HOLY ROSARY ACADEMY OF LAS PIÑAS CITY

HELE/TLE/ TECHVOC DEPARTMENT

SY 2023-2024

TEACHER: MS. VIRGIE V. REYES

SUBJECT/LEVEL: BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILITY-
(GRADE 12 - 2ND SEM)

Lesson 6: Social Entrepreneurship

Lesson Description:

The lesson is about social entrepreneurship, its definition and the different examples and
ways on how it can be a change agent.

Course Objectives

At the end of the lesson, students are expected to:

1) Explain social entrepreneurship

2) Discuss the examples of social entrepreneurship
3) Present to the class examples of social entrepreneurs in our country

Content
Social entrepreneurship is all about recognizing the social problems and achieving a
social change by employing entrepreneurial principles, processes and operations. It is all about
making a research to completely define a particular social problem and then organizing, creating
and managing a social venture to attain the desired change. The change may or may not include a
thorough elimination of a social problem. It may be a lifetime process focusing on the
improvement of the existing circumstances.
What Is a Social Entrepreneur?
A social entrepreneur is a person who pursues novel applications that have the potential
to solve community-based problems. These individuals are willing to take on the risk and effort
to create positive changes in society through their initiatives. Social entrepreneurs may believe
that this practice is a way to connect you to your life's purpose, help others find theirs, and make
a difference in the world (all while eking out a living).
 A social entrepreneur is interested in starting a business for the greater social good and
not just the pursuit of profits.
 Social entrepreneurs may seek to produce environmentally-friendly products, serve an
underserved community, or focus on philanthropic activities.
 Social entrepreneurship is a growing trend, alongside socially responsible investing (SRI)
and environmental, social, and governance (ESG) investing.
Understanding Social Entrepreneurs
While most entrepreneurs are motivated by the potential to earn a profit, the profit motive
does not prevent the ordinary entrepreneur from having a positive impact on society. In his book
The Wealth of Nations, the economist Adam Smith explained, "It is not from the benevolence of
the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own
self-interest."1 Smith believed that when individuals pursued their own best interests, they would
be guided toward decisions that benefited others. The baker, for example, wants to earn a living
to support his family. To accomplish this, they produce a product—bread—which feeds and
nourishes hundreds of people.

One example of social entrepreneurship is microfinance institutions. These institutions

provide banking services to unemployed or low-income individuals or groups who otherwise
would have no other access to financial services. Other examples of social entrepreneurship
include educational programs, providing banking services in underserved areas, and helping
children orphaned by epidemic disease. All of these efforts are intended to address unmet needs
within communities that have been overlooked or not granted access to services, products, or
base essentials available in more developed communities.
A social entrepreneur might also seek to address imbalances in such availability, the root
causes behind such social problems, or the social stigma associated with being a resident of such
communities. The main goal of a social entrepreneur is not to earn a profit. Rather, a social
entrepreneur seeks to implement widespread improvements in society. However, a social
entrepreneur must still be financially savvy to succeed in his or her cause.
 Social entrepreneurship is related to socially responsible investing (SRI)
and environmental, social, and governance (ESG) investing. SRI is the practice of investing
money in companies and funds that have positive social impacts. SRI has also grown in
popularity in recent years. Socially responsible investors will often eschew investments in
companies that produce or sell addictive substances (like alcohol, gambling, and tobacco). They
may also seek out companies that are engaged in social justice, environmental sustainability, and
alternative energy/clean technology efforts.
Social entrepreneurs play the role of change agents in the social sector through various
means. Among which are discussed below:
 Adopting a mission to create and sustain social value (not just private value). The
mission of social entrepreneurs is to provide solutions to the challenges faced by the
society --they can range from poverty to illiteracy to environmental sustainability.
Making profits and providing for what the market needs are a means to social end, not the
end in itself like how business enterprises see things. They look for long-term social
return on investment (ROI), rather than simply being concerned with business ROI.

