Social business are self-sustaining because part of the profit goes back to expand the venture. “Charity money goes out to do good things, but that money never comes back. It is a one-way route…. A charity dollar has one life; a social business dollar has endless lives” (Forbes, 2010). When individuals or donors give to a person, cause, or organization by means to support them, the gift or donation will continue to be needed. The giving will be required year after year in order to sustain the person or program receiving it. In contrast social business operates to generate a profit that directly supports the person, cause, or organization and will continually sustain the receiver as long as the business is in operation. In my opinion, this method of profitability is significantly more effective.

Dependency is a product of typical models that donate to the basic needs of the impoverished. Dependency is created because the people being helped have no means to support themselves without the continued support and generosity of donors. The receivers create a cycle of dependency resulting in increased pressure on the donors, and increased dependency. Social businesses create a new method that eliminates this dependency cycle. “We seek to create dignity, not dependence; choice, not charity…” (Catherine Casey). Essentially, social businesses operate on a totally different platform. They exist to benefit a social condition, which in turn offers people that are in need of support, a long-term opportunity to meet their own needs. Social businesses offer those typically dependent on others the option of sustaining themselves. If the social business establishes sustainable practices, those benefiting have a viable means to become self-sufficient. This self-sufficiency provides dignity. Without self-sufficiency, it is very difficult to have control over the future or prepare for the unknown. This uncertainty and relying on others to survive destroys human dignity. Social businesses not only offer opportunity for self-sustainability, but also generate stewardship of the environment by operating based upon a triple bottom line.

The triple bottom line is a value of all social businesses. The triple bottom line focuses on paying attention not only to profit, but also to social and environmental outcomes. “Research shows that corporate social responsibility practices not only help improve society, they also tend to benefit the companies by adding value to their relationships with customers, employees, shareholders, board of directors, and other firms” (Sandie Taylor).

Years of charitable giving and aid have not rectified the problem of poverty. “Over 3 billion of the world’s 6.5 billion human beings live below the poverty line” (Forbes, 2010). Typically these individuals do not have access to safe drinking water, food, shelter, and clothing. The number of human beings and children living in this type of desperation across the world can and should be significantly decreased. Our wealthy nations can become involved in social business practices that contribute to rectifying poverty and investing in viable long-term business plans. If businesses embrace a conscious effort to contribute in both small and large ways, change will occur. “Change comes in different forms, but the world can only change for the better once every single human is given the opportunity to survive” (Forbes, 2010). Every human being and business in the world has the means and opportunity to empower others to break the cycle of poverty. The human condition can be changed forever if every individual has the opportunity to create a sustainable means to survive. Social businesses contribute to breaking the cycle of poverty and preservation of our environment. If all businesses begin to take notice of their impact on the environment, and create responsible alternatives to existing destructive methods, we have a chance at changing the condition of our environment. If we do not act according to the “triple bottom line” quickly we risk continued destruction of the environment and rampant poverty.

Geoffrey Kwitko is a leading internet and creative marketing consultant and provides strategic advice to top Australian companies. Geoffrey’s unique consulting skills are based on the experience of personally running a number of very successful startup companies over the past six years.

[Moderator] Lael Brainard, Vice President and Director, Global Economy and Development Program, The Brookings Institution
Jo’ Schwenke, Managing Director, Business Partners Ltd. [South Africa]
Ali A. Mufuruki, Chairman and CEO, Infotech Investment Group Ltd. [Tanzania]
Alan Patricof, Founder and Managing Director, Greycroft LLC

Part of the Global Philanthropy Forum 2007, a project of the World Affairs Council of Northern California.

An Interview I did with Bettie, a high school student from Uranga Kenya East Africa. Bettie is one of the nicest young women in Kenya. Thanks for being such a good sport Bettie!

I wanted an improved version of the 200+ children singing and dancing since the first one looks terrible. This one is shorter and better quality! I am amazed at the “little drummer boy” how does he get all that sound out of a five gallon bucket?

This is such a great idea for a viable alternative to orphanages. Many orphanages have to be sustained year after year by foreign donors. Why not have a smaller “children’s home” that can sustain itself without financial help?

Heartbreaking documentary following Joab and his siblings.  Watch the entire Time for School 3 series here!