Skip to main content
Log in

Social Entrepreneurship: The Role of Institutions

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

A relatively small segment of business, known as social entrepreneurship (SE), is increasingly being acknowledged as an effective source of solutions for a variety of social problems. Because society tends to view “new” solutions as “the” solution, we are concerned that SE will soon be expected to provide answers to our most pressing social ills. In this paper we call into question the ability of SE, by itself, to provide solutions on a scope necessary to address large-scale social issues. SE cannot reasonably be expected to solve social problems on a large scale for a variety of reasons. The first we label the organizational legitimacy argument. This argument leads to our second argument, the isomorphism argument. We also advance three other claims, the moral, political, and structural arguments. After making our arguments, we explore ways in which SE, in concert with other social institutions, can effectively address social ills. We also present two examples of successful ventures in which SEs partnered with governments and other institutions.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Architecture for Humanity: 2007, ‹Dharavi’, http://www.architectureforhumanity.org/programs/Settlements/dharavi.html

  • Bornstein, D.: 2004. How to Change the World. New York: Oxford University Press.

    Google Scholar 

  • Boschee, J. 1995. “Social Entrepreneurship.” Across the Board 32(3): 20–5.

    Google Scholar 

  • Bruck, C.: 2006, ‹Millions for Millions’, New Yorker, October 30

  • Carson, R. 1962. Silent Spring. Boston: Houghton Mifflin.

    Google Scholar 

  • Cho, A. 2006. “Politics, Values and Social Entrepreneurship: A Critical Appraisal.” In J. Mair, J. Robinson and K. Hockerts (Eds.), Social Entrepreneurship. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.

    Google Scholar 

  • Dart, R. 2004. “The Legitimacy of Social Enterprise.” Nonprofit Management and Leadership, 14(4) : 411–424.

    Article  Google Scholar 

  • Dees, J.: 1998, ‹Enterprising Nonprofits’, Harvard Business Review, January–February, 55–67

  • Dees, J., J. Emerson, and P. Economy. 2001. Enterprising Nonprofits: A Toolkit for Social Entrepreneurs. New York: Wiley.

    Google Scholar 

  • Derber, C. 1998. Corporation Nation: How Corporations are Taking Over our Lives and what we can do about it. New York: St. Martin’s Griffin.

    Google Scholar 

  • Di Maggio, P. and H. Anheier. 1990. “The Sociology of Nonprofit Organizations and Sectors.” Annual Review of Sociology, 16, 137–159.

    Article  Google Scholar 

  • DiMaggio, P. and W. Powell: 1983, ‹The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields’, American Sociological Review 48, 147–160

    Google Scholar 

  • Durkheim, E.: 1937/1996, Professional Ethics and Civic Morals (Routledge, London)

  • Ehrenreich, B. 2001. Nickel and Dimed: On (Not) Getting By in America. New York: Metropolitan Books.

    Google Scholar 

  • Etzioni, A. 1991. “Reflections on the Teaching of Business Ethics.” Business Ethics Quarterly 1(4):355–365.

    Article  Google Scholar 

  • Friedman, M. 1962. Capitalism and Freedom. Chicago: University of Chicago Press.

    Google Scholar 

  • Friedman, M.: 1970, ‹Social Responsibility of Business’, The New York Times Magazine Section, September 13

  • Fukuyama, F.: 1999, ‹The Great Disruption’, The Atlantic Monthly 283, 55–80

  • Galbraith, J. 1967. The New Industrial State. Boston: Houghton Mifflin.

    Google Scholar 

  • Galbraith, J. 1973. Economics & The Public Purpose. Boston: Houghton Mifflin.

    Google Scholar 

  • Giridharadas, A.: 2006, ‹Not Everyone is Grateful as Investors Build Free Apartments in Mumbai Slums’, New York Times December 14. http://www.nytimes.com/2006/12/15/business/worldbusiness/15slums.html?_r=1&oref=slogin

  • Gore, A. 2006. An Inconvenient Truth. Emmaus, PA: Rodale Press.

