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Social Enterprise and Social Innovation: A Look Beyond Corporate Social Responsibility
Abstract
After providing a preliminary conceptual framework for social entrepreneurship, social enterprise, and social innovation in light of the prevailing economic literature, this chapter aims to investigate the links and differences between corporate social responsibility (CSR) and corporate social innovation (CSI). In particular, it is examined how and why the paradigm of social innovation represents a business opportunity by overcoming CSR’s traditional logic of “giving,” thereby allowing social value creation to go hand in hand with economic value creation. The theme is discussed first at a general level for each type of enterprise and subsequently with particular reference to the global firm, with regard to which considerations are developed as to the most suitable approach to CSI in light of the worldwide spread of values and principles for conducting business, and of the global importance of social and environmental problems. In terms of method, the chapter is developed conceptually on the basis of the prevailing international literature and of secondary data.
The first dimension, entrepreneurially virtuous, differentiates social enterprise from traditional commercial enterprise because social entrepreneurs have the primary mission of creating social value and demonstrate that they possess a broad range of virtues that they put into practice in carrying out their activity. These virtues are integrity, compassion, empathy, and honesty, as well as certain specific virtues linked to the context of their social entrepreneurship, such as a solid faith in people’s capacity to wish to contribute towards economic and social development; a passion for achieving one’s goals; and a practical yet innovative position for solving a social problem.
The fourth dimension, tolerance for risk, proactiveness, and innovativeness, sets the social entrepreneur apart from the commercial entrepreneur for the setting in which these three aptitudes are applied, which in the case of the social entrepreneur are put into practice in the setting of social enterprise and in the case of the commercial entrepreneur are aimed at maximizing profit. With reference, then, to this fourth dimension, the difference between social and commercial entrepreneur regards the different lens for observing and assessing risk, proactivity, and innovativeness with regard to the respective final purposes of their activity.
... In the corporate arena, corporate social innovation (CSI) differs from CSR because the former implies a proactive approach to tackling social and environmental problems through the corporate value chain, shifting from a perspective of "giving" and "repairing" to a strategic alignment within the corporation goals (Popoli, 2016;Porter & Kramer, 2006). Porter & Kramer (2006) highlight that CSR can be a source of opportunity and innovation, if companies use the value chain to identify negative social impacts to clear away, as well as opportunities that may be addressed for social and strategic distinction, creating competitive advantage. ...
... Therefore, CSR paves the way for CSI. Popoli (2016) narrows down some main differences between the two concepts (see Table 1). Moreover, CSI dynamics lie in partnership and collaboration, which enable a better understanding of stakeholders' needs and expectations, improve knowledge transfer mechanisms and innovation processes (Mirvis et al., 2016;Popoli, 2016), and promote trust and loyalty from those stakeholders (Iglesias et al., 2020). ...
... Popoli (2016) narrows down some main differences between the two concepts (see Table 1). Moreover, CSI dynamics lie in partnership and collaboration, which enable a better understanding of stakeholders' needs and expectations, improve knowledge transfer mechanisms and innovation processes (Mirvis et al., 2016;Popoli, 2016), and promote trust and loyalty from those stakeholders (Iglesias et al., 2020). This is particularly relevant because CSI implies changes in companies' business models, which leads to higher complexity, especially concerning impact assessment and its effects on the whole business network (Evans et al., 2017). ...
This study analyzed, in the form of a case study, the experience of a large company (Mercur S.A) in the implementation of a new vision focused on sustainability. The target company is located in the south of Brazil, has almost a century of existence, and has been managed by the same family since its foundation. The study is based on the notions and concepts of corporate governance, ethics for sustainability, and social-ecological systems. The study shows that the changes implemented in the company are catalyzed by an initial change of the ‘inner change' type, and are disseminated by the company and the community through social and cultural innovations. Important changes in the economic vision and social and environmental responsibility related to the structure/architecture and operation of the company, as well as trade-offs between financial and social and environmental aspects, were identified.
... Individuals utilizing entrepreneurial and innovative skills towards resolving social and environmental issues to deal with a nonprofit social value that contributes to the wealth of a social enterprise (Popoli, 2016). ...
