Corporate Social Entrepreneurship
Encyclopedia
A corporate social entrepreneur (CSE) is defined as "an employee of the 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. The CSE operates regardless of an organisational context that is pre-disposed towards CSR. This is because the CSE is driven by their dominant self-transcendent (concerned with the welfare of others) as opposed to their self-enhancement personal values. 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."
. It is thus relevant to both practitioners and scholars of business and management and more specifically to the fields of business ethics
; organisational behaviour; 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 moral philosophy. Such complexity reflects the inter-disciplinary nature of the field of corporate social responsibility
.
. This paper was followed by a U.K. conference paper which highlighted the importance of managerial discretion in CSR 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.
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. Here, the term Corporate Social Entrepreneur was first defined and differentiated from the different types of entrepreneur
s: the ‘regular’ executive entrepreneur; the intrapreneur
; the policy entrepreneur and the public or social entrepreneur. (See also Austin et al., 2006a for a description of the similarities and differences between forms of entrepreneurship). 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
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 http://craneandmatten.blogspot.com/2010_03_01_archive.html. It was also inspired by Wood, who had previously referred to “Ethical training, cultural background, preferences…and life experiences…that motivate human behavior”; thereby supporting Trevino’s conceptual “Interactionist” model of ethical decision making in organizations. Trevino's model included both individual and situational moderators, to combine with the individual’s stage of cognitive moral development
, to produce either ethical or unethical behaviour. And whilst studies existed regarding the activities of environmental champions at work or other change leaders, none of these studies specifically examined the role of employees' personal values in entrepreneurial discretion with regard to corporate social responsibility (CSR).
Thus, the connection between philosophical ideas of moral character as an influence for corporate social responsibility
(CSR) and linked to the psychological notion of prosocial behavior, provides a different focus from the more commonly discussed structural drivers for CSR, i.e., business strategy in the form of public relations activity; encouragement from government or organisational context (see also philanthropy
).
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. For example, the idea of the CSE creating social value which benefits both the corporation and society is known as ‘enlightened self interest’. Alternatively, a deontological
viewpoint frames acts of socially responsible behaviour as driven by the individual's sense of duty to society, which may be viewed in terms of altruism
. Altruism is of course very difficult to support empirically, although there have been many studies of prosocial behaviour and support for the notion of self-transcendent (other-oriented) personal values in social psychology
.
and its “essentially contested” nature. Indeed, the market fundamentalists ask: Why bother with CSR, if the raison d'etre of business is to maximise profitability for the shareholders? See page on Corporate Social Responsibility
(CSR), which discusses all the arguments about CSR in greater depth. So, whilst some claim that the business case for CSR is unproven, other studies have shown a positive relationship between CSR and financial performance. 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). And whilst the possibility of unethical behaviour is also acknowledged as an outcome of discretion and agency: corporate irresponsibility which has been the traditional focus in the study of business ethics, is regarded as insufficient and only the starting point, if the quest is for organisations to develop a socially responsible organisational context. This is of particular relevance in the wake of the global financial crisis caused by financial irregularities and lapses in corporate governance
and personal integrity.
Social entrepreneurship
Social entrepreneurship is the work of social entrepreneurs. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change . While a business entrepreneur typically measures performance in profit and return, a...
manner; identifying opportunities for and/ or championing socially responsible activity; in addition to helping the firm achieve its business targets. The CSE operates regardless of an organisational context that is pre-disposed towards CSR. This is because the CSE is driven by their dominant self-transcendent (concerned with the welfare of others) as opposed to their self-enhancement personal values. 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."
Relevance
The notion of the CSE primarily relates to the field of corporate social responsibilityCorporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
. It is thus relevant to both practitioners and scholars of business and management and more specifically to the fields of business ethics
Business ethics
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...
; organisational behaviour; entrepreneurship
Entrepreneurship
Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response...
; human resource management
Human resource management
Human Resource Management is the management of an organization's employees. While human resource management is sometimes referred to as a "soft" management skill, effective practice within an organization requires a strategic focus to ensure that people resources can facilitate the achievement of...
and business strategy. Moreover, the concept is inherently linked with the notion of personal values: in itself, a field of study from sociology
Sociology
Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—which uses various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity...
