The Concept Of Social Enterprise

In spite of all advantages mention earlier about ethically and socially responsible business practice, it also has disadvantages, limitation and challenges. The most common and obvious limitation would be the cost that comes together with every investment a business does in order to meet all publicity’s requirements, for instance setting up Ronald McDonald House Charities. Every business has a goal which is at the top of their goal list and it is to be profitable. What is more, it is challenging to maintain the publicity’s and stakeholders’ satisfaction when investing into the society, employees and the environment.

John Mackey, founder of Whole Foods once said "Business social responsibility should not be coerced; it is a voluntary decision that the entrepreneurial leadership of every company must make on its own." (Mackey, 2005) In today’s society it is increasingly common for businesses to actively identify and become directly involved in the country and the global social issues and needs. It is now common

The expectation that businesses behave responsibly and positively contribute to society all while pursuing their economic goals is one that holds firm through all generations. Stakeholders, both market and nonmarket, expect businesses to be socially responsible. Many companies have responded to this by including this growing expectation as part of their overall business operations. There are companies in existence today whose sole purpose is to socially benefit society alongside businesses who simply combine social benefits with their economic goals as their company mission. These changes in societal expectations and thus company purpose we’ve seen in the business community over time often blurs the line of what it means to be socially

It allows for social change advocacy without the potential external consequences of "conventional activism." But increasingly, we are led to believe that ‘entrepreneurs’ and ‘social enterprises’ are the avant garde of ‘change making’. Like every concept has both pros and cons, similarly even social entrepreneurship has its own demerits. On one hand it is one major factor in bringing change while on the other end it is being overused by companies who start off with the motive of being socially responsible and use this for the advantage in future ,by diverting their focus on profits. The point is, all of a sudden, social entrepreneurship was everywhere and everyone wanted to be one. The key to sustainable capitalism is reasonable profits as opposed to maximizing profits. In the current system, a segment of society is trying to maximize profits without concern for the impact on the well being of the society as a whole, while another segment of social organizations have to deal with the fall out. The system is not working. If it does good in some areas it also does bad in others. The example of Toms one for one shoe program though does charity and is a social enterprise but at its worst, it promotes a view of the world's poor as helpless, ineffective people passively waiting for trinkets from shoe-buying Americans. While the shoes themselves probably won't lead to any kind of disaster, that worldview can lead to bad policies and real, serious harm also has a small negative impact on local markets. And so I have come to feel increasingly uncomfortable with the term “social entrepreneurship” and its main actor, the “social entrepreneur”. It creates a false separation between “this is where we make money, and this is where we do good”. And that is exactly what is wrong with capitalism today. Myths of social entrepreneurship are different from what and how it really works in the

The intervention depicted in the Pardo article was that of political activism amongst Latinas on behalf of their community. The group utilized their assets and skills to effect change within their communities and halt policies and changes that they felt would harm their communities. This intervention is aligned with Rothman’s social advocacy mode of capacity development. The Ferguson article discussed the Social Enterprise Intervention (SEI) method. This intervention is preventative intervention utilized to provide homeless youth with vocation training, small business skills, mentorship and referrals to health and mental health services; this intervention seeks to build upon the strengths of these youth. The Nembhard article focused on

Social responsibility is a construct of appropriate ethical behaviors, where two or more individuals, and corporations strive to provide better outcomes for the benefit of society as a whole. With such a set of meticulous structured frameworks in mind, it is fundamental to achieve a harmonious balance between the ecosystem and the developing economy. However, social responsibility is not always first and foremost on the mind of big name corporate companies – such as General Mills Inc.

To be considered a social enterprise, a company’s primary goal would need to be an endeavor that benefits others over the owner or shareholders. (What is social enterprise?, 2015). Companies can have a model of strong corporate social responsibility, as we can see in the example of Verizon. Verizon provides free cell phones and service through a program they created and called HopeLine to victims of domestic abuse. (Free cell phones from Verizon for victims of domestic abuse, 2015) For these victims, this “HopeLine” may very easily be their only way to connect to other family or seek employment, which often requires, at the very minimum, a way for an employer to contact you. And while this would qualify Verizon as a company with corporate

The Business Dictionary defines social responsibility as, " A company's sense of responsibility toward the

Social economy organizations are set to meet social objectives that are drafted into organizations ' charters. These objectives surpass conventional decisions to adopt corporate

I agree with you Kelsey. Social purpose ventures and non-profit ventures do not have to put economic profit at the top of their agenda, and I like your point that though they do not have to make profit, they must be “sustainable and scalable.” In the case, NCV also has to consider this point. That sustainable and economic circulation could be a great driving force for their future business, and they can be empowered by the reasonable economic

Social entrepreneurship is gaining such strong interest in nonprofit world because of the economic challenges that have plagued this sector with cuts in philanthropic and government funding. According to Nash (2010) not only are there cuts, there are many organizations vying for the limited funding. Studies support, the attitudes in capitalistic America, and the ease of nonprofits to embrace this concept; evidenced by their ability to sell their once free services, to meet the demands of the consumer. According to the IRS (2010) nonprofits have increased their selling power on unrelated business income, to the tune of 184% increase, in a sixteen-year time frame. This writer, believes these numbers are evidence which support this trend is

social entrepreneurs in their efforts to start a successful venture. This book is for someone that wants to learn useful skills on how to run a social enterprise that generates profits and alleviates social problems. The book outlines the purpose of a social enterprise, which is to address a social problem and how to generate revenues. It seeks to help someone that is interested in taking this journey to understand how to create an enterprise that is self-sufficient and sustainable. There are goals included to help navigate through the process, how to develop the concept and how to deal with uncertainty. It’s the uncertainty of the idea that social entrepreneurs choose to tackle intractable social issues, sometimes they have to operate in or create a market that does not yet exist, and they work in environments that generate uncertainty and present challenges.

Most people think that social responsibility is not something that most businesses think about since their ultimate goal is to generate profits. But the reality is that today's consumer has become much more informed and much more demanding when it comes to ensuring that organizations do right by others. Businesses are thus forced to succumb to these demands because they realize that if they want to have a good reputation and develop a strong image in their particular segment, they would have to be socially responsible.

Through this book, Yunus shows how social business is applied in the current business setting. Yunus also explains how the social business model could redeem the failed promise of the free enterprise model.

There has been an astronomical rise in the cross-sector partnerships between corporate and non-corporate entities for achieving profit and non-profit objectives in UK alone in the past decade alone. These corporate entities are showing more interest in collaborations with social enterprises for working towards initiating a transformative change for a more equitable society whilst at the same time meeting financial objectives. These established corporate bodies help the social enterprises to broaden their reach, deepen their impact and extend their growth. To sustain the big businesses playing an important a role in improving society, law makers and judiciary should take into account the ground situation and