Differences of Social Enterprises Corporate Enterprises Non-Profit Organizations

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What Distinguishes Social Entrepreneur and Corporate Entrepreneur • Social entrepreneur use entrepreneurial talent to create social change – Social value aim • Corporate entrepreneur use entrepreneurial wealth to create personal wealth – economic value aim • Social or environmental problem is core of social enterprise • New market need is core of economic enterprise • Social enterprise emerges because others have not attempted or failed • Market failure is an opportunity for social enterprise • A product can have high social value but low 2 market value (low cost houses/folk arts) .

Social and Corporate Enterprise: Differences (1) Corporate Entrepreneurship  To increase personal and stakeholder wealth  To address unfulfilled market needs Non-Profit Organizations To mitigate social problems Dimens Social ions Entrepreneurship Motive  To bring about social change and mitigate social problems  To address long standing social problems Primar y goal To address immediate problem– disaster relief Second Growth through ary economic Goal sustainability  Sustainable social change  Customer satisfaction  Corporate Social Responsibility  Brand image Growth through economic sustainability May or may not aim for social change 3 .1.

1. Dimensions Antecedent conditions Social and Corporate Enterprise: Differences (2) Social Entrepreneurship  Government and market failure to address long standing social problems  Social value  Mitigate social problem  Sustainable social change Corporate Entrepreneurship Non-Profit Organizations  Growing market Existing market or potential need or social market growth problem  Economic value Social Value  Wealth creation Mitigate Social Problem Value Creation Outcomes Role of  Direct involvement of  Direct Entrepreneur entrepreneur in all involvement of stages of venture entrepreneur in all stages of venture Transformational leader Transactional leader NPOs are headed by advisory board small NPO are headed by transactional leader 4 .

employees and partners  Collaborative capacity building Collaboratio n needs  No involvement of target population  High level of collaboration can occur within the organization Intra organizational collaboration is high Inter organizational collaboration declining due to resource competition IntraOrganisatio nal/ Inter Organizatio nal Population/ Market Involvement of target population in decision making. implementation and evaluation of programme Inter organizational collaboration is low and mainly for economic gains Population level collaboration may occur depending on nature of services provided 5 .Dimensions Social Entrepreneurship Corporate Entrepreneurship Non-Profit Organizations  Collaboration occurs at all levels (Levels of  Trust on collective collaboration) experience of population.

Dimensions Social Entrepreneurship Corporate Entrepreneurship Non-Profit Organization Organizatio  Porous-social n value creation boundaries takes place within and outside organizations  Collaboration with other organizations Organisatio Flat or horizontal n structure Ownership Collective – Ownership and population are guided by common vision  Rigid – social value creation is tied to economic value within organizations  Competition with different organizations  Hierarchical (vertical)  Single ownership or entity controlled by a few employees Rigid/Porous differs based on contextual circumstances and type of services provided Mainly hierarchical  Restricted to board family 6 .

Starts with policies and ending with programmes • Gove follows top-down approach. They have to leverage resources that others control • Social entrepreneurship is inductive and outward looking • It moves from observation and experimentation to institutionalization and independent adoption • Government moves in reverse direction. Grammeen bank experimented seven years by lending loan to men then switched to men 7 • Govt implements without experimentation .Social Entrepreneurship Vs Government • Social entrepreneurship does not control resources. SE follows bottom-up approach • SE experiments with ideas until solution is reached.

Corporate Social Entrepreneurship (CSE) 8 .

g organic food products.Corporate Social Entrepreneurship A New Paradigm CSE is a business strategy that promotes a social cause and ensures a profit. CSE Examples: •E-choupal Company initiative of Indian Tobacco •Project Shakti of Hindustan Unilever Limited •(e. textiles coloured with natural dyes) Two Aspects of CSE – CSE must elicit sufficient resources and commitment to be sustainable CSE must generate utilitarian benefits and altruistic benefits Choupal Saagar – Bringing modern outlets in Rural India 9 . CSE creates social value that generates business value.

• The Corporate Social Entrepreneurship draws on three conceptions of entrepreneurship .CSE – Concept • Corporate entrepreneurship aimed at spotting and redefining market opportunities through innovative strategies. process and organizations 10 .innovative strategies. Social Entrepreneurship emerged which aimed at achieving greater social impact through innovation and adaptation. process and organizations that would generate competitive advantage • Similar to this.

• Society feels companies should come forward to address social problem not just confined to produce goods • Expectations– Product inputs along with supply chain have been produced in social and environmental friendly manner.Why invest in CSE? PUSH FACTORS: (a) • Changing expectations of public and key stakeholders such as consumers. • Push factors are focused on protecting society or environment rather than creating economic value 11 . employees and communities regarding companies.

– Consumer ready to pay more if product is produced in social and environmental friendly way. – Company’s social commitment is also important for communities. 12 .comprise positive incentives that give opportunities for greater value creation.Why invest in CSE? (b) • PULL FACTORS . employees and investors.

How to Do CSE .LEADERSHIP • Four areas need to be reorganized in a company • LEADERSHIP: – Vision: Leader needs to envision a company in which the social dimensions is integral to company – Legitimization: Leader needs to create an internal environment that signals the desirability of CSE process – Empowerment: Leader needs to empower other leaders and change agents to execute the plan 13 .

infrastructure. 14 . event sponsorship.How to Do CSE. image. talent. Partnering on cause related marketing. distribution channels – Partnering: Creating alliances with other entities.STRATEGY • STRATEGY: – Alignment: The social and business dimensions of the company strategy must align with each other – Leveraging Core Competencies: Discovering creative ways to mobilize and deploy key assets – technology. Partnering helps gaining new resources.

How to Do CSE . Vertical component that deepens the company’s social commitment and horizontal one entrusted with the mission of spending it across ground  Finding new forms of interdepartmental collaboration is part of CSE  Integrating social entrepreneurship dimension to daily operations of company 15 .STRUCTURES • STRUCTURES Structure needs to follow strategy – Structure should be T shaped.

Separate corporate reports to spotlight achievements and new targets of social goal 16 .How to Do CSE .Systems need to follow structures • Decisions making process that integrates consideration of economic and social value creation • Combined learning and performance oriented measurement and management systems • Effective economic and social value communication process. Social performance should be integrated in regular corporate reports.SYSTEMS • SYSTEMS .

They are creators of new resources. Communicators are active listeners to various stakeholders and are able to speak to groups in ways that reveal how social action is relevant to their needs 3. 17 . They continually stand up and push for generation and integration of social and business value as a central belief of company 2. Entrepreneurs invent new resource design and actions. Creators and inventors of new possibilities.Role of Corporate Social Entrepreneurs (a) CSEs are change agents in transformation process. Advocates for the cause. They play seven roles: 1.

Role of Corporate Social Entrepreneurs (b) 4. Entrepreneurs catalyze a process that brings transformation 5. Catalysts inspire and create synergies in work of others. Calculate the cost and benefit of social entrepreneurship process 18 . CSEs need to enhance success of other groups 7. mobilizing actions 6. Coordinators reach across internal and external boundaries. Contributors support the work and success of others. Calculate the transformational process within the organization. inspiring.

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