EC 303 ILO2 Introduction to Social Entrepreneurship PDF

ILO2: Introduction to Social Entrepreneurship EC 303 SOCIAL ENTREPRENEURSHIP 21 January 2024 Who is the father of Social Entrepreneurship? ▪ William Drayton (born 1943) is an American social entrepreneur. Drayton was named by U.S. News & World Report as one of America's 25 Best Leaders in...

ILO2: Introduction to Social Entrepreneurship EC 303 SOCIAL ENTREPRENEURSHIP 21 January 2024 Who is the father of Social Entrepreneurship? ▪ William Drayton (born 1943) is an American social entrepreneur. Drayton was named by U.S. News & World Report as one of America's 25 Best Leaders in 2005. ▪ He is responsible for the rise of the phrase "social entrepreneur", a concept first found in print in 1972. Introduction to Social Entrepreneurship ▪ In the past, many entrepreneurs chose to accumulate wealth in the private sector and become philanthropists later in life. ▪ However, now entrepreneurs can work to improve social issues through their businesses. Introduction to Social Entrepreneurship ▪ Globally, a new business model has emerged that meshes businesses with governmental and social organizations. Nonprofits and for- profit businesses can team up to form a hybrid business model, led by a new generation of social entrepreneurs. These leaders successfully tackle social issues while generating profit for shareholders. Introduction to Social Entrepreneurship ▪ Widespread use of ethical practices such as impact investing, conscious consumerism, and corporate social responsibility programs facilitated the success of the social entrepreneurs. Introduction to Social Entrepreneurship ▪ Impact investing is an approach to investing that seeks to generate measurable social or environmental impact alongside a financial return. Unlike traditional investing, where the primary focus is on financial returns, impact investing aims to address pressing global challenges while still delivering competitive financial performance. Impact investing ▪ Impact investing is an approach to investing that seeks to generate measurable social or environmental impact alongside a financial return. ▪ Unlike traditional investing, where the primary focus is on financial returns, impact investing aims to address pressing global challenges while still delivering competitive financial performance. Impact investing ▪ This form of investing has gained traction as investors increasingly seek opportunities to align their financial goals with positive contributions to society. Examples of Impact Investing Renewable Energy Projects ▪ Investing in renewable energy projects, such as solar or wind farms, not only contributes to the transition to a low-carbon economy but also provides financial returns for investors. Companies like M- KOPA in East Africa, which provides off-grid solar solutions, have attracted impact investments to expand access to clean energy. Microfinance Institutions ▪ Supporting microfinance institutions that provide financial services to underserved communities is a common form of impact investing. These institutions empower individuals in developing economies to start or expand small businesses. Examples include organizations like Grameen Bank and Accion. Affordable Housing Initiatives ▪ Investing in affordable housing projects helps address the housing crisis in many regions while offering returns to investors. ▪ Organizations like Habitat for Humanity often collaborate with impact investors to fund affordable housing projects. Conscious consumerism ▪ Conscious consumerism refers to the awareness and consideration of the social, environmental, and ethical impact of one's purchasing decisions. It involves making choices that align with personal values and contribute to positive change in the world. This concept has gained prominence as people become more informed about the consequences of their consumption habits on various aspects of society and the environment. Key Aspects of Conscious Consumerism Ethical Sourcing ▪ Conscious consumers prioritize products that are sourced ethically, ensuring fair labor practices, safe working conditions, and fair wages for workers. They seek transparency in the supply chain to verify that the production process aligns with their values. Environmental Impact ▪ Environmentally conscious consumers focus on products that have a minimal impact on the environment. This includes choosing items with eco-friendly packaging, supporting