Example:
Mr. and Mrs. Mark Fernandez have observed that most of the mothers in Payatas, Quezon City
are idle all day and do nothing but gamble, gossip and do some errands at home. They are
financially dependent on their husbands whose jobs are also unstable. Because of these
observations, the couple provided them livelihood by means of weaving durable rugs for
household use. The livelihood did not only help the mothers earn money on their own and use
their idle time productivity, but is also provided quality rugs to customers. The customers, on the
other hand, felt that they are not just buying a product but are also helping alleviate poverty in
some families in Payatas.

 Recognizing and relentlessly pursuing new opportunities to serve that mission. Social
entrepreneurs see the opportunities, not just the problems.

Example:

Traffic has been one of the worst problems in Metro Manila, and a lot of strategies have been
done to try to address it. Jake Valeroso a social entrepreneur, recognized this problem and came
up with a mobile app where commuters can book a taxi via carpooling. This saves the commuters
money since they only need to pay a portion of the transportation cost. This also helps decongest
the streets since only one car will be used for several passengers. Lastly, this also helps the taxi
driver earn more.

 Engaging in a process of continuous innovation, adaptation and learning. Innovation

does not have to mean creating something new. It can simply involve applying an
existing idea in a new way or situation. In the example in Beyond Walls 9.2, the
company did not invent weaving scrap cloths, the innovation is in the craftsmanship
 applied to the weaving techniques and the design and quality of products that the
company offered to the local and international market.

Example:
Going back to Jake Valeroso's mobile app for commuters, he also found out that one of
the main issues of the drivers is what to do during off-peak hours (i.e. when there are very few
commuters availing of the service). Based on the focus group discussion conducted by Jake's
team, there was also a need to deliver documents and gifts from one person to another.
Therefore, he innovated the mobile app and included a delivery service for documents and gifts
for a fee.

 Acting boldly without being limited by resources currently in hand. Social entrepreneurs
use resources efficiently, and they do not let limited resources keep them from pursuing
their goals. They have a clear vision of what they want to achieve and they work hard,
take risks and develop strategies in order to achieve their goals. Recall the story of the
social entrepreneur who took the risk of hiring disadvantaged young adults in order to
educate and rehabilitate them while providing environment-friendly household cleaning
products to its consumers.
Example:
Going back to the example of Mr. and Mrs. Fernandez who helped the mothers in Payatas
to create quality rugs, it was apparent that despite the lack of resources, the couple still made use
of material available such as overstock cloths and indigenous fabrics. They acted boldly without
being limited by resources currently in hand.

 Exhibiting heightened accountability to the constituencies served and for the outcomes
created. Social entrepreneurs take steps to ensure that they are creating social value. They
seek to provide real social improvements, and they work hard to be able to do what they
set themselves to achieve.
Example:
In the example of Mr. and Mrs. Fernandez, the couple wants to see positive change and
transformation among the mothers in Payatas. This vision fueled their passion to help these
mothers and to make sure that their standards of living become better. They did not just want to
create profit; they wanted to see a social problem solved.

 Social entrepreneurs are regarded as change agents as they always make a difference
---change reform or revolutionize -- in order to create solutions in the social sector. They
seek to create systematic changes and sustainable improvements.

 Activity: (Reflect Upon)

Do you think a student like you can already make a difference? If you cannot yet have
your own social enterprise, in what ways can you help provide solutions to social
problems?
Assessment: Essay (5 pts each)
1) What is social entrepreneurship?
2) Enumerate and explain briefly the different means by which social entrepreneurs can play
the role of change agents in the society

References:

 Baquillas, Jonalyn “Business Ethics and Social Responsibility”, Diwa Learning Systems,
Inc. 2017

 Racelis, Aliza “Business Ethics and Social Responsibility”, Rex Book Store, 2017

 Cortez, Franz Giuseppe, “ Business Ethics and Social Responsbility”, Vibal Group
Inc.2016

 Jerusalem, Violeta L. and Palencia, Marjueva “ Business Ethics and Social

Responsibility”, Fastbooks Educational Supply, Inc. 2017

 https://www.investopedia.com/terms/s/social-entrepreneur.asp