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Matching social enterprises and developers for a common good: A guide to successful collaboration



For NonprofitsCompanies with strong corporate social responsibility programs are looking for nonprofits to receive their support in the form of grants, matching gift programs, and volunteer grants. CSR initiatives help nonprofits find support beyond individual donors.




Matching social enterprises and developers for a common good



CheckrCheckr participates in corporate social responsibility by giving charitably to the organizations their employees believe in (made quick, easy, and accessible with matching gift auto-submission through Double the Donation). Not only that, but they also aim to drive forward fair hiring practices for all companies and offer assistance through expungement and reentry services for post-incarcerated individuals.


Social enterprises are businesses whose primary purpose is the common good. They use the methods and disciplines of business and the power of the marketplace to address a social, environmental and human justice need.


Finally, our focus is on the extent to which entrepreneurs believe their business creates social value. Consistent with previous research (Brieger and De Clercq 2019; Brieger et al. 2019b; Hechavarría et al. 2017), we do not conceptualize social entrepreneurs or their enterprises as a distinct category; rather, any entrepreneur may seek to create social value with his or her business. Corroborating this view, the 2009 Global Entrepreneurship Monitor asked entrepreneurs to allocate 100 points, according to the extent to which they sought economic or noneconomic goals with their businesses (Hechavarría et al. 2017; Hörisch et al. 2017, 2019). Of approximately 25,000 entrepreneurs, located in more than 50 countries, only about 20% reported prioritizing economic goals solely; the vast majority cited the importance of social or environmental goals too. Thus, entrepreneurs vary in the degree to which they believe their organization generates social value, and we investigate the outcomes of these beliefs on their work-related well-being.


Needs for a positive self-concept and respect from others motivate people to participate in recognized social roles and social groups. Identity theory suggests that people identify with prestigious, respected, and well-rewarded roles, occupations, and entities (e.g., the job they have, the organization they work for) to enhance their sense of self-worth and generate positive self-concepts (Stryker and Burke 2000). Respected occupations and organizations with positive reputations tend to be those that prioritize not solely profits but also the general well-being of society (Tetrault Sirsly and Lvina 2019; Turban and Greening 1997). Workers and customers thus prefer to associate with recognized occupations and organizations, which become central to their identity formation and help define them in relation to their social environment (Ashforth and Mael 1989; Turban and Greening 1997). For example, according to the 2019 German Public Value Atlas, 72% of the representative sample of more than over 10,000 respondents in Germany would rather work for organizations that contribute to the common good, even if it meant earning less, and 91% prefer to buy products or services that benefit society, even if they have to spend more to obtain them (more details about this study can be found at www.gemeinwohlatlas.de/en/gemeinwohl-und-ich). Entrepreneurs who prioritize social value creation similarly should benefit from positive self-concepts, because of the favorable image of their role among family members, friends, and the broader community, as informed by the positive contributions that they make to their environments (Gundlach et al. 2006; Stephan 2018). Some entrepreneurs also receive appreciation on the internet, in local and national media outlets, or even in international listings, such as those published in Forbes or Foreign Policy magazines. As a notable example, Muhammad Yunus was awarded the Nobel Peace Prize and the U.S. Presidential Medal of Freedom for founding Grameen Bank in an effort to help people move out of poverty.


In this approach, we focus on ensuring that the social policies, social systems, institutions, and environments on which we depend are beneficial to all. Examples of goods common to all include affordable health care, effective public safety, peace among nations, a just legal system, and an unpolluted environment.


Social entrepreneurship is the organization of a business around specific social and environmental causes, and can include both nonprofit organizations and charities and for-profit social enterprises.


While social enterprises can be for profit or not for profit, there are also hybrid organizations that combine elements of both models, such as Merit Goodness, a clothing brand that helps fund scholarships for underprivileged youth in Detroit, Michigan.


is proper to the lay faithful. As citizens of the State, they are called to take part in public life in a personal capacity. So they cannot relinquish their participation in the many different economic, social, legislative, administrative and cultural areas, which are intended to promote organically and institutionally the common good. (Benedict XVI 2005b, no. 29)


The person is not only sacred but also social. How we organize our society -- in economics and politics, in law and policy -- directly affects human dignity and the capacity of individuals to grow in community. Marriage and the family are the central social institutions that must be supported and strengthened, not undermined. We believe people have a right and a duty to participate in society, seeking together the common good and well-being of all, especially the poor and vulnerable.


Social enterprises can be structured as a business, a partnership for profit or non-profit, and may take the form (depending on in which country the entity exists and the legal forms available) of a co-operative, mutual organisation, a disregarded entity,[1] a social business, a benefit corporation, a community interest company, a company limited by guarantee or a charity organisation. They can also take more conventional structures.


Social enterprises have business, environmental and social goals. As a result, their social goals are embedded in their objective, which differentiates them from other organisations and companies.[2] A social enterprise's main purpose is to promote, encourage, and make social change.[3] Social enterprises are businesses created to further a social purpose in a financially sustainable way. Social enterprises can provide income generation opportunities that meet the basic needs of people who live in poverty. They are sustainable and earned income from sales is reinvested in their mission. They do not depend on philanthropy and can sustain themselves over the long term. Their models can be expanded or replicated to other communities to generate more impact.


Social enterprises can generally be classified by the following categories listed below, although new sectors and areas arise as the field continues to evolve. Their shared common thread is that they all operate to achieve a balanced financial, social and environmental set of objectives.


Saving and loans organisations such as credit unions, microcredit organisations, cooperative banks and revolving loan funds are membership-owned social enterprises. Credit unions were first established in the 1850s in Germany and spread internationally. Cooperative banks have likewise been around since the 1870s, owned as a subsidiary of a membership co-operative. In recent times microcredit organisations have sprung up in many developing countries to great effect. Local currency exchanges and social value exchanges are also being established.


Many community organisations are registered social enterprises: community enterprises, housing co-operatives and community interest companies with asset locks, community centres, pubs and shops, associations, housing associations and football clubs. These are membership organisations that usually exist for a specific purpose and trade commercially. All operate to re-invest profits into the community. They have large memberships who are customers or supporters of the organisation's key purpose. There are village co-operatives in India and Pakistan that were established as far back as 1904.


There are many NGOs and charities that operate a commercial consultancy and training enterprise, or subsidiary trading enterprises, such as Oxfam. The profits are used to provide salaries for people who provide free services to specific groups of people or to further the social or environmental aims of the organisation.


Furthermore, it was intended as part of the original concept that social enterprises should plan, measure and report on financial performance, social-wealth creation, and environmental responsibility by the use of a social accounting and audit system.[6]


The organisational and legal principles embedded in social enterprises are believed[by whom?] to have come from non-profit organisations. Originally, non-profit organisations relied on governmental and public support, but more recently[when?] they have started to rely on profits from their own social change operations. The Social Enterprise Alliance (SEA) defines the following as reasons for this transition:[7]


Social enterprises are viewed[by whom?] to have been created[by whom?] as a result of the evolution of non-profits.[citation needed] This formation process resulted in a type of hybrid organisation that does not have concrete organisational boundaries. Various scholars (e.g. Eikenberry & Kluver, Liu & Ko, and Mullins et al.) have argued that this may have come about due to the marketisation of the non-profit sector, which resulted in many non-profit firms placing more focus on generating income.[8][need quotation to verify][9] Other scholars have used institutional theory to conclude that non-profits have adopted social enterprise models, because such models have become legitimised[by whom?] and widely accepted.[10] Some organizations have evolved into social enterprises, while some were established as social enterprises.[9] 2ff7e9595c


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