... Similarly, global businesses' innovative processes are being refined from a social standpoint, aside from observing the technological and market perspective (Popoli, 2016). ...
... A nonprofit social entrepreneur is an individual utilizing entrepreneurial and innovative skills towards resolving social and environmental issues to deal with nonprofit social value and contribute to the wealth in a social enterprise (Popoli, 2016). Diamond (2017) further stated that nonprofit social entrepreneurs are passionate individuals engaging in opportunities to seek methods of making a difference, regardless of their contributions utilized. ...
... Individuals utilizing entrepreneurial and innovative skills towards resolving social and environmental issues to deal with a nonprofit social value that contributes to the wealth of a social enterprise (Popoli, 2016). ...
... Similarly, global businesses' innovative processes are being refined from a social standpoint, aside from observing the technological and market perspective (Popoli, 2016). ...
... A nonprofit social entrepreneur is an individual utilizing entrepreneurial and innovative skills towards resolving social and environmental issues to deal with nonprofit social value and contribute to the wealth in a social enterprise (Popoli, 2016). Diamond (2017) further stated that nonprofit social entrepreneurs are passionate individuals engaging in opportunities to seek methods of making a difference, regardless of their contributions utilized. ...
This exploratory qualitative dissertation explored the strategies nonprofit social entrepreneurs utilized to expand a social enterprise in Baton Rouge, LA. The research problem was that some nonprofit organizations lack short-term survivability and long-term sustainability strategies and do not fundamentally understand why generating new income streams is critical to subsidiary competitive advantage (Day, 2021). Similarly, nearly 50% of small enterprises survive five years,
and only 33% of small business startups persist over 10 years (SBA, 2017). Due to a lack of professional social networks available for educating and training social entrepreneurship, active social enterprises planning within vulnerable communities’ face issues with expanding products and services to disadvantaged economies. However, the platform understood the unspoken and underlying benefits of nonprofit social entrepreneurs networking with nonprofit
organizations. The purpose of the proposed exploratory qualitative study was to define strategies needed to expand a social enterprise in Baton Rouge, LA (Carré et al., 2021; Cause IQ, 2021). The expansion of social entrepreneurship accommodates transferrable resources and
funding prospects through involving for-profit businesses. By defining social business model strategies, specifically for vulnerable economic communities, the research study results highlight the hybridity expansion strategies of eight female African American nonprofit social entrepreneurs. Through utilizing a conceptual framework and literature review, the exploratory qualitative research data produced from purposive sampling determined thematic findings in the field of social entrepreneurship.
... Individuals utilizing entrepreneurial and innovative skills towards resolving social and environmental issues to deal with a nonprofit social value that contributes to the wealth of a social enterprise (Popoli, 2016). ...
... Similarly, global businesses' innovative processes are being refined from a social standpoint, aside from observing the technological and market perspective (Popoli, 2016). ...
... A nonprofit social entrepreneur is an individual utilizing entrepreneurial and innovative skills towards resolving social and environmental issues to deal with nonprofit social value and contribute to the wealth in a social enterprise (Popoli, 2016). Diamond (2017) further stated that nonprofit social entrepreneurs are passionate individuals engaging in opportunities to seek methods of making a difference, regardless of their contributions utilized. ...
Nonprofit organizations and small business mergers into nonprofit social enterprises.
... • Social and eco-services (Mirvis, Googins and Kiser, 2012) • Co-creation of social and eco-innovations (Mirvis, Googins and Kiser, 2012) • Business reputation and goodwill (Mirvis et al., 2016;Popoli, 2016;Domanski and Kaletka, 2017) • New source of revenues, market-based solution, new logics of competition and market share growth (Jupp, 2002;Christensen and Wells, 2016;Mirvis et al., 2016) • Not all CSR programs have potential benefits to the firm (Varadarajan and Kaul, 2018) • Part of the firm innovation portfolio (Varadarajan and Kaul, 2018) Despite CSI is profoundly connected with CSR (Doi, 2020), it is not the next CSR (Domanski and Kaletka, 2017), nor is it a replacement term (Carberry et al., 2019). The literature agrees on the perspective that CSR is not enough to answer modern social challenges (Pyszka, 2013), a principal reason for which CSI can be assumed as an alternative practice for businesses in order to provide a much more complete answer to the current needs of modern society. ...
