China and Taiwan may differ on political issues, but they seem to agree on one: the potential of Prof Muhammad Yunus's social business idea in solving some pressing social needs that both the countries face along with the rest of the world.
Their participation at the fifth Social Business Day in Dhaka on Saturday at least signalled as such.
More than 1,000 delegates, including 275 international participants from 31 countries gathered in the capital's Radisson Hotel to celebrate the annual event.
China had the largest foreign delegation to the daylong event with 46 participants, whereas a 36-member team represented Taiwan.
Some recent developments would spur the growth of social business in the world's second largest economy, said Prof Feng Xingyuan, vice director of Unirule Institute of Economics in China.
He said the Chinese government has been encouraging innovations in social management from 2007, meaning in social spheres more NGOs, with no political purposes, can grow. Recently, the government has started to encourage setting up more foundations aimed at serving non-political purposes, he said.
Also, it is getting easier for chambers and business organisations to obtain registrations, he said.
"These developments are quite favourable for the development of social business in China," Xingyuan told The Daily Star in an interview.
He said independent and semi-independent research organisations, non-profits, environment protection and community development groups are also showing interests in the concept.
Interest will grow further in the coming years, as the Chinese government policy is also favourable. “So, I see strong growth in future,” he said.
Xingyuan said the social business idea can make the world a better place for the poor.
"This is quite a well-designed model, especially beneficial for the poor and disadvantaged people."
Hengfu Wang, general manager of China HyFon Credit Company Ltd, a microcredit firm, said social business is important for companies.
If companies do not fulfil responsibility in the society they operate in, the long-term future will not be good for them, he said.
A former employee of the World Bank in China, Wang said there are a lot of people and entrepreneurs who are interested in setting up social businesses to help solve social ills.
Alexis Chiu, a forestry student at National Taiwan University, has become part of the global social business movement to help eliminate poverty in Taiwan.
"There are many problems in our society that stem from poverty. We want to make our society better so people can have a better life. It will be the best thing for me and Taiwan."
He joined in as Prof Yunus's goals reverberated with his own: making the world poverty-free and peaceful.
Chiu wants to set up a social business in the area of forestry where he has knowledge, and Taiwan has vast forest covers.
His encouragement came from the Yunus Social Business project in Haiti, which aims to bring the entire country under forestation, from the current 2 percent forests compared to what it had just a century ago.
"I have heard of the social business forestry project in Haiti. I think it is possible in Taiwan," said the 24-year-old.
Wayne Hsu, another participant from Taipei, said his father owns a factory that produces faucets in China and employees about 1,000 people.
"It is a good business. My life is better than many of my countrymen. But I want to do something that also solves social problems."
He said the social business idea has wooed him because it can not only help earn money but help do something good for other people.
"I am so curious," said the 28-year-old.
Taiwan is beset with problems such as poverty, poor healthcare system and unemployment, he said.
Social business has already become popular in Taiwan, and its supporters there have already started to call 2014 as the first year of social business in Taiwan.
Nirvana Chaudhary, chief executive officer of CG Nepal Social Business, also attended the event. His father Binod Chaudhary, the first billionaire of the Himalayan nation and president of Chaudhary Group (CG), started social business a little less than a year ago, with the help of Yunus Centre.
Chaudhary said for the last 10 years, the group has been involved in a lot of activities in the areas of education, youth development and healthcare services.
"The group has associated with social business idea to come up with projects that are sustainable in the long-term future."
CG, through its Chaudhary Foundation, initially put in about $1 million as seed capital to fund eight projects in Jhumla, one of the poorest parts of Nepal.
One of the eight projects is addressing malnutrition in the region where the average life span is 37 years compared to the rest of the country's average of 65 years.
Chaudhary, 32, said the group plans to put in $100 million for social business in the next five to 10 years. "That is the time we will see a real impact in Nepal."
"We wanted to take it a little slow as we want to make sure we get the eight projects right first. If you want a long-term, sustainable business model for CSR purposes then social business is the way."
Andrea Jung, chief executive officer of Grameen America, said social business must be a vehicle to drive change, as mainstream companies are not designed to solve some of the most pressing needs.
"Social business is an enabler to future changes globally including in the US. Having spent several decades in for-profit businesses, I have had many great experiences. But I think capital markets are not necessarily aligned with social changes,"
"I think the model of social business where the dividend is obviously social change as opposed to shareholders gains is the way to go. This is the only way we are going to be able to deal with society's issues."
Social business has already started to solve many of the pressing problems, it is a movement, she said.
She believes the new business model developed by Yunus holds the key to changing the world.
"Look at the issues that all governments around the world are trying to deal with―from unemployment to poverty to income disparity. These are global issues."
The former chairman and CEO of Avon Products, an American international manufacturer and direct selling company in beauty, household, and personal care categories, Jung said governments or NGOs can't solve all of these issues alone at the moment.
"The goals are not aligned with those of for-profit businesses. Social business must be a vehicle to drive change."
She said some leading world-famous companies like Danone, BASF or Crédit Agricole have figured out their way to carve out and communicate how they are responsible as business leaders to play their role in affecting social change.
"Businesses should do more for the society as they rely on the society. When you look at any economic development of any society, for-profits and businesses have to take their responsibilities. They are able to derive profits because of consumers and citizens. I think they have obligations to the people."
Jung said social business now faces two challenges: it has to scale up and attract required skills to drive the businesses.
"We have to get more people with businesses experience to attract enough people who can utilise their time, energy and experience,” she said.
About scaling up, Jung said there are many great ideas, and now the primary consideration is how to make them truly national or international.
Projects start in one community, but it is important to analyse if they have enough material impact for a country or how they have a global application and spread as a solution to more countries, she said.
About microcredit, Jung said there is probably no more powerful example than microcredit being able to have a material impact in the most developed nation. "This is the extreme example of a global success for social business."
Opened up in 2008, Grameen America is the only microfinance organisation to have achieved sustainability in the USA.
