Social Entrepreneurship Topic 3

1. SOCIAL
ENTREPRENEURSHIP
ROLES
ETHICS OF SOCIAL ENTREPRENEUR
Dr Anis Amira Ab Rahman 2015

2.  Social Entrepreneurship
~ a new form of entrepreneurship applies to social problem
solving tradition, private sector entrepreneurship’s focus
on innovation, risk-taking, and large scale transformation.
 Social Entrepreneurship Process
~ recognition of a perceived social opportunity
~ translation of the social opportunity into an enterprise
concept
~ identification and acquisition of resources required to
execute the enterprise’s goals.
Dr Anis Amira Ab Rahman 2015

3. Social Entrepreneur
~ a person or small group of individuals who founds
and/or leads an organization or initiative engaged in social
entrepreneurship.
~ also referred to as “public entrepreneurs” civic
entrepreneurs, “or” social innovators.
 Characteristic of social entrepreneurs as change agents
~ adoption of a mission to create and sustain social value
(beyond personal value)
~ recognition and relentless pursuit of opportunities for
social value
~ engagement in continuous innovation and learning
~ action beyond the limited resources at hand
~ heightened sense of accountability
Dr Anis Amira Ab Rahman 2015

4. Social Obligation
 firms that simply react to social issues through obedience to
the laws.
Social Responsibility
 firms that respond more actively to social issues, accepting
responsibility for various programs.
Social Responsiveness
 firms that that are highly proactive and are even willing to be
evaluated by the public for various activities.
Dr Anis Amira Ab Rahman 2015

5. Environment • pollution control
• restoration or protection of environment
• conservation of natural resources
• recycling efforts
Energy  conservation of energy in production and marketing operations
 efforts to increase the energy efficiency of products. Other energy-saving programs (for
example, company-sponsored car pods
Fair Business Practices • employment and advancement of women and minorities
• employment and advancement of disadvantages individuals (disabled, Vietnam veterans, ex-
offenders, former drug addicts, mentality and hardcore unemployed)
• support for minority-owned businesses
Human Resources  promotion of employee health and safety
 employee training and development
 remedial education programs for disadvantages employees
 alcohol and drug counseling programs
 career counseling
 child day-care facilities for working parents
 employee physical fitness and stress management programs
Community Involvement • donations of cash, products, services or employee time
• sponsorship of public health projects
• support of education and the arts
• support of community recreation programs
• cooperation in community projects(recycling centers, disaster assistance and urban renewal)
Products  enhancement of product safety
 sponsorship of product safety education programs
 reduction of polluting potential of products
 improvement in nutritional value of products
 improvement in packaging and labeling
Dr Anis Amira Ab Rahman 2015

6. Dr Anis Amira Ab Rahman 2015

7.  Why are ethics important?
 What exactly represents right or wrong conduct?
 How do we develop our own codes of conduct?
 What impact does integrity and ethical conduct have
on creating a successful venture?
Dr Anis Amira Ab Rahman 2015

8. DEFINING ETHICS
 Ethics
~ a set of principles prescribing a behavioral code that explains
what is good and right or bad and wrong, ethics may outline
moral duty and obligations
~ provide the basic rules or parameters for conducting any
activity in an “acceptable” manner.
 Reasons for Ethical Conflicts
~ the many interest that confront business enterprises both
inside and outside the organization
~ changes in values, mores, and societal norms
~ reliance on fixed ethical principles rather than an ethical process
Dr Anis Amira Ab Rahman 2015

9. DIFFERENTIATING
ETHICS AND MORALITY
Ethics Morality
Dr Anis Amira Ab Rahman 2015

10. Example : Differentiating Ethics And Morality
Through the lawyer’s personal moral code likely finds
murder immoral and reprehensible, ethics demand the
accused client be defended as vigorously as possible,
even when the lawyer knows the party is guilty and
that a freed defendant would potentially lead to more
crime. Legal ethics must override personal morals for
the greater good of upholding a justice system in which
the accused are given a fair trial and the prosecution
must prove guilt beyond a reasonable doubt.
Dr Anis Amira Ab Rahman 2015

11.  business ethics is the continuing process of redefining
the goals and rules of business activity. In times of rapid
change, spurred equally by technological innovation
within the business community and by societal
expectations in the larger community, participants who
share in that process of re-defining goals and rules
should be sensitive to professional differences.
 because of these differences, definitions of what is
ethical will vary as well, spread across a spectrum of
ethicality
Dr Anis Amira Ab Rahman 2015

12. Business
Firm
employees
stockholders
creditors
suppliers
customers
Distributors,
Wholesalers,
retailers
Dr Anis Amira Ab Rahman 2015

13. Business
Firm
communities
governments
Activist
groups
media
Business
sport
group
General
public
Dr Anis Amira Ab Rahman 2015

14. The Dilemma with Ethics
 “deciding what is good or right or bad and
wrong in such a dynamic environment is
necessarily ‘situational’. Therefore, instead of
relying on a set of fixed ethical principles, we
must now develop an ethical process.
Dr Anis Amira Ab Rahman 2015

15. Dr Anis Amira Ab Rahman 2015

16. The quadrants depicted in Figure demonstrate the age-
old dilemma between law and ethics. Moving from the
ideal ethical and legal position (Quadrant 1) to an
unethical and illegal position (Quadrant IV), one can
see the continuum of activities within an ethical
process. Yet legality provides societal standards but not
definitive answer to ethical questions.
Dr Anis Amira Ab Rahman 2015

17. Ethics and Laws
 Managerial Rationalizations
~ justifications in defense of unethical acts are believing that
an activity :
1) is not “really” illegal or immoral
2) is in the individual’s or the corporation’s best interest
3) will never be found out
4) that helps the company will be condoned by the company
Dr Anis Amira Ab Rahman 2015

18.  These rationalizations appear realistic, given the
behavior of many business enterprises today.
 However, the legal aspect can be the most
dubious. This is because the business world (and
society) relies heavily on the law to qualify the
actions of various situations. The law interprets the
situations within the prescribed framework.
Dr Anis Amira Ab Rahman 2015

19. Type Direct Effect Examples
No role Against the firm  expense account cheating
 embezzlement
 stealing supplies
Role Failure Against the firm o superficial performance appraisal
o not confronting expense account
cheating
o palming off a poor performer with
inflated praise
Role Distortion For the firm  bribery
 price fixing
 manipulating supplies
Role Assertion For the firm o investing in South Africa
o using nuclear technology for energy
generation
o not withdrawing product line in face of
initial allegations of inadequate safety
Dr Anis Amira Ab Rahman 2015

20.  http://www.slideshare.net/bachajee007/socia
l-entrepreneurship-and-the-ethical-challenges-
of-entrepreneurship?qid=b16922e1-ac68-4374-
9bde-
3654da3bd398&v=default&b=&from_search=2
Dr Anis Amira Ab Rahman 2015