; anthropology
Anthropology
Anthropology is the study of humanity. It has origins in the humanities, the natural sciences, and the social sciences. The term "anthropology" is from the Greek anthrōpos , "man", understood to mean mankind or humanity, and -logia , "discourse" or "study", and was first used in 1501 by German...
and social psychology
Social psychology
Social psychology is the scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others. By this definition, scientific refers to the empirical method of investigation. The terms thoughts, feelings, and behaviors include all...
. Furthermore, due to the concept's associations with ideas about agency, this also means that this topic connects with moral philosophy. Such complexity reflects the inter-disciplinary nature of the field of corporate social responsibility
Corporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
.
Background
The notion of the CSE emerged from a conceptual working paper which was published in the Hull University Business School Research Memoranda Series. In that paper, it was argued that CSR can also be motivated by an altruistic impulse driven by managers’ personal values, in addition to the more obvious economic and macro political drivers for CSR. This reflected the traditional philosophical and business ethics debate regarding moral agencyMoral agency
Moral agency is a person's ability to make moral judgments and take action that comport with morality.A Moral agent is "a being who is capable of acting with reference to right and wrong"-Development and analysis:...
. This paper was followed by a U.K. conference paper which highlighted the importance of managerial discretion in CSR and was published the next year in the Journal of Business Ethics
Journal of Business Ethics
The Journal of Business Ethics is a peer-reviewed academic journal published by Springer Science+Business Media covering methodological and disciplinary aspects of ethical issues related to business, including systems of production, consumption, marketing, advertising, social and economic...
. In this latter paper, the concept of “entrepreneurial discretion” as an overlooked antecedent of CSR was mooted.
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. Here, the term Corporate Social Entrepreneur was first defined and differentiated from the different types of entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...
s: the ‘regular’ executive entrepreneur; the intrapreneur
Intrapreneurship
Intrapreneurship is the act of behaving like an entrepreneur, except within a larger organization.-Definition:In 1992, The American Heritage Dictionary acknowledged the popular use of a new word, intrapreneur, to mean "A person within a large corporation who takes direct responsibility for turning...
; the policy entrepreneur and the public or social entrepreneur. (See also Austin et al., 2006a for a description of the similarities and differences between forms of entrepreneurship). 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
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 http://craneandmatten.blogspot.com/2010_03_01_archive.html. It was also inspired by Wood, who had previously referred to “Ethical training, cultural background, preferences…and life experiences…that motivate human behavior”; thereby supporting Trevino’s conceptual “Interactionist” model of ethical decision making in organizations. Trevino's model included both individual and situational moderators, to combine with the individual’s stage of cognitive moral development
Moral Development
Moral development focuses on the emergence, change, and understanding of morality from infancy to adulthood. In the field of moral development, morality is defined as principles for how individuals ought to treat one another, with respect to justice, others’ welfare, and rights...
, to produce either ethical or unethical behaviour. And whilst studies existed regarding the activities of environmental champions at work or other change leaders, none of these studies specifically examined the role of employees' personal values in entrepreneurial discretion with regard to corporate social responsibility (CSR).
Thus, the connection between philosophical ideas of moral character as an influence for corporate social responsibility
Corporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
(CSR) and linked to the psychological notion of prosocial behavior, provides a different focus from the more commonly discussed structural drivers for CSR, i.e., business strategy in the form of public relations activity; encouragement from government or organisational context (see also philanthropy
Philanthropy
Philanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
).
Business ethics perspective
Significantly, whilst the social entrepreneur and corporate social entrepreneur are united in their quest to create social value: a business ethicsBusiness ethics
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...
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. For example, the idea of the CSE creating social value which benefits both the corporation and society is known as ‘enlightened self interest’. Alternatively, a deontological
Deontological ethics
Deontological ethics or deontology is the normative ethical position that judges the morality of an action based on the action's adherence to a rule or rules. It is sometimes described as "duty" or "obligation" or "rule" -based ethics, because rules "bind you to your duty"...
viewpoint frames acts of socially responsible behaviour as driven by the individual's sense of duty to society, which may be viewed in terms of altruism
Altruism
Altruism is a concern for the welfare of others. It is a traditional virtue in many cultures, and a core aspect of various religious traditions, though the concept of 'others' toward whom concern should be directed can vary among cultures and religions. Altruism is the opposite of...