... Solution (Jupp, 2002), (Krull, 2008), (Ditlev-Simonsen and Midttun, 2011), (Harazin and Kósi, 2013), (Mirvis, Googins and Kiser, 2012), (Googins, 2013), (Googins and Escudero, 2014), (Mirvis and Googins, 2017), (Mirvis, 2017), (Mirvis and Googins, 2018a), (Canöz and Çerçi, 2019), (Schmitt, 2014), (Vilkė, 2015), (Canestrino, Bonfanti and Oliaee, 2015), (Ulinski, 2015), (Baltazar-Herrera, 2016), (Martinez et al., 2017), (Jali, Abas and Ariffin, 2017), (Popoli, 2017), (Kiser, Leipziger and Shubert, 2017), (Varadarajan and Kaul, 2018), (Caroli et al., 2018), (Li et al., 2018), (Alonso-Martínez, González-Álvarez and Nieto, 2019), (Esen and Maden-Eyiusta, 2019), (Carberry et al., 2019), (Candi, Melia and Colurcio, 2019), (Antoniou, 2020), (Schmiedeknecht, 2020), (Dionisio and de Vargas, 2020), (Doi, 2020), (Foroudi et al., 2020), (Crisafulli, Dimitriu and Singh, 2020) More focused on outcomes Issues of poverty, well-being, quality of life, sustainability (social, economic, and environmental) Novelty (Pasquero, 1989), (Idowu et al., 2013), Bexheti, 2011, 2013), (Schmitt, 2014), (Baltazar-Herrera, 2015), (Popoli, 2016), (Martinez et al., 2017), (Jali, Abas and Ariffin, 2017), (Maines da Silva, 2017), (Varadarajan and Kaul, 2018), (Mirvis and Googins, 2018b), (Carberry et al., 2019), (Franco-Leal et al., 2020), (Foroudi et al., 2020) Focused on both process and outcome ...
... ,Pyszka (2013),Popoli (2016Popoli ( , 2017, Jali, Abas and Ariffin(2017), Maines da Silva (2017), Portales (2019), and Canöz and Çerçi (2019) exclusively focus on showing the differences between CSI and CSR. ...
Purpose
The purpose of this study is to analyse the contributions, major discussions and trends in the literature driving the research agenda in corporate social innovation (CSI). This is done through a systematic review on CSI publications in an open time span. Salient themes and emerging research topics in this literature, as well as research questions and limitations, are identified, culminating in a discussion of what is next for CSI research.
Design/methodology/approach
A systematic review was undertaken from academic and grey literature. Results were analysed following a bibliometric and interpretative content analysis.
Findings
The study provides novel insights on CSI research by drawing attention to discussions around the consensus on a definition of CSI, its disciplinary origins and the denominations referring to this field. Although CSI struggles to gain independence as a research field, the evidence shows that CSI is a cross-disciplinary concept nourished by multiple disciplines.
Research limitations/implications
Analysis in this paper has implications for research by highlighting the state of scholarship on CSI. Given the use of multiple denominations of CSI, several studies using low diffused denominations could be discarded.
Originality/value
This research contributes to the body of knowledge in the field of CSI by bringing clarity to former discussions and by suggesting how the field can move forward to a more advanced and mature state in research.
... Ñîöèàëüíîå ïðåäïðèíèìàòåëüñòâî îòëè÷àåòñÿ è îò òðàäèöèîííîãî êîììåð÷åñêîãî ñåêòîðà, òàê êàê ïåðâîñòåïåííàÿ çàäà÷à ñîöèàëüíûõ ïðåäïðèíèìàòåëåé -ñîçäàíèå ñîöèàëüíîé öåííîñòè è äåìîíñòðàöèÿ îáëàäàíèÿ øèðîêèì êðóãîì äîñòîèíñòâ: ñîñòðàäàíèåì, ñî÷óâñòâèåì, òâåðäîé âåðîé â àëüòðóèñòè÷åñêèå aeåëàíèÿ ëþäåé âíåñòè ñâîé âêëàä â ýêîíîìè÷åñêîå è ñîöèàëüíîå ðàçâèòèå. Ñîöèàëüíûé ïðåäïðèíèìàòåëü -ëè÷íîñòü, êîòîðàÿ ïðèçíàåò ñîöèàëüíóþ ïðîáëåìó è èñïîëüçóåò ïðåäïðèíèìàòåëüñêèå ñõåìû ïðè ñîçäàíèè è óïðàâëåíèè ïðåäïðèÿòèåì äëÿ îñóùåñòâëåíèÿ ñîöèàëüíûõ èçìåíå-íèé [3].  èäåàëå ñîöèàëüíûé áèçíåñ äîëaeåí áûòü ïðèáûëüíûì èëè ïî êðàéíåé ìåðå ñàìîîêóïàåìûì [4]. ...
