Thursday, April 10, 2014

Income and wealth inequality

Income and wealth inequality is a great moral, economic and political issue of our time, has to be addressed by Congress, and needs to be discussed thoroughly by all citizens. That is the main reason for the School of Social Business, If you swear to be developed as "we all say we are" Inequality for all, someone should do a documentary for the first time in our reality show, and discuss in public our true reality. 

Professor Yunus, Nobel Peace Prize, has a new vision to solve global problems we see today, every day, in every corner of the world. Social business is a cause-driven business. In a social business, the investors or owners may slowly be recovering the money invested, but cannot take the entire dividend beyond a point where it is morally ethical. That point is still difficult to understand, but there are countries that are doing it. The purpose of the investment, as you learn in conventional business schools, is to maximize profits with minimal investment and with greater cost savings.

Social businesses go far beyond just accumulating personal wealth. Social businesses to achieve one or more social objectives through the operation of the company, is more than just personal gain or desired by investors. The company must cover all costs and make a profit at the same time, in this way, achieve also a social objective. Objectives such as health care for the poor, housing, financial services, problems of poor nutrition, recovery and proper nutrition for malnourished children, providing safe drinking water, introducing renewable energy, youth employment (young men/women), women empowerment, elder issues, fair wages, business brought in an ethical manner and many other issues not considered the current economic system.

The success of social business is measured by the impact of the activity and quality of life in people or the environment, rather than the cumulative amount of money or other benefits in a given period. Sustainability of the company indicates that it is running as a business. The company goal is to achieve social goals. Some explanations of social business: This new concept provides for profit nothing wrong with it. Social enterprises are allowed to make a profit on the condition that profits are reinvested in the business, owners, investors or shareholders will not obtain personal gain beyond the amount equivalent to investment, but if they want they can partner and continue doing well or doing good social action.
Social enterprises are a new category of business. Established from the start based on nonprofit/and profit (ethical). This new form expands the market, providing a new option for consumers, adding to the competition without intent to monopolize the market. Bring a new dimension to world business, and create a new sense of social awareness among the business community.

As we approached the concept of social enterprise from the side of philanthropy, looks very convincing and logical. But why everything is based on philanthropy should be given? If some of these goals can be achieved more efficiently and sustainably on a business format (social), then why not go that route? After all, our aim is to achieve a social goal. But when you approach it from the side of orthodox business, tends to look a little out of tune. Why give up the profits? Why should anyone running a business, non-profit? It is illogical, and it takes everyone by surprise and goes perfectly to understand their surprise.
Let's clarify this: first of all the model is not asking anyone to give up business; any of their business, nor are asked to convert some of its businesses into social enterprises.

The idea of "giving up something" creates a tremendous shock. The Yunus Paradigm is, about creating social enterprises, is not asking anyone to "give up" anything. All that he is saying is that if you are worried about a social problem (while completely dedicated to your business enterprise routine); he has a message for you. You can make a significant contribution to solving the problem. If you put your mind to it seriously, we could even open the door to clear problem worldwide in economics you can always choose, that's the beauty of the system or even do both simultaneously. Having conventional business and / or engage in social enterprises you choose reinvest your money in your own company and do it. The company grows, benefits everyone within the same company, from the doorman to the owner, employer, clients, the community, the region, the country and even around the globe.

Effectively then you will have made a contribution to humanize the economy lost during its course by the greed of people who want to earn more, more, and more. As J.M. Keynes said so well - "what does that really matters, if, in the long run, we all will end up dead?" True, but in this case we will leave a legacy for future generations. We will have built new roads through the economy, but now looking at each other in front, with generosity, solidarity and goodness.
It is the unexploited part of our capabilities as human beings, we must begin to grow. This new seed is beginning to bear fruit, yet there are few who dare to share really, but those few have achieved unexpected results, figures of millions of people have overcome poverty line in just a couple of decades. Without such efforts were doomed to succumb, hopelessly despaired. Everybody can do something to go to the rescue, this time it will be a "bailout", but one with a face, of women, men, children and elderly. We put the economy and financial systems to serve humanity, not vice versa. The human being is first "Humana Primum"

Bernardo Javalquinto, Economist, University of Maryland AA, BSc, MBA, PhD

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