Page 42 - Social Enterprise A New Business Paradigm for Thailand

3. He believes social business must be distinct from traditional business models to signal a new
mindset and structural shift.

To build a more inclusive economy, Yunus proposes three foundational changes: (1) a new

business model motivated by selflessness rather than self-interest, (2) a reimagining of individuals
not merely as job seekers, but as potential entrepreneurs, and (3) a financial system capable of
serving the poor and those at the base of the economic pyramid (Yunus, 2007).

Yunus contends that social businesses should not require tax exemptions because they are
founded on voluntary participation and public-mindedness. However, he supports the creation of
dedicated social business funds to provide loans or investments to help these enterprises launch
and grow. He also argues that relying on taxation of the wealthy alone is an inadequate solution
to inequality. Often, those with wealth possess enough political influence to resist the very

reforms meant to hold them accountable. Instead, Yunus calls for the development of a new
economic framework. This is an alternative system in which the collective benefit is prioritized
above personal gain. In this vision, a social business is defined by its social mission. Owners and
investors may recover their initial capital, and occasionally earn a limited return, but financial gain
is not the end goal. Rather, profitability is pursued as a means to sustain a social mission, whether
it is healthcare, housing, nutrition, or financial services for underserved communities (Yunus,
2020, January 8).

Ultimately, social business integrates commercial logic with social commitment. Unlike broader

theories of social entrepreneurship that emphasize innovation and outcome diversity, Yunus’s
model is more rigorous. It demands financial independence, prohibits profit extraction, and
places unwavering focus on social purpose. Drawing from his experience, Yunus also stresses the
importance of networks, that nurture and scale social businesses. This supportive framework is
now widely recognized as the social business ecosystem. Such ecosystems lay the foundation for
transformative public policies that can foster meaningful, long-term change. (Further discussion
appears in Chapters 4 and 5.)

1.3.4 Business Thinking on Corporate Social Responsibility (CSR)
During the 1960s, Western scholars began paying increasing attention to how businesses could
balance profit-making with their responsibilities to broader groups of stakeholders (Davis, 1960).
Simultaneously, civic organizations and student movements raised public awareness of the
harmful environmental effects of industrial chemicals, prompting waves of protest. These
concerns led to concrete change in the 1970s when the U.S. government enacted a series of
environmental protection laws and established enforcement agencies, along with broader social

legislation. These developments laid the groundwork for enduring public policy in environmental

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