<ul><li>Social Entrepreneurship </li></ul><ul><li>1. Social responsibility consists of obligations a business has </li></ul><ul><li> to pay to society. The following (table I) presents some of </li></ul><ul><li> them. The diversity of social responsibility opens the </li></ul><ul><li> doors for questions concerning the extent corporations </li></ul><ul><li> should be involved. </li></ul><ul><li>2. An examination of the stages or levels of social </li></ul><ul><li> responsibility behavior that corporations exhibit, reveals </li></ul><ul><li> that distinct differences exist in the way corporations </li></ul><ul><li> respond. S. Prakash Sethi, a researcher has established </li></ul><ul><li> a frame-work that classifies the social actions of </li></ul><ul><li> corporations into three distinct categories: (Table II) </li></ul><ul><ul><ul><ul><ul><li>Social obligation: React to social issues through </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>obedience to the laws. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Social responsibility: Others respond more </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>actively, accepting responsibility for various </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>programs. </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Social responsiveness: Still others are highly proactive and </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>are even willing to be evaluated by the public . </li></ul></ul></ul></ul></ul>
Table I The Nature of Social Responsibility Environment Pollution control Restoration of 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 Fair business Employment and advancement of women practices and minorities Employment and advancement of disadvantaged individuals ( disabled, ex-offenders, former drug addicts, mentally retarded, and hardcore unemployed) Support for minority-owned businesses
Human Resources Promotion of employee health and safety Employee training and development Remedial education programs for disadvantaged employees Alcohol and drug counseling programs Career counseling Child day-care facilities for working parents Employee physical fitness and stress management programs Achievement Motivation programs Community Donations of cash, products, services, or Involvement employee time Sponsorship of public health projects Support of education and the arts Cooperation in community projects ( recycling centers, disaster assistance, and urban renewal) Support of community recreation programs
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 Environment Awareness: The need to preserve and protect our natural resources motivated businesses into a stronger environment awareness. As illustrated in Table I, the environment stands out as one of the major challenges of social responsibility. The recent “ throwaway” culture has endangered our national resources from soil to water to air. Industry is being told that appropriate packing, elimination of emissions, and planting two trees for every consumer durable sold would lead to environmentally sound world. The danger lies not in the half measures but in the illusions they foster, the belief that subtle course corrections guide us to a good life that will include a ‘conserved’ natural world.
Table II Framework of Classification of Corporate Social Behavior Dimension of Behavior Stage One: Social Obligation Response to social pressures Maintains law public profile, but if attacked, uses PR methods to upgrade its public image; denies any deficiencies; blames public dissatisfaction on ignorance or failure to understand corporate functions; discloses information only where legally required. Philanthropy Contributes only when direct benefit to it clearly shown; otherwise, views contributions as responsibility of individual employees .
Dimension of Behavior Stage Two : Social Responsibility Response to social pressures Accepts responsibility for solving current problems, will admit deficiencies in former practices and attempt to persuade public that its current practices meet social norms; attitude toward critics conciliatory; freer information disclosures than stage one. Philanthropy Contributes to non-controversial and established causes; matches employee contributions
Dimension of Behavior Stage Three: Social Responsiveness Response to social pressures Willingly discusses activities with outside groups; makes information freely available to the public; accepts formal and informal inputs from outside groups in decision making; is willing to be publicly evaluated for its various activities. Philanthropy Activities of stage two, plus support and contributions to new, controversial groups whose needs it sees as unfulfilled and increasingly important.
Redefining social responsibilities: A growing number of enterprises are attempting to redefine their social responsibilities because they no longer accept the notion that the business of business is business. Because of an international ability to communicate information widely and quickly, many entrepreneurs are beginning to recognize their responsibility to the world around them. Entrepreneurial organizations, the dominant inspiration throughout the world, are beginning the arduous task of addressing social-environmental problems. Ecovision: Entrepreneurs need to take the lead in designing a new approach to business in which everyday acts of work and life accumulate as a matter of course into a better world. One theorist has developed the term “ecovision” to describe a possible style to innovate organizations. Ecovision encourages open and flexible structures that encompass the employees, the organization, and the environment, with
attention to evolving social demands. The environmental movement consists of many initiatives connected primarily by values rather than by design. A plan to create a sustainable future should realize its objectives through a practical, clearly stated strategy. Key steps in ecovision: 1. Eliminate the concept of waste. Seek newer methods of production and recycling. 2. Make prices reflect costs. Reconstruct the system to incorporate a “green fee” where taxes are added to energy, raw materials, and services to encourage conversation. 3. Restore accountability, Encourage consumer involvement making companies accountable. 4. Promote diversity. Continue researching the needed compatibility of our ever-evolving products and inventions. 5. Make conservation profitable. Rather than demanding
“ low prices” to encourage production shortcuts, allow new costs for environmental stewardship. 6. Insist on accountability of nations. Develop a plan for every trading nation of sustainable development enforced by tariffs. Even though the results specific to social responsibility and entrepreneurship are still emerging, a number of views are already agreed on. The research is showing the differences between large firms and small firms. The reasons relate to the structure of smaller firms, which have fewer professional specialists, less formality and a stronger influence by the owner-entrepreneur.