Social Holding Company
A social holding is a social model created to run a group of companies, of different natures, using the economic market to enable socio-economic development in certain areas or communities.
In this way, in order that it does not lose its social character, the holding and the businesses it groups are run not only by utilitarian calculation, which aims exclusively to maximize gains and minimize costs, but also in the public interest, namely that of the community involved. It therefore aims to carry out some sort of social project, but through business channels.
An example of social holding company is Favela Holding, founded in Rio de Janeiro, Brazil, in November 2013. Businesses use Favela Holding’s local expertise to facilitate the distribution of products within favelas; but only residents of the favelas are trained and employed to carry out this distribution.