Business ethics (4.1)

• Social enterprise


  Businesses whose goal is to make a profit to help others
• Social enterprises are new types of businesses that desire the creation of social value over personal profit
• Social enterprises


  • Mix the elements of traditional business operations with the social goals of a non-profit organization
  • Have distinct characteristics
• Characteristics of social enterprises

  • Focuses on benefits to people and communities
  • sustainability
• Reinvestments


  Most profits are returned to the organization to support the social goal
• Monitoring and learning


  • Measures success based on social impact, not based on profits
  • Programs that worked well are repeated and expanded
• Adaptable roadmap


  • Flexible based on cultural and political developments that impact people and markets
• 17% of the total registered businesses in the Philippines are social enterprises
• 70% of social enterprises in the Philippines are micro, small, and medium enterprises (MSMEs)
• Sectors Philippine social enterprises focus on

  • Agriculture
  • Education
  • Business Development
• Social enterprises have advantages over traditional businesses
• Sustainability issues and financial constraints often hinder the noble intentions of social enterprises
• To overcome challenges, social entrepreneurs should prepare for slow growth, keep their focus, and uphold the business aspect of their operations
• Characteristics of Social Enterprises

  • Clear Social Responsibility
  • Reinvestment
  • Monitoring and learning
  • Adaptable Roadmap
• Philippine social enterprises benefits the following groups:

  • Local communities (72%)
  • Specific Organizations (58%)
  • Women (54%)
• Philippine social enterprises focus on the following sectors:

  • Agriculture (19%)
  • Education (9%)
  • Business Development (9%)
• Slow Growth (The challenge of sustainability)


  ● does not simply cut costs if the solution will harm the environment or its employees ● more balanced development of financial, natural, and human resources
• Requires Focus (The challenge of sustainability)

  ● Diversifying products can make an enterprise lose its focus. ● Consumers equate focus with being genuine to social aims.
• Maintaining the business aspects (The challenge of sustainability)


  ● must efficiently and effectively create, communicate, and deliver customer value ● must improve, reinvent, reposition
• The challenge of sustainability

  • Slow growth
  • Requires Focus
  • Maintaining the business aspects
• Social Enterprises Advantages 


  • Employees feel good and want to be productive
  • Provides sufficient income to owners
  • Receives public and private support
  • Generates jobs and livelihood opportunity
  • Easy to communicate the brand’s value
• Social Entrepreneurs


  ● innovative individuals who prioritize their business activities' impact on social, cultural, and environmental problems ● observant of societal needs and demands
• The Concept of Social Enterprise


  • typically work with people from marginalized and disadvantaged sectors ○ providing solutions and livelihood opportunities
  • Profit-making is oriented towards expanding social activities
  • Reinvestments: to do more and help more
• Characteristics of Social Enterprises