahmadabad (mimeo.) Thinley, L.J Y 1999 “Values and Development: “Gross National Happiness” ”, in Kinga, S et al (eds.) Gross National Happiness: A set of discussion papers.The Centre for Bhutan Studies, Thimpu (mimeo.) 108 REFERENCES UNICEF 1992 Support to Women’s Economic Activities and Income Generation in the 1990s UNICEF, New York United Nation Development Program 1992 Human Development Report 1992 Oxford University Press, New York Williams, F 1989 “Perspective of Welfare: The Existing, but Inadequate Theoretical Basis of Social Policy”, in Social Policy: A Critical Introduction Policy Press, New York World Commission on Environment and Development (Brundtland Commission) 1987 Our Common Future Oxford University Press, New York Yunus, M 2007 Banker to the Poor: The Story of the Grameen Bank Penguin, New Delhi Yunus, M 2008 Creating a World without Poverty: Social Business and the Future of Capitalism Subarna, Dhaka Yunus, M 2010 Building Social Business - The New Kind of Capitalism that Serves Humanity’s Most Pressing Needs PublicAffairs, New York Index Aged home-based care service for checking background information, 84 poverty alleviation, 87–92 profit making, 85–87 reason for hiring ayah from, 82–84 representative selection method, 82 welfare service, 82–85 lonely living of, 84–85 Amul, 66–67 and benevolent business, 102 Aphakic surgery, for clouded cataract lens, 53 Aravind Eye Care System and benevolent business, 98, 100–101 converting high-volume service into high-quality service, 45–50 assembly-line techniques in operation theater, 46–50 paraprofessionals, creating a cadre of, 45–46 cost reduction policy, 51–54 frugality and sustainability practices, 52–53 introducing intraocular lens and setting up Aurolab, 53–54 differential pricing policy, 50–51 free camps for eye check-up, 44–45 motto of, 44 origin of, 41–42 providing free treatment with profit, 42–43 striving for high-volume service, 43–45 surgical ward, workflow, 47–48 Aurolab, 53–54 Ayah centers, 81 checking background information, 84 marital status of ayahs, 88 monthly income of, 86–87 owners early life, 86 marital status of, 85 poverty alleviation, 87–92 profit making, 85–87 reason for hiring ayah from, 82–84 welfare service, 82–85 Ayahs, in home-based care service, 81–92 husband’s occupation, 89–90 income supported before and after employment, 90–91 marital status of, 88 Bandhan, microfinance institution, 61 Bangladesh Cooperative Milk Producers Union, 65 Bangladesh, dairy cooperatives in, 64–65 Base of the pyramid See Bottom of the pyramid (BOP) Benevolent business, 95–103 bottom of the pyramid See Bottom of the pyramid (BOP) market defined, 95 goal of, 96 introduction to, 95–96 microfinance See Microfinance principles of capital comes from loan, donation, grant, or similar source, 98–99 compassion and not profit maximizing, 97 cost cutting and frugal entrepreneurship, 100–101 does not pay any dividend, 97–98 helps poor to overcome poverty, 102–103 110 INDEX Benevolent business (Cont.) making goods and services affordable to poor, 99–100 serves social cause, 96–97 subsidize goods and services to poor, 101 tends to be high-volume business, 101 social welfare business See Social welfare business Bhutanese developmental approach, Bill and Melinda Gates Foundation, 15 Bolivia, water cooperative in, 65 Bottom of the pyramid (BOP) market, 4, 32–33, 69–78, 79 assumptions of MNCs, 72–73 accept advanced technology, 72 accessibility, 71 brand conscious, 72 connectivity, 72 viable market among poor, 70–71 checklist for prospective, 76 commercial infrastructure elements for, 73 defined, 69 examples of cases in, 74–75, 77 Business agencies responsibility for, 10–11 benevolent business See Benevolent business bottom of the pyramid See Bottom of the pyramid compassionate business model See Compassionate business model cooperatives business See Cooperatives business goal of, 95, 97–98 microfinance See Microfinance social business, 55 and social business See Social business and social development See also Social development social welfare, 79–92 tax for, 10 