companies with sustainable practices, and reducing the carbon footprint associated with production and transportation. Social Responsibility ▪ Conscious consumers support businesses that demonstrate social responsibility. This may involve backing companies that engage in charitable activities, contribute to community development, or actively work towards social justice. Quality over Quantity ▪ His most important legacy includes the vast body of direct marketing wisdom from 50 years of experience, which he describes in his book Being Direct: Making Advertising Pay. Minimalism ▪ Many conscious consumers embrace minimalism, focusing on owning fewer possessions and prioritizing experiences over material possessions. This lifestyle choice reduces consumption and fosters a more sustainable and mindful way of living. Examples of Conscious Consumerism Fair Trade Products ▪ Products certified as fair trade, such as coffee, chocolate, and clothing, ensure that producers in developing countries receive fair compensation for their labor. This empowers marginalized communities and promotes ethical trading practices. Eco-Friendly Brands ▪ Brands that prioritize sustainability in their production processes and use environmentally friendly materials appeal to conscious consumers. ▪ For instance, companies manufacturing biodegradable packaging or using renewable energy sources are often favored. B Corporations ▪ B Corporations, or B Corps, are businesses that meet high standards of social and environmental performance, accountability, and transparency. ▪ Conscious consumers often seek out and support these businesses because of their commitment to balancing profit and purpose. Community-Supported Agriculture (CSA) ▪ Conscious consumers may participate in CSAs, where they directly support local farmers by subscribing to a share of the harvest. This promotes sustainable farming practices and helps consumers connect with the source of their food. Second-Hand Shopping ▪ Opting for second-hand or thrift store purchases reduces the demand for new production and extends the lifespan of products. ▪ Conscious consumers contribute to a circular economy by choosing pre- owned items over new ones. Corporate Social Responsibility (CSR) ▪ Corporate Social Responsibility (CSR) refers to a company's initiatives to take responsibility for its impact on environmental and social well-being. These programs go beyond the basic legal requirements and aim to contribute positively to society. CSR initiatives often focus on areas such as environmental sustainability, ethical business practices, community development, and employee well- being. Examples of CSR Programs Patagonia's Environmental Initiatives ▪ Patagonia, an outdoor clothing company, is well-known for its commitment to environmental sustainability. They invest in renewable energy, promote fair labor practices, and encourage recycling. Patagonia's commitment to the environment is deeply embedded in its business model. TOMS Shoes One for One ▪ TOMS is famous for its "One for One" model, where for every pair of shoes purchased, TOMS donates a pair to a child in need. This initiative addresses social issues (lack of proper footwear in underprivileged areas) while integrating it into the company's core business strategy. KEY TAKEAWAYS ▪ Social entrepreneurs look to establish new businesses that contribute positively to the greater good and give back to society. ▪ While many socially conscious companies are for-profit, they do focus on solving social problems and often contribute to their communities or help those in need. ▪ Social entrepreneurship is growing, with capital provided by investors looking at socially responsible investing and environmental, social, and governance criteria. Historical Development of Social Entrepreneurship ▪ Acquire with the intention to retain, and retain with the intention to grow. ▪ Advertising becomes a dialogue that becomes an invitation to a relationship. ▪ Always try to turn a marketing disaster into a marketing opportunity. KEY TAKEAWAYS ▪ Social entrepreneurs look to establish new businesses that contribute positively to the greater good and give back to society. ▪ While many socially conscious companies are for-profit, they do focus on solving social problems and often contribute to their communities or help those in need. ▪ Social entrepreneurship is growing, with capital provided by investors looking at socially responsible