Mod 8 Ethics and Marketing

MODULE 5
Corporate Social Responsibility
MODULE 6
Employer Responsibilities and Employee Rights
MODULE 7
Business and Environmental Sustainability
MODULE 8
Ethics and Marketing
MODULE 9
Social Entrepreneurship
MODULE 10
Creation of a Social Enterprise

Beyond legal and economic duties, many business organizations exert efforts to give back and
give more to society—a concept called corporate social responsibility (CSR), which is the
central topic of this unit.

FOURTH QUARTER

Learning Outcomes for Module 9 Social Entrepreneurship:

▪ Explain

the

importance

of

establishing

and

sustaining business enterprises as a source of job
opportunities and financial freedom.

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INTRODUCTION

Module 9 is devoted to the discussion of social entrepreneurship. This module looks into
the modeling of social entrepreneurship process and introduces different models that may
fit into the social enterprise framework.

SOCIAL ENTREPRENEURS
▪ Want to create widespread change
▪ Look for new ways to address pressing

social issues

▪ Driven by something much more than

making profits

▪ They are out to make a difference in the

world.

Key changes that have made the social entrepreneurship phenomenon
possible:

According to David Bornstein, a journalist and author who focuses on social innovation:

1. The global increase in prosperity and the increase in wealth of the middle class have

afforded them the financial capacity to invest in social ventures.

2. The increase in the number of democratic and semi-democratic societies has given the

citizens the freedom to pursue social entrepreneurship to provide solutions to social
problems outside of the government and business sectors.

3. The proliferation of new communications technology, access to the internet, and

popularity of social media have increased people’s level of awareness of social problems
and their impact on societies.

Social Entrepreneurship

▪ Comes from the Latin word socialis, which means “an

associate, ally, or companion.”

▪ It suggests an organization of people who belong in

interdependent groups that live and work together
cooperatively in a community or society.

Entrepreneurship

It is promoting INNOVATION by seizing opportunities to
provide a new product or implement a new production
method, and then organizing the needed production inputs
and assuming FINANCIAL RISK.

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Entrepreneur

An entrepreneur is “someone who seeks to profitably solve a problem that the world has, in
exchange for enough monetary compensation to achieve his or her dreams.”

- Clay Clark, CEO of a business consulting firm

SOCIAL ENTREPRENEURSplay the role of CHANGE AGENTS in the social sector through
various means.

▪ Adopting a mission to create and sustain social value (not just private value).
▪ Recognizing and relentlessly pursuing new opportunities to serve that mission.
▪ Engaging in a process of continuous innovation, adaptation, and learning.
▪ Acting boldly without being limited by resources currently in hand.
▪ Exhibiting heightened accountability to the constituencies served and for the outcome.

▪ Adopting a mission to create and sustain social value (not just private value).

o Provide solutions to the challenges facing society today
o Making profits and providing what the market needs are means to a social end
o Look for long-term social return on investment (ROI)

▪ Recognizing and relentlessly pursuing new opportunities to serve that

mission.

o See the opportunities, not just the problems
o They are visionaries who are determined to explore the opportunity they see and to

make it work.

▪ Engaging in a process of continuous innovation, adaptation, and learning.

o Involve in applying an existing idea in a new way or situation.

▪ Acting boldly without being limited by resources currently in hand.

o Social entrepreneurs use resources efficiently.
o They have a clear vision of what they want to achieve, and they work hard, take risks,

and develop strategies in order to achieve their goals.

▪ Exhibiting heightened accountability to the constituencies served and for the

outcome.

o Social entrepreneurs take steps to ensure that they are creating social value.
o Provide real social improvements
o Work hard to be able to do what they set themselves to achieve

Modeling the Social Entrepreneurship Process

Social entrepreneurship is the process of recognizing and pursuing
opportunities to create social value, that is, to develop and implement solutions
to social, cultural, and environmental issues.

It involves the interaction of the individual entrepreneur, the enterprise itself,
and the context in which the entrepreneur and the social enterprise operate
(Kickul, Lyons 2012).

The Timmons Model of the Entrepreneurship Process
The three key components of a successful business venture are opportunity, team, and
resources.

Opportunity
• The entrepreneur has to be able to create

value for the consumers at the right price in
order for the opportunity to become viable.

Resources
• The company can create a competitive

advantage for its products.

• The resources must also match the

requirements of the opportunity.

The Timmons Model of the Entrepreneurship Process
The three key components of a successful business venture are opportunity, team, and
resources.

Team
• The size of the team is based on the size and

nature of the opportunity.

• A good team is a requirement for the venture

to succeed.

• Choose the right members of the team to

contribute to the success of the business.

