BUSINESS, ENVIRONMENT AND SOCIAL SUSTAINABILITY

TOPIC: Social Entrepreneurship - The process of achieving social and

economic sustainability
Batch: 2020-22
Course: PGDM (General)
Section: A
Roll No.: PGFA2038

Submitted To: Submitted By:

Dr. Varun Chotia Pranav Pratap Singh
 Some of the Issues in India for which the Social Sustainability is
Necessary:
- Over 3 billion people live in less than $2.50 per day
- 1 billion children of the world live in the poverty
- 1 in 5 children are without the access
- Over 1 B people do not have access to clean water
- 1 in 3 children live without adequate shelter

 Good News in India in Favour of Social Sustainability:

- We are winning the war on poverty – rates are decreasing
- There is currently enough food available in the world to provide “every person” with
a balanced diet, but we don’t have the proper distribution system
- But – Governments cannot and will not solve the social issues because there are too
many Problems.

Social entrepreneurs are the private citizens who are addressing the huge problems
of the world. Anyone can become this if one is having Social responsibility in himself.
They are the agents to change who are unreasonable enough to believe they are making a
difference.
They also identify resources where people only see problems. They view the villagers as
the solution, not the passive be beneficiary. They begin with the assumption of
competence and unleash resources in the communities they are serving.

 Difference between Charity-NGO-SE:

- Charity:
It is a temporary donation to the people who are in desire of something. Through that,
they can fulfil their short-term need.
- NGO:
It is the teaching or training that is given to the individual which can improve the survival
of an individual for a lifetime.
- SE (Social Entrepreneurship):
Providing the capital at a sustainable rate through which an individual is able to build
their business and also help others.
 Implications:
• Advantages
- Innovation
- Financial sustainability
- Scale-up

If the organization is following both social sustainability and economic sustainability we

cannot focus on both the side at the same time, either it is profit-oriented or non-profit
oriented. So some of the challenges to this are as follows:

• Challenges
- Legal: requires certificates like Business Corporation certifications (BCC) in
developed countries like the US, UK, etc.
- Financing: Customer and Beneficiaries: because one cannot charges a high price
because the customers are poor in the social responsibility
- Organization Culture: there are two types of people one will be socially focussed
and one will be profit Sustainability.
- Mission Drift: it is a situation when the organization forgets its social mission and
only focuses on the commercial mission.

Frugal Innovation
It is the concept in which we do the innovation from the resources whichever are available. In
this, the organization can balance between social and economic sustainability.
Example of Frugal Innovation:
- Hippo Roller in South Africa: people can easily carry the bulk amount of water.

- Embrace: they create the baby warmer which protects the baby from any harm. They
are social but they also generate profit.

- Social Ability: if someone is having any disability, then they focus on another sense
of the human in that individual is good.

- Enable Australia: they hire the disabled people for fixing the hardware to the
computer, and it is observed that they are very efficient in that.
 Work integration social enterprises:
They provide the people to the normal people who don’t have any job.
Examples of Work integration social enterprises:
- Street Australia: it employs homeless people, and this café is doing really well. The
USP of this café is that it has some social aspect which attracts more and more
customer.

- Digital Device Data (DDD): These also hire homeless people who don’t have any
kind of employment. They provide different software solutions and they are doing
well by hiring such people.

- Arvind Eye care system: they earn the profit from those who can pay. And that
money is used to provide treatment to the poorer patients. It also helps this
organization to generate revenue because they follow the cross-subsidization Model.

- Ambulance Dial 1298: the same concept of cross-subsidization is followed in this

organization too. They charge from those who can pay.

- Market Linage: they realize that in the rural areas farmers produce the crops but they
don’t know how to fix the price. They are exploited by the mediators by charging a
commission. They help the farmers to remove the concept of the Middle Man.

- Ekutir: It is the org in bhuvneshwar which produce the fruits and developed the
supply chain for supplying their goods to the city. Through that, they earn economic
sustainability as well.

- Honey Care: they are the same as ekutir but they deal in honey only. In which they
help the farmers to produce honey and pack them in bottles and the farmers earn the
profit through that.

Shared channel and Innovative partnership:

There are some of the other ways in which the enterprise can achieve social and commercial
sustainability.
Examples of Shared Channel and Innovative Partnership:
- Kit Yamoy – UK: There is a huge number of deaths in the areas of South Africa etc.
due to diarrhea. They distribute the kit to these areas and it is impossible to supply and
pharmaceuticals to these areas due to lack of supply chain. They realized that coco-cola is
everywhere so they do the packaging of the kits in such a way that it can be fixed in the box
of coco cola, through that it can supply.
- Grameen Dannone: It is a Europe-based organization that provides yogurt because it
contains fat. They are rich in fat and mineral to provide enough nourishment to the local
people.
- Information Intermediaries: People in the rural areas don’t get enough information
about the heals, product price, etc. so some of the org under this like Digital green, identify
the farmer's practices and make the video and sell it to the other farmers a the nominal price.

- Rural BPO’s: These organizations don’t require any technical knowledge so they
hire uneducated people and provide them the proper training. The advantage is that the cost is
less because these locations are located in rural areas and they also get the employees ate the
lower salaries.

 Social entrepreneurship is a very interesting and profitable business if one’s having a

different business model. These concepts help in innovation, financial sustainability,
they also have ample growth for the future and they also can get support from
governments.

 They also don’t require any kind of advertisement and branding because they are self-
sustainable models. These models help to use the unused resources and can come out
with another innovative model.