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Social Business Entrepeneurs?

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schimmy:
Well then don't post.

I think pack of wolves is right. I find it very hard to believe that social business on a large scale will ever be successful. The market is just too powerful in the opposite direction, and people in all sectors of society are too focused on themselves.
Take the clothes industry; It is more or less universally accepted that the people who produce the vast majority of clothes for the first world do so in appalling conditions. But why is this the case? Because people want to pay as little as possible for clothes, and the manufacturers want to make as much money as possible. These two goals can't coexist unless money is being saved elsewhere, and so it is saved by paying workers as little as possible.
So, even though people accept that these conditions are unacceptable, they don't want to pay more for clothes, and of course business owners don't want to be making less money (would YOU take a pay-cut to the tune of possibly millions of dollars?) so worker's wages have to stay low. Unless and until people are willing to pay more for clothes, social businesses in the clothing industry will sell to a small number of people who are willing to do this, and so they will stay as marginal industries compared to the major players like Adidas and Nike.

calenlass:
1. Other alternative is to do what I do sometimes and make your own clothes.

2. Why must it be altruistic? Altruism doesn't really exist, I don't think, except as a theory. There are definitely lots of socially constructive businesspeople out there: my pharmacist is the third generation operator of his family business, and he does it because he likes chemistry and he is good at drug manufacture and he thinks he can provide a better service than other pharmacies and thus make a profit when people choose his services over others'. The pharmacy is not a chain and it is just a local mom-and-pop type place, but I personally keep going back because he does provide better service. Does it really matter to me whether his motivation to provide that better service is motivated by how much he likes helping people or by how competitive he is? Ultimately, no, because I get the same benefit either way. I mean, he might do both, but really that just means he will get his kicks helping people and be happier in his job than otherwise, and that sounds like a personal motivation, not altruism, to me.

a pack of wolves:
The motivation matters because if it becomes profitable to be absolutely appalling to you then that's what will happen if profit is the motive. There's a lack of consistency in the positive effects since they are only a by-product. What is it that your pharmacist does that's socially constructive?* The concept of social entrepreneurs the article describes is arguing for the possibility of capitalism to provide much more positive social effects than a pleasant and hassle-free shopping experience. Unfortunately, this usually leads to effects like greenwashing rather than something genuinely positive for society.

* Edit: after looking again this question seems rhetorical when it isn't.

jhocking:
When I first saw the title of this thread I thought "social business" referred to trying to monetize your blog or something.

Aimless:

--- Quote from: a pack of wolves on 24 Jun 2008, 06:26 ---This sentence rather sums up my problem with this concept. I can see the appeal in trying to create a more pleasant, socially responsible way for capitalism to operate but in the end all people like social entrepreneurs can really achieve is to mask the worst excesses of capitalism. They might do a little good along the way, but it's a bit too much like putting a plaster on a massive chest wound. The people involved may well be trying as hard as they can to do good and that's admirable of course, but this isn't the way to go about it. Capitalism will never be any good at altruism.
--- End quote ---

Hmm, I'm not sure why you mention altruism! I don't see this having anything to do with altruism in the strictest sense of the word. It can perhaps be seen as altruistic if you view anyone who isn't trying to maximise his monetary gains [with no regard for how that affects other people, or the world] as an altruist, but I'd consider that a questionable definition!

We have already seen that socially conscious business practices are viable on a large scale, haven't we? Maybe not yet in all areas (clothes industry is a good example).

Anyway, I interpreted doing "social business" as doing business in the niche of social improvement in some way. I'm not sure I see how ruthless capitalists could overrun that market until they actually enter it!

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