Corporate social entrepreneurship

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A corporate social entrepreneur (CSE) is defined as an employee of a firm who operates in a socially entrepreneurial manner; identifying opportunities for and/or championing socially responsible activity, in addition to helping the firm achieve its business targets. Corporate social entrepreneurship often becomes necessary when there is a difficult balance between the financial objectives of a company and public well-being.[1] These individuals are closely related to and sometimes referred to as Social Intraprenuers.[2] Sustainability of social intrapreneurship ventures have been called into question by critics, and the process is generally long and strenuous. Socially beneficial ventures have had difficulties turning profit, as they often look at the long term benefits while struggling in the short term, leading to hesitance from investors. [3] The CSE operates regardless of an organizational context that is predisposed towards corporate social responsibility (CSR)/sustainability. This is because the CSE is driven by their dominant self-transcendent (concerned with the welfare of others/environment) as opposed to their self-enhancement personal values.[4] Consequently, the CSE does not necessarily have a formal socially responsible job role, nor do they necessarily have to be in a senior management position to progress their socially responsible agenda.' [5][6]

Relevance

The notion of the CSE is multi-disciplinary. It primarily relates to the fields of corporate social responsibility/sustainability. It is thus relevant to both practitioners and scholars of business and management and more specifically to the fields of business ethics; sustainability; organizational behavior; entrepreneurship; human resource management and business strategy. Moreover, the concept is inherently linked with the notion of personal values: in itself, a field of study from sociology; anthropology and social psychology. Furthermore, due to the concept's associations with ideas about agency, this also means that this topic connects with core debates in sociology and philosophy. Such complexity reflects the interdisciplinary nature of the field of corporate social responsibility. In terms of the social intrapreneurial aspect, CSE often becomes necessary when the financial objectives of a company and the effects of the company's output come into conflict.

Corporate social responsibility and social impact have been found to be important factors in the hiring process and decision making process of hopeful employees. Workers are willing to concede income if the organization that they choose to work at exhibits high amounts of social responsibility, with socially entrepreneurial firms appearing more attractive to potential applicants.[7]

Background

The notion of the CSE first emerged in 2002 from a conceptual working paper which was published in the Hull University Business School Research Memoranda Series.[8] In that paper, it was argued that CSR (and within that, sustainability) can also be motivated by an altruistic impulse driven by managers’ personal values, in addition to the more obvious economic and macro political drivers. This reflected the traditional philosophical and business ethics debate regarding moral agency.[9][10] This paper was followed by a U.K. conference paper which highlighted the importance of managerial discretion in CSR [11] and was published the next year in the Journal of Business Ethics. In this latter paper, the concept of "entrepreneurial discretion" as an overlooked antecedent of CSR was mooted.[12]

Consequently, the term corporate social entrepreneur was first coined in a paper that was presented at the 17th Annual European Business Ethics Network Conference, in June 2004.[13] Here, the term Corporate Social Entrepreneur was defined and differentiated from the different types of entrepreneurs: the ‘regular’ executive entrepreneur; the intrapreneur; the policy entrepreneur and the public or social entrepreneur.[14] (See also Austin et al., 2006a for a description of the similarities and differences between commercial and social entrepreneurship).[15] Initially, the concept was discussed in relation to managers. However, it was soon widened to include employees at any level of the firm, regardless of their formally appointed status. To be a CSE you do not necessarily have to be a manager. Seniority is not necessary, but, of course, it helps.[16][17]

Hemingway’s concept of the CSE emerged as a result of her own personal experience working as a marketing executive in the corporate world and it has also been the subject of some exploratory empirical investigation[18] [1]. The notion was also inspired by Wood, who had previously referred to "Ethical training, cultural background, preferences…and life experiences…that motivate human behavior";[19] thereby supporting Trevino’s conceptual "Interactionist" model of ethical decision making in organizations.[20] Trevino's model included both individual and situational moderators, to combine with the individual’s stage of cognitive moral development,[21] to produce either ethical or unethical behavior. And whilst studies existed regarding the activities of environmental champions at work [22] or other change leaders,[23] none of these studies specifically examined the role of employees' personal values in entrepreneurial discretion with regard to CSR/sustainability.

