Research Project Proposal

Social Business - A Step Toward Creating a New Economic and Social Order
Course: Project Course Code: BUS-498

Prepared For:
_____________________________ Lecturer Department of Business Administration East Ist University, Dhaka

Prepared By:
Name: Md. Abu Taher Chowdhury ID: 2008-2-10-174

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Contents

ABSTRACT ..PREFACE 1 CONTENTS...........................................................................................................................2 1. INTRODUCTION:................................................................................................................4 SOCIAL BUSINESS UNITED NATIONS

PRIMARY MORTALITY, ARE: EDUCATION, AND THE

MILLENNIUM DEVELOPMENT GOALS (MDGS): THE (2)

EIGHT GOALS SET BY THE

(1)

ERADICATION OF EXTREME POVERTY AND HUNGER, GENDER EQUALITY COMBAT AND

ACHIEVEMENT OF UNIVERSAL WOMEN,

(3)PROMOTING

EMPOWERING

(4)REDUCE

CHILD

(5)

IMPROVE MATERNAL HEALTH;

(6)

HIV / AIDS,

MALARIA AND OTHER DISEASES;

(7)

ENSURE ENVIRONMENTAL SUSTAINABILITY, AND

(8)

DEVELOP A GLOBAL PARTNERSHIP FOR DEVELOPMENT.

SOCIAL

BUSINESSES OPERATING IN

BANGLADESH;

AND INITIATED JOINTLY BY

GRAMEEN

AND SOME OTHER

MULTINATIONAL ORGANIZATIONS WILL GIVE A CLEAR UNDERSTANDING HOW SOCIAL BUSINESS WILL HELP US ACHIEVE THE

MDGS. IN THIS REPORT THE DETAILS OF THE OPERATION WILL BE GIVEN........................4

2. OBJECTIVE OF THE STUDY: ...............................................................................................6 3. SIGNIFICANCE OF THE RESEARCH:........................................................................................6 4. PROBLEM DEFINITION:......................................................................................................7 5. DATA COLLECTION:..........................................................................................................7 6. APPROACH TO THE PROBLEM: ...........................................................................................8 7. DESIGN OF THE RESEARCH :...............................................................................................8 8. ANALYTICAL MODEL........................................................................................................8 9. HYPOTHESES: ..................................................................................................................9 10. METHODOLOGY:.............................................................................................................9 11. REPORTING: ................................................................................................................10 12. TIME ALLOCATION:......................................................................................................10 13. COST ALLOCATION:......................................................................................................10 14. LIMITATIONS:...............................................................................................................11

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Abstract
Social Business is a recent but very transformational trend revolutionizing the way companies function and generate value for all the constituents (stakeholders, employees, customers, partners, suppliers). Professor Muhammad Yunus, the key proponent of the social business model, argues that capitalism is too narrowly defined. The concept of the individual as being solely focused on profit maximizing ignores other aspects of life. Failures of this system to address vital needs, that are commonly regarded as market failures are actually conceptualization failures, i.e. failures to capture the essence of a human being in economic theory by limiting humankind to the homo economics. Social Business postulates a new world of business in which profit-maximizing enterprises and social-benefit-maximizing enterprises coexist. In addition, a social business would operate much like a profit-maximizing business in that the company as a whole grows financially and gains profits. The only difference is that the company's shareholders and investors would be reaccumulating their initial investment as opposed to receiving dividends. The report will show how social business- has gone from being theory to become an inspiring practice adopted by leading universities (e.g., Glasgow), entrepreneurs (e.g., Franck Riboud) and corporations (e.g., Danone) across the globe. The aim of the project is to prove, how social business can harness the entrepreneurial spirit to empire poor women and alleviate their poverty. One of the conclusions of Yunus' concepts is that the poor are like a bonsai tree, and they can do big things if they get access to the social business that holds the potential to redeem the failed promise of free-market enterprise. Key ingredients to the success of the approach are education, institutions to make social businesses visible in the market place (a social stock market), rating agencies, appropriate impact assessment tools, indices to understand which social business is doing more and/or better than other social businesses so that social investors are correctly guided. The industry will need its Social Wall Street Journal and Social Financial Times. Social business is a cause-driven business. In a social business, the investors or owners can gradually recoup the money invested, but cannot take any dividend beyond that point. The purpose of the investment is purely to achieve one or more social objectives through the operation of the company, since no personal monetary gain is desired by the investors. The company must cover all costs and make revenue, but at the same time achieve the social objective. The impact of the business on people or environment, rather than the amount of profit made in a given period measures the success of social business. Sustainability of the company indicates that it is running as a business.

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1. Introduction:

An organization that has put in place the strategies, technologies and processes to systematically engage all the individuals of its ecosystem (employees, customers, partners, suppliers) to maximize the co-created value This is the explanation what the Social Business is stands for. The above statement clearly certify that - A social business is a business where an investor aims to help others without taking any financial gain himself. At the same time, the social business generates enough income to cover its own costs. Any surplus is invested in expansion of the business or for increased benefits to society. The social business is a non-loss, non-dividend company dedicated entirely to achieving a social goal.

