It is a great learning process. You
are doing things which you never did before. You are thinking in a way
which you never did before. You are surprised to see you are enjoying it
a lot. You start digging into your experiences to see what is relevant
for the task. You check through the reservoir of technology that you are
familiar with, start contacting the pool of experts that you have
gotten to know in your business, to achieve your new goal. You start
exploring a new world which was totally unknown to you. You realise that
you are now wearing "social business glasses" on your eyes, you see
things which you never saw before. You start sensing that your eyes were
fitted with "profit-maximizing glasses" all along, while you thought
these were your natural eyes in your economic world.
Now when you turn your eyes to your
own profit-making businesses you start noticing things which you never
noticed before. You bring new-gained experiences from your new business
to your old businesses. Slowly you move towards becoming an
multi-dimensional person, rather than a robot-like person.
*
Some people ask me why can't you run
businesses with some profit and some social benefit "doing well by doing
good", as it is popularly described.
Of course, it can be done. I am never
against it. But I am trying go to the ultimate point where you don't
make any profit for yourself at all. This is easy to identify, easy to
handle in day to day decision making.
When you mix profit and social benefit
it gets complicated for the CEO. His thinking process gets clouded. He
does not see clearly. More often this CEO will take decision in favour
of profit, and exaggerate the social benefit. Owners will go along with
it. Social business gives a clear unambiguous mandate to the management.
There is no balancing act involved. If you can agree to take a "small"
profit, you can also persuade yourself to take zero profit. Once you get
there you get rid of all old ways of thinking. You prepare yourself to
explore a new world, a new way of seeing things, and doing things in a
different way. When you were in the world of a "small profit" you were
still operating in the old world, with old ways of doing things, only
restraining yourself here and there.
*
Another way to put the same question
is: Why can't you allow thee investors in social business to get a small
fixed profit say, 1% dividend. My answer is the same. I may describe
this situation by saying something like this: you are in a "no smoking"
building, you are arguing "Why can't I be allowed to take just one small
puff ?" Answer is simple it destroys the attitude. In Ramadan, Muslims
are not allowed to eat or drink until the after the sunset. Why not take
a sip of water during the day? It destroys the strength of the mental
commitment. You lose a lot for a small favour.
*
Social business is about making
complete sacrifice of financial reward from business. It is about total
delinking from the old framework of business. It is not about
accommodation of new objectives within the existing framework. Unless
this total delinking from personal financial gain can be established
you'll never discover the power of real social business. Some times you
can set up a technically correct social business with the purpose of
making profit through your other companies by selling products or
services to this social business company. This will be a clear sabotage
of the concept. There may be many other subtle ways by which one can
weaken the concept and practice of social business. A genuine social
business investor must make all efforts so that he does not walk into
this trap unwittingly.
*
Capitalism has created poverty by
focusing exclusively on profit. It built a fairy-tale of prosperity for
all. This never happened. That's why Europe decided to entrust the
government to take care of poverty, unemployment and health. They were
smart enough to figure out the emptiness of capitalism in solving these
problems.
