QUESTIONS: 1. How would you define a social enterprise? It is widely known to all that social enterprise is used to mean a unit of business, traditional enterprise provides value for their customers and shareholders, while social enterprise is driven by social goals, creating societal wealth for the society (Chalmers, D. and Fraser, S. 2012). Therefore, lots of scholars tend to explain it from the aspect of why it is social instead of private, according to Mulgan, G. (2006), the whole organisation and activities are aim to their social mission, which is devoted to solving a series of social problems, such as helping disadvantaged groups, conducting fair trade, etc., as well as environmental issues like sustainable development. However, this
In addition, employees should be founder-fit. They should possess the same values, and their strengths and weaknesses should complement with each other in order to work towards the social enterprise’s goals effectively. After recruitment, social enterprise leaders should focus on leadership development. Based on the book, this developing a competent management is often hard or a key challenge. This should be focused on so that
By mobilizing social capital the SE has the potential to reduce transaction costs which are associated with lack of trust. For Coleman (1990) and Putnam (1993) the social capital is a set of resources that center on organizational operations, networks, norms and trust and further coordination and cooperation thus providing mutual benefits. In this way the social capital in SE leads to increased trust and reduces the motive to behave in an opportunistic manner which in turn decreases transaction costs. Besides the boost of trust the social capital in these organizations improves the productivity of production factors (Laville J. et al, 2010) and thus the return on financial capital. SE demonstrates ability to be innovative and to mobilize social capital by transferring it from the private to the public sphere.
If we’re thinking about solving a social problem in terms of current efforts being done, we will confine the potential solutions to what is existing today, which obviously is not making much of a social impact. We should focus on the outcome rather than being confined to the bygone processes in our society in order to open up more potential solutions and other problem solvers. We should not let our resource constraints narrow our vision to create a social impact and become catalysts of change. Sometimes the best solutions are also the cheapest in terms of resources, we just need to persevere to find the right business model that can address our social issue. Another way to contribute to this social economy is by patronizing companies who undergo Corporate Social Responsibilities.
Milton Friedman’s quote on “there is one and only one social responsibility of business---to use its resources and engage in activities designed to increase its profits” can actually be seen in different perspectives. Company can also be socially responsible by contributing towards the community through what they do best: excelling in economic terms (Brusseau, 2012). When corporations are making profits, most of it gets sent back into the economy and everyone benefits. Jobs are created, and those that already exist get some added security. More successful corporations mean the increase of the country’s economy, which in turn lead to a social benefit for the society that offers better living conditions.
h. It should also offer social welfare services to the general public. The core objectives of social responsibility of business are as follows: a. It is a concept that implies a business must operate (function) with a firm mindset to protect and promote the interest and welfare of society. b. Profit (earned through any means) must not be its only highest objective else contributions made for betterment and progress of a society must also be given a prime importance.
Such organizations attain a successful change in underlying issues in the community through feedback and innovations towards solving the social problem. By constituting commercial, public issues, and ventures, social entrepreneurship greatly contributes towards Vision 2030. Components of Social Entrepreneurship Social entrepreneurship includes a combination of social and commerce issues used to enhance the lives of individuals connected to some community problems. Particularly, commercial matters are met to raise money that is used by the entrepreneurship to work towards eliminating the matter negatively affecting people. In fact, the sole focus of this business is to improve the world condition and not to make profits, unlike other forms of business existing nowadays (Phillips, Lee, Ghobadian, O’Regan, & James, 2015).
Social capital plays a very important role in both day to day life and also within business. Without social capital, networks would not be willing to help each other, meaning that relationships may become non-existent and may impact on the persons own wellbeing. Without social capital people health, wealth and child development may become impacted negatively. There are many positive associations with social capital, one of which is that it can impact on the persons health, wealth and child development. If the person has strong social capital it will aid them greatly in our society, as they will be healthier, wealthier, over using their social networks to get a well paid job and also their child will have a good developed relationship with their
Many scholars argue (Quibria, 2003, Portes 1998, Durlauf) that the majority of studies are explaining social capital approaches to exaggerate its useful aspects. Quibria, (2003 p.) explained “leads to circuitous reasoning”—and overstatement of the advantages of social capital. Though, social capital has its advantages, however, the same ties that benefit members of a group can result in negative outcomes such as the exclusion of outsiders, excessive claims by insiders, restrictions of individual freedoms, and perpetuation of backwards norms etc. (Quibria, 2003, Eriksson, 2011). Social capital as a function (Coleman, 1988) can establish chances for network members; though, this is normally supported on religion, ethnicity, language, and career.
They do not simply give money to those people who are in need they teach them how to live life. Aside from helping people, Social enterprises also help our environment from dying. Social entrepreneurs make sure that everything that they do in business will not affect the environment. They have to come up with a concept that the environment will benefit so it can prevent our mother earth from being destroyed by our doings. The taxation issues for social enterprises are modeled after the legislation in the UK.