Abstract
In this article, we contend that due to their size and emphasis upon addressing external social concerns, the corporate relationship between social enterprises, social awareness and action is more complex than whether or not these organisations engage in corporate social responsibility (CSR). This includes organisations that place less emphasis on CSR as well as other organisations that may be very proficient in CSR initiatives, but are less successful in recording practices. In this context, we identify a number of internal CSR markers that may be applied to measuring the extent to which internal CSR practices are being observed. These considerations may be contrasted with the evidence that community based CSR activities is often well developed in private sector small to medium sized enterprises (SMEs) (Observatory of European SMEs, 2002), a situation which may be replicated in social enterprises especially those that have grown from micro-enterprises embedded in local communities. We place particular emphasis upon the implications for employee management. Underpinning our position is the Aristotelian-informed capabilities approach, a theory of human development and quality of life, developed by Sen (1992; 1999) and Nussbaum (1999) which has been developed further, in an organisational context, (e.g., Cornelius, 2002); Cornelius and Gagnon, 2004; Gagnon and Cornelius, 1999; Vogt, 2005. We contend that the capabilities approach offers additional insights into CSR in social enterprises in general and internal CSR activity in particular. Our article concludes with proposals for future research initiatives and reflections upon social enterprise development from a capabilities perspective.
Similar content being viewed by others
Abbreviations
- CSR:
-
Corporate social responsibility
- CI:
-
Corporate identity
- HRM:
-
Human Resource Management
- HRD:
-
Human Resource Development
- OI:
-
Organisational Identity
- SME:
-
Small to medium sized enterprise
References
Balmer J. M. T., S. A. Greyser: 2002 Managing the Multiple Identities of the Corporation. California Management Review 44(3): 72–86
Banks S., F. Shenton: 2001 Regenerating Neighbourhoods: A Critical Look at the Role of Community Capacity Building. Local Economy, 16(4): 286–298
Bartels K. K., E. Harrick, K. Martell, D. Strickland: 1998, The Relationship Between Ethical Climate and Ethical Problems within Human Resource Management. Journal of Business Ethics 17(7):799–804
Bennet, J. and E. Iossa: 2005, ‘Contracting Out Public Service Provision to Not-For-Profit Firms’, Centre for Market and Public Organisation, University of Bristol, pp. 1–29
Bird B.: 1989 Entrepreneurial Behaviour. Glenview Ilinois: Scott Foreman and Company
Bornstein D. 2004 How to Change the World: Social Enterprises and the Power of New Ideas. Oxford: Oxford University Press
Borzaga C., J. Defourny: 2001 The Emergence of Social Enterprise. London: Routledge
Carby-Hall J.: 2005 ‘Wherefore Art Thou Oh Social Responsibility of the Enterprise?’ The United Kingdom Experience. Managerial Law 47(6): 205–234
Cassell C., S. Nadin, M. Gray, C. Clegg: 2002 Exploring Human Resource Management Practices in Small and Medium Sized Enterprises. Personnel Review 31(6): 671–692
Castka P., M. A. Balzarova, C. J. Bamber 2004 How can SMEs Effectively Implement the CSR Agenda? A UK Case Study Perspective. Corporate Social Responsibility and Environmental Management 11(3): 140–149
Cornelius N. (2002) Building Workplace Equality: Ethics, Diversity and Inclusion. London: Thomson Publishing
Cornelius N., S. Gagnon: (2004) ‘Still Bearing the Mark of Cain? Ethics, Diversity and Inequality Measurement. Business Ethics: A European Review, 13(1): 27–40
Cornelius N., D. Skinner: (2005) An Alternative View through the Glass Ceiling: Using Capabilities Theory to Reflect the Career Journeys of Senior Women. Women in Management Review 20(8): 595–602
Cornelius, N. and D. Skinner: 2007, ‘An Empirical, Capabilities Theory-Informed Study of the Career Journeys of Senior Women and Men’, British Journal of Management, forthcoming
Csikszentmihalyi: 1997, Finding Flow: The Psychology of Engagement with Everyday Life (Basic Books, New York)
Dart R.: 2004 The Legitimacy of Social Enterprise. Nonprofit Management and Leadership 14(Summer): 411–424
Dees, J. G.: 1998a, ‘The Meaning of Social Enterprise’ www.gsb.stanford.edu/csi/SEDefinition.html#top
Dees J. G.: 1998b Enterprising Non Profits. Harvard Business Review 76(1): 55–66
Department for Trade and Industry: 2002, ‘Social Enterprise: A Strategy for Success’, available at www.dti.gov.uk/socialenterprise
Duccie G., C. Stentella, P. Vulterini: 2002 The Social Enterprise in Europe. International Journal of Mental Health 13(3), 76–91.
