Soul Economy

I recently read “The New Philanthropists” by Charles and Elizabeth Handy. What an excellent read filled with inspiring stories of what they refer to as “new” philanthropists” meaning that they “don’t fit the old mould of grant-giving foundations, …They are hands-on, pioneering and entrepreneurial…” Charles Handy also refers to them as true “social entrepreneurs”.

This then lead me onto an search to find out more about other “social entrepreneurs”. What I discovered were discussions about what is a “social entrepreneur”? What is a “social enterprise”? and how does “Corporate Social Responsibility (CSR)” fit into the equation? I found definitions by some of the key authorities in the UK and US helpful.

Social Entrepreneur:

“Society’s change agent: a pioneer of innovation that benefits humanity.” Skoll Foundation, USA

“Someone who works in an entrepreneurial manner, but for public or social benefit, rather than to make money. Social entrepreneurs may work in ethical businesses, governmental or public bodies, quangos, or the voluntary and community sector.” The School for Social Entrepreneurs, UK

“Any person, in any sector, who runs a social enterprise (see above). Other terms include social capitalist, social innovator, venture philanthropists.” The Institute of Social Entrepreneurs, USA

Social Enterprises:

“A business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.” Social Enterprise Coalition, UK

“Any organisation, in any sector, that uses earned income strategies to pursue a double or triple bottom line either alone (as a social sector business) or as part of a mixed revenue stream that includes charitable contributions and public sector subsidies.” The Institute of Social Entrepreneurs, USA

Corporate Social Responsibility:

“The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families and the local community and society at large.” World Business Council for Sustainable Development, Switzerland & USA

“Responsible business is the process by which a company manages, measures and reports its commitment to improve its positive impact on society and the environment. CSR suggests that this process is separate from the mainstream business. We believe that to be successful and sustainable businesses, this must be integrated into the very heart of the business and not left as a separate function or responsibility.” Business in the Community, UK

I found that the more I read the more confusing it became and I was glad to see that I was not the only one. There is a lot of discussion taking place, even by some of the key people in the industry. This is evident in a recent discussion on Social Edge about the definition of a “social entrepreneur” and “social entrepreneurship” where questions were raised about how they earn their income, what is their financial model (not-for-profit, for-profit and hybrid), are they only found in non-profits, should it be broad to incorporate companies who are socially responsible and “intrepreneurs” who change an organisation or company from the inside?

I am beginning to think that maybe there is no clear definition and question whether there needs to be. Maybe it is just the outcome we should focus on? If an individual or organisation is “giving back” to the community in some way then should they then be considered to be a “social enterprise” or “social entrepreneur” regardless of their financial model, company structure and size or whether they are located inside a company implementing CSR? I think what is paramount is that these individuals and organisations are adequately recognised, supported and rewarded for their activities and efforts.