Social Entrepreneurship and the

Ethical Challenges of
Entrepreneurship
© 2021 Professeur Shahbaz for NEDUET All rights reserved
 Chapter Objectives
1. To examine the concept of “social entrepreneurship”
2. To examine the process
3. Characteristics of Social Entrepreneur
4. The Social Enterprise Challenge
5. To define the term “ethics”
6. A guide to holistic approach

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 The Social Entrepreneurship
Movement
1. Social Entrepreneurship
A new form of entrepreneurship applies to social problem
solving as well as cultural or environmental issues.

2. Social Entrepreneurship Process

 Recognition of a perceived social opportunity
 Translation of the social opportunity into an enterprise
concept
 Identification and acquisition of resources required to
execute the enterprise’s goals.
© 2021 Professeur Shahbaz for NEDUET All rights reserved
 The Social Entrepreneurship
Movement
1. Social Entrepreneur
• A person or small group of individuals who founds and/or
leads an organization or initiative engaged in social
entrepreneurship.
• Also referred to as “public entrepreneurs,” “civic
entrepreneurs,” or “social innovators.

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 The Social Entrepreneurs
1. Characteristics of Social Entrepreneur
• Adoption of a mission to create and sustain social value
(beyond personal value)
• Recognition and relentless pursuit of opportunities for
social value
• Engagement in continuous innovation and learning

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 The Social Enterprise Challenge
1. Social Obligation
• Firms that simply react to social issues through
obedience to the laws.
2. Social Responsibility
• Firm that respond more actively to social issues;
accepting responsibility for various programs.
3. Social Responsiveness
• Firms that are highly proactive and are even willing to
be evaluated by the public for various activities.

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 The Social Enterprise Examples
1. Environment
• Pollution control, restoration or protection of
environment, recycling efforts etc.
2. Energy
• Production of energy saving products
3. Fair Business Practices
• Employment of minorities, disabled, former drug
addicts, etc.

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 The Social Enterprise Examples
4. Community Involvement
• Donations of cash, products; sponsorship of health
projects, support of education etc.
5. Products
• Reduction of polluting material, improvement in
nutritional value etc.

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 Environmental Awareness
Ideology
Key steps in an environmental strategy
1. Reduce the waste if any.
2. Restore accountability.
3. Make prices reflect costs.
4. Promote diversity at any level.
5. Insist on accountability of nations.

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 Defining Ethics
A set of principles prescribing a behavioral code that
explains what is good and right or bad and wrong; ethics
may outline moral duty and obligations.

Provide the basic rules or parameters for conducting any

activity in an “acceptable” manner.

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 Types of Morally Questionable
Acts
1. Nonrole 3. Role Distortion
Example: Example:
Expense account Bribery
cheating Price fixing
Stealing supplies Manipulating suppliers

2. Role Failure 4. Role Assertion

Example: Example:
Palming off a poor Not withdrawing product
performer with inflated line in face of initial
praise allegations of inadequate
safety

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 Reasons for Unethical Behavior
• Greed
• A lack of a foundation in ethics
• Lack of fear
• Anger

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 A Guide to Holistic Approach
• Principle 1: Hire the right people
• Principle 2: Set standards more than rules
• Principle 3: Don’t let yourself get isolated
• Principle 4: The most important principle is to let your
ethical example at all times be absolutely faultless

© 2021 Professeur Shahbaz for NEDUET All rights reserved

 Effective Corporate
Entrepreneurship

Providing flexibility, Removing

innovation, and organizational
support barriers

Effective
Corporate
Entrepreneurship

Including an ethical
component to
corporate training
© 2021 Professeur Shahbaz for NEDUET All rights reserved
© 2021 Professeur Shahbaz for NEDUET All rights reserved