investing and environmental, social, and governance criteria. Key Concepts in Social Entrepreneurship Social Innovation ▪ Social entrepreneurship is characterized by the pursuit of innovative solutions to social problems. Social innovators often challenge conventional wisdom, introducing new ideas to address complex issues. Key Concepts in Social Entrepreneurship Sustainability ▪ Sustainability is a core concept, emphasizing the creation of ventures that are financially viable in the long term while delivering positive social and environmental impacts. Key Concepts in Social Entrepreneurship Empowerment and Inclusivity ▪ Social entrepreneurship often focuses on empowering marginalized communities and promoting inclusivity, ensuring that the benefits of innovation reach all segments of society. Social Entrepreneurship Ecosystem Funding and Investment ▪ Social entrepreneurs require financial support. Impact investing, grants, and social venture capital play pivotal roles in sustaining and scaling social enterprises. Social Entrepreneurship Ecosystem Support Organizations ▪ Nonprofits, incubators, and accelerators contribute to the social entrepreneurship ecosystem by providing mentorship, resources, and networking opportunities. Social Entrepreneurship Ecosystem Policy and Advocacy ▪ Governments and policymakers can foster social entrepreneurship through supportive policies, incentives, and a regulatory environment that encourages innovation. REFERENCES: ▪ Wikipedia.com https://en.wikipedia.org/wiki/Bill_Drayton#:~:text=William%20Drayto n%20(born%201943)%20is,found%20in%20print%20in%201972. ▪ Global Impact Investing Network (GIIN): ▪ GIIN Website GIIN provides resources, research, and insights into impact investing. ▪ Impact Investing: Transforming How We Make Money While Making a Difference by Antony ▪ Bugg-Levine and Jed Emerson: This book offers a comprehensive overview of impact investing, including its principles, strategies, and real-world examples. ▪ United Nations Sustainable Development Goals (SDGs): UN SDGs The SDGs provide a common framework for measuring the impact of investments on global challenges. ▪ Baue, W. (2007). The Rise of Conscious Consumerism. SocialFunds. ▪ Murray, R., & Shwom, R. (2007). Sustainable Values, Attitudes, and Behaviors: A Review of the Literature. Journal of Environmental Education. ▪ Rosenzweig, C., & Hertel, T. W. (2008). Globalizing Consumer Choices: Positive and Normative Analysis. American Journal of Agricultural Economics. REFERENCES: ▪ Carroll, A. B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. ▪ Porter, M. E., & Kramer, M. R. (2006). Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility. ▪ Elkington, J. (1997). Cannibals with Forks: The Triple Bottom Line of 21st Century Business. ▪ S. Delventhal, (2023) The 10 Most Successful Social Entrepreneurs, Investopedia, Retrieved from: https://www.investopedia.com/articles/investing/092515/10-most- successful-social-entrepreneurs.asp ▪ C. Clifford, (2015) Warby Parker Co-Founder On the Next Generation of Social Entrepreneurship, Retrieved from: https://www.entrepreneur.com/leadership/warby-parker-co- founder-on-the-next-generation-of-social/243915 ▪ Wikipedia, Retrieved from: https://en.wikipedia.org/wiki/Warby_Parker#:~:text=The%20company %20was%20founded%20in,corporate%20name%20is%20JAND%20Inc. ▪ Dees, J.G. (1998). The Meaning of Social Entrepreneurship. Stanford Social Innovation Review. REFERENCES: ▪ Bornstein, D. (2007). How to Change the World: Social Entrepreneurs and the Power of New Ideas. ▪ Westley, F., & Antadze, N. (2010). Making a difference: Strategies for scaling social innovation for greater impact. ▪ Elkington, J. (1997). Cannibals with Forks: The Triple Bottom Line of 21st Century Business. ▪ Yunus, M. (2007). Creating a world without poverty: Social business and the future of capitalism. ▪ Emerson, J., & Bonini, S. (2003). The Blended Value Proposition: Integrating Social and Financial Returns. ▪ Dees, J.G., & Anderson, B.B. (2006). Framing a Theory of Social Entrepreneurship: Building on Two Schools of Practice and Thought. ▪ Mair, J., & Martí, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. ▪ Analysis. American Journal of Agricultural Economics. Task no. 1: Young Entrepreneur: Taybear A short clip critiques ▪ Paper format will be forwarded ▪ Includes DIRECTIONS, INTRODUCTION, and, REFLECTIONS composing of four questions ▪ Link for the short video clip ▪ Rubric