Say hello to the era of social business

The majority of companies operating today use profit as their main measurement, i.e. the business is judged by others (the market) with economic figures and the potential for growth. But things are changing.

It is no coincidence that social businesses have recently emerged and developed in the Networked Society. But why is this happening now?

1. The ultra-capitalistic industrial society of the late 20th Century is now being questioned as a relevant model for a ‘good world’. At the same time, the state and traditional social institutions that are supposed to care for the welfare of citizens are failing people across the world.
2. New generations growing up with mobility, broadband, and internet access are now entering the arena of social issues. They are also used to things moving quickly, getting things done right away, and seeing direct impact. They experience frustration with old ways of doing things and the slowness and inefficiencies of institutions to accomplish any real change.
3. The necessary technology is already in place. Today, we have technology platforms, digital tools, and social networks available for free or at a low cost, which makes it possible for people to start something without the need for large investments or technological skills.

How do we define The Social Business?

1. No dividends allowed. “A non-dividend company that is created to address and solve a social problem”.
2. Focus on intent and output: “An organization formed by one or more people whose commercial activities are primarily driven by the desire to create positive social change”.
3. A broad, pragmatic approach: “A business whose primary intent is to create social impact and that uses revenue streams to become financially sustainable in order to further that impact”.

Create positive impact…who wouldn’t want to do that?

In my next post for the Networked Society blog, I will take a look at the main differences between traditional and social businesses.

Read more about this report at Ericsson Networked Society site

Related: The Social Business Era: Creating Impact and Influencing Change