types of business promoting, 11–12 “Business Solutions for the Global Poor”, 70 Capital, for starting benevolent business, 98–99 Capitalism, and social development, Capitalist society, 2, 13 Capitalist State, in welfare services, 80 Cataract, of eyes, 42 aphakic surgery for, 53 Chaudhuri, Samir Narayan, 20–27, 30 Chi-squared test, 85 of goodness-of-fit, 88, 90 Child in Need Institute (CINI), 20–21 developing and distributing supplementary infant food, 21–25 evolution of Nutrimix, 23–25 innovation in mitigating child malnutrition, 22–23 Child malnutrition Child in Need Institute for, 20–21 CINI Nutrimix Social Business for, 25–38 CINI’s work in developing and distributing supplementary infant food to mitigate, 21–25 evolution of Nutrimix in, 23–25 CINI Community Initiatives (CINCOMM), 37 CINI Nutrimix Samajik Byabsa, 31 CINI Nutrimix Samajik Udyoug, 31 CINI Nutrimix Social Business (CNSB) business activity in a charitable organization, venturing into, 29–32 factory, setting up of, 29 human resources, limitation of, 28–29 initiation of, 25–28 innovations and product improvement, 32–35 production unit, 31 professionally managed, 37–38 teething trouble period of, 35 beyond World Bank-assisted initiation, continuation of, 35–36 INDEX 111 Commercial infrastructure elements, for bottom of the pyramid, 73 Compassion and not profit maximizing, principle of benevolent business, 97 Compassionate business model, 41–54 Aravind Eye Care System, origin of, 41–42 providing free service with profit, 42–54 Cooperative Dairy Development Program, 65 Cooperative Milk Marketing Federation (CMMF), 77 Cooperatives business, 4, 63–67 defined, 63 in developed and developing countries, role of, 64 overview of, 63–64 in poverty alleviation, role of, 64–67 Corporate Social Responsibility, 79 Cost reduction policy, in Aravind Eye Care System, 51–54 Dairy cooperatives, in Bangladesh, 64–65 Differential pricing policy, in Aravind Eye Care System, 50–51 Division of Child Health and Development (DCHD), 28–29 “Doing Business with the Poor”, 77–78 Donation, for starting benevolent business, 98–99 E-Choupal, ITC innovation, 74–75 Economic growth, definition of, 4–5 Economic pyramid, 72 18th Microcredit Summit, 60 Family, functions of, 80–81 First Microcredit Summit, 60 Frugal entrepreneurship, and benevolent business, 99, 100–101 Gates Award for Global Health, 42 Global Hunger Index, 21 Government sector, in social development, 2–3 Grameen Bank model, 59 Grant, for starting benevolent business, 98–99 Gross National Happiness, Helps poor to overcome poverty, principle of benevolent business, 102–103 High-volume business, principle of benevolent business, 101 Hilton Humanitarian Prize, 42 Hindustan Liver Limited (HLL), 74, 77, 100 Home-based care service, for aged, 79–82 checking background information, 84 poverty alleviation, 87–92 profit making, 85–87 reason for hiring ayah from, 82–84 representative selection method, 82 welfare service, 82–85 India, milk cooperative in, 66–67 Indian Institute of Management Calcutta (IIMC), 26 Individual model, in microcredit, 59 Integrated Child Development Services (ICDS) program, 33–34, 36 International Cooperative Alliance, 63 Intraocular lens (IOL) surgery, 53–54 iShakti, in Project Shakti, 74 ITC Group, 74–75 Joint Liability Group (JLG) model, 59 Kaira District Cooperative Milk Producers Union Limited (KDCMPUL), 66 Kurian, Verghese, 66 Leonard, H.B., 76–78 Loan, for starting benevolent business, 98–99 112 INDEX Microcredit See Microfinance Microfinance impact of, 61–62 operation of, 57–59 origins of, 55–57 role of, 60 spreading of, 60, 61 Milk cooperative, in India, 66–67 Milk Vita, 65 Millennium Development Goals, 65 Mukherjee, Sunit, 22–23, 29 Multinational corporations (MNCs), 69 assumptions about BOP market, 72–73 accept advanced technology, 72 accessibility, 71 brand conscious, 72 connectivity, 72 viable market among poor, 70–71 conventional thinking of, 70 in poverty alleviation, 70 Hindustan Liver Limited, 74, 77 ITC Group, 74–75 Narayana Hrudayalaya Heart Hospital, in poverty alleviation, 74 Non