. Altruism is of course very difficult to support empirically, although there have been many studies of prosocial behaviour and support for the notion of self-transcendent (other-oriented) personal values in social psychology
Social psychology
Social psychology is the scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others. By this definition, scientific refers to the empirical method of investigation. The terms thoughts, feelings, and behaviors include all...
.
Threat or opportunity?
All this leads us to the inherent complexity surrounding the subject of CSR, regarding its connection to stakeholder theoryStakeholder theory
The stakeholder theory is a theory of organizational management and business ethics that addresses morals and values in managing an organization. It was originally detailed by R...
and its “essentially contested” nature. Indeed, the market fundamentalists ask: Why bother with CSR, if the raison d'etre of business is to maximise profitability for the shareholders? See page on Corporate Social Responsibility
Corporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
(CSR), which discusses all the arguments about CSR in greater depth. So, whilst some claim that the business case for CSR is unproven, other studies have shown a positive relationship between CSR and financial performance. 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). And whilst the possibility of unethical behaviour is also acknowledged as an outcome of discretion and agency: corporate irresponsibility which has been the traditional focus in the study of business ethics, is regarded as insufficient and only the starting point, if the quest is for organisations to develop a socially responsible organisational context. This is of particular relevance in the wake of the global financial crisis caused by financial irregularities and lapses in corporate governance
Corporate governance
Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...
and personal integrity.
Further reading
- Corporate social entrepreneurship. Crane and Matten Blog: an informed and thought-provoking analysis of what lies behind the headlines and headaches of business ethics and corporate social responsibility. 18 March 2010.http://craneandmatten.blogspot.com/2010/03/corporate-social-entrepreneurship.html
See also
- Business ethicsBusiness ethicsBusiness ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...
- Corporate governanceCorporate governanceCorporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...
- Corporate social responsibilityCorporate social responsibilityCorporate social responsibility is a form of corporate self-regulation integrated into a business model...
- EntrepreneurshipEntrepreneurshipEntrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response...
- IntrapreneurshipIntrapreneurshipIntrapreneurship is the act of behaving like an entrepreneur, except within a larger organization.-Definition:In 1992, The American Heritage Dictionary acknowledged the popular use of a new word, intrapreneur, to mean "A person within a large corporation who takes direct responsibility for turning...
- Moral agencyMoral agencyMoral agency is a person's ability to make moral judgments and take action that comport with morality.A Moral agent is "a being who is capable of acting with reference to right and wrong"-Development and analysis:...
- Moral developmentMoral DevelopmentMoral development focuses on the emergence, change, and understanding of morality from infancy to adulthood. In the field of moral development, morality is defined as principles for how individuals ought to treat one another, with respect to justice, others’ welfare, and rights...
- MoralityMoralityMorality is the differentiation among intentions, decisions, and actions between those that are good and bad . A moral code is a system of morality and a moral is any one practice or teaching within a moral code...
- PhilanthropyPhilanthropyPhilanthropy etymologically means "the love of humanity"—love in the sense of caring for, nourishing, developing, or enhancing; humanity in the sense of "what it is to be human," or "human potential." In modern practical terms, it is "private initiatives for public good, focusing on quality of...
- Social entrepreneurshipSocial entrepreneurshipSocial entrepreneurship is the work of social entrepreneurs. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change . While a business entrepreneur typically measures performance in profit and return, a...
Further reading
- Archer, M.S., Being Human: The Problem of Agency, Cambridge University Press, Cambridge. 2000.
- 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
- Austin, J.; Leonard, H.; Reficco, E. and Wei-Skillern, J. in Social Entrepreneurship: New Paradigms of Sustainable Social Change A. Nicholls, ed., Oxford University Press, Oxford. 2006b, pp. 169 – 181.
- Austin, J.; Leonard, H; Reficco, E. and Wei-Skillern, J. in The Accountable Corporation: Corporate Social Responsibility Volume 3 M. Epstein and K. Hanson, eds., Praeger, Westport, CT. 2006c, pp. 237 – 247.*
- Bierhoff, H.-W., Prosocial Behaviour, Psychology Press, Hove. 2002.
