A social business is set-up to address social issues

The first of the key principles of social business, is that the organisation's primary purpose is to address social or environmental issues, typically serving those amongst us who at the most disadvantage.

An example of this could be to provide employment opportunities for those living in underprivileged communities. Like Khayelitsha Cookies, which provides jobs for ladies living in the township of Khayelitsha in the Western Cape.

Another example is Spazatainer, which offers a unique form of office space at affordable prices to underprivileged communities.

Objectives need to be set to ensure that there is clarity on what the social or environmental issues are that the social business has been set-up to resolve.

It is important not to allow non-social objectives to override the social ones, which is what happens with many commercial businesses, where shareholder wealth maximisation ultimates comes before any CSR initiatives.

Social businesses are not profit driven, but instead use their income as an enabler to meet their social objectives.

For the purposes of this blog, the social businesses need to be addressing social issues within South Africa, but this does not mean that the principles are specific to this region.


Mike.