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Duties of beneficence are general, impersonal obligations to promote the welfare and meet the needs of strangers. Many laypeople and philosophers presume that duties of beneficence are primarily met through volunteering or donating to various causes. More recently, some business ethicists and activists in the effective altruist camp have argued that social enterprise can be a way to exercise beneficence. This essay argues that most of us exercise beneficence, and discharge many or perhaps all of our duties of beneficence, by holding normal jobs and doing normal productive work.
This chapter examines employment social enterprises (ESEs), organizations that provide employment opportunities to individuals marginalized and excluded in the labor market. Employment social enterprises employ chronically unemployed and underemployed individuals, including formerly incarcerated individuals, immigrants, and opportunity youth. This chapter begins by exploring the history, evolution, and prevalence of ESEs. We then highlight two exemplar ESEs to illustrate the design and demonstrate the impact of these organizations. After examining community power and psychological empowerment within ESEs, we explore different models of ESEs and identify topics for future research.
Lamothe and colleagues view the nonprofit sector as being intentionally engineered or designed by government to create specific behaviors in the economy. This chapter examines the ways in which government and legal structures envision desirable outcomes in the broad economy and develop laws and policies intended to yield specific institutional state-sanctioned outcomes in the private market. Drawing on the Korean context as an example, the authors explore what government design of the social sector says about not only the strong-state context present in the global East, but also how this lens helps us to reinterpret our understanding of the legal underpinnings of the nonprofit sector elsewhere.
This chapter articulates the central argument (why a new legal form for social enterprises in India, Malaysia, Hong Kong, and Singapore is needed and what it should entail); explains why the four Asian jurisdictions are selected as case studies; and examines the purposes of social enterprises and their two main business models. The chapter then provides an overview of social enterprises in the four Asian jurisdictions including: their operating domains, the drivers of the development of social enterprises, the challenges faced by them, the three main conflicts of interests afflicting them, and the legal forms used by social enterprises. Importantly, the chapter shows that the legal forms available to or used by social enterprises in the four Asian jurisdictions are unable to properly address the conflicts of interests, and thus, a new legal form is required.
Social enterprises are regarded as a vital solution to the pressing problem of socio-economic inequality and play a crucial role in the delivery of public goods and services. Ernest Lim argues that social enterprises in four leading Asian jurisdictions – India, Hong Kong, Singapore and Malaysia – should have a new legal form. This entails advancing a nuanced and comprehensive framework consisting of five criteria: (1) corporate purpose; (2) directors' duties; (3) decision-making powers; (4) reporting, impact measurement and certification; and (5) distribution of dividends, assets, and tax benefits. This invaluable work demonstrates that the existing legal forms in common law Asia, the UK and the US do not properly address the various conflicts of interest affecting social enterprises. An essential read for those interested in understanding and evaluating the laws and regulations on social enterprises, as well as designing and implementing creative ones to protect and promote these important businesses.
The conclusion higlights continuing challenges for the EU and the rest of the world and how the future humanity faces is uncertain. Yet an optimistic message is also presented. Noting that shareholder primacy is increasingly coming under question and a growing interest in the concepts of corporate purpose and sustainable value creation, the conclusion draws upon the suggestions made among the chapters throughout the book to highlight the potential for corporations to be a force for good if supported by more effective legal and regulatory reforms and operating with more innovative structures and technologies. More stable, resilient and democratic institutional structures are necessary too as is the inclusion of active political and entrepreneurial women. Also fundamental to change is setting sustainable value creation within planetary boundaries as an overarching purpose for business, with mandatory rules to ensure that sustainability is integrated into the governance of business across global value chains. In a policy coherence for sustainability perspective, the book concludes by positioning the research-based reform proposals for business and finance within broader European Union laws and policies, underlining the necessity of reform also of other related areas, including circular economy policies, competition and state aid law and public procurement.
