Discussion CaseSocial Enterprise and Social Entrepreneurs
• What makes a career successful• By what criteria would you judge that you’ve had a successful career?• Is it enough to say that you are employed?• Is it important the job be long term and pay a lot• How much is “a lot”?• Is success measured by income?• Would it matter if you were underemployed; that is if your career was not challenging and did not require the knowledge and skills that you acquired during your education?• Does it matter what goods or service your career produced?• Would it matter how well you performed your job-related tasks?• Does it matter the type of work you do and who you worked door?• Does your care serve a purpose?
• In most discussion about business and ethics: pursuit of profit is at odds with the pursuit of personal and social responsibilities. – Business Ethics: oxymoron – What message sent to employees when the pursuit of profit, the guiding principle of their time at work, is thought to be incompatible with doing the socially responsible thing? – Is it possible to find meaning and value at work if employees are told to check their conscience at the door?
• Organizations that pursue social ends as the very core of their mission – Non-profit, NGO’s, foundations, professional organizations, schools, colleges, and government agencies.• Social Entrepreneurship or social enterprise: challenges the assumption that one cannot pursue both profit and social causes – Social entrepreneurship differs from work of nonprofit groups such s NGO’s and corporate foundation in that they explicitly seek profit.
• Social Entrepreneurship: involves the standard entrepreneurial characteristics of innovation, creativity, and risk-taking, but marshals these skills to address social needs. – Entrepreneurs: the first who identify an untapped market and then are creative in developing a means for meeting this demand and are willing to take the risk that their creation will, in fact, satisfy the demand. • Untapped market: social and ethical need such as social justice, environmental protection, educating, health care.
• Mohammad Yunus (best-known social entrepreneurs): founder of the Grameen Bank in Bangladesh – Economist, US professor, returned to Bangladesh 1970 soon after gained independence from Pakistan. – Contribute to this new countrys independence with his expertise in economics – Bangladesh poor country struggling with effect of a harsh famine. – Grameen Bank was born from recognition that very small amounts of capital, loaned directly to poor people at low rates, could have a tremendous positive impact in helping entire villages escape a cycle of poverty. – Grameen Bank’s model; lend small amounts of money directly to the poorest people to help them establish and sustain small businesses.
• Yonus identified social need: small loans at interest rates small enough to allow craftswomen to escape a cycle of poverty. – Came u with idea of founding a bank specializing in microfinance • Capital raised though donations and grants at the start, but as Grameen’s success grew, all loans are now capitalized through deposits and interest earned from lending. • Bank owned by barrowers, does not require collateral for its loans • Today would be the envy of other banks which didn’t survive the financial crisis • Has issued over $ 8 billion in micro lending loans and has repayment rate of 98 percent • 2006 Yunas awarded Nobel Peace Price
• Mozilla: company that produced Firefox – A for-profit subsidiary of Mozilla foundation, non profit organization – Describes itself as a global community of thousands who believe in power of technology to enrich people’s lives. – Public benefit organization dedicated not to making money but to improving the way people everywhere experience the Internet.• Work: in the decades after WWII, understood as an industrial model – A career existed in a long-term relationship within a single firm – Employees received: steady and stable employment, secure wages and benefits, and opportunities of promotion within the firm.
– Employers received benefits of increased productivity created by a stable, experienced, and competent workforce – This model of work served the purposes of both employees and employers.• 1990’s experienced period of economic growth, prosperity fueled by increased worker productivity and extraordinary technological advancements. – Workplace experienced major shifts caused by significant corporate layoffs as witnessed by now words like “downsizing "and “outsourcing” of jobs to cheaper labor markets offshore.• 2008-2009 Economic Recession resulted in higher unemployment rates that economists predict will continue for years as the “new normal”.
• Social entrepreneurship and social enterprises provide helpful background against which to reflect on the changing nature of work.• Times when employees can no longer count on long-term stable employment from a single local company, – how, if at all can a person find a meaningful and successful career? – Can the workplace provide meaning and purpose, or is better to think of the workplace as capable of providing nothing other than jobs, nothing other than a place where one earns money?