Textbook- CH 16

• Fourth Sector


  • A sector of the economy in addition to the traditional private, social, and public sectors
  • Illustrates the interrelations between these sectors for social purposes
• Traditional sectors in the economy

  • Private sector
  • Social sector
  • Public sector
• Pressures from society


  Causing organizations in the three sectors to change
• Public-private partnership (PPP)


  A cooperative venture between the public and private sectors, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks, and rewards
• Fourth Sector


  • New organizational forms that integrate business or private, social and public methods, sometimes referred to as hybrid organizations
• Examples of Fourth Sector organizations


  • Corporate Social Responsibility
  • Social Auditing
  • Sustainability Reporting
  • Stakeholder Engagement
  • Environmental Management
  • Volunteerism
  • Employee Ownership
  • Philanthropy
  • Community Investment
  • Social Impact Management
  • Corporate Sponsorship
  • Green Marketing
  • Social License
  • Social Venture Philanthropy
  • Social Entrepreneurship
  • Microfinance
  • Co-operatives
  • Faith-Based Enterprises
  • Fair Trade
  • For-benefit Corporations
  • B-corporations
  • Government-Owned Corporations
  • Sale of Corporations and Other Assets
  • Public–Private Partnerships
  • Privatizing Goods and Services
• Sustainability strategy


  A plan that views economic, ethical, social, and environmental responsibilities more intensively and integrates corporate social responsibility (CSR) into all facets of the corporation's operations
• Continuum of sustainability strategies

  • Amoral sustainability strategy
  • Compliance-based sustainability strategy
  • Emerging sustainability strategy
  • Comprehensive sustainability strategy
• Sustainability


  Accepted because of the possible economic consequences of doing nothing and the fear of negative publicity
• Sustainability strategy


  Extends beyond what is legally required, corporation voluntarily considers its economic, ethical, and environmental responsibilities
• Comprehensive sustainability strategy


  Key component of the corporate strategy, requires integration with all aspects of the corporation's planning and operations
• 10 Things New Sustainability Managers Need to Know

  • Whether there is payback on investments in sustainability
  • How to make sustainability a part of corporate culture
  • How to make the supply chain competitive and sustainable
  • Whether customers will pay more for sustainable products or services
  • How to best engage stakeholders
  • How to identify the best measurements of a corporation's environmental impact
  • Whether corporate sustainability attracts and retains employees
  • How a corporation can mitigate and adapt to climate change
  • The meaning of business sustainability
  • How to identify resources, including research, about sustainability and related issues
• Opportunities presented by the trend towards thinking in sustainable terms

  • Collaborating for sustainability
  • Addressing climate change
  • Building stakeholder trust
  • Designing effective sustainability communications
  • Turning sustainability into strategic priority
  • Transitioning to green products and services
  • Respecting free, prior, informed consent (consultation and accommodation with impacted stakeholders)
• Strategic management


  The process through which a corporation establishes its mission and objectives, analyzes the environment and resource capabilities in order to formulate strategy, creates the organizational systems and processes needed to implement the strategy, and devises mechanisms for evaluating performance
• The Transformational Company Qualities


  A benchmark for managers who wish to improve their corporation's social and environmental impact, developed by the Canadian Business for Social Responsibility (CBSR)
• Social enterprise


  A model of business operation where some or all profits are deliberately used to further social aims
• Types of social enterprise

  • Non-profit organization with charitable status
  • Non-profit organization without charitable status
  • Co-operative
  • Hybrid corporation
  • For-profit corporation owned by non-profit organization
  • For-profit corporation owned by investors
• Characteristics of social enterprises

  • Enterprise orientation (involved in production of goods/services to a market with intention that revenues will exceed costs)
  • Social aims (e.g. providing employment, training, investment funding)
  • Commitment to local capacity building
  • Autonomous organizations with governance and ownership structures based on participation by stakeholder groups
  • Profits distributed to stakeholders or used for community benefit
• Social entrepreneurship

  The activities undertaken to enhance social wealth in some innovative way