The recent global crisis has left evidence in social problems that limit the sustainable human development. Also the link between enterprises and society, allows us to analyze that there are many things to be done to mitigate these effects of the current economic model in favor of improving the quality of life society. There are two alternate paths, that aim at the same ultimate goal, one is the Social Entrepreneurship which is intended to meet common needs resulting of the economic system and Corporate Social Responsibility, which it is the result of company ethical reflection based on interdependence and reciprocity of it to society, both paths are closely related to the creation of sustainable social value, but do not get in the same way, so it requires both. In this review the differences and similarities are described since the understanding of these depends on the value and ownership of such actions.
Author of scientific article – Andrea Carolina Silva Niño – explains in his work the main similarities and differences in comparing social entrepreneurship with corporate social responsibility.
It is noticed, that the Social Entrepreneurship is associated with the activity of the non-profit sector, this is a general classification, which includes a majority of organizations that cannot be classified as social enterprises, despite the fact that they are linked to social change, and that somehow favor or promise solutions to thorny problems such as poverty, hunger and disease (Light, 2006), in this context of social change the scope of this type of projects is analyzed.
Some definitions of Corporate Social Responsibility:
- “Continued commitment by the companies to maintain ethical behavior and contribute to economic development while improving the quality of life for its staff and their families, the community in which they work and society in general. The World Business Council for Sustainable Development (The World Business Council for Sustainable Development –WBCSD-12).
- “Any person or group of people that may affect the performance of the company or to be affected by the achievement of the goals of the organization ” (Freeman, 1984)
- The shared value is “redefining the limits of capitalism.” (Porter and Kramer 2011)
There is a boom in social initiatives and a widespread interest in common issues such as education, health, environment, fair trade, equity and sustainability, however, this concern was no longer exclusive of companies and its ethical thought of how these results are achieved and extended to civil society with social organizations, to search for solutions to the underlying problems in the economic and social systems, used as mechanism of nonprofit organizations which today are insufficient to meet so many needs. Emerge then alternatives such as Social Entrepreneurship, which has to do with the sensitivity and the ability to recognize business opportunities, whose impact focuses on improving the quality of life, creating social value, from a managerial approach, where the opportunity it is a desirable future welfare state, which requires the introduction of goods and services through the creation of partnerships. (Mariek et al., 2004).Same time evolves the concept of Corporate Social Responsibility from the positioning of reputation, guarantee survival.
The Corporate Social Responsibility is immersed in an environment where yet clearly increase the shareholder value is key, this investors are willing to pay or invest in more ethical companies; these impacts on perceptions that occur in the Satake Holders from outside the organization, also take place in their employees, which show greater loyalty to companies that have committed behavior.
In short, well-managed Corporate Social Responsibility can integrate the expectations of society with corporate objectives and strategy of the company, at the same time allowing to improve all its processes.
The Social Entrepreneurship and the actions of Corporate Social Responsibility, are oriented to the society in general and in particular to the creation of social value, the common point in the focus of the debate and that is perhaps not what makes it possible to show the main difference and although both have that feature as its central axis is the person, from which they are seeking the welfare in different aspects of the human, the Corporate Social Responsibility addresses the needs of a group to which directly or indirectly has impacted prior development of commercial, industrial or services activities and the Social Entrepreneurship emerge as transversal response with products or services aimed to close the gaps in the activities In a globalized economic system.
Full scientific article is available HERE.
This publication has been prepared within INDIGISE project. The content of this publication is the sole responsibility of the project coordinator and may not always reflect the views of the European Commission or the National Agency.