Social Enterprise Project: BFM Foundation, CSR and Objectives

This report provides a comprehensive analysis of social enterprises, focusing on the BFM Foundation as a case study. It defines social enterprises, outlines their essential elements such as sustainability and social inclusivity, and contrasts them with traditional business enterprises. The report details how social enterprises reinvest surpluses into social objectives and highlights the key differences between corporate social responsibility (CSR) and the operational model of a social enterprise. It concludes that social enterprises play a crucial role in promoting social change and benefiting both the environment and society, while CSR represents a set of ethical strategies and policies within a business.

Running head: SOCIAL ENTERPRISE PROJECT
Social Enterprise Project: BFM Foundation
Name of the Student
Name of the University
Author’s Note:

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. Details of 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
this report describes the contrast between social enterprises with business enterprise.
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: The first and the foremost element of a social enterprise is
sustainability (Teasdale, Lyon & Baldock, 2013). The social enterprise does not only relies
on the funding and donor aid and have eventually adopted several strategies.

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 actively to the social needs and then provide solutions to the issues in 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,
they could easily operate differently than the standardized companies or traditional
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). Social enterprise, on the contrary, is responsible for promoting and
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.

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
trading enterprises, financial institutions, community organizations and finally non-
government organizations 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
of the ‘why’and ‘how’in pursuing social change. International Small Business
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: international journal of voluntary and nonprofit
organizations, 25(5), 1307-1332.