Running a country like a social business

By running like a social business, a country can truly focus on alleviating social issues like poverty and education without profit getting in the way.

Every night, my son asks me what new thing I did in my business. By having to answer every day, I struggle to find new things to tell him, especially considering his age. But the exercise of searching for a new thing to tell him every day has led me to think about the rest of us. We also do the same things daily, just in different patterns, which makes it new to us. But what we really lack is the purpose of our work.

All businesses have their own mission and vision, but the million-dollar question is whether they really have a purpose for society or not. On the other hand, the main agenda of social businesses is their purpose, rather than their mission or vision.

At this point, let's consider our country a business, or more specifically, a social business. Running a country like running a social business implies that governance and public administration are seen as a form of enterprise with a primary focus on societal well-being rather than purely political or economic power.

A "social business" is a term referring to a company that operates with the goal of addressing social problems while being financially sustainable, as opposed to profit maximisation. If we apply this concept to a country, there are a few ways to think about it.

A country would operate with the goal of addressing key societal challenges such as poverty, inequality, healthcare, education, environmental sustainability, and social cohesion. If the state is treated as a social business, its primary idea would be to improve the quality of life of the citizens rather than accumulating wealth or strengthening its political power.

The purpose factor should be more vital than the power factor here. And to measure the success rate of such a state, one could check the outcomes of lower poverty rates, better healthcare, higher education standards, and more sustainable development rather than GDP growth alone.

Normally, a social business considers the needs of all stakeholders, like employees, customers, and the community, so a "social business country" needs to involve the citizens in decision-making processes, ensuring their opinions are incorporated in the formulation of policy and governance. Citizens' voices are considered as stakeholders in this context. Whether it is possible or not to listen to and manage all the demands of each citizen is a big concern.

Like a transparent business model, the government would be open about its processes, financial allocations, and the impact of its decisions following public accountability. The issue of managing confidential information like national security, business scopes, and a country's future steps could be vital, as a transparent business model could pose a big risk here. A country cannot be treated like a company in every aspect.

The major idea in formulating a social business is to maintain sustainability—both financial and environmental. In a country modelled as a social business, a need for long-term commitment to environmental sustainability (renewable energy, conservation, etc.) and economic sustainability (responsible fiscal policies, balanced budgets, etc.) is of paramount importance. For example, our country is experiencing sustainability problems at present—reduction of usage of plastic bags, tax benefits in renewable energy plant investments, etc.—are attempts at addressing sustainability issues.

Although such steps alone do not prove our country is governed as a social business, such steps are appreciated from the aspect of saving our world and future generations. Enhancements in social welfare, like innovations in education, healthcare, technology, etc., are also the main agenda of a country being run as a social business.

A country running as a social business might actively encourage the growth of social enterprises and non-profits that address specific social issues. This would not only involve the private sector in social impact but also leverage partnerships to scale solutions more effectively. Similar to how social businesses may attract investors who are looking for both financial returns and social impact, governments might seek investments that support sustainable development projects, infrastructure, and innovation.

Scaling the social metrics—such as health outcomes, educational attainment, income inequality, and environmental health—is more vital than the financial profits in a social business-modelled country. Analysts could judge indicators like the Human Development Index (HDI), equality, access to essential services, and overall happiness and well-being of the population to understand the success.

With the role of enabler, the government needs to create an ecosystem by offering some monetary or non-monetary benefits where social enterprises or NGOs can thrive. The government also needs to adopt entrepreneurial principles, creating agile, flexible systems that can quickly respond to changing needs and challenges.

A major challenge would be balancing the needs of the market economy with social goals. There's always a tension between business profitability and public interest, and achieving harmony could be difficult, especially in a globalised economy where pressures for economic growth might clash with the need for social welfare.

Transforming a country into a social business model would require strong political will and leadership. There might be resistance from entrenched power structures that benefit from the status quo.

A country modelled as a social business would emphasise the well-being of its people as the central objective of governance, balancing the need for economic growth with the imperative to tackle social problems and achieve sustainability. Like any business, it would need to be responsive, innovative, and accountable, but it would define success not in terms of profit but in terms of social impact and quality of life for its citizens.

Dr Mohammad Naveed Ahmed is the Managing Director of Miyako Appliance Limited, Bangladesh and the first DBA from IBA, University of Dhaka. He also serves as an Adjunct Associate Professor at Independent University Bangladesh and Joint Convenor at the Dhaka Chamber of Commerce and Industries.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.