The seven Principles of Social Business were developed by Prof. Muhammad Yunus and Hans Reitz, the co-founder of Grameen Creative Lab: Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization Financial and economic sustainability Investors get back their investment amount only; no dividend is given beyond investment money When investment amount is paid back, company profit stays with the company for expansion and improvement Environmentally conscious Workforce gets market wage with better working conditions Do it with joy

Social Business and the Millennium Development Goals (MDGs): The eight goals set by the United Nations are: (1) eradication of extreme poverty and hunger, (2) achievement of universal primary education, (3)promoting gender equality and empowering women, (4)reduce child mortality, (5) improve maternal health; (6) combat HIV / AIDS, malaria and other diseases; (7) ensure environmental sustainability, and (8) develop a global partnership for development. Social businesses operating in Bangladesh; and initiated jointly by Grameen and some other
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multinational organizations will give a clear understanding how social business will help us achieve the MDGs. In this report the details of the operation will be given.

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2. Objective of the Study:

The broader objective of conducting this exploratory research is to get the factors from the respondents that influence the social business. There are also some specific objectives of conducting this causal research which includes the following: Find out the ways of Social Business Factors involving in Social Business Prospects of Social Business Improved product development process and reduced time to market Smaller product development costs Access to an unlimited source of ideas and feedbacks for product improvement Better risk mitigation and increased number of successful ideas when launching a new product Easier development of new business models Reduced customer churn and deflection Based on these common factors along with some other factors which I will get from the exploratory research the broader objective can be identified.

3. Significance of the research:

The ultimate reason of existence for the corporation is no longer to generate value for its traditional stakeholders but the maximization of the exchanged value betIen the company and the entire ecosystem. Its a bit like the group of stakeholders had suddenly expanded including external actors. Even with this new twist, It should be noted how this exchange is intended to amplify, within a network perspective and thanks to the ecosystem, also the value generated for the old stakeholders. The Social Business is thus an organizational construct aimed to make the company more efficient under mutated market dynamics and consumer behaviors.

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4. Problem Definition:
Here, the research problem is to identify the influencing factors that replace the concept of Capital concentrating to Social Business theory.
1. Serve the individual: Consider individuals (inside and outside the company) at the same

level as traditional stakeholders.

2. Listen: The companies break down silos and boundaries to constantly intercept signals

coming from the people (inside and outside it).

3. Respond. The company engages all the constituents to produce an effective, reactive,

coordinated, transparent, appropriate response to the stimuli received, regardless of the channel of origin. 4. Learn and evolve: The company extracts meaning from the captured signals (coming both from inside and outside) in order to continuously improve the working mechanisms and thereby maximizing the benefits for all parties involved 5. Become social: All the processes are dynamically and organically optimized based on collected feedbacks and in line with the experience of all the individuals in the ecosystem. Besides these obstacles in the mean time of doing the research I may face different kind of tribulations to collect raw data, gather accurate information and other help from Social Business concentrated organizations.

5. Data Collection:
Our research will be based on primary data. I will collect data directly from the respondents and directly allied with Social Business.

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6. Approach to the Problem:

Factors would be found by carrying an exploratory research initially, which would indicate us towards factors like Ways of Social Business, Involvement of this, Practicing Organizations, Motive of these Organizations,

7. Design of the Research:

The design of the research is mainly conclusive. Although the initial understanding of the research is based on an exploratory research, I will conduct a formal research to get the conclusion about the decision making criteria for the investors who invest in Social Business project after overlooking the profit maximization.

8. Analytical Model
For our marketing research process, I will follow some Mathematical Models to quantify our findings and use the equations and formulae to interpret the results and analyze them as such. Research Question The broad statement is: Social Business - A Step Toward Creating a New Economic and Social Order
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The specific components are: RQ1: Does the Business will help to fight against the extreme poverty? RQ2: Does the investment factors influence this Business? RQ3: Does this Business idea have positive prospect in economy? RQ4: Does the Low cost concept will be avail? RQ5: Does the empoIring women concept will be widely acceptable? RQ6: Does the Unlimited source of ideas and feedbacks for product improvement will be effective? RQ7: Does the Business will help to invent new market? RQ8: Does profit maximization devalue Social Business Concept?

9. Hypotheses:
According to the factors I will get from the respondents I can develop some hypotheses like as follows: H1: Social Business will help to fight against the extreme poverty H2: Investment factors influence The Social Business H3: Social Business idea have positive prospect in economy H4: Low cost concept will sustain in Social Business H5: EmpoIring the women concept will be widely acceptable H6: Unlimited source of ideas and feedbacks for product improvement will be effective for Social Business H7: The Business will help to invent new market H8: Only profit maximization concept can devalue Social Business Concept

10. Methodology:
The study will be conducted based on primary sources of data. As the study is more about consumer purchase decision and their consideration of factors for mobile phone set secondary sources of will not be much of use. A qualitative questionnaire will be developed for the survey. An approximate sample will be determined based on the exploratory research. Page | 9

Survey Business & respondents Survey sample Response rate Extrapolation/Estimation Demographics Statistical significance Data limitations

11. Reporting:

The concluded report will be submitted at the end of the semester, Spring 2012.

12. Time Allocation:

The estimated time span for completing this research paper is given below: Particulars Proposal Letter Questionnaire Data collection Analyzing and Preparing Submission of Report Total Time (approximately) 10 days 9 days 12 days 15 days 01 days 47 days

13. Cost Allocation:

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The following cost will be needed to conduct the research. The fees are subject to the assumptions contained in these proposals and I reserve the right to make the adjustment of of the cost. Expected Cost: Tk 18,000/=

14. Limitations:
1. Unavailability of secondary data. 2. Possible biased or distorted result because of using convenience sample. 3. Negligence answering by the respondent. 4. Time and budget constrain. 5. Unfamiliar to the people. 6. Only few organizations are practicing Social Business. 7. Lack of media coverage of the sector and unavailability of data.

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