March 12, 2011 Leave a comment
Corporate Social Entrepreneurship
In this blog entry, I would like to discuss a paper written by James Austin and Ezequiel about Corporate Social Entrepreneurship (Harvard Business School). This form of Entrepreneurship pays more attention to the corporate role of a company.
Corporate Social Entrepreneurship is based on three other domains:
– Entrepreneurship: the idea of Creative Destruction invented by Schumpeter
– Corporate Entrepreneurship: “redefining organizations in order to create competitive superiority”
– Social Entrepreneurship: the purpose is more social and the setting can be profit as well as non-profit
CSE is a way of transforming companies into “more powerful generators of social betterment”. It uses next elements in order to reach its goals:
– Enabling environment
The company tries to match its operating performance with the creation of social value. It’s important to stimulate creativity and focus on intra-entrepreneurship.
– The Corporate Social Entrepreneur
CSE goes beyond the traditional way of managing: the idea of change and the implementation have to be effectuated in synergy. The two C’s Communication and Coordination are a big support.
– Corporate purpose: values-based organizations
We all know good intentions are not enough, words have to be translated into action. A CSE company tries to set an example; their goal “is not just to comply with the law”. It’s no longer just about the money, values make the difference towards the stakeholders.
– Value creation and the double return
The most popular word nowadays is ‘innovation’. Many people are convinced that this is a mistake, but innovation is the only way to ensure the sustainability of the company and of our economy in general. Although, innovation has also a social and environmental implication that is often forgotten. Let us link these three items to a triple bottom line or “blended value”.
– Co-generating value
Considering Thomas Friedman that “The World is Flat”, we have to realize companies do not longer stand alone. Interaction and cooperation is absolutely necessary and will result in a positive sum game.
We have to admit that the movement for CSR has “won the battle of ideas” (Crook 2005). The concept is positively oriented and is for all stakeholders an advantage. However this doesn’t mean further action is superfluous. In our globalized world, challenges occur constantly. Creativity and a determined thought for change will help us to face the opportunities.
Original Paper: 09-101