• wasted resources or control of resources by few for profit maximization, not general benefit.

• environmental pollution

these are very real issues with China and India coming on strong via the capitalist path which is rapidly approaching a disastrous intersection with global warming.

How Much Consumption?

spanks the wealthy countries for hogging resources
(who wants to play devils advocate? US is responsible for 19% of world economy GDP.  Only other bigger is EU at a little over 19%.  Huge net importers.)
source: http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)

   may whiteboard bulleted ideas on P. 210 -    - traditional philosophy of capitalism,
                                                        - basic view of for-profit  and non-profit organizational structure.

Chapter 1: A New Kind of Business

Quote: "The presence of our multi-dimensional personalities means that not every business should be bound to serve the single objective of profit maximization." p. 19

40% of people receive 94% of worlds income
60% of people recieve 6% of income.

almost one billion people live on less than $1 per day
HALF of the world lives on $2 per day or less.  (This happens to be the half where population is growing.)

Why have free markets failed so many people. "Unfettered markets in their current form are not meant to solve social problemsn and instead may actually exacerbate poverty, disease, pollution, corruption, crime and inequality." p. 5

Is Government the Answer?
pros:
cons:

NGOs
pros
cons

Multilateral Institutions: Development elite
pros
cons

Corporate Social Responsibility (CSR)
weak: Do no harm to people or the planet (unless that means sacrificing profit)
strong: Do good for people and the planet (as long as you can do so without sacrificing profit)
reasons why CSR won't save the planet (in other words, capitalism in its current form):

Capitalism is half developed structure:

• narrow view of human nature. Economic theory predicated on one-dimensional human being, and resultant market system encourages real people to strive to transform themselves into one-dimensional beings.

Chapter 2: Social Business: What it is and What it is Not.

Need for new type of business that recognizes multidimensional nature of human beings (and diversity of economic activity says Kala). Not a replacement for current system, but an enhancement.

Terms: PMBs: profit-maximizing businesses.
Social Businesses is totally dedicated to solving social and environmental problems. Investors get their investment back but forgo interest or dividend.

                 Accepts                 Investor                 Investor             Business

                 investor                 recoups                 expects             must become

                 funds                     principal                 $ return             self - sustaining

PMB                 x                         x                         x                         x

Non-Profit*         x                                                (write-off)

Social Biz         x                         x                                                        x

*(aka Social Profit, see Biz Week interview with Philip Berber)

Two types of social businesses:

1. Companies that focus on providing social benefit rather than maximizing profit for their owners, and are owned by investors seeking social benefit

The nature of the product or service creates social benefit.

2. PMBs that are owned by poor or disadvantaged.

   Goods or services may or may not create direct social benefit.