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Vol.02 December 2023
Social Business Survival Techniques to Connect Ideals to Implementation

Overview

Social business is primarily focused not on the pursuit of economic profit but on solving social issues. However, many of those involved in social business feel incapacitated due to a lack of precedents and knowhow, or are criticized because their arguments are not understood. We asked experts what they need to know in order to overcome this friction and achieve sustainable implementation.

What does our business need to know to overcome friction and achieve sustainable social implementation?

Suggestion

Supervision Masataka Fukao / Vice President, Professor, Faculty of Policy Science, Ryukoku University

00.Is the problem a social issue? Is it an individual’s own responsibility?

As the term ‘social issues’ suggests, these are issues within society. Conversely, individual issues can be categorized under the term ‘personal responsibility’. Is it a social issue or a personal responsibility when a child does not attend school? What about ‘not having the money to buy sanitary napkins’ or ‘not having a place to sleep’?

Questioning the boundaries of these issues is the first main battleground in social business. The newer the issue is to society, the more friction there will be.

“The history of social initiatives has always been built on hardship and struggle,” says Professor Masamine Fukao of Ryukoku University’s Faculty of Policy Science, who has been researching the social field for more than 15 years and has been involved in a number of projects himself.

For example, let’s look at truancy. In the past, it was called ‘refusal to go to school’ and was considered as if it were the fault of the parents or the children. Today, however, there is a shift toward questioning schools and school rules. In retrospect, those involved have a history of being pilloried by and told not to put the responsibility on society. That history has led us to where we are today.

The realization of social good lies ahead, spiraling forward and backward but never halting. “Tenacious and steady. That is the essence of ‘social’.”

01.Solidarity in Purpose, Beyond Ideology

It is painful to keep walking while having stones thrown at you, especially if you are alone. The key to overcoming this challenge is solidarity with others who share the same awareness of the issues. However, Professor Fukao points out that there is a major pitfall here. The excessive pursuit of ideological unity within a team could lead to fragmentation:

“There are many cases in which people are united by a passion to improve society, but this causes fragments because they cannot tolerate differences in ideology. It would be a complete misfortune to fail because of this. The ultimate goal is not to judge right from wrong, but to take a macro viewpoint to improve the issue as much as possible. I believe that an attitude of not giving up on mutually acceptable lines or third paths will create sustainable impetus.”

02.Dissolving Resignation and Uncovering Needs

The world becomes aware of the problem, society’s values change, and systems and social services are enhanced. While this is a legitimate procedure for solving problems, it requires enormous time and effort. In the case of social business, it is possible to take a downstream approach by identifying needs. This is the advantage of taking the form of a business, according to Professor Fukao:

“Even if we try hard to raise the issues, it’s difficult to change social systems and values. In many cases, even the person in need accepts the current situation. However, when tangible goods and services appear, that person will realize that there is the possibility of a solution. In this way, as problems become more visible, institutions and values change.”

Many of those in trouble have given up, assuming they have no choice. Dissolving this resignation and transforming it into a need will increase sustainability as a business and create the power to change society.

03. Turning Ordinary People into Allies

What if we feel the need to increase our allies in order to continue our social business? By widely communicating the story of how our efforts will change society, we may be able to change the behavior of a larger number of people. In Professor Fukao’s experience, there are many cases where people on the periphery, so-called ‘ordinary people’ who are neither participants nor supporters, turn into advocates:

“Because they are unaware of the issues, it’s a shock the first time people come into contact with them. In fact, the shock often pushes them to take action, such as making a donation.”

Many people have a desire to make society a better place. If they can relate to your story and know there is something they can do, they will become your allies.

Action

Creating Foundations for Social Business to Grow

In addition to each individual’s acquisition of useful survival knowledge, efforts to create a better society as a whole are gaining momentum. We will introduce three case studies involving Professor Fukao and Ryukoku University detailing a rule-making approach to construct another evaluation axis of sociality in a business world governed by market principles.

Yunus Social Business Research Center (YSBRC)
Aiming to Make the University a Hub for Social Change

Following a meeting with Nobel Peace Prize recipient Dr. Muhammad Yunus, best known for creating ‘Microcredit’ to help the needy become self-reliant, Ryukoku University established the Yunus Social Business Center (YSBRC) in 2019.
Through the Center, Ryukoku University aims to become a ‘hub of social change’ and is engaged in research activities that lead to local implementation of social business, as well as support and education for social activities. In July 2023, the University celebrated the awarding of an honorary degree to Professor Yunus by hosting his commemorative lecture. Dr. Yunus encouraged students to “keep thinking about the world you want to create and don’t be afraid to take small steps forward.”

Social and Sustainable Business Standard
Visualize the Social Nature of Business

The Social Enterprise Certification System, launched in April 2021, evaluates and certifies companies that aim to solve social problems. Regional financial institutions and Ryukoku University’s YSBRC are collaborating to promote financing for companies engaged in social initiatives by visualizing the social value of companies, which is not possible with conventional financial-centered evaluation. The third-party committee established under the YSBRC, which is responsible for the certification, includes experts in various fields from the University, such as management, accounting, and administration, as well as students.

Community Foundation
Support of the ‘Social Eve’ within the Community

In today’s world of increasingly diverse local problems, the traditional approach of relying on tax revenues to solve them is reaching its limits. In particular, it is beyond the capacity of government to address problems that are not well understood by the public. Japan’s first community foundation, the Kyoto Community Creation Fund, was established to create a flow of money to support this stage through the power of the community. The idea has spread to other parts of the country. Currently about 40 organizations belong to the National Association of Community Foundations. These foundations serve as receptacles for people who want to improve society through their own efforts and work together to solve local problems.

Plus Social Investment Co., Ltd.
Creating Opportunities to Participate in Community Development through Social Investment

Professor Fukao served as Head of Plus Social Investment for four years from its launch in 2016. Under the slogan ‘a company that creates a mechanism for social investment,’ the company works to build an ecosystem that promotes impact investment within the community. It vitalizes businesses that have a positive impact on local communities through the sale of community securities, supports their sustainability and growth, and serves as a conduit for community development by providing opportunities for everyone to contribute to solving local problems as an investor, thereby connecting investors and businesses.

General Editorial Supervision

Masataka Fukao
Professor, Faculty of Policy Science, Ryukoku University / Master of Education

Engaged in the establishment and operation of Kyoto NPO Center and Kyoto Regional Creation Fund to revitalize local communities and explore sustainable ways for non-profit organizations. Also served as a member of the Cabinet Office’s Roundtable Conference on Creating a Mutual Aid Society.

Supervision: Masamine Fukao

BEiNG

A medium for discussing society and oneself

We examine our rapidly changing world, use a multifaceted perspective to explore and address social issues, and question our own ways of being in the modern age.

Thoughts behind BEiNG

BEiNG is derived from “being”: a way of existence. The center letter “i” is written in lowercase to represent the self (I) existing in the midst of the times, as well as to evoke an exclamation mark, expressing that various surprising realizations and discoveries are hidden in this medium.