Corporate Social Entrepreneurship

What is Corporate Social Responsibility?

• Corporate Social Responsibility (CSR) describes the general responsibility of a company for sustainable management in an economical, ecological and social respect.

• Corporate Social Responsibility (CSR) is a fundamental concept designed to help companies integrate social and ecological concerns into their corporate activities and relationships with stakeholders.

• Corporate Responsibility (CR) describes the sense of responsibility of a company any time its business activities affect society, the employees, the environment and the economic surroundings

Corporate Social Entrepreneurship

• CSE emerges from and is built on three conceptual frameworks: entrepreneurship, corporate entrepreneurship, and social entrepreneurship

• Social entrepreneurship is the work of a social entrepreneur. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change.

• Corporate Social Responsibility (CSR) is a concept whereby enterprises integrate social and environmental concerns into their mainstream business operations on a voluntary basis.

• While the Government provides a regulatory framework governing issues such as employment rights, environmental protection, equality and fair trading, CSR goes beyond compliance with legislative requirements and creates shared value through collaboration with all stakeholders. It ensures that the interests of enterprises and interests of wider society are mutually supportive.

• Corporate social commitment refers to voluntary non profit investments into the

• community made by a company. For this purpose, the company provides for example money, products or the knowhow and manpower of its employees. Commitment can

• be realised with a variety of tools, such as • Donations and • Sponsoring corporate volunteering• and public private partnership• .

CSR Good for business…

• An active interest in the community by a business can generate community support, goodwill and loyalty.

• There are many ways in which enterprises are involved in communities, such as:

• A)• B)

Impact of CSR

• A key driver of CSR is the impact it can have as a lever for improving competitiveness and as a means of reducing costs and creating new value.

• Most businesses seek to be profitable, and this can be done in a manner which creates shared value for all stakeholders.

• High performing organizations manage their societal, economic and environmental responsibilities in an ethical manner which benefits them, their workers and their wider local communities.

Benefits of CSr

• A strategic approach to CSR can therefore lead to potential benefits and create opportunities for growth at enterprise level.

• CSR can have a positive influence on the competitiveness of enterprises and can bring real benefits in various ways such as Customer relations, Risk management , Cost savings , Human resources

Benefits

• Customer relations: consumers are increasingly paying more attention to the environmental and social credentials of the products and services they buy and the activities of companies in the sourcing and production of the goods they sell.

Benefits• Risk management: as a means of anticipating and reducing

potential sources of risk and a means to enhance reputation. • Cost savings: particularly in the area of the environment and

resource efficiency. • Human resources: through its effect on employee relations, the

capacity to attract and retain talent, and its positive impact on staff motivation and productivity.

• Improving innovation capacity: engaging with customers enables businesses to keep close to emerging market trends and can lead to the development of new business models or products.

• Investment: Investors are increasingly looking at the ethics and practices of companies they are considering investing in.

• Social entrepreneurship is about addressing social problems caused by the failure of public institutions in addressing social needs (Hartigan & Bilimoria, 2005).

• Corporations haves a role to play in helping and supporting the training of the next generation of employees and offering work experience, particularly to those who may otherwise struggle to access the labor market.

• Businesses can ensure a pipeline of skills and experience at all levels for the future.

• Businesses can also play a role in supporting local entrepreneurship and the development of a strong entrepreneurial culture, which will help the growth of a sustainable economy in the medium to longer term

Aim of Social Entrepreneurship

• Business would promote Social Responsibility by encouraging community growth and development, and voluntarily eliminating practices that harm the public.

Social entrepreneurship

• Social entrepreneurship is a process that provides viable solutions to problems with the purpose to improve access to social services, health education and local labor exploitation, aims to reduce all forms of discrimination by providing jobs to people in need (Borza et al, 2009)

• Social entrepreneurs focus on systemic social change that disregards institutional and organizational norms and boundaries.

• The social entrepreneur seeks to achieve social goals by developing new combinations of goods, services and methods,incorporating a high degree of innovation (Hatten, 2009).

Corporate Social Responsibility

• Corporate Social Responsibility (CSR) brings many benefits and can be considered as an important lever in supporting social entrepreneurship (Austin 2007)

• CSR implies commitment to improve the society through business practices.

• Corporate social involvement means the investment in established partnerships with non-profit and public sector in order to create healthy and favorable conditions.

• CSR targets both the community needs and objectives of the business. CSR policies help the firm to fulfill the economic and social responsibilities to ensure the wellbeing of the firm and also it’s the social welfare (Hockerts, 2007).

• CSR implies commitment to improve the society through business practices (Kotler & Lee, 2005). Companies that deal with their social responsibility in a forward-looking manner ensure that CSR becomes an integral aspect of their corporate governance.

• CSR refers to „business decisions" that pass beyond the economic and technical interests of the organization (Carroll, 1991). Social involvement is a corporative integrative function of the company involving practices that contribute to the establishing of positive relationships to the communities and to society at various levels

• Corporate social involvement means the investment in established partnerships with non-profit and public sector in order to create healthy and favorable conditions, targeting both the community needs and objectives of the business.

Impact of Social Responsibility

• Business entrepreneur measures performance in terms of profits and returns, a social entrepreneur assesses success in terms of the impact one has on society. Social entrepreneurs work through nonprofits and citizen groups, private and governmental sectors.

THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY IN SOCIAL ENTREPRENEURSHIP

• Corporate Social Responsibility has an undeniable effect on both society, community and businesses.

• Businesses show an increased concern over environmental and social component in order to achieve a long-term development. They must ensure a balance between economic, social and environmental components.

• Sustainable development must take into account the social change which involves paying attention to issues of political, social and economic tensions that may degenerate into conflict.

• A social enterprise is based on voluntary principles, ethical behavior and mission focused on social causes.

• Community involvement is also a method of stakeholder engagement. The immediate community is often a consumer of locally produced goods and services and local input can offer a different perspective on business proposals and allow businesses to keep in touch with stakeholders and remain close to market trends.

• Respectful consultation, participation and collaboration with local communities brings a host of benefits to the enterprise as well as to the community.

• An active interest in the community by a business can generate community support, goodwill and loyalty. There are many ways in which enterprises are involved in communities in– through proactive social inclusion projects,

outreach programs, staff volunteering initiatives, support for broader health and wellbeing programs, fundraising, mentoring, etc.

• CSR by its nature includes compliance with statutory requirements.

• The relationship between good tax governance and the ability of Government to fund programs for the betterment of society is well recognized. Any business that operates on the basis of good CSR principles should be fully tax compliant, thereby playing its part in ensuring that essential funds are available to Government to meet economic and social objectives.

Role of Social Entrepreneurship in Sustainable Business

• Typically, when we think about “sustainable business,” we concentrate on corporate social responsibility (CSR): in terms of energy efficiency, reduced carbon/pollution, recycling and reuse, fair treatment of employees, and charitable giving, among others.

Corporate Social Responsibility• Good for Community• A key priority for a socially responsible business is to

develop and maintain strong and mutually beneficial relationships with its community. It is at the local and community level that the impact of increased CSR activity will be felt in social, economic or environmental terms.

• Using scarce resources efficiently, helping people to develop their potential and building self-reliant communities are all part of the benefits that will be seen when businesses embed CSR practices into their mainstream operations its.

• Community involvement is also a method of stakeholder engagement.

• The immediate community is often a consumer of locally produced goods and services and local input can offer a different perspective on business proposals and allow businesses to keep in touch with stakeholders and remain close to market trends.