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DCJE Montpellier23 février

Analyse et correction du cas pratique " Naandi Foundation

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Exploring new models through social business

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Social Innovation quizz

SICAV & FCPR

Muhammad Yunus

Entrepreneur social

Microcredit

Vitamine A,Iron, Zinc

Ecosystem

Dolima

« Mane pusti »

Social BusinessGAIN

Développement Durable

Mécénat

KPIs

Fondation

BOP

Blended Value

Triple Bottom Line

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World is under pressure

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World is under pressure

terrorism

governance new regulations

ISR increase

globalization :poverty issuesEconomical crisis

GMO

water access

protection ofnatural water

intensive agriculture

packaging impact

human rightssocial progress

malnutritionobesitypublic health

New technologies

global warming education accessdemography

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Do companies respect the law?Do companies respect the law?

Do they pay taxes?Do they pay taxes?

Do they create shareholder value?Do they create shareholder value?

15 years ago

Civil society new expectations

Do you create social value for local Do you create social value for local communities?communities?

What about your ecological footprint?What about your ecological footprint? How do you develop staff ?How do you develop staff ? Are your company values just window-Are your company values just window-

dressing?dressing?

Today

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On the road of the dual project

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Once upon a time, a gene

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Sustainable Development as part of Danone history

1985First agreement signed with IUF*

1972Antoine Riboud Dual commitment

2007Diversity Convention Signed with IUFDanone Way fundamentals

1997Groupe DANONE values

2001DANONE Way

Fundamental Social Principles

2005Food, Nutrition & Health Charter

1996Business Conduct Policies

Charter for environment

1998Support of RamsarInternationalConvention forProtection of wetlands

2004Groupe DANONE Groundwater Resources Protection Policy

*IUF : International Union of Food workers

2008Supporting Life Danone Fund for NatureEcosystem

2006Danone Communities

Danone Way InnovationSD & DNA Co-creation

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Danone Social Innovation

Overall credibility coming from streams consistency within each program

Overall credibility coming from streams consistency within each program

PEOPLE

HEALTH 4 ALL

danone.communities

NATUREDANONE

for NATURE

DANONE INSTITUTES

ECOSYSTEME

Danone Supporting

Life

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Exploring new models through social businesses

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Bring health through food

to as many people as possible.

Once upon a time, a mission

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Once upon a time, 2 people

Explore new community based business for/with

social impact

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FILM

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What is a Social Enterprise? A social business company (“Social Enterprise”) is a company which applies

market-based strategies to achieve a social purpose rather than being driven by the need to maximise profit for shareholders and owners. Sustainability of the company indicates that it is running as a business. The objective of the company is to achieve social goals

Many commercial businesses would consider themselves to have social objectives, but social enterprises are distinctive because their social or environmental purpose remains central to their operation.

Their aim – to accomplish targets that are social and/or environmental as well as financial – is often referred to as the triple bottom line (abbreviated as "TBL" or "3BL", and also known as "people, planet, profit" or "the three pillars").

Profit making by an Social Enterprise shall be consistent and desirable because: To generate enough surplus to pay back the invested capital to the investors as early

as possible To generate surplus for (i) expansion, (ii) improvement of quality, (iii) increasing

efficiency through introducing new technology, (iv) innovative marketing to reach the deeper layers of low-income people and disadvantaged communities and (v) undertake research and experimentation to improve and diversify products and services.

The profit from a Social Enterprise could be used to support a social aim, such as funding the programming of a non-profit organization. Moreover, a business could accomplish its social aim through its operation by employing individuals from disadvantaged backgrounds or lending to micro-businesses that have difficulty in securing investment from mainstream lenders.

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Seven Principles of Social Business

These were developed by Prof. Muhammad Yunus at the World Economic Forum in Davos, January 2009:

1. Business objective will be to overcome poverty, or one or more problems such as education, health, technology access and environment, which threaten people and policy; not profit maximization;

2. Financial and economic sustainability;3. Investors get back their investment amount; no dividend is given beyond

investment money;4. When investment amount is paid back, company profit stays with the

company for expansion and improvement;5. Environmentally conscious;6. Workforce gets market wage with better working conditions;7. …..do it with joy.

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Legal specificities of Social Enterprise?

Legal form? NO It is what a business does with its profits that determines whether it is a social business company, rather than its specific legal structure.