The Timmons Model of the Entrepreneurship Process

Opportunity

Team

Resources

All the components of the process must complement each other and must maintain
balance.

To achieve growth and sustainability

The Timmons Model in Social Entrepreneurship

Opportunity

A societal need and is
motivated by market

need

Team

Includes both internal

and external

stakeholders because
collaboration between
team members is vital to

sustain a social

enterprise

Resources

Acquired primarily

through funding provided
by venture capital firms
to companies that aim to
address environmental
and social issues through
their products or services

The PCDO Framework

The PCDO framework presents four interrelated elements of social entrepreneurship:
people, context, deal, and opportunity.

People
▪ Represents the human resource needed to

successfully run the enterprise.

▪ The collective skills of the people are needed to

fully operate the business.

▪ People also include the investors in the enterprise.

Context
▪ Elements in the environment where the

entrepreneurship takes place.

▪ Factors that are beyond the control of the

management

The PCDO Framework

The PCDO framework presents four interrelated elements of social entrepreneurship:
people, context, deal, and opportunity.

Deal
▪ Includes transactions involved in determining

how and to whom the benefits of the
entrepreneurial activity are dispersed.

▪ It is the substance of the bargain that defines

who gives what, who gets what, and when
those deliveries and receipts will take place.

Opportunity
▪ Creates an avenue for the enterprise to offer

something of value to the market.

▪ It is the essence of the framework.

The PCDO Framework in Social Entrepreneurship

Opportunity.
The entrepreneur can
develop

something

valuable for the market
to patronize.

People.
They are needed to
mobilize the ideas
and pursue the goals.

Deal.
Deals do not clearly
describe the complex
processes and
negotiations within a
social enterprise.

The CASE Model

• Developed

by

Güclü,

Dees,

and

Anderson of the Center for the
Advancement

of

Social

Entrepreneurship (CASE).

• Presents the process of creating a

social opportunity.

• The first stage involves generating

promising ideas.

• The second stage focuses on the

development of promising ideas into
attractive opportunities.

The CASE Model

First Stage
• The opportunities in the community

are generated based on social needs
and social assets.

• The opportunities need to be viable

Second Stage
• Includes a working hypothesis on the

social outputs, outcomes, and impacts
that are achievable

The CASE Model

Offering quality
bags made of
woven cloth

Help alleviate

poverty by
generating

employment for
underprivileged

families

Number of weavers

Number of Bags

(output)

Kind of Bags
(outcome)

Change the lives of the

weavers and their families

The CASE model takes a promising idea and develops
this idea into an opportunity to create a social impact.

The Social Entrepreneurship Framework

• The social entrepreneurship framework is a modification of the PCDO framework.
• This framework identifies three elements: opportunity, people, and capital.

Opportunity
▪ Creates an avenue for the enterprise to offer something of value to the

market.

People
▪ Represents the human resource needed to successfully run the enterprise.
▪ The collective skills of the people are needed to fully operate the business.

Finance
▪ Finance providers

The Social Entrepreneurship Framework

This framework captures the synergy of the three elements in order to fulfill the social
value proposition (SVP).

• The SVP is at the heart of the social

entrepreneurship process. This is the
reason why target beneficiaries of a
social enterprise choose a company’s
products over its competitors.

• The

three

elements

(opportunity,

people, and capital) overlap in the Venn
diagram.

• The factors around the diagram are the

environmental factors that can affect the
activities of the social enterprise.

The Social Entrepreneurship Process Model

▪ Attempts to put together the best of both the CASE model and the social

entrepreneurship framework.

Stage 1: Idea Creation

• Ideas are generated

based on the
entrepreneur’s
motivation

• The entrepreneur’s

motivation is influenced
by his or her background

Stage 2: Mission

Achievement

• The three elements

(opportunity, people,
and resources) converge
in the fulfillment of the
mission or purpose of
the social venture.

▪ Takes place in two

stages and starts
with idea creation
similar to the first
step in the CASE
model.

The Social Entrepreneurship Process Model

Ashoka Foundation

• At present, Ashoka claims to be the largest

network of social entrepreneurs in the world

• The foundation helps social entrepreneurs

from the infancy of their projects up to their
development and success

• Ashoka also established a Global Academy

for Social Entrepreneurship with the
following aims:

• Representation
• Consultation
• Linkage/connection
• Global networking

▪Founded by Jeff Skoll, the first
employee and first president of eBay
▪Instrumental in bringing media mileage
and international attention to the work of
social entrepreneurs around the world
▪Flagship program: Skoll Awards for
Social Entrepreneurship
▪Gawad Kalinga is among the recipients

Skoll Foundation

GAWAD KALINGA DEVELOPMENT FOUNDATION