Thus, the connection between philosophical ideas of moral character as an influence for corporate social responsibility (CSR) and the psychological notions of prosocial or pro-environmental behavior, provides a different focus from the more commonly discussed structural drivers for CSR/sustainability in business and management i.e., business strategy in the form of public relations activity; encouragement from government or organizational context (see also philanthropy). The practice of social entrepreneurship in the Information Age has also emerged in part due to the ability to quickly and effectively learn about social issues across the world. This particularly affects Millennials, as they were raised in this time period and work during a time when social issues are often at the forefront of society.[24]

Social Intraprenuership was described by two landmark reports on the subject. Net Impact, with the support of eBay, wrote the report Making Your Impact at Work,[25] and SustainAbility, with the support of IDEO, Skoll Foundation, and Allianz, compiled the report The Social Intrapreneur: A Field Guide for Corporate Changemakers.[26] These writings outlined a definition for what was not previously recognized as widespread phenomenon. However, the definitions these papers established were much the same as those for corporate social entrepreneurs. BeDo held the first conference on the subject, BeDo Intra 2009, around the Social Capital Markets Conference (SOCAP09) in San Francisco.[27] Wherein several different Social Intreprenuers met to discuss their common motivation and challenges in enacting social change. In the fall of 2012, Ashoka Changemakers, in partnership with Accenture, initiated the first network exclusively for social intrapreneurs, the League of Intrapreneurs.[28]

Business Ethics Perspective

Significantly, whilst the social entrepreneur and corporate social entrepreneur are united in their quest to create social value: a business ethics perspective encourages us to ask the question ‘For what end?’ Here business ethics is useful, as it uses intellectual frameworks to encourage us to think deeply about means and ends.[29][30][31] For example, the idea of the CSE creating social value which benefits both the corporation and society[32][33][34] is known as ‘enlightened self-interest’. Alternatively, a deontological viewpoint frames acts of socially responsible behavior as driven by the individual's sense of duty to society, which may be viewed in terms of altruism.[35][36] Altruism is of course very difficult to support empirically, although there have been many studies of prosocial[37] and pro-environmental behavior[38] and support for the notion of self-transcendent (other/environmental oriented) personal values in social psychology.[39]

Exploratory, Qualitative Empirical Support

Ethnographic research was conducted in a $1.4bn multi-national corporation, between 2005-2008. The tentative findings revealed four modes of moral commitment to social responsibility and sustainability: the Active CSE, the Concealed CSE, the Conformist and the Disassociated. The 'Disassociated' advocated "more aggressive performance management" for the company and espoused the notion that values were in opposition to corporate performance. The 'Conformist' mode represented the majority of subjects in the study, conforming to the prevailing ethical context, whatever that might be. Many of these individuals were occupying formal CSR/sustainability roles. This mode was characterized by enlightened self-interest: i.e., that CSR/sustainability was good for their careers as well as good for the company. However, the two modes of corporate social entrepreneurship, 'Active' and 'Concealed', were comparable by their espoused self-transcendent values[40][41] But they were distinguished by their perception of the organizational context as supportive, or not, of CSR/sustainability. So the 'Concealed' CSE was a champion of some of the domains of CSR/sustainability, whilst other domains were progressed outside of work, because of perceived organizational constraints. By comparison, the 'Active' CSE mode contained highly principled individuals with a conscience, who would speak up when they saw the potential for corporate wrongdoing. These people - very much in a minority - had a reputation within the company as responsible leaders and for acting at all times with integrity. In this way, they represented pockets of good practice, perhaps just doing a 'little bit to make a difference in life'; going the extra mile to make things better for colleagues or the wider society and the environment.[42]

The type of activities that were initiated, championed and lead by CSEs was varied. They were wide in scope, ranging both in magnitude and across the domains of CSR (and sustainability). Some had initiated company-wide and formally approved environmental projects. Others had championed animal welfare, or regularly spoke out when they witnessed bullying or racism; or had made it their business to protect vulnerable colleagues. Interestingly, CSEs were found across different functions of the business and at different levels of the corporate hierarchy, progressing a social and/or environmental agenda in accordance with their own personal convictions. However, a characteristic feature of the CSE was that they had enlarged their own job role, of their own volition, to encompass one or more of the domains of CSR.[43] Donald B Summers describes the abstract stages of CSE as first socialization, or the conception of a socially beneficial idea. Second externalization, developing the idea into a concrete plan. Third integration, making the idea a reality using any available resources. Finally, fourth is internalization, or establishing the socially beneficial practice into the company.[44]

This exploratory research leaves us with a huge agenda for further study. Much more research is now required in order to test the four modes of moral commitment to CSR (and sustainability). Certainly, there is scope for a comparison with different industries, but further exploratory research might investigate different organizational contexts. As has already been pointed out: the 'C' in CSR and CSE is not sacrosanct, as society expects all organizations to behave responsibly.[45] Are there cross-cultural differences? The substantial body of research into personal values suggests that there might not be.[46] Importantly, the modes of moral commitment to social responsibility represent hypotheses in their own right.

Threat or opportunity?

