Social Business

The Muhammad Yunus Center defines Social Business as…

“Social business is a cause-driven business. In a social business, the investors/owners can gradually recoup the money invested, but cannot take any dividend beyond that point. Purpose of the investment is purely to achieve one or more social objectives through the operation of the company, no personal gain is desired by the investors.

The company must cover all costs and make profit, at the same time achieve the social objective, such as, healthcare for the poor, housing for the poor, financial services for the poor, nutrition for malnourished children, providing safe drinking water, introducing renewable energy, etc. in a business way.

The impact of the business on people or environment, rather than the amount of profit made in a given period measures the success of social business. Sustainability of the company indicates that it is running as a business. The objective of the company is to achieve social goal(s).”

The 7 Principals that Cycle Freo follows and abides by are..

  • Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization
  • Financial and economic sustainability
  • Investors get back their investment amount only. No dividend is given beyond investment money
  • When the investment amount is paid back, company profit stays with the company for expansion and improvement
  • Environmentally conscious
  • Workforce earns market wage with better working conditions
  • …do it with joy

Cycle Freo operates as a Social Business though working towards eliminating homelessness in Fremantle. Once this goal is met Cycle Freo will re-define our goals but always ensure we are building on our values and beliefs.

More information about the operations of Cycle Freo as a Company can be found here.