For Pol & Ville (2009) the innovation is termed “social” since the implied new idea is expected to have the potential to improve quantitatively or qualitatively the social environment. Martinelli (2012) expresses the view that in comparison to the economic focus of Schumpeterian innovation which is directed toward gaining competitive edge and market share, peculiar feature of SI is to provide social justice or social cohesion through innovation process. Nussbaumer & Moulaert (2005) define SI as process encompassing both macro and microeconomic aspects with the clear focus on inducing entrepreneurial organizational change. Anderson et al. (2014) characterize SI as proposing new solutions to various social challenges which can appear on the global or local scale with the intent and effect (impact) good to society.
Edward Freeman. It widened its scope and included not only the shareholders but also the customers, employees, environment, society, and nearby communities within the purview of the CSR activities. This concept came into existence in the1990s with the realization that rising economic profits could be used in various social responsibilities. The model is based on the trust that the companies need to act upon according to the approach “triple bottom line”. The “the triple bottom line” approach was first coined by John Elkington in 1994.
What are the fundamental criteria which makes a social venture? Before heading forward towards the fundamental criteria of social venture let us first define the term social venture: Social venture is a “process that catalyzes social change and/or addresses important social needs in a way that is not dominated by direct financial benefits for the entrepreneurs”. Organizations that practice social entrepreneurship are not simply aid organizations. They do not hand out financial aid or donate products to those in need. Rather, they are ventures that employ entrepreneurial techniques to develop innovative solutions to the host of social problems plaguing the global community.
Open innovation is forcing firms to reassess their leadership positions, which reflect the performance outcomes of their business strategies. Open innovation essentially refers to the use of external resources (knowledge, skills, funds, ideas, etc) to drive innovation within a firm (Chesbrough, 2003a). It embraces the benefits of openness as a means of expanding value creation for organizations. Open strategy also introduces new business models based on invention and coordination undertaken within a community of innovators. This represents an opportunity of social enterprises who can leverage on external knowledge, skills, connections and people networks to achieve their aims.
Social Entrepreneurship are dispatched by a mixed bag of components, including exploration establishments, organizations or free associations, which each have a tendency to utilize their own particular meaning of Social Innovation. Thusly, it merits examining the most essential angles that recognize it from different types of social work or development. Social Innovation concentrates on the procedure of advancement, how development and change come to fruition (rather than the more customary meaning of social advancement, offering need to the inside association of firms serving the efficiency). Social Innovation concentrates on new work and new types of collaboration (plans of action) particularly those that work towards a feasible
Ethical duties overcome the limitations of legal duties. Philanthropic responsibility- “giving back” time and money to society in the form of voluntary service, helps the organizations to improve society. Corporate Social Responsibility (CSR) is arguably the most central and established notion in modern business and social research (de Bakker, Groenenwegan, den Hond, 2005)3. In addition, Corporate Social Responsibility (CSR) is a highly popular managerial tool with many companies having some form of Corporate Social Responsibility policy in place or making explicit Corporate Social Responsibility communication to public so that they will be aware about the company’s corporate social responsibility (Maignan and Ralston, 2002 )4. A conceptual critique of CSR said that yet in spite of its detailed past and popularity in business and management practice, the problem is that the concept of Corporate Social Responsibility(CSR) is not clear, i.e.
Besides that, capital investment is made and social benefit is produced but the revenue is generated and helps to sustain the enterprise. Social enterprise is a business that uses entrepreneurial methods to accomplish social goals and feed profits to a parent charity or a non-profit to enable it to fulfil more of its own social mission. Meanwhile social business is defined by Professor Muhammad Yunus, as a business, created to address a social problem where it is a non-loss, non-dividend
In instrumental theories corporations involve in the local community, Friedman in 1970 argued that the fruits can be reaped in the long run in shape of resources and needs for the people in the community (Garriga and Mele, 2004; Jensen 2002). The utilitarian theories are based on competitive advantages, Porter and Cremer (2002) and Litz (1996) described those theories in term of devising strategies in natural resources and altruistic activities for marketing. The utilitarian theories are divided into social cost theory which stresses on the socio-economic system driven by the non-economic forces in corporations for the community is also called the instrumental theory which leads to CSR. (Garriga and Mele,2004) The utilitarian theory means that corporations should accept social responsibility and take part in the community development. On the other hand functionalist theory, states that the main objective of the firm is profit making.
The person or group that takes up the task is called a social entrepreneur. Social entrepreneurs are creative innovators and problem solvers who bring about economic change and transformation in the society that we live. Over the past decade, we have seen a rapid increase in environmental and social issues that businesses and society at large face. Some of these issues are due to globalization and industrialization of developed economies. Social entrepreneurs
In other words, talented social entrepreneurs are in demand just to launch or initiate change in the society. In the same manner, the book as an introduction to the field is matchless or unparalleled. I find the provision of the definition of social entrepreneurship very clear and straight and that of innovating society where the social entrepreneurs have to use their skills and talents. Evident in the book is the elaboration of making “everyone a changemaker” based on the concept of Ashoka’s Bill Drayton. This goes to say that as a social entrepreneur, it is important that one has to be skilled and equipped with talents.