ABSTRACT
This chapter looks at how the idea of socially oriented business enterprises can be made conceptually compatible with the mainstream theory and practice of economics, and it also examines the potential of such experiments to be a moderating force against the excesses committed by the purely profit-motivated market economy. Within the broad genre of socially oriented enterprises, the focus is particularly on the idea of “social business”, as advocated by Nobel Peace laureate Muhammad Yunus. The idea has drawn considerable attention from the global business community and many business schools around the world, but curiously, there has been little response so far from the mainstream economics profession. The chapter explores the reasons for this apathy and the ways in which the concept of social business could be reconciled with economic theorising. It also argues that a rigid definition of social business may leave a grey area in between such businesses and the purely profit-motivated ones, particularly since the “social” element may exist in various shades in the running of a business. Although the chapter primarily looks at the analytical aspects of the concept of social business, it does examine some of the risks and pitfalls involved in the actual implementation of such a business idea.