All this leads us to the inherent complexity surrounding the subject of CSR, regarding its connection to stakeholder theory[47] and its "essentially contested" nature.[48] So, whilst some studies have shown a positive relationship between CSR and financial performance,[49] others are currently investigating the notion of non-market performance [2].Consequently, the notion of the Corporate Social Entrepreneur is equally controversial: not solely due to the arguments about the role of business and whether or not CSR helps financial performance; but also because the concept of employee discretion has been identified as a key factor regarding a social orientation at work, or, a moral character (in the ancient philosophical sense).[50] And whilst the possibility of unethical behavior is also acknowledged as an outcome of discretion and agency: corporate irresponsibility [51] which has been the traditional focus in the study of business ethics, is regarded as insufficient and only the starting point, if our quest is to develop more socially responsible organizational contexts. This is of particular relevance in the wake of the global financial crisis from 2008, caused by financial irregularities and lapses in corporate governance and personal integrity. Further, these failures of neo-liberal capitalism have produced calls to move beyond capitalism.[52] This has been illustrated theoretically by Hemingway (see Chapter 12, 2013), who posited the structural conditioning of big business, from the now old-fashioned Friedmanite position on CSR[53] to the current, dominant, instrumental CSR perspective, which was exemplified by her 'Conformist' informants. Then, transforming beyond enlightened self-interest to a new form of capitalism, via corporate social entrepreneurship.[54]

Many organizations in the United States have experienced difficulty in adding aspects of corporate social entrepreneurship/responsibility into their practices, due to the fact that these methods must be created within the organization. Corporate social entrepreneurship requires those at the top of an organization to take charge and put the company in a position to have a positive social impact, such as offering rewards for employees that act in a socially responsible manner. The value system that is employed within an organization plays a large role for the emergence of corporate social entrepreneurs and social intrapreneurs. [55]

Encouraging Social Intrapreneurship

If a company decides to promote corporate social entrepreneurship in its employee's, there are a few researched circumstances that have been shown to increase socially intrapreneurial activity. When there is a change in the environment that disconnects sanctions and rewards, a disassociation of the company norms from their assumed moral foundations, resulting in an undermined set of core beliefs.[56] When employees are dissatisfied with the existing moral assumptions of the company, they are more likely to take personal initiative. If the employee feels they will be supported and given access to resources without immediate guaranteed results, these employees are more likely to pursue social intrapreneurship past the idea stage.[57] Social intrapreneurs have good communication skills and are open to the ideas of those affected by an organization's actions.[55]

See also

References

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  2. http://www.theguardian.com/social-enterprise-network/2011/jan/31/social-entrepreneur-business-insiders-change
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  4. Schwartz, S.H. Studying Values: Personal Adventure, Future Directions. Journal of Cross-Cultural Psychology 42, 307–319. 2011.
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  6. Hemingway, C.A., Corporate Social Entrepreneurship: Integrity Within. Cambridge University Press, 2013.
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  11. Hemingway, C.A. and Maclagan, P.W. (2003), Managers' Individual Discretion and Corporate Social Responsibility: the Relevance of Personal Values. 7th European Business Ethics Network (EBEN- UK) U.K. Annual Conference, and the 5th Ethics and Human Resource Management Conference, Selwyn College, Cambridge, 7–8 April 2003. ISBN 1-84233-087-X
  12. Hemingway, C.A. and Maclagan, P.W., Managers Personal Values as Drivers of Corporate Social Responsibility, Journal of Business Ethics, 50(1), March (I), pp.33–44. 2004
  13. Hemingway, C.A., Personal Values as the Catalyst for the Corporate Social Entrepreneur. 17th Annual European Business Ethics Network (EBEN) Conference (‘Ethics and Entrepreneurship’, University of Twente, Enschede, The Netherlands, 24/26 June 2004
  14. Hemingway, C.A., Personal Values as the Catalyst for the Corporate Social Entrepreneur. 17th Annual European Business Ethics Network (EBEN) Conference (‘Ethics and Entrepreneurship’, University of Twente, Enschede, The Netherlands, 24/26 June 2004
  15. Austin, J.; Stevenson, H. and Wei-Skillern, J., Social Entrepreneurship and Commercial Entrepreneurship: Same, Different, or Both? Entrepreneurship, Theory and Practice 30[1], 1–22. 2006a
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  25. https://www.som.cranfield.ac.uk/som/dinamic-content/media/social%20intrapreneurs%20occasional%20paper.pdf
  26. http://www.echoinggreen.org/sites/default/files/The_Social_Intrapreneurs.pdf
  27. http://bedo.com/intrapreneurs/
  28. http://www.leagueofintrapreneurs.com
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  35. Hemingway, C.A. and Maclagan, P.W., Managers Personal Values as Drivers of Corporate Social Responsibility, Journal of Business Ethics, 50(1), March (I), pp.33–44. 2004.
  36. Hemingway, C.A. Corporate Social Entrepreneurship: Integrity Within, Cambridge University Press, Cambridge, 2013, pp. 49-50.
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Hemingway, C.A. and Maclagan, P.W. (2003), Managers' Individual Discretion and Corporate Social Responsibility: the Relevance of Personal Values. 7th European Business Ethics Network (EBEN- UK) U.K. Annual Conference, and the 5th Ethics and Human Resource Management Conference, Selwyn College, Cambridge, 7–8 April 2003. ISBN 1-84233-087-X.

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