Elkington J.: 1999, Cannibals with Forks: Triple Bottom Line of 21st Century Business. New Society Publishers, New York
Emanuele R., S. H. Higgins: 2000 Corporate Culture in the Non-profit Sector: A Comparison of Fringe Benefits with the For-profit Sector. Journal of Business Ethics 24(1): 87–93.
European Commission: 2001, Green Paper on the Corporate Social Responsibility of Business, Brussels, COM 366 final, 18.7.2001 quoted in Habisch, A. (2004)
Foote D.: 2001 The Question of Ethical Hypocrisy in Human Resource Management in the U.K. and Irish Charity Sectors. Journal of Business Ethics 34(1): 25–38.
Frogget L., P. Chamberlayne: 2004 Narratives of Social Enterprise: From Biography to Practice and Policy Critique. Qualitative Social Work, 3(1): 61–77.
Gagnon S., N. Cornelius: 1999, From Ethics ‘By Proxy’ to Ethics In Action: New Approaches to Understanding HRM and Ethics. Business Ethics: A European Review 8(4):225–235
Garcia-Marza D.: 2005 Trust and Dialogue: Theoretical Approaches to Ethics Auditing. Journal of Business Ethics 57(3): 209–219
Garriga E., D. Mele: 2004 Corporate Social Responsibility Theories: Mapping the Territory. Journal of Business Ethics 53(1–2): 51–71
Graafland J., B. van de Ven, N. Stoffele: 2003 Strategies and Instruments for Organising CSR by Small and Large Businesses in the Netherlands. Journal of Business Ethics 47(1): 45–60.
Greenwood M. R.: 2001, The Importance of Stakeholders According to Business Leaders. Business and Society Review 106(1):29–49
Greenwood M. R.: 2002, Ethics and Human Resource Management: A Review and Conceptual Analysis. Journal of Business Ethics 36(3):279–290
Habisch A.: 2004 Social Responsibility, Social Capital and SMEs. In: L. J. Spence, A. Habisch, R. Schmidpeter (eds) Responsibility and Social Capital, the World of Small and Medium Sized Enterprises. Basingstoke: Palgrave MacMillan, pp. 25–34.
Haigh M., M. T. Jones: 2006 The Drivers of Corporate Social Responsibility: A Critical Review. Business Review 5(2): 245–251
Harney B., T. Dundon: 2006 Capturing Complexity: Developing an Integrated Approach to Analysing HRM in SMEs. Human Resource Management Journal 16(1): 48–73.
Henriques A., J. Richardson: 2004 The Triple Bottom Line: Does it all Add up?. London: Earthscan.
Hill M. T.: 2003, Development as Empowerment. Feminist Economics 9(2&3):117–135
Hill R., J. Stewart: 2000 Human Resource Development in Small Organisations. Journal of European Industrial Training 24(2/3/4): 105–117.
Hines F.: 2005 Viable Social Enterprise – An Evaluation of Business Support to Social Enterprises. Social Enterprise Journal 1(1): 13–28
Jan-Khan M.: 2003 The Right to Riot. Community Development Journal 38(1): 32–42.
Janjuha-Jivraj S.: (2003) The Sustainability of Social Capital within Ethnic Networks. Journal of Business Ethics 47: 31–43
Janjuha-Jivraj S.: 2004, The Sustainability of Informal Ethnic Business Networks. In L. Spence and R. Schumpeeter (eds) The Social World of Small and Medium Sized Enterprises: Social Capital and Responsibility, London, Palgrave
Kaptein M., J. Wempe: 2002 The Balanced Company. Oxford: Oxford University Press.
Kotey B., A. Sheridan: 2004 Changing HRM Practices with Firm Growth. Journal of Small Business and Enterprise Development 11(4): 474–485
Maignan I., D. A. Ralston: 2002 Corporate Social Responsibility in Europe and the US: Insights from Businesses: Self-Presentations. Journal of International Business Studies 33(3): 497–515
Mancino A., A. Thomas: 2005 An Italian Pattern of Social Enterprise: The Social Cooperative. Nonprofit Management and Leadership 15(3), 357–369
Mazzarol T.: 2003 A Model of Small Business HR Growth Management. International Journal of Entrepreneurial Behaviour and Research 9(1): 27–49.