Governments and the markets in Europe have traditionally failed to adequately address environmental and ecological issues such as the access to clean and drinkable water and pollution of the Atlantic Ocean and the Mediterranean Sea. However, social enterprises across Europe have demonstrated that social entrepreneurship can play a role in providing creative and efficient solutions to social, environmental and ecological problems while employing inclusive and participatory governance models, which involve stakeholders and the affected society. Research in this chapter focuses on social enterprises in the Netherlands, which country also suffers from ecological porblems. Through a case study analysis of the Dutch social enterprise Dopper, which organisation aims to contribute to solving the problem of plastic waste, creating awareness about this problem as well as about access to drinking water, the contribution of value creation is analysed. Against the backdrop of a discussion concerning the emergence of social enterprises in the Netherlands despite the existence of a supportive legal framework, this chapter also illustrates examples of legal and participatory governance structures employed in Dutch social enterprises’ organisational structure and function. These can serve as illustrations of sustainable business structures in the Netherlands and in Europe.
This article explores the European Parliament's July 2018 non-legislative resolution proposing to the European Commission a directive for facilitating social enterprise companies’ cross-border activities. The proposal is first situated within the context of the social economy and how the sector has grown in importance to European integration. The proposal and the European Commission's response are then examined. Although the European Commission was not convinced that Member States would be amenable to the proposal, a consensus may already exist that is sufficient to garner their support. Even if this prediction is wrong, however, it is argued that there are reasons to surmise that the proposal will likely be reassessed and ultimately successful at some future point. Finally, the proposal is viewed with a reflexive harmonisation lens. Through the analysis, regulatory issues are identified, and a solution is then suggested.
In recent years ‘social enterprises’ have become important partners in the delivery of key public services such as healthcare. However, little is known about how healthcare social enterprises contribute to public service provision in the health sector. We analyzed 172 social enterprises from four continents involved in healthcare to assess the types of interventions, processes, and roles they play responding to rapidly evolving healthcare systems. We found that they are engaged broadly in three dimensions of health service provision: improving access to health services; improving the quality of health services; and building public health capacity. We contribute to social policy theory by enhancing understanding of the micro-level interventions of social enterprises in the healthcare sector and articulating new dimensions of NPG that include co-innovation, co-lobbying, and co-integration in the context of healthcare.
In 2020, the Barunga Festival would have celebrated its 35th anniversary. In mid-June of 2021, as many as 4,000 individuals were expected to descend on an aboriginal community of 300 residents located 400 km south of Darwin. This case describes the challenge to the Festival's promoters as they seek to sustain peak socio-economic impact in their role as community development change agents in a diverse and dynamic environment. The reader is tasked with clarifying goals, deciding what is at stake, and setting a course of action to realize those objectives.
The CRPD recognises that the measures that are appropriate for one category and severity of impairment may not be appropriate for others. This leads to substantial challenges for crafting regulatory options that support the most vulnerable people in the disability community, without holding back those who are more able, as well as not adopting models which enable those who can become highly competitive in the open labour market to do so at the expense of those who cannot. These policy challenges are being experienced when considering the right to work and the sheltered work debate. In 1955, the ILO issued a recommendation that called for the adoption of sheltered work arrangements for workers “who cannot be made fit for ordinary competitive employment … for those disabled persons who, for physical, psychological or geographical reasons, cannot travel regularly to and from work.”[1] The regulation of ability diversity at work has substantially shifted over the last few decades and, as analysed in this chapter, there has been considerable pressure inside and outside the disability community to close sheltered workshops.
There is a budding food sovereignty movement taking place in Native American communities. An important part of this movement includes the development of food and agricultural businesses by Native nations and by individual farmers and ranchers. This chapter examines the history of Native American food systems and one particular element of the Native American food sovereignty movement, the Native American youth-led movement to develop social enterprises around Native American food and food systems. The chapter demonstrates that the food sovereignty movement in Native communities is an important contributor to Native American youth and enterprise development – and vice versa.