dividend paying business, principle of benevolent business, 97–98 Nongovernmental organization (NGO), 1, 2–3, 10, 95 charity-based, 17, 19 Child in Need Institute, 20–38 CINI Nutrimix Social Business, 25–40 in social welfare services, 80 Nutrimix, 22–23 community-centric manual production and distribution, 24 free distribution of, 23–24 limited spread of, 24–25 ready-to-cook food, for child, 34 ready-to-eat food, for child, 34 selling price of, 32–33 as social business, 25–38, 96–97, 98, 101 Owen, Robert, 63 Patient capital, and benevolent business, 99 Poverty alleviation and ayah centers, 87–92 bottom of the pyramid in, 69–78 commercial infrastructure elements for, 73 cooperatives business dairy cooperatives in Bangladesh, 64–65 milk cooperative in India, 66–67 water cooperative in Bolivia, 65 examples of cases in, 74–75, 77 home-based care service, for aged, 79–82 and microfinance, 55–62 multinational corporations in, 70 Hindustan Liver Limited (HLL), 74, 77 ITC Group, 74–75 private sector, role of, 72–78 Prahalad, C K., 12, 69–73, 75 Profit-making, ayah service centers in, 81–82, 85–87 Profit-maximization business, 2, 63 beneficial role of, 7–9 and benevolent business, 100 critics of, 9–10 goal of, 15–16 Project Shakti, in poverty alleviation, 74, 77 SAGUAPAC, 65 Self-Help Group (SHG) Model, 57, 58–59 federation model, 59 Self Help Promotional Institutions (SHPIs), 59 Self-supporting community, 63 Serves social cause, principle of benevolent business, 96–97 SEWA Trade Facilitation Centre (STFC), 77 Shakti Entrepreneur, in Project Shakti, 74 Shakti Vani, in Project Shakti, 74 INDEX 113 Shri Mahila Griha Udyog Lijjat Papad (SMGULP), 77 Small-sized nuclear families ayah service centers for, 82–85 satisfaction with ayah service, 84 Smith, Adam, Social business, 3–4, 11, 55, 67, 79, 99 achieving social development, toward self-reliant way of, 19–20 Child in Need Institute (CINI), 20–21 CINI Nutrimix Social Business (CNSB), 25–40 developing and distributing supplementary infant food, 21–25 description of, 15–17 scope of, 17–19 Social development business and, 7–13 business models for, 2–4 definition of, 4–7 government funds for, 19 importance of, limited affordability of government for, primary responsibilities of government, 1–2 profit-maximization business and, 7–10 self-reliance in, 19 tax for, 17 Social welfare business, home-based care service for aged, 79–82 checking background information, 84 poverty alleviation, 87–92 profit making, 85–87 reason for hiring ayah from, 82–84 representative selection method, 82 welfare service, 82–85 Subsidize goods and services to poor, principle of benevolent business, 101 Tax, for social development, 18 Unilever, 74 Venkataswamy, Govindappa, 41–44 Water cooperative, in Bolivia, 65 Welfare service, by ayah service centers, 82–85 Welfare State, 80 Women ayah center owners, 85 as ayahs, 81–92 Women empowerment, and microfinance, 61–62 World Bank, 27–28 World Commission on Environment and Development (Brundtland Commission) Report, 5–6 Yunus, Muhammad, 7–8, 11, 15–16, 25, 55–57 OTHER TITLES IN OUR ENVIRONMENTAL AND SOCIAL SUSTAINABILITY FOR BUSINESS ADVANTAGE COLLECTION Robert Sroufe, Duquesne University, Editor • Strategy Making in Nonprofit Organizations: A Model and Case Studies by Jyoti Bachani and Mary Vradelis • Developing Sustainable Supply Chains to Drive Value: Management Issues, Insights, Concepts, and Tools by Robert Sroufe and Steven Melnyk • IT Sustainability for Business Advantage by Brian Moore • A Primer on Sustainability: In the Business Environment by Ronald M Whitfield and Jeanne McNett • The Thinking Executive’s Guide to Sustainability by Kerul Kassel • Change Management for Sustainability by Huong Ha • The Role of Legal Compliance in Sustainable Supply Chains, Operations, and Marketing by John Wood • Feasibility Analysis for Sustainable Technologies: An Engineering-Economic Perspective by Scott R Herriott • ISO 50001 Energy Management Systems: What Managers Need to Know About Energy and Business Administration by Johannes Kals • Developing Sustainable Supply