- Crane, A. and Matten, D., Business Ethics A European Perspective: Managing Corporate Citizenship and Sustainability in the Age of Globalization, 3rd ed., Oxford University Press, Oxford, 2010.
- Drumwright, M.E., Socially Responsible Organisational Buying: Environmental Concern as a Noneconomic Buying Criterion. Journal of Marketing 58[July], 1–19. 1994.
- Fisher, C. and Lovell, A., Business Ethics and Values, 2nd ed., Pearson Education, Harlow, U.K. 2006.
- Friedman, M., The Social Responsibility of Business is to Increase Its Profits. The New York Times Magazine, 13 September, 1–13. 1970.
- Hemingway, C.A., An Exploratory Analysis of Corporate Social Responsibility: Definitions, Motives and Values, Research Memorandum No. 34, University of Hull Business School. 2002. ISBN 1 90203 424
- 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.
- Hemingway, C.A., Personal Values as a Catalyst for Corporate Social Entrepreneurship, Journal of Business Ethics, 60(3), pp. 233–249. 2005.
- Hemingway, C.A., What Determines Corporate Social Entrepreneurship? Antecedents and Consequences, Conditions and Character Traits. Presented at the PhD Workshop, ‘CSR and Sustainable Business’, School of Management and Entrepreneurship, Katholieke Universitat Leuven, Belgium, 5 May 2006.
- Hemingway, C.A., What Determines Corporate Social Entrepreneurship? Insights From a U.K.-Based Multi-National Corporation. Thesis Submitted to the University of Nottingham for the Degree of Doctor of Philosophy. December 2009. See http://www.nottingham.ac.uk/business/ICCSR/
- Hemingway, C.A., Corporate Social Entrepreneurship: Integrity Within the Socially Responsible Organisation, Cambridge University Press, Forthcoming, 2011.
- 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 842330 87X.
- Hemingway, C.A. and Maclagan, P.W., Managers Personal Values as Drivers of Corporate Social Responsibility, Journal of Business EthicsJournal of Business EthicsThe Journal of Business Ethics is a peer-reviewed academic journal published by Springer Science+Business Media covering methodological and disciplinary aspects of ethical issues related to business, including systems of production, consumption, marketing, advertising, social and economic...
, 50(1), March (I), pp. 33–44. 2004. - Jones, T.M., Instrumental Stakeholder Theory: a Synthesis of Ethics and Economics. Academy of Management Review 20[2], 404–437. 1995.
- Kohlberg, L., in Handbook of Socialization Theory and Research D.A. Goslin, ed., Rand McNally, Chicago. 1969, pp. 347–480.
- Lovell, A., Moral Agency as Victim of the Vulnerability of Autonomy. Business Ethics: A European Review 11[1], 62–76. January 2002.
- Maclagan, P.W., Management and Morality, Sage, London. 1998.
- McWilliams A. and Siegel, D., Corporate Social Responsibility: A Theory of the Firm Perspective. Academy of Management Review 26[1], 117–127. 2001.
- Monbiot, G., Captive State: The Corporate Takeover of Britain, Macmillan, London. 2000.
- Moon, J., in The International Directory of Corporate Philanthropy C. Hartley, ed., Europa, London. 2003.
- Schwartz, S.H. and Bilsky, W., Toward a Universal Psychological Structure of Human Values. Journal of Personality and Social Psychology 53 [3], 550–562. 1987.
- Schwartz, S. H. and Boehnke, K., Evaluating the Structure of Human Values with Confirmatory Factor Analysis. Journal of Research in Personality 38, 230–255. 2004.
- Soros, G., The Crisis and What to Do About It. The New York Review of Books 55[19], 4 December 2008. Accessed online http://www.nybooks.com/articles/22113 April 2009.
- Trevino, L. K., Ethical Decision Making in Organizations: a Person-Situation Interactionist Model. Academy of Management Review 11[3 ], 601–617. 1986.
- Wood, D. L., Corporate Social Performance Revisited. Academy of Management Review 16[4], 691–718. 1991.