The article examines the theoretical and practical approaches of social enterprises definition. Three general social enterprise models in foreign countries are identified. The analysis a legislative framework and legal forms of social business in the Republic of Belarus are conducted. Recommendations on improvement social initiatives in order to benefit from the best foreign practices in the Republic of Belarus are made.
В статье проанализированы теоретические и практические подходы к определению социальных предприятий. Рассмотрены три основные модели социальных предприятий в зарубежной практике. Дана оценка нормативно-правовых условий регулирования социального бизнеса в Республике Беларусь. Разработаны направления стимулирования социальных инициатив в Республике Беларусь с учетом передового опыта зарубежных стран.
... As the primary objective of social entrepreneurship is not only to maximise profit but, like social innovation, to address social problems at the local level (e.g. labour market, equal opportunities, health, culture, etc.)(Popoli 2016;Piac & Profit 2017), social sensitivity and responsibility may be stronger in regions with more social enterprises. Self-employed people are creative actors who have innovative ideas and/or venture capital to implement new ideas and even create start-ups.In the complex technological innovation index, the capital regions of the Visegrad countries are at the top of the list in both periods investigated. ...
For more than a century, technical progress and innovation have been at the forefront of economics. This is one of the reasons why the importance of innovation has been recognised by economic policy makers and the concept has become part of the public narrative. However, this does not mean that research has come to an end, which would in any case contradict Schumpeter's theory of the need for change and renewal. Despite the wealth of knowledge we have, we can state that there are a number of recurring (e.g. social and ethical aspects of innovation, etc.) and new (e.g. spill-over effects of innovation, the effectiveness of public intervention in supporting the development of innovation networks, etc.) questions that can be asked about innovation. In the aftermath of the financial crisis of 2008, the cyclical COVID crisis starting in 2019 and, not least, the Russian-Ukrainian war, the peripheral regions of the post-socialist countries of Europe are falling further behind. Research, development and innovation investment, already extremely low, has further declined and the economic outlook has worsened. Social innovation may therefore be of particular importance in these regions. Our study has two main parts. First, we briefly review the place and role of innovation in economic thinking and assess the definitions of social innovation; in the second part we analyse the differences in the NUTS2 regions of the Visegrad countries in terms of the ranking of technological and social innovation potential.
... State often secures public services but does not provide them, relying on for-profit and not-for-profit providers instead (Popoli, 2016). As stated by Hatcher (2015, p. 390) delivering public services by social enterprises frees them from the constraints of state bureaucracy and stimulates innovation through a combination of market incentives and social entrepreneurship. ...
Social enterprises have the potential to address diverse issues, even when they fall off the radar of formal institutions e.g., by establishing partnerships that are new locally and nationally. The analysis offers a conceptual description of a model of social enterprise established by a regional self-government authority, that blends dual education and social economy and serves as an innovative agent of change. Case research was the approach used. The research revealed that the motivation behind the enterprise was social integration, increasing attractiveness of agriculture for young people and regional self-sufficiency. The partnership was recognized as the key element of the model design. The model brings social, economic and environmental change to employees and students but also to the whole environment. Such a model could be replicated and such collaboration could be put on the map of social enterprises.
... Number of social enterprises per 1000 inhabitants: As in the case of the social enterprises the main objective is not only the profit maximization, but similarly to make social innovation efforts, to address and solve social problems (e.g. labour market, equal opportunities, health, culture) (Popoli, 2016;Market & Profit, 2017). In the areas with a significant number of social enterprises, social sensitivity and responsibility are stronger, and in the long run more ideas and creative solutions can be created to address the challenges. ...
