Page 155 - Social Enterprise A New Business Paradigm for Thailand

2. Believe in the innate entrepreneurial capacity of human beings. Yunus maintains that
entrepreneurship is intrinsic to human nature and that people can break free from the belief that
they were born solely to seek employment.
3. Establish a new financial system that is accessible to the poor.

Yunus also sets forth core principles of social responsibility that every company or business organization
should embrace:
• Do not inflict harm or pose risks to human life in any form. This means businesses must not increase
the world’s level of danger, including risks to their own workers. Their products and services must
be environmentally friendly and safe for consumers.
• A responsible business should not only avoid causing harm but actively contribute to making the
world safer. It should not merely refrain from polluting but work to reduce overall pollution.
Likewise, it should not only offer safe products but improve upon standard safety levels.
• Exercise responsibility on a global scale, in full compliance with local laws and international
regulations.

Since 2011, Yunus became embroiled in political conflict, leading to a fallout with the country’s
leadership. He was removed from his executive role at Grameen Bank on the grounds that he had
exceeded the legal retirement age. This was followed by a wave of lawsuits. Eventually, he was charged
with failing to establish a labor welfare fund at Grameen Telecom, a joint venture under Grameen Bank.
He was sentenced to six months in prison. Although he was granted bail, the case remains unresolved
in court as of July 2024.

Despite these legal challenges at home, Yunus has continued to advance his work in social business with
unwavering commitment. Grameen Bank, its social innovations, and his intellectual legacy have
endured, earning continued recognition from the international community. In April 2023, he was
appointed by the United Nations to serve on the Advisory Board of Imminent Persons on Zero Wastes
(Muhammadyunus.org, 2023). Finally, in 2025, after President Hasina was forced into exile in India amid
public outrage over a policy reserving 30% of civil service positions for military families, Yunus was
appointed as leader of Bangladesh with the endorsement of the military, which had chosen to heed the
will of the people.

Note: Adapted from Muhammad Yunus (2007), Building Social Business: The New Kind of Capitalism that Serves
Humanity's Most Pressing Needs; Muhammad Yunus (2010), Creating a World Without Poverty; Muhammad
Yunus (2017), A World of Three Zeros.

Grameen Bank began as an “action research project” in 1976 in the village of Jobra, located in
Chattagram (or Chittagong), Bangladesh. In 1983, the pilot initiative was formally established as
a bank under the country’s banking law. It became a legally recognized entity with a unique
structure, operating both as a nonprofit organization and a commercial bank. It functions as a

specialized bank under the supervision of the Bangladesh Bank (the country’s central bank), and
is subject to applicable banking laws and regulations. Grameen Bank differs significantly from
conventional banks in two key ways: 1) its borrowers are also partial owners of the bank,
collectively holding more than 75% of its total shares; and 2) nine out of twelve board directors
are elected by the shareholders. This governance structure allows the bank to focus on its social
mission of alleviating poverty through microcredit and very small-scale lending, while still
operating within the regulatory framework of a commercial bank.

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