Similarities and differences
Most companies have been repositioning their brands as “responsible,” demonstrating a greater concern about local communities and the environment. In response, the media is flooded with marketing claims that focus on “responsibility.” There’s nothing wrong with this, so long as we understand what real impact is. In this article, we will discuss the concepts of “social entrepreneurship” and “responsible entrepreneurialism” and how they differ.
What is “responsibility in business”?
“Responsibility is being accountable, reliable, and able to fulfill commitments over a period of time.” This is the most common English definition. Does the same purpose apply to business practices?
According to the European Commission, responsible organizations are those who implement effective strategies to prevent and manage negative impacts that they may have on society or the environment. This principle drives Corporate Social Responsibility initiatives (or CSRs). This is true for both SMEs as well as large companies.
CSR can include many different activities that are purposeful, such as diversity and inclusion, charity work, or reducing the carbon footprint. All of these activities can benefit individuals as well as society. We should still acknowledge that being responsible does not necessarily mean creating lasting change or fostering an impact.
What is social entrepreneurship?
While Social Entrepreneurship is still a term that lacks a definition, it refers to business ventures that are undertaking activities to enhance social wealth and drive social change. A combination of entrepreneurial and social mission.
Here is impact creation, and more specifically, Social Media – Impact creation is deliberate and, therefore constantly embedded in Social enterprise’s business models. Businesses are not run to make profits but to create systemic changes. Impact is the goal, but economic sustainability is necessary to achieve it.
You can see this differently. You have social entrepreneurship on the one hand, which, By nature, organizations are better suited to solving complex social issues. It is for this reason that organizations like Aravind Eye Care can also find out more about the following: Proximity designs. In the first instance, they were launched (to eliminate blindness and poverty in rural areas).
Then there are the traditional businesses (finally!) Their CSR activities are usually reactive. CSR programs are often able to create externalities and positive impacts while maintaining or adapting existing strategies, procedures, and practices. LEGO is a good example. By 2020, the Danish Group has committed to making all of its products out of sustainable materials by 2030. This is great news for the planet! LEGO’s core mission remains the same: “inspiring the builders of tomorrow.” We can all agree to that as LEGO lovers, so long as we distinguish it from real impact.
We should keep social entrepreneurship separate from responsible entrepreneurship.
Experts in the field and practitioners already know this. Impact investing is growing, and the danger of ” impact-washing ” or ” “greenwashing” is not far behind.
In fact, many companies try to give a positive spin on the environmental and social initiatives they undertake. In reality, they do not act to solve societal problems once and for all. They may even minimize facts or give misleading information regarding the negative side effects they cause. To avoid confusion, it is important to distinguish between social entrepreneurship and responsible entrepreneurship.
Responsible entrepreneurship can lead to incremental improvements (or compensating) of current business practices. To be truly effective, radical change is needed to bring about systemic changes. Social entrepreneurship is built on radicalism. Otherwise, the concept of “impact” could be diluted. This can have long-term consequences for businesses and society, such as eroding the trust of people and causing them to confuse fakes with real impact makers and failing to support those organizations that are actively tackling social challenges.
The conclusion of the article is:
This article explores the differences and similarities between social entrepreneurship and responsible entrepreneurship and why they should be distinct.
You can also find out more about us on our website. Social Business Design We analyze the ways in which existing social enterprises and social businesses are driving positive change. By sharing the business models and tools used by successful entrepreneurs, we hope to help a new generation create an impact. If you liked this content, please explore more of the platform.