Moore G., R. Beadle: 2006 In Search of Organizational Virtue in Business: Agents, Goods, Practices, Institutions and Environments. Organization Studies 27(3): 369–389
Nussbaum M. C.: 1999, Women and Equality: The Capabilities Approach. International Labour Review 138(3):227–249
Observatory of European SMEs: 2004, European SMEs and Social and Environmental Responsibility, 2002/No. 4 (European Commission: Enterprise Publications, 2002) cited in Habisch, A
Quinn J. J.: 1997 Personal Ethics and Business Ethics: The Ethical Attitudes of Owner/Managers of Small Business. Journal of Business Ethics 16(2): 119–127
Rainnie A.: 1989 Industrial Relations in Small Firms. London: Routledge
Ram M., R. Holliday: 1993 Relative Merits of Family Kinship and Culture in Small Firms. Sociology 27(4): 629–648
Reid R., T. Morrow, B. Kelly, P. McCartan: 2002 People Management in SMEs: An Analysis of Human Resources Strategies in Family and Non-family Businesses. Journal of Small Business and Enterprise Development 9(3): 245–250
Rorrty R.: 2000, Philosophy and Social Hope. Penguin, London
Sen A.: 1992, Inequality Reexamined. Oxford University Press, Oxford
Sen A.: 1999 Development as Freedom. Cambridge: Cambridge University Press
Sennett R.: 1999, The corrosion of Character: The Personal Consequences of Work in the New Capitalism. Norton, New York
Smallbone, D., M. Evans, I. Ekanem and S. Butters: 2001, ‘Researching Social Enterprise’, Centre for Enterprise and Economic Development Research, Middlesex University
Small Business Service: 2005, ‘A Survey of Social Enterprises Across the UK’, Available: www.sbs.gov.uk/SBS_Gov_files/press/PRE_SurveyofSEsacrossuk.pdf
Spence L.: 1999 Does Size Matter? The State of the Art in Small Business Ethics. Business Ethics: A European Review 8(3): 163–174.
Swanson D. L.: 1995, Addressing a Theoretical Problem by Reorienting the Corporate Social Performance Model. Academy of Management Review 20(1):43–64
Takala T., P. Pallab: 2000 Individual, Collective and Social Responsibility of the firm. Business Ethics: A European Review 9(2): 109–118.
Van Marrewijk M., I. Wuisman, W. de Cleyn, J. Timmers, V. Papapanaan, L. Linnanen: 2004 A Phase-Wise Development Approach to Business Excellence: Towards an Innovative, Stakeholder-Oriented Assessment Tool for Organizational Excellence and CSR. Journal of Business Ethics 55(2): 83–98
Vogt C. P.: 2005 Maximizing Human Potential: Capabilities Theory and the Professional Work Environment. Journal of Business Ethics 58(1–3): 111–123.
Vyakarnam S. B., A. Myers, D. Burnett: 1997 Towards an Understanding of Ethical Behaviour in Small Firms. Journal of Business Ethics 16(15): 1625–1636
Waddock S.: 2004 Parallel Universes: Companies, Academics, and the Progress of Corporate Citizenship. Business and Society Review 109(1): 5–42.
Wilkinson A.: 1999 Employment Relations in SMEs. Employee Relations 21(3): 206–217.
Williamson I. O.: 2001 Employer Legitimacy and Recruitment Success in Small Businesses. Entrepreneurship, Theory and Practice, 24(1): 27
Windsor D.: 2006 Corporate Social Responsibility: Three Key Approaches. Journal of Management Studies 43(1): 93–114
Van der Woerd F., T. van den Brink: 2004 Feasibility of Responsive Business Scorecard – A Pilot Study. Journal of Business Ethics 55(2): 173–186
Welford, R.: 2005, ‹Corporate Social Responsibility in Europe and Asia: Critical Elements and Best Practice’, Corporate Social Review 13, 31–47
Wilkinson A., J. M. T. Balmer: 1996 Corporate and Generic Identities: Lessons from for Co-operative Bank. International Journal of Bank Management 14(4): 22–35
Winstanley D., J. Woodhall, E. Heery: 1996, The Agenda for ethics in Human Resource Management. Business Ethics: A European Review 5(4):187–194
Woodhams C., B. Lupton: 2006 Does Size Matter? Gender-based Equal Opportunity in UK small and Medium Enterprises. Women in Management Review 21(2): 143–169
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Cornelius, N., Todres, M., Janjuha-Jivraj, S. et al. Corporate Social Responsibility and the Social Enterprise. J Bus Ethics 81, 355–370 (2008). https://doi.org/10.1007/s10551-007-9500-7
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-007-9500-7