BUSINESS

Critical Analysis of “Building Social Business” Book written by Muhammad Yunus

Introduction2

About the Book2

About the Author3

Description3

History of Grameen Bank3

Social Business3

Why Social Business?4

Principles of Social Business4

Social Business Model4

Value Proposition4

Value Constellation5

Profit Equation5

Social Business and the Modern World5

Changes in an Individual's Life and its Surroundings5

Benefits of Social Business5

Cultural Barriers in Social Business5

Why Counter Cultures are Necessary?6

Actualization7

Case Study of Grameen Danone7

Discussion7

Pros of Social Business7

Cons of Social Business8

General Recommendations8

Conclusion9

References10

Critical Analysis of “Building Social Business” Book written by Muhammad Yunus

Introduction

This book helps in developing a sound framework for all those who are interested in establishing or starting a social business without any fake terms and conditions. Other organizations are not handling the issues of the society in a similar way as Grameen Bank is handling, therefore it is considered as the most important institution that have provided great opportunities to poor and weaker people. The world cannot be made enough better than Grameen Bank is offering to it. This book motivates people to think more positively for the society and plan such financial projects and programs that can help the society in improving life quality.

Businesses have always focused on getting higher profits and increasing the value of the shareholders, but currently, there have been new approaches to conducting business that differ from the old capitalism approach. At this point, there is a need to highlight the shortcomings in the capitalism approach and introduce a new business model. In order to look into the concept of social business “Building Social Business” book written by Muhammad Yunus can be referred, as it effectively elaborate social business and its benefits to society and the steps that can be used to make a business into social business (Basher, 2010, p.521). The essay focuses on providing an overview of the book named “Building Social Business” written by Muhammad Yunus. The analysis of this book is handled in terms of the changes that will incur in the surroundings of the individual. The example of Grameen bank has been used in elaborating the effectiveness of social business in society.

About the Book

The book Building Social Business: The New Kind of Capitalism Most Pressing Needs has been written by Muhammad Yunus. In this book, the concept of social business has been introduced in which one focuses on the benefits for the society rather than the profits (www.muhammadyunus.org). The author has criticized capitalism and highlighted its weak points. According to this book, the emphasis is made on the profits that the firms generate rather than people, and the economy is based on the growth rather than the removal of poverty and betterment of the poor people (Uschold, 2010).

Muhammad Yunus has made tremendous efforts in explaining the concept of social business. He emphasizes that the profits that are generated from the business should be used to create benefit for the society rather than being given out to the shareholders as dividends. The author has also made a comparison between the social business and other organizations that are focused on providing social good to the ...