Advantages And Disadvantages Of Branc

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1.Introduction of the Organization
BRAC, an international development organization based in Bangladesh, is the largest non-governmental development organization in the world. BRAC has pioneered a unique model of sustainable business that integrates Corporate Social Responsibility as functional components of enterprises. BRAC Enterprises, one of the flourishing wings of BRAC. In 1978, BRAC’s flagship social enterprise, Aarong, was created as a support mechanism to BRAC’s existing sericulture program so that the hand-spun silk they were creating could be successfully marketed at a larger scale. Aarong was established as a retail distribution outlet that offered a fair price to the rural suppliers while introducing the products to urban markets where both
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3. Advantages gained from Social Enterprises Through its unique model and integrated operations, BRAC achieves five distinctive advantages across its enterprises:

The integrated network of BRAC Enterprises, Development Programs and Investments together beget a unique synergy and essentially create a 2+2=5 Effect. The surpluses generated by the social enterprises make BRAC more self-sustaining so that increasing numbers of poor people can become self-reliant.

Cross Collaboration
BRAC enterprises maximize synergy, impact and value by their targeted outreach and integrative products and services across multiple enterprises.

Cross Subsidy
Although BRAC enterprises aim for financial returns while fulfilling the social and environmental missions, not all enterprises are equally profitable. The cumulative surplus from BRAC enterprises combined are used to re-invest in the BRAC enterprises and support the development programs, on an as needed basis, not on a pro-rata basis across

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