The report provides a brief description of social enterprise, its essential elements, and a popular social enterprise called BFM Foundation. It also contrasts social enterprise with business enterprise and describes the differences between corporate social responsibility and social enterprise.
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Running head: SOCIAL ENTERPRISE PROJECT Social Enterprise Project: BFM Foundation Name of the Student Name of the University Author’s Note:
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1 SOCIAL ENTERPRISE PROJECT Executive Summary The main aim of this report is to understand about social enterprise. The social enterprises could be easily structured as a non-profit or for profit and might take the subsequent form of any mutual organization, social business, charity organization, disregarded entity, community interests’ company and many others. These social enterprises could take some of the conventional structures and the social goals are embedded with the respective business objectives. A proper description of several elements of the social enterprises with relevant details are provided in the report. Detailsof a popular social enterprise called BFM Foundation is also provided in this report. Moreover, the significant contrast between business enterprise and social enterprise is done here. The final part of the report has described the differences between corporate social responsibility and social enterprises.
2 SOCIAL ENTERPRISE PROJECT Table of Contents Introduction................................................................................................................................3 Discussion..................................................................................................................................3 1. Definition of Social Enterprise with Essential Elements...................................................3 2. BFM Foundation as a Social Enterprise.............................................................................4 3. Contrasting Social Enterprise with Business Enterprise....................................................4 4. Social Enterprise Reinvesting Surpluses to Social Objectives..........................................5 5. Differences between Corporate Social Responsibility and Social Enterprise...................6 Conclusion..................................................................................................................................6 References..................................................................................................................................8
3 SOCIAL ENTERPRISE PROJECT Introduction The social enterprise is any specific organization, which applies several commercial strategies for maximizing the improvements within financial, environmental and social well beings (Ridley-Duff & Bull, 2015). This social enterprise even includes the maximization of social impacts with profits for the external shareholders of that particular organization. The social enterprises comprise of both social and business goals as well as objectives (Smith, Gonin & Besharov, 2013). The following report outlines a brief description on the social enterprise with relevant details. BFM Foundation is a popular social enterprise in Canada and thisreportdescribesthecontrastbetweensocialenterpriseswithbusinessenterprise. Moreover, several significant differences between corporate social responsibility and social enterprise will also be provided in the report. Discussion 1. Definition of Social Enterprise with Essential Elements Social enterprise seeks for the balancing of activities, which could provide various financial advantages with the social objectives like providing housing to the lower income families as well as job training (Luke & Chu, 2013). The funding of these social enterprises is subsequently obtained primarily by selling of goods or services to the consumers. Some of the funding is also obtained via grants. There are seven distinct elements of a successful social enterprise, which are as follows: i)Sustainable:Thefirstandtheforemostelementofasocialenterpriseis sustainability (Teasdale, Lyon & Baldock, 2013). The social enterprise does not only relies on the funding and donor aid and have eventually adopted several strategies.
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4 SOCIAL ENTERPRISE PROJECT ii)Socially Inclusive: The social enterprises are more attractive within the modern society as they could strive for inclusion in the respective workplace. iii)Diversifiable: The third element of this social enterprise is that it is diversifiable (Young & Lecy, 2014). This particular strategy is also responsible for ensuring sustainability. iv)Professional: Another significant element of these enterprises is that they are extremely professional in nature. v)Easily Replicated: The next important and noteworthy element of the social enterprise is that it is easily as well as widely replicated by the other enterprises. vi)Value Addition: Since, these social enterprises limit the waste to a high level, the processed goods could be easily exported to other countries (Dey & Teasdale, 2013). vii)Reactive: The final element of a successful social enterprise is that they could respond activelytothe socialneedsandthen providesolutionsto theissuesin the community. 2. BFM Foundation as a Social Enterprise BFM Foundation is a social enterprise in Canada that has been working for more than 27 years and they has been raising funds for the purpose of supporting the Joint Ministry with the Bible League in Canada. They provide training as well as discipleship resources to the several men, women and children, who have a need of the resources. BFM Foundation is termed as a social enterprise since they complete their investments in a unique method. The funds that are raised are eventually loaned from the BFM Foundation Holdings Society to the BFM Foundation Real Estate Management for the purpose of assisting with purchase as well as renovation of the real estate and with the lease hold improvements to the premises that had been leased from the third parties. The funds that are being raised are totally given to the charity and the respective individuals.