In the last two decades, a new direction has appeared in the study of innovation processes in the literature. Researchers are paying more and more attention to social innovation beside the classical Schumpeterian approach. Social innovation is new solutions (product, technology, organizational solution) that can effectively meet market needs that are not or hardly met on a market basis, innovation can lead to new or more advanced skills / relationships, and contribute to a more efficient use of resources. However, there is no uniform definition of the concept. The issue of social innovation is particularly important in the case of the Northern Hungary region, because it can bring hope for some peripheral areas and a new approach to solving problems. High technological innovation potential and performance do not necessarily go hand in hand with high social innovation activity, so in the case of peripheral regions there is a hope for social innovations even in the absence of technological innovations.
... Ennek oka lehet az is, hogy ezekben a térségekben a társadalmi-gazdasági helyzet és az elérhetőségi viszonyok miatt kevés profitorientált vállalat megtelepedése jellemző, így a lakosságnak érdemes nonprofit tevékenységet végeznie, ha megvan az ehhez szükséges kezdeményezőkészség/aktivitás. Figure 5. Change in the number of nonprofit organizations per 100 persons (2012)(2013)(2014)(2015)(2016)(2017) Forrás: saját szerkesztés Mivel a társadalmi vállalkozások esetében elsődlegesen nemcsak a profit maximalizálása a cél, hanem hasonlóan a társadalmi innovációs törekvésekhez, a helyi szinten jelentkező társadalmi (pl. munkaerőpiaci, esélyegyenlőségi, egészségügyi, kulturális) problémák kezelése, megoldása (Popoli, 2016), ezért a társadalmi innováció szempontjából releváns információt hordoznak. A jelentős számú társadalmi vállalkozással rendelkező térségekben erősebb a társadalmi érzékenység, felelősségvállalás, és hosszabb távon több ötlet, kreatív megoldás jöhet létre a kihívások kezelésére (Szendi, 2020). ...
Az elmúlt évtizedekben az innovációkutatásnak fontos szerep jutott a helyi és regionális gazdasági fejlődés tényezőinek feltárásában. Ma az általánosan elfogadott tudományos kánon része, hogy az innováció különböző formái (technológiai, üzleti és társadalmi innováció) meghatározó szerepet játszanak a városok, régiók, országok gazdasági fejlődésében, versenyképességének alakulásában. A
fenti összefüggés arra mutat rá, hogy az innováció fontos tényezője a társadalom térbeliségének, ugyanakkor a földrajz, pontosabban a földrajzi távolság vagy közelség (proximitás) egyik meghatározó eleme az innovációnak. Jelen tanulmányunkban áttekintést nyújtunk az „innováció földrajzának”, pontosabban a „társadalmi innováció földrajzának” legújabb elméleti és empirikus kutatási fejleményeiről, magyarországi alkalmazással.
... Number of social enterprises per 1000 inhabitants: As in the case of the social enterprises the main objective is not only the profit maximization, but similarly to make social innovation efforts, to address and solve social problems (e.g. labour market, equal opportunities, health, culture) (Popoli, 2016;Market & Profit, 2017). In the areas with a significant number of social enterprises, social sensitivity and responsibility are stronger, and in the long run more ideas and creative solutions can be created to address the challenges. ...
In the last two decades, a new direction has appeared in the study of innovation processes in the literature. Researchers are paying more and more attention to social innovation beside the classical
Schumpeterian approach. Social innovation is new solutions (product, technology, organizational solution) that can effectively meet market needs that are not or hardly met on a market basis, innovation can lead to new or more advanced skills / relationships, and contribute to a more efficient use of resources. However, there is no uniform definition of the concept. The issue of social innovation is particularly important in the case of the Northern Hungary region, because it can bring hope for some peripheral areas and a new approach to solving problems. High technological innovation potential and performance do not necessarily go hand in hand with high social innovation
activity, so in the case of peripheral regions there is a hope for social innovations even in the absence of technological innovations.