Social enterprises (SEs) primarily aim to create social value, that is, togenerate benefits or reduce costs for society, while maintaining financialsustainability. Owing to their unique operating conditions and organizationalcharacteristics, SEs face more severe resource challenges than their commercialcounterparts. These challenges are exacerbated for SEs operating in emergingeconomies with complex social contexts. Overcoming these resource constraintsand social challenges is vital for SEs to achieve their mission. Using aninductive multiple case-study approach, we identify a unique bricolage solutionfor achieving the dual objectives of SEs. Our findings suggest that identifyinglocally embedded village level entrepreneurs is a bricolageactivity that social entrepreneurs leverage in the resource constrainedenvironment of emerging economies, especially for the social enterprises thatare active in the villages but were founded by social entrepreneurs who are notfrom these villages. This article therefore contributes to both socialentrepreneurship literature as well as entrepreneurial bricolage literature andhas important implications for future research and practice.
Time Credits are a form of community currency based upon the reciprocal exchange of time and represent an interpretation of ‘time banking’ by a UK social enterprise, Spice. This article sets out the contribution made by research on Time Credits to the theory and practice of co-production in public services. Time Credits are intended to improve wellbeing through volunteering and ultimately increase economic participation. There is a focus on communities exhibiting high levels of deprivation within a small Cambridgeshire town (Wisbech, UK) which is geographically isolated and characterised by low-skilled, agri-food based employment opportunities that attracted high levels of inward migration from the A8 EU accession countries. In separating the rhetoric from the reality of co-production, the research aims to shed some light upon the extent to which such initiatives can realistically engender a shift towards a more reciprocal economy in the context of an ongoing programme of fiscal austerity.
In recent years, many countries have introduced special regimes to facilitate the organisation of social enterprises. Many of these include company law rules which may either provide for a special corporate form for social enterprises, or are part of a certification scheme for such enterprises. This article analyses how these company law issues have been addressed. It focuses on the US benefit corporation, the UK Community Interest Company and the recently proposed Danish certification regime for social enterprises. An analysis is made of how the different systems aim to find the right balance between flexible rules that are sufficiently attractive to entrepreneurs and (social) investors, and rules which ensure that the designation of ‘social enterprise’ is credible. It is pointed out that the three systems balance these requirements quite differently, and the advantages and disadvantages of each are discussed. One of the key elements in the governing of social enterprises is the regulation of how assets can be transferred from these enterprises. It is concluded that a certification scheme seems preferable to a new corporate form, and several recommendations are made as to how to find a system that is more credible than the US solution and more flexible than the UK and Danish solutions.
Over the past few years there has been a growing interest on the part of the scientific community (and, more recently, of policymakers) in the concept of social innovation. The notion of social innovation is particularly appealing in light of the difficulties facing traditional welfare systems and, more broadly, a development model that is finding it increasingly difficult to meet the growing and diversified needs of society. However, the uses and definitions of the concept are so disparate that it is becoming increasingly difficult to assess whether social innovation is in fact a helpful construct or just another fad that will soon be forgotten. This article focuses in particular on the usefulness of the concept of social innovation for the purposes of policy development. Therefore, the goal is not to find the ‘true’ definition of social innovation. Rather, it is to search for a useful framework on which to build sound policies that could tackle the complex social issues that have caused scholars and practitioners to pay attention to social innovation in the first place.
In a world filled with poverty, environmental degradation, and moral injustice, social enterprises offer a ray of hope. These organizations seek to achieve social missions through business ventures. Yet social missions and business ventures are associated with divergent goals, values, norms, and identities. Attending to them simultaneously creates tensions, competing demands, and ethical dilemmas. Effectively understanding social enterprises therefore depends on insight into the nature and management of these tensions. While existing research recognizes tensions between social missions and business ventures, we lack any systematic analysis. Our paper addresses this issue. We first categorize the types of tensions that arise between social missions and business ventures, emphasizing their prevalence and variety. We then explore how four different organizational theories offer insight into these tensions, and we develop an agenda for future research. We end by arguing that a focus on social-business tensions not only expands insight into social enterprises, but also provides an opportunity for research on social enterprises to inform traditional organizational theories. Taken together, our analysis of tensions in social enterprises integrates and seeks to energize research on this expanding phenomenon.
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