5 SOCIAL ENTERPRISE PROJECT 3. Contrasting Social Enterprise with Business Enterprise The social enterprises are the businesses, which trade for internationally tackling the social issues, improving communities, helping the environment and even providing people access to the training and employment (Larner, 2014). With the power of the marketplace for solving the most significant issues of the society, these social enterprises are commercial viable businesses that exist for providing advantages to both the community and the public and not to the owners or the shareholders of the company (Sepulveda, 2015). Although, there is no legalized structure of the social enterprises, it is evident that more than 70% of the total profits are donated to the social mission. The business enterprise, on the other hand, is the endeavour, in which the first and the foremost motive is to gain profit and provide success factors to the shareholders and owners (Luke, Barraket & Eversole, 2013). Although, there are various employees and staffs working in a business enterprise, the major importance is provided to the customers. The goods and services of the business enterprise are responsible for providing customer satisfaction and bringing more profit and success in the company. This is completely different than the social enterprise as the social enterprises only focus on the welfare of the society and environment, whereas the business enterprises only consider their profit and success (Defourny & Nyssens, 2017). The social enterprises have been built for providing help to the society with their services; whereas business enterprises are being built for the welfare of the company and its shareholders. 4. Social Enterprise Reinvesting Surpluses to Social Objectives Since, social enterprises do not only have the primary goal of profit maximization, theycouldeasilyoperatedifferentlythanthestandardizedcompaniesortraditional businesses (Teasdale, Lyon & Baldock, 2013). The employees of the social enterprise belong to various backgrounds, however, the major priority is provided to only those, who come
6 SOCIAL ENTERPRISE PROJECT from the risk associated sections of any community. There are several long term unemployed workers in these enterprises; although few even work on the basis of contracts. Proper trainings are often provided to the respective employees if they lack any type of experience regarding the business (Smith, Gonin & Besharov, 2013). It is a commercial organization and hence everyone could be a part of this enterprise. These are also termed as the revenue generating businesses as they could easily bring out revenue in the business. Thus, surpluses are reinvested to the social objectives effectively and efficiently (Young & Lecy, 2014). Another reason for this reinvestment of surplus to the social objectives is that majority of the profit is donated to the environment and society and hence enhancing more success in their enterprise. 5. Differences between Corporate Social Responsibility and Social Enterprise Corporate social responsibility or CSR is the kind of international business self- regulation (Ridley-Duff & Bull, 2015). This CSR is subsequently integrated into any business model and the policy of this particular responsibility is responsible for functioning as the self- regulatory mechanism, by which any business monitors as well as ensures the active compliance with ethical standards or international and national norms (Luke, Barraket & Eversole,2013).Socialenterprise,onthecontrary,isresponsibleforpromotingand encouraging any kind of social change within the business. Corporate social responsibility is the corporate ethnic strategies or the internal organizational policies are being followed by the business. CSR is quite different from the social enterprise as these are policies and social enterprise is an organization (Defourny & Nyssens, 2017). CSR is also followed by several individuals and the individuals, who are following corporate social responsibility, could be a part of a social enterprise.
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7 SOCIAL ENTERPRISE PROJECT Conclusion Therefore, from the above discussion, it can be concluded that the main purpose of a social enterprise is to eventually promote, make as well as encourage social changes within any specific country or even internationally. There are several types of social enterprises like tradingenterprises,financialinstitutions,communityorganizationsandfinallynon- governmentorganizations and charities. Being a commercial organization, this type of enterprises comprise of some of the significant social goals or objectives, which could serve the primary purpose. The environment and society are highly benefitted with these social enterprises. The above report has clearly outlined the various elements of social enterprise with proper details regarding a Canadian social enterprise, namely BFM Foundation. The differences between social enterprise and CSR are also described in the report.
8 SOCIAL ENTERPRISE PROJECT References Defourny, J., & Nyssens, M. (2017). Fundamentals for an international typology of social enterprise models.VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations,28(6), 2469-2497. Dey, P., & Teasdale, S. (2013). Social enterprise and dis/identification: The politics of identity work in the English third sector.Administrative Theory & Praxis,35(2), 248- 270. Larner, W. (2014). The limits of post-politics: Rethinking radical social enterprise.The post- political and its discontents: Spaces of depoliticisation, spectres of radical politics, 189-207. Luke, B., & Chu, V. (2013). Social enterprise versus social entrepreneurship: An examination ofthe‘why’and‘how’inpursuingsocialchange.InternationalSmallBusiness Journal,31(7), 764-784. Luke, B., Barraket, J., & Eversole, R. (2013). Measurement as legitimacy versus legitimacy of measures: Performance evaluation of social enterprise.Qualitative Research in Accounting & Management,10(3/4), 234-258. Ridley-Duff, R., & Bull, M. (2015).Understanding social enterprise: Theory and practice. Sage. Sepulveda, L. (2015). Social enterprise–a new phenomenon in the field of economic and social welfare?.Social Policy & Administration,49(7), 842-861. Smith, W. K., Gonin, M., & Besharov, M. L. (2013). Managing social-business tensions: A review and research agenda for social enterprise.Business Ethics Quarterly,23(3), 407-442.
9 SOCIAL ENTERPRISE PROJECT Teasdale, S., Lyon, F., & Baldock, R. (2013). Playing with numbers: a methodological critique of the social enterprise growth myth.Journal of social entrepreneurship,4(2), 113-131. Young, D. R., & Lecy, J. D. (2014). Defining the universe of social enterprise: Competing metaphors.Voluntas:internationaljournalofvoluntaryandnonprofit organizations,25(5), 1307-1332.