... A rational perception of the connotations of social responsibility and an in-depth analysis of the dual dimension of ethics and governance contained in social responsibility are conducive to more profound, systematic research in the future. [5] 社会责任品质是个体道德发展的需 要，同时也是教育的培养目标。澳大利亚的高等教育机构一直在努力制定清晰的战略，以便 在特定的学科背景下开发和评估毕业生的属性。将社会责任品质作为研究生的社会属性，并 在评估任务中明确地嵌入需要考虑社会责任在实践经验中发展的情况，将提升学生社会责任 品质这一目标的实现。 [6] 此外，人类社会发展的新变化，也使得我们开始考虑将协同(a)社会 责任(SR)、(b)创新、(c)(辩证)系统理论，作为实现必要的整体论(RH)的理论。没有社会责任 (SR)，所有人的利益都很难产生。没有社会责任(SR)，当前的文明也将几乎没有生存的机会。 社会责任(SR)是一个人的属性。相互依存使人诚实，使人从片面走向整体。 [7] 3.2 要素论 要素论者将社会责任品质作为系统中不可或缺的要素，通过要素的完善来促进系统的优 化。Paolo Popoli 将企业社会责任作为企业社会创新的基本要素，同时指出了企业社会责任对 企业社会的促进和保障功能。在超越企业社会责任的基础上，探讨链接企业社会责任(CSR) 和企业社会创新(CSI)， 指出社会创新范式如何以及为什么通过克服 CSR 的传统"给予"逻辑来 代表商业机会，从而使社会价值创造与经济价值创造携手并进。 [8] 也有学者将企业社会责任 作为一种国际战略，指出今天的公司负责公共项目的管理和执行，因此，企业是高度"社会责 任"的，因为它们是代表公共利益行事的(尽管这不是他们做出的选择)。 [9] 迈克尔·波特和马 克·克莱默提出了一种全新的视角来看待商业和社会之间的关系，这种关系并不把企业增长和 社会福利视为一种零和游戏而将社会责任看作是一种机会，一种必不可少的要素。 [10] 社会责 任品质也是市场营销人员取得更大收益不可或缺的基本要素。 [11] 3.3 管理论 管理论者将社会责任品质作为提升管理效能，解决社会、经济等领域危机的手段。《社 会和组织信息安全责任研究手册》， [12] 揭示了当代社会管理和人力方面的信息安全问题，这 个具有里程碑意义的研究手册提供了对相关社会责任问题的评估与策略，例如雇员监控、信 息安全策略和口令身份验证等。还有学者提出媒体的"社会责任论"，主张新闻自由应受社会 制约，新闻传播要对社会负责的新闻理论，从而更好地实行"有控制的新闻自由"。 [13] 社会责 任品质的提升同时也为管理社会经济危机提供一种新的非技术创新。社会经济危机可以通过 社会责任(SR)、人类必要的整体论(RH)和幸福(WB)来解决。SR 可以通过减少人的片面性来 帮助解决危机，同时 SR 和 WB 都支持 RH 行为，它们之间的创新协同作用导致了危机的解 决。 [14] ...
This study analyzed, in the form of a case study, the experience of a large company (Mercur S.A) in the implementation of a new vision focused on sustainability. The target company is located in the south of Brazil, has almost a century of existence, and has been managed by the same family since its foundation. The study is based on the notions and concepts of corporate governance, ethics for sustainability, and social-ecological systems. The study shows that the changes implemented in the company are catalyzed by an initial change of the ‘inner change' type, and are disseminated by the company and the community through social and cultural innovations. Important changes in the economic vision and social and environmental responsibility related to the structure/architecture and operation of the company, as well as trade-offs between financial and social and environmental aspects, were identified.
Entrepreneurship is a strategic opportunity for human development, on which MNCs play a vital role in the spillover effect. This chapter aims (1) to illustrate corporate social entrepreneurship (CSE) practices to generate social value and (2) to explore their ethical constraint alleviation. Using an internet-mediated research, a sustainability analysis of seventy companies from different countries and sizes evidenced that CSE is a tool for economic growth and good governance. This study brings new insights to the field of CSR and its role in sustainability by incorporating the entrepreneurship discipline. A corporate social innovation business model is proposed as a core business strategy. Also, Ecuadorian CSE practices and their different perspectives can serve as references for future studies.
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