Business to the Buddha

Tag: Social enterprise

  • Business and Humanity






    The visionary thinks beyond his company or his immediate profit. He thinks of the larger good. And, that is what makes him different. There is no place for labor exploitation and harassment of workers in such an enterprise

    I have been thinking about both Business and Humanity repeatedly. The above quote was one that caught my attention. This blog was due in Sept 2014. Yes a lot of things come in mind and thus ideas get spread, and forgotten at times.

    I revisited this title with reference to an interesting news of recent past – Donating the milk of human kindness. This kind of businesses and business ideas impress me a lot. There are a lot of social enterprises that work on the balance between Business and Social good. I have written a couple of blogs on social enterprise earlier. At times it is very difficult to survive in competitive markets with such a cause. There may have been a lot of other companies that probably we (I) might not know and were wound up due to financial crisis. When such closures happen, I start questioning myself again – what is the purpose? Why we work? and many other such leading questions. These points make me wonder many a times, that perhaps when we did not have the concept of money, humans were valued more. With Humans, human values were respected more. With human values, we probably were more caring, just and welcoming.

    The other thoughts going on in my mind were – my recent vacation to Ganpatipule and a video clip of actress Mahira Khan which is going viral of late. In Ganpatipule I visited “Prachin Kokan” a tourist attraction there. It is a place to know about how was Indian social fabric in past, for those who have never lived in Indian village or are kids growing up in tier-1 or tier-2 cities in India it could be a place to know how was our society. Though caste system was depicted there, I could not find a mention to “untouchables” there, so I may be able to write on what was wrong in past – compared to what we learnt in schools. In that museum I could relate to business and humanity working together in historic India – such as a bangle seller would not take money from a baby girl of village. At the time of the girl’s marriage, father of the girl will give this bangle seller gold coin or something. I wonder if we were less ambitious (perhaps driven less by wealth) – as a society – during those times. I could relate this museum and that society to gratitude.

    Gratitude, made me connect to the opinion and viral video clip of Mahira Khan. In this video I felt that if this actress had problem with India she should have refused working here. Though the interviewer is talking more in the clip, but if a person has so much issue with a whole country he or she should just keep oneself away from them isn’t it? This shows a person being opportunistic and thankless. This thought makes me go round to business. The actress is doing business, by acting in Indian movie. Agreed! The question again comes back – can we club or say compromise – “business and humanity” and “business and our self-respect” and “business and our values”?

    Quote – Business Standard article – Buddha at Work

    Disclaimer – author has not seen/visited the website of BabyChakra (referred in the donating the milk of human kindness), nor is related to the company.

  • Three Avocados







    You may argue with Management professionals that investors invest because they want better returns. An investor weighs his investment options, considers his risks profile et al and make a decision of investment expecting certain returns, right? But I think we are living in a time when many of us are thinking and should think about what bigger return based investment we can make and how can we reduce risk. Risk of the society!

    Three Avocados
    Three Avocados Logo

    A couple of months back a twitter handle @nonprofitcoffee followed me. It sounded strange, so I visited the handle, eventually the website. I was impressed and thought to write a blog on the same.

    Three avocados is a Non for profit company operating out of Uganda. Their product is coffee, order from here. Avocados and coffee does not gel well together, right? The company is named so because a destitute widow gifted three avocados, the only possession she had, to the founders of this company when they visited a village.

    This business has a purpose, not the cliche – to increase “shareholder” value. The purpose is different than many other businesses. They want to help Central African country – Uganda – with clean water. Young girls and women have a responsibility in their homes, the responsibility is to collect water for their daily chores. Well this is the story of many Indian villages as well. So can we think of such an initiative in India or other parts of the world? There are many social issues to handle e.g. women security in Delhi (just an example).

  • Inclusive growth







    We’ve seen that socialism had it’s problem, capitalism is no less culprit. I’ve been thinking about both together and have written about it. Regularly I asked this questions of how to two of my MBA professors – Prof Harkant Mankad and Prof Arun Ramanathan. Prof Ramanathan suggested me to read functioning of Nordic countries – heavy tax but less social security. Once I shared this logic –

    Socialism & CapitalismIf we look at both simultaneously we see some good and some not so good practices. Socialism had social benefit at center but execution sucked. On the other hand capitalism has profit at center and execution is better, and also capitalism largely never considered social good as one of the concerns.

    The very bird-eye-view (yes MBAs use this kind of jargon) solution could be – What is we bring social benefit and profit together at center and use execution efficiencies of capitalism around? The profit does not necessarily become – extracting whatever available consumer surplus is there with consumer. Take an example of social entrepreneurship, that is one good approach. Here, I do not intend to say every business should be like that. Also, yesterday I tweeted and updated on LinkedIn – If you want to be social entrepreneur, remember funder of social enterprise has impact in mind+heart & investing in head, so impact weighs higher! those kind of initiative can help in inclusive growth.

    I see that PPP – Public Private Partnership – can also be great boon for inclusive growth. However, greed has created more problem in the Indian context than giving us Inclusive Growth.

    Take an example of MNREGA, it has been failing, benefits are not reaching where they should. How can political parties be kept away from execution? Politicians asking for bribe in such cases is nothing but extortion. How about giving the executioner tax benefits to get involved in it and ask for accountability? Audit Done periodically by people (an independent body monitoring). The people affected and benefited can vote for continuation or stopping that company from involvement. So this can be kind of election on performance of NREGA.

    What I think is – people want a respectable life and not bread thrown at them condescendingly. Inclusive growth is possible when we think more like a combination of socialistic -capitalistic society.

    This way we’d be capitalist but in a socialist manner where besides profit, social uplifting would be a core of philosophy and growth.

  • For Profit Businesses







    Businesses are made for profit making, is there a question in this assumption or argument? For the time being, I am assuming there is no doubt about the argument that business exist for making profit.

    I have been thinking about the topic of “measuring growth” I wrote recently. People may say there are businesses as “Not for Profit Businesses”. This concept of “Not for Profit” in many cases is about reinvesting profit in business rather than giving dividends to the shareholders/investors.

    There are other businesses which are “social enterprise”, I wrote on such businesses with reference to a book “I have a dream”. These are businesses which exist for making profit; however their primary reason of existence is social upliftment with moderate profits. I wanted to ask myself – why not all For Profit Business be like that?

    In my previous career engagement, a couple of times I had a chance to meet CMO of a big Mutual Fund house. In one interaction he told my boss – “you do X, Y and Z; Calculate your cost; add your 20% profit on that and charge me. I need this X, Y and Z done.” This statement was very liberal to hear. I had seen many organizations trying to squeeze their service provider. Thus the statement became a guide for me to think about such clarity and about fair co-existence. I relate the same to the previous post of “measuring growth”. When I tried understanding Islamic banking and asking the feasibility of the system, I saw contrary view points. I read somewhere Islamic banking does not call “interest” (on debt) as interest whereas terms it as profit sharing (say 20%). So there may be businesses so clear and there could be predictability in cost, profit and growth of business and economics.

    This kind of approach is very simple. However, the above case is very simplistic and everything (many things) would become very predictable – how would finance experts – involved in complex transactions and certificates  – would be able to manipulate market? There can still be demand and supply gap and market may run into a relatively predictable and stable equilibrium.