Slide- CH 16

• Fourth Sector


  Sector of the economy in addition to the traditional private, social, and public sectors
• Socialization of capitalism


  • Process through which the business system conforms to the expectations of society resulting in desired, socially responsible outcomes
• Social purpose


  Corporation is responsible to society and is aware and concerned about the ethical, social and environmental issues
• Sectors of the economy

  • Private sector
  • Social sector
  • Public sector
• Public-private partnership (PPP)


  Cooperative venture between the public and private sectors, built on the expertise of each partner to best meet 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
• Sustainability strategy


  Plan that views economic, ethical, social, and environmental responsibilities more intensively and integrates CSR into all facets of business operations

  
• Main characteristics of sustainability strategies

  • Awareness
  • Stakeholder focus
  • Management/staff Involvement
  • Board involvement
  • Ethics program
  • CSR program
  • Reporting

  
• "10 Things New Sustainability Managers Need to Know"

  
• Strategic Management


  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
• 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
  • Social aims
  • Commitment to local capacity building
  • Accountable to members and community stakeholders
  • Autonomous organizations
  • Profits distributed to stakeholders or used for community
• Social entrepreneurship


  Involves activities undertaken to enhance social wealth in some innovative way
• Social intrapreneurship


  Process of addressing social challenges from inside established organizations
• Social extrapreneurship


  Process of inter-organizational action that facilitates alternative combinations of ideas, peoples, places, and resources to address social challenges
• For-benefit (or benefit) corporation


  Aims to make profits but also has a strong commitment to addressing social and environmental problems
• 1. Corporation (B-Corp)


  Variation of a for-benefit corporation; a certification process is required in order to be eligible to receive this designation
• Social license


  Privilege of operating in society with minimal formalized restrictions based on maintaining public trust by doing what is acceptable to stakeholders in the business and society relationship
• Social innovation


  Novel solution to a social problem that is more effective, efficient, sustainable, or just than current solutions, where the value created accrues primarily to society rather than to private individuals
• Social impact investing


  Financing of initiatives to address social and environmental challenges and that generates a financial return and measurable benefits to society
• Sharing economy


  Sustainable social and economic system involving the sharing of human and physical resources
• Philanthrocapitalism


  Philosophy of capitalist style objectives and criteria with an entrepreneurial spirit to get more from non-profit or social organizations
• Social capital


  Any aspect of a corporation's organizational arrangements that creates value and facilitates the actions of stakeholders within and external to the corporation
• Sustainable capitalism


  Economic system within which business and trade seek to maximize long-term value creation, accounting for all material ESG (environmental, social and governance) metrics
• Important to educate and train future leaders on the integration of economic and social factors
• Business schools help develop future responsible managers
• Contemporary terms for capitalism

  • Responsible enterprise system
  • Stakeholder capitalism
  • Clean capitalism
  • Conscious capitalism
  • Creative capitalism
  • Moral capitalism
  • Inclusive capitalism
  • Progressive capitalism
  • Sustainable capitalism