Page 26 - MYM 2016

Can Wealth Concentration Be Stopped?
an example of how business and sel essness can be combined, Bosch is a good example. is is what I call a type 2 social business, a company owned by a trust or a foundation to solve human problems.
Tata Trust: another example is again a household word in many parts of the world, particularly in South Asia. is is Tata. e founder of Tata did the same thing 128 years ago. Two-third of the shares of the Tata group of companies, worth $118 billion, is owned by Tata Trust.
ere are endless examples, big or small, old
and new, all around the world. ese are examples of de ance of the capitalist rules, but done in a smart way so that they could not be excommunicated from business world. ey led the initiative to create a new business world. ese examples could have been fol- lowed boldly and massively. But the orthodox theory of business did not recognize them.
corporates and Social business
Sel essness in the busine“ss World Besides individuals, corporates can also invest in social business. Usually corporates create foun- But what about business there are many dations for their companies.
multi-billionaire signatories.
I highlight the case of Mark because he is young.
He is at the age when one is expected to be ambitious about money, and remain busy with “building the future”. He has been doing the opposite. Mark may represent a new trend among the young generation. ey are di erent. ey are more committed to the creation of a better world than just making their for- tune. e old generation may be holding them up by passing on their old structures to them.
As the idea of social business becomes popular, a part of charity money, wherever the law or reli- gious requirements will allow, will start owing into social business. And that ow will continue to grow. As decisions are taken, a question will arise: should I give money to charity or rather give it to a social business fund. Individuals, charities, foundations, and companies will see social business as a sustain- able charity, where the same money can be used endless times.
money? Will the business ey can easily direct the
door remain ever closed to foundations to invest in social social business? I don’t think examples of businesses. Foundations can so. ere are already many sel essness in the invest in regular companies, examples of sel essness in business world. and make money to invest in the existing business world. social businesses, like in the ere were many even in the Bosch and Tata examples. In past. Unfortunately, they were Unfortunately, they addition, corporates can create never made part of business were never made social businesses as their sub- school curriculum. I give two part of business sidiaries, and can have joint outstanding examples from ventures with other social
the past, which are still going school curriculum. strong.
businesses. We already have many excellent examples of joint venture social businesses
Bosch: Bosch is a
130-year-old German multinational engineering and electronics company, with an annual revenue of $50 billion. It is a familiar name throughout the world. Not many people know that it is owned by the Bosch Foundation. e founder of the company created
a foundation to own the company. Only 8% of the shares were given to the family. It is still that way. e foundation manages the company and uses the pro t for charitable activities. If we are looking for
created by Danone, Veolia, Uniqlo, Intel Corpora- tion, McCain, Euglena, and others.
Corporates can do something else: they can invite their shareholders to sign a “giving pledge.” Shareholders will be asked to consent that a percent- age of their dividends be deducted to go into a social business fund as their equity. In case of necessity these shares in the fund can be sold to another social business investor at the face value. at way their
26 | MINd YOUr MarkETING OCTOBEr 2016