A relatively small segment of business, known as social entrepreneurship (SE), is increasingly being acknowledged as an effective source of solutions for a variety of social problems. Because society tends to view "new" solutions as "the" solution, we are concerned that SE will soon be expected to provide answers to our most pressing social ills. In this paper we call into question the ability of SE, by itself, to provide solutions on a scope necessary to address large-scale social issues. SE (...) cannot reasonably be expected to solve social problems on a large scale for a variety of reasons. The first we label the orga nizational legitimacy argument. This argument leads to our second argument, the isomorphism argument. We also advance three other claims, the moral y political and structural arguments. After making our arguments, we explore ways in which SE, in concert with other social institutions, can effectively address social ills. We also present two examples of successful ventures in which SEs partnered with governments and other institutions. (shrink)

As capitalist economies have shifted their primary focus from providing goods and services for all, to concentrating wealth at the top echelons of societies, social entrepreneurs have been one source of re-capturing the original intent of capitalism. Social entrepreneurs have combined the efficiency and effectiveness of business organizations with the social concerns of many non-profit and governmental agencies. As a result, social entrepreneurship is viewed as having significant potential for alleviating many of the social ills we now face. To accomplish (...) this mission, however, will require expansion of social enterprises beyond their current footprints. We explore alternate methods of expansion, scaling and replication, and then examine potential catalysts, which can enable social entrepreneurs to attain their goals of social improvement. The catalysts we identify are effectual logic, enhanced legitimacy through appropriate reporting metrics, and information technology. We conclude with two brief case studies that exemplify how these catalysts are currently working to enhance the effectiveness of social start-ups. (shrink)

The authors argue that a free market paradigm facilitates wealth creation but does little to distribute that wealth in a just manner. In order to achieve the social goal of distributive justice, the concept of a fair market is introduced and explored. The authors then examine three drivers that can help improve the lives of all people, especially the poor: civil society, its institutions, and business. After exploring the roles these drivers might play in developing fair markets, we describe three (...) enablers that serve as catalysts for change: the effects of globalization, the impact of technology, and the emergence of entrepreneurial activity. We conclude by making recommendations for establishing fair markets and provide exemplars of two firms that embody the arguments made in the article. (shrink)

This paper investigates a structural void that, especially in the context of poor or developing nations, prevents economic growth from being more inclusive and benefiting wider sections of society. The authors initially examine the imperative for inclusive growth, one encompassing a focus on poverty and development. Utilizing social choice theory, and a capability deprivation perspective, we observe that the poor experience deprivations due to a deficiency in their personal autonomy. This in turn is deeply interwoven with the concept of identity. (...) Legally recognizing the poor as individuals, and providing them with proof of their identity, will empower them and facilitate inclusive growth and poverty alleviation. These conceptual arguments are illustrated with the description of a biometric-linked developmental initiative that is providing proof of identity to 1.2 billion residents of India. By establishing a robust identity management system, the project aims to ensure more inclusive growth and efficiently target welfare programs. The authors further investigate how the establishment of identity rights facilitates financial inclusion, property ownership, and necessity-driven entrepreneurial action. Biometric identification on this scale is, however, fraught with dangers to civil liberties and has other serious ethical consequences. In the last section, issues around privacy and security are debated while highlighting the need for external review and independent monitoring to define the project’s boundaries and usages. (shrink)

An ongoing argument often made by business ethicists is that a singular preoccupation on profitability, will lead, in the long run, to disvalue for all the stakeholders and the communities it affects, and often, economic challenges for the company. On the other hand, we argue, a preoccupation with ethics and CSR as the primary aims of a for-profit company, it is, on its own, like a preoccupation with profitability, unsustainable. Indeed, without economic viability, a company will fail. Both of these (...) contentions point to our conclusion that one must take care in changing habits and rethinking business models. We illustrate through case examples, that merely being ethical and socially responsible is insufficient for the long-term well-being of business just as a preoccupation with profits for their own sake also is insufficient. What is realistic, practical, pragmatic, sustainable and profitable for corporations, and what also serves the interests of multiple stakeholders including those in the communities they serve, is a true balance of ethics, CSR, and economic value-added. Expanding on the recent work of Husted and Allen, we call this a strategic global strategy approach. (shrink)

We propose that firms that engage in morally imaginative sensemaking will manage society's changing ethical expectations more effectively than those engaging in habituated sensemaking. Specifically, we argue that managers engaging in habituated sensemaking will tend to view changes in expectations as threats and respond to them defensively. In contrast, morally imaginative managers will tend to see these same changes as opportunities and address them by proactively or interactively engaging stakeholders in learning processes. We contribute to the literature on moral imagination (...) by highlighting the value of moral imagination relative to conventional sensemaking, and by positioning moral imagination as an ongoing mode of sensemaking. While we recognize that managers' capacity to continuously address changing ethical expectations using moral imagination is constrained by cognitive limitations, we posit that morally imaginative sensemaking may economize on cognitive resources over time by enabling managers to avoid managing ethical issues unproductively based on habit. We also contribute to the issues management literature by calling attention to two underlying factors, managerial sensemaking mode and firm enterprise strategy, that drive companies' approaches to issues management. (shrink)

While investigating the role of business and accepting that profitable partnerships are the primary solution for poverty alleviation, we voice certain concerns that we hope will extend the authors’ discourse in Alleviating Poverty through Profitable Partnerships . We present a model that we believe can serve as an effective framework for addressing these issues. We then establish the imperative of inclusive growth. Here, we engage with the necessity of formulating strategies that focus on the pace and, importantly, the pattern of (...) economic growth, including its social and cultural dimensions. We also deliberate on the parameters of inclusive growth with the overriding objective of ensuring that multiple strata of society share the benefits of globalization. Turning to the critical role of institutions in promoting social welfare, we explore the impact of government policy vis-à-vis the leverage enjoyed by other social institutions. Despite the reality that state and private interests often operate at cross purposes, we argue that government must still be an integral part of the solution matrix. With direction from other social institutions, entrepreneurial forces can be unleashed to tackle endemic poverty prevalent in the base of the pyramid. We then provide an in-depth case study in which the availability of telecommunications in rural areas was utilized as a means to foster development and ensure inclusive growth. The conclusion examines lessons learned while operationalizing the model, and spells out the impact of our enablers at ground level. (shrink)