Social Entrepreneurs? Social Enterprises? CSR? How Does it All Fit?
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
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, what is the size and scale of the social change they are making, should the definition be broad enough to incorporate companies who are socially responsible and “intrepreneurs” who change an organisation or company from the inside?
Maybe there does not need to be an exact definition? Maybe it is more the outcome that we should focus on? If an entrepreneurial individual is driving through social change to address world issues – providing a benefit to society – should they then be considered a “social entrepreneur”? I think what is critical is that the activities and efforts of these individuals are adequately recognised, encouraged and supported.
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