Chains to Drive Value, Volume I: Management Issues, Insights,Concepts, and Tools—Foundations by Robert P Sroufe and Steven A Melnyk • Developing Sustainable Supply Chains to Drive Value, Volume II: Management Issues, Insights, Concepts, and Tools—Implementation by Robert P Sroufe and Steven A Melnyk Announcing the Business Expert Press Digital Library Concise e-books business students need for classroom and research This book can also be purchased in an e-book collection by your library as • • • • • a one-time purchase, that is owned forever, allows for simultaneous readers, has no restrictions on printing, and can be downloaded as PDFs from within the library community Our digital library collections are a great solution to beat the rising cost of textbooks E-books can be loaded into their course management systems or onto students’ e-book readers The Business Expert Press digital libraries are very affordable, with no obligation to buy in future years For more information, please visit www.businessexpertpress.com/librarians To set up a trial in the United States, please email sales@businessexpertpress.com MANDAL Social Development Through Benevolent Business Kalyan Sankar Mandal The author argues that along with the government and the NGOs, which are presently expected to meet the social developmental needs of the people, benevolent businesses should be promoted to fulfill the social developmental needs Such steps will endow social development and promote efficiency in meeting the social developmental goals Kalyan Sankar Mandal undertook this work at the Centre for Studies in Social Sciences Calcutta (CSSSC) as ICSSR Senior Fellow Before joining CSSSC, he was professor of sociology, Public Policy and Management Group at the Indian Institute of Management Calcutta (IIMC) He taught at IIMC for more than 25 years Before joining IIMC, he taught at the Tata Institute of Social Sciences, Mumbai and at the Gokhale Institute of Politics and Economics, Pune During the academic year 2013–14 he was Visiting Professor (ICCR Chair), at the University of Lund, Sweden He did his doctoral research at the Department of Humanities and Social Sciences, Indian Institute of Technology, Bombay The major area of his research interest is sociology of poverty, social welfare and social policy, including business solutions for poverty He is associated with a couple of NGOs and a not-for-profit company engaged in mitigating child malnutrition among the poor through social business Environmental and Social Sustainability for Business Advantage Collection Robert Sroufe, Editor Robert Sroufe, Editor SOCIAL DEVELOPMENT THROUGH BENEVOLENT BUSINESS This book points out that apart from usual “profit-maximizing business,” there are some other types of business models that serve social causes with profit The author discusses some such business models, namely, social business, compassionate business, microcredit-based business, cooperative business, bottom-of-the-pyramid business, and social welfare business The common point of all these business models is that they alleviate poverty and promote social development in a self-sustaining manner The text identifies the main principles followed by these business models and suggests principles of benevolent business Thus gives an idea about how to design a successful benevolent business Environmental and Social Sustainability for Business Advantage Collection Social Development Through Benevolent Business Kalyan Sankar Mandal .. .Social Development Through Benevolent Business Social Development Through Benevolent Business Kalyan Sankar Mandal Social Development Through Benevolent Business Copyright © Business. .. of businesses can also play a key role in alleviating poverty and promoting social development 2 SOCIAL DEVELOPMENT THROUGH BENEVOLENT BUSINESS In capitalist societies, the primary goal of a business. .. usual profit maximization business Muhmmad Yunus has articulated one such business model which he calls social business. ” Social business is one model through which social developmental services