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Social Stock Market

Muhammad Yunus discusses the creation of a social stock market in which socially-motivated investors can purchase stock in social businesses.

Photo of Nathalie Collins
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In his book "Creating a World Without Poverty", Yunus discusses the differences between a social business and a profit-maximizing business.  The latter is the type of business we are most familiar with in our capitalist free market economy.  The motivation behind investing in social businesses, unlike traditional profit-maximizing businesses, is the social return on investment rather than the dividends or monetary gains otherwise associated with traditional investing.

Yunus proposes that in order to create an ecosystem for investing in social business, a social stock market must be formed alongside the profit-based stock market we have today.  Around this type of market, a whole new ecosystem of tracking and reporting would be created.  Imagine a Social Wall Street Journal, for example, which covers the developments in these types of businesses.  I find this idea quite inspiring.  What other mechanisms could we consider in the developed world which would help social businesses become successful in developing areas such as Caldas?

More information on Yunus' views here:

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Photo of Meena Kadri

Great provocation, Nathalie! We're hoping folks give this more thought in the upcoming Concepting phase, launching tomorrow.