1. Chapter 4 Corporate Social Entrepreneurship

2. Objectives To understand concept of Corporate Social Responsibility To understand concept of Corporate Social Entrepreneurship To differentiate between Corporate Social Responsibility & Corporate Social Entrepreneurship Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

3. Introduction Corporate Social Entrepreneurship has its foundation in three conceptual frame work namely entrepreneurship, corporate entrepreneurship and social entrepreneurship. Businesses large and small are recognizing their impact on the world, and aligning their values with those of their customers and employees. Every decision made inside an office has an impact on the world, socially and environmentally. Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

4. Corporate Social Responsibility CSR in India has traditionally been seen as a philanthropic activity, and in keeping with the Indian tradition, it was an activity that was performed but not deliberated. As a result, there is limited documentation on specific activities related to this concept. However, what was clearly evident that much of this had a national character encapsulated within it, whether it was endowing institutions to actively participating in India’s freedom movement, and embedded in the idea of trusteeship. Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

5. CSR in India still remains within the philanthropic space, but has moved from institutional building (educational, research and cultural) to community development through various projects. With global influences and with communities becoming more active and demanding, there appears to be a discernible trend, that while CSR remains largely restricted to community development, it is getting more strategic in nature and getting linked with business than philanthropic. Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

6. Scholarly View on CSR Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.(World Business Council for Sustainable Development ) Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving. (Baker, 2004) Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

7. European Model of CSR The model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. This model is more sustainable because social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society. With any process based on the collective activities of communities of human beings there is no 'one size fits all'. In different countries, there will be different priorities, and values that will shape how business act. The US has growing numbers of people looking towards core business issues. Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

8. Key Elements of Corporate Social Entrepreneurship Enabling Environment Corporate Social Entrepreneur Corporate Purpose Value Creation and the Double Return Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

9. Environment for CSR To move from old mind-set of ‘Corporate Social Responsibility’ to ‘Corporate Social Entrepreneurship’ organizations requires enabling environment which fosters the culture of entrepreneurship and innovation toward sustainable welfare of society Organizations need to look forward for opportunity to build and sustain social responsibility with the resources and capabilities within. Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

10. Characteristic of Corporate Social Entrepreneur 1.Internal Champions. 2.Good Communicators 3.Active Listeners 4.Creators of Innovative Solutions 5.Catalysts for Change 6.Cool Coordinators 7.Useful Contributor 8.Shrewd Calculators Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

11. Corporate Purpose Organization value plays a vital role in deciding course of action. The value based organizations reflects following characteristics. Trustworthy Moral Agents, Capable of generating trust based on sustained ethical behaviour Innovative solutions to social problems. Their goal is not just to comply with the law, or to be responsive to key stakeholders: they seek to lead through example Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

12. Value Creation and the Double Return Entrepreneurship is all about finding innovative ways to create value. CSE aims to ensure that the very purpose of these corporations migrates from one of maximizing returns to investors. CSE aims to optimizing returns to stakeholders, with those being defined as groups who are significantly affected by company actions and who can in turn impact the company Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

13. Adopting Corporate Social Entrepreneurship Take advantage of opportunities to save on energy costs. Energy efficiency and solar power are terrific tactics to improve bottom line and reduce your pollution of the environment. Source products from responsible suppliers that manufacture in safe working conditions and pay workers a fair wage (See fair trade). Reduce waste and recycle at your office, which companies like GM are doing to save billions of dollars. Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

14. Social Entrepreneurship & Private Sector Social Entrepreneurship is seen as a response to diminishing government involvement in the economy and society. It is extended rapidly to the private and public sector. SE refers to innovative activity with a social objective in either the for- profit sector, such as in social purpose commercial ventures A problem for the commercial entrepreneur is an opportunity for the social entrepreneur. Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship

15. Summary India has recently become the first country to legally mandate expenditures on corporate social responsibility (CSR). The Companies Act, 2013 requires companies to spend at least two per cent of their net profits, averaged over the three preceding financial years, on CSR. Definitions of CSR differ from country to country due to cultural and contextual differences. Organization value plays a vital role in deciding course of action. In addition to innovative not-for-profit ventures, Social Entrepreneurship can include social purpose business ventures, such as for-profit community development banks, and hybrid organizations mixing not-for-profit and for- profit elements, such as homeless shelters that start businesses to train and employ their residents. Social Entrepreneurship Chapter 4: Corporate Social Entrepreneurship