Specific clauses in the by-laws or the shareholders agreement?-> purpose of the company: needs to have positive social objectives;

-> impact of the business on people or environment, rather than the amount of profit madein a given period, measures the success of social business need to draft a way to mesure this impact

Dividends:

-> Pr Yunus: non-profit distribution: investors cannot take profits out of the enterprise as dividends. -> Others: there is no benefit in restricting a company's ability to distribute profit to investors; this may in fact serve to reduce a business's access to much-needed capital.

Capital restrictions may then compromise the company's ability to achieve its social aims.

Idea developed by Daniel Hurstel (“La Nouvelle Economie Sociale”) to amend Article 1832 of French Civil Code:

Art. 1832 C.Civ: “La société est instituée par deux ou plusieurs personnes qui conviennent par un contrat d’affecter à une entreprise commune des biens ou leur industrie en vue de partager le bénéfice ou de profiter de l’économie qui pourra en résulter”

does not fit with the objective of social enterprise which is not about “sharing the profits” but rather “using the profits to accomplish a social goal”

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Grameen Danone, a model of Social Enterprise :

Grameen Danone is the first project implemented as a joint venture between Grameen Trust and the Danone Group.

The first plant was inaugurated on 7 November 07 by French football icon Zinedine Zidane. It is a small plant on only 7,000 sq ft (650 m2) at an area cost of USD 1.00 million approximately. Its production capacity is 3,000 kg yogurt per day with a maximum of 10.000 kg. Currently its production of yogurt is designed for children but it is suitable for adults.

Yogurt is manufactured from fresh milk, cornstarch, date molasses, sugar and micro nutrients (vitamin, iron. protein, iodine, zinc, calcium, etc.). The product is branded “SHOKTI DOI”, meaning 'energy yogurt’. A single 80-gram cup provides 30 percent of a child’s daily requirements of vitamin, iron, zinc and iodine. The cost of production is approximately 5 cents (USD) per cup which is sold for Taka 7 only.

Rural women as well as tiny shops in rural areas are engaged in the product selling process. In order to procure milk from local sources, the project is actively considering developing about 500 mini-dairy farms with 3-5 cows each. Such farms will be supported with micro credit by the Grameen Bank.

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11%11%

16%16%

22%22%

14%

37%37%

€2.9-4.1 a day (233-333Tk)

€2-2.9 a day (167-232Tk)

> €4.1 a day (>333Tk)

€1-2 a day (83-166Tk)

Grameen

DanoneProject

Sources : 2004 statistical yearbook of Bangladesh, 2005 estimates on total population,

household income per day

AA

BB

CC

DD

EE

Bangladesh, one of the world’s poorest countries

Total population in Bangladesh is 160 million.

60% of Bangladeshi households live on less than 2€/day. (2007)

40% of Bangladeshi population is living under poverty level (2009).

Bangladesh is ranked 146th by the UNDP in terms of human development (2009).

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1/ To bring health through nutrition at very affordable price for all Bangladeshi children

2/ To improve living conditions of the poorest of the community by involving them in all stages of the business model (supply, production, sales), creating jobs and improving local competencies

3/ To preserve non-renewable resources as much as possible

4/ To be profitable to ensure economic sustainability

Grameen Danone Foods’ objectives

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Shokti+, a fortified yoghurt to meet nutritional needs of Bangladeshi children.

Shokti+ doï literally means “yogurt to give strength”. It is a yoghurt enriched with micronutrients. A single 60g cup provides 30% of a child's daily requirements of vitamin A, iron, zinc and iodine.

Price per cup of Shokti+ has been designed for the poorest families to be able to afford it regularly. Price is 7 BDT for 60g, or 5 BDT for a pouch of 40g.

Shokti+ is produced by Grameen Danone Foods Ltd in a small modern factory in Bogra, built with the Danone know-how on quality and food safety.

Product of Grameen Danone: an enriched yoghurt for all

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Once upon a time, a project of a local community based social

business

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Naandi Foundation case

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On 28 July 2010: the General Assembly of the United Nations adopted a resolution calling on States and international organizationsto provide financial resources, build capacity and transfer technology,particularly to developing countries, in scaling up efforts to providesafe, clean, accessible and affordable drinking waterand sanitation for all.

The Assembly declared that “safe and clean drinking water and sanitation is a human right essential to the full enjoyment of life and all other human rights”.

Today: - 884 million people with no access to safe drinking water and more than 2.6 billion lack access to basic sanitation;-1.5 million children under 5 years old die each year as a result of water- and sanitation-related diseases.

Access to clean water is a human right:

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FILM