Nerun Yakub

Almsgiving is a duty unto you. Alms should be taken from the rich and returned to the poor. Sayings of Prophet Muhammad (S)

Give the kinsman his due, and the needy, and the wayfarer, and squander not (thy wealth) in wantonness. The Quran, Chapter 17, Verse 26

A two day workshop at the Bangladesh Enterprise Institute (BEI) in Dhaka, end July 2009, found Dr Muhammad Yunus expounding the virtues of charity -- provided it is genuine and is used in sustainable ways rather than 'just throwing away money' for 'image enhancement and public relations' -- according to a report in TFE. As the above sampling of Islamic teachings would vouch, it is indeed part of piety to share of one's wealth graciously, and the Grameen guru's keynote speech was full of usable guidelines for both individuals and corporate houses, should they wish to be meaningfully charitable -- and be spiritually uplifted in the bargain !

The organizer of the workshop, BEI, is believed to be involved in independent research, and the present activity is part of its Bangladesh Social Enterprises Project (BSEP). According to the president of BEI, the project (BSEP) means to identify 'the strengths and opportunities of companies doing business with the poor and address the challenges and threats.' Such companies have been making their presence felt lately, but not without creating a stir in business circles.

Those who struggle to build businesses with bank loans and equities are not happy at all. They are understandably piqued by what they see to be unjustified indulgence given to the highly profitable yet tax-exempt, dole-supported enterprises of NGOs. Given such bad feelings, the BEI workshops could certainly serve to bridge the gap in understanding the basic differences between the two kinds of business, loan-funded and charity/grant-based.

There are, of course, enough cynics to debunk the likes of BEI and even the Nobel laureate's extraordinary successes with Bangladesh's poor, who, the uncharitable claim, are the most exploitable resource for entrepreneurs clever enough to bank on the potential of the have-nots. These nitpickers go further, blaming microcredit providers for turning the poor into unthinking consumers of unnecessary commodities, creating markets for foreign companies, etc etc. Indeed, despite much good work done by many non-government organizations there is no dearth of critics showcasing the wrongdoing ones with a vengeance, to flog all NGOs.

As mentioned, giant, professionally-world-class NGOs are resented by tax-paying, loan-burdened entrepreneurs for their forays into business. What is often missed is that although these social businesses also have to profit in order to be viable, they have an essential core of social responsibilities that 'typical' businesses are not obliged to have, profit maximization being their sole purpose. As Dr Yunus explains, in social businesses, 'You can make profit, but you cannot take it'. Profit is ploughed back to improve services. This basic principle permits more money to be utilized for people's benefit, providing them affordable services, creating jobs as well as keeping the projects running.

Muslims know the Quranic principles, with respect to creating wealth and sharing it with a caring heart . So it is considered a virtue to create wealth and a sin to hoard it, as is 'devouring people's wealth by false pretences' (Chap 4, verse 161 ). These principles, we are inclined to believe, also inform development philosophers like Dr Yunus. As he says, the purpose of the not-for-personal-gain enterprises is, to address the perennial socio-economic problems like poverty, malnutrition, unemployment and the like and do it with a missionary zeal, not a profiteering motive.

Result-oriented, genuine social businesses could make a difference in the lives of the poor majority if investment to uplift them is targeted and sustained. There is in fact a great deal one could do if the will is there to do good in the long term. In recent years big businesses too have been trying to be fashionably conscientious in this regard. They have been creating special funds to spend on so-called corporate social responsibility (CSR) activities, most of which, according to Dr Yunus, tend to be no more than exercises in company profile building and public relations. Better, rather , to set up a separate stock market on social businesses, in which companies could actively participate in poverty alleviation, health care services, job creation etc, whereby CSR charity efforts could be transformed into genuine investments to yield tangible results.

This may seem far-fetched and rather utopian at the moment, but given the ingenuity of market makers and the changing world view about North-South relations and equity among nations, 'poverty alleviation' may come up like greenhouse green emissions as, yet another commodity to trade in the global market !