    Google Scholar 

  • Grossman, R. and F. Adams: 1993, Taking Care of Business: Citizenship and the Charter of Incorporation (Charter, Ink., Cambridge, MA)

  • Harris, B. 1999. Steal This Book and Get Life Without Parole. Monroe, ME: Common Courage Press.

    Google Scholar 

  • Hegel, G. 1988. Introduction to the Philosophy of History. Indianapolis, IN: Hackett.

    Google Scholar 

  • Hinkley, R.: 2002, ‹How Corporate Law Inhibits Ethics’, Business Ethics, January/February

  • Kelly, M. 2003. The Divine Right of Capital: Dethroning the Corporate Aristocracy. San Francisco: Berrett-Koehler Publishers, Inc.

    Google Scholar 

  • Kidder, R. 2005. Moral Courage. New York: W. Morrow.

    Google Scholar 

  • Kohn, A.: 1992, No Contest: The Case Against Competition, Revised Edition (Houghton Mifflin, New York)

  • Korten, D. 1995. When Corporations Rule the World. San Francisco: Berrett-Koehler Publishers, Inc.

    Google Scholar 

  • Krazit, T.: 2007, ‹OLPC and Intel Bury the Hatchet—for the Children’, Technology News, http://news.zdnet.com/2100-9595_22-152541.html

  • Leadbeater, C.: 1997, The Rise of the Social Entrepreneur (Demos, London).

  • Mair, J., J. Robinson, and K. Hockerts. 2006. “Introduction.” In J. Mair, J. Robinson and K. Hockerts (Eds.), Social Entrepreneurship. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.

    Chapter  Google Scholar 

  • Marketplace: 2007, ‹Wall Street Donates Its Wisdom’, http://www.marketplace.publicradio.org. Accessed 2 Nov

  • McFall, L.: 1987, ‹Integrity’, Ethics 98, 5–20

  • Moon, A.: 2007, ‹$100 Laptop Doubles in Price But Generates First Large Order’, IT News Digest, http://blogs.techrepublic.com.com/tech-news/?p=1457

  • Muller, J. 1993. Adam Smith in His Time and Ours: Designing the Decent Society. New York: The Free Press.

    Google Scholar 

  • Nace, T.: 2003, Gangs of America: The Rise of Corporate Power and the Disabling of Democracy (San Francisco: Berrett-Koehler Publishers, Inc.).

    Google Scholar 

  • Negroponte, N.: 1995, Being Digital (Alfred A. Knopf, Inc., New York)

  • Nicholls, A. 2004. “Social Entrepreneurship: The Emerging Landscape.” In S. Crainer and D. Dearlove (Eds.), Financial Times Handbook of Management, 3rd ed. Harlow, UK: FT Prentice-Hall.

    Google Scholar 

  • Nicholls, A. 2006. “Introduction.” In A. Nicholls (Ed.), Social Entrepreneurship: New Models of Sustainable Social Change. Oxford: Oxford University Press.

    Google Scholar 

  • Nicholls, A. and A. Cho. 2006. “Social Entrepreneurship: The Structuration of a Field.” In A. Nicholls (Ed.), Social Entrepreneurship: New Models of Sustainable Social Change. Oxford: Oxford University Press.

    Google Scholar 

  • Nisbet, R. 1994. The Sociological Tradition. New Brunswick, CT: Transaction Publishers.

    Google Scholar 

  • Oliver, C.: 1993, ‹Strategic Response to Institutional Processes’, Academy of Management Review 16(1), 145–179

  • Rest, J. 1994. “Background: Theory and Research.” In: J. R. Rest and D. Narváez (Eds.), Moral Development in the Professions. Hillsdale, NJ: Lawrence Erlbaum Associates, Publishers.

    Google Scholar 

  • Schumpeter, J.: 1942, Capitalism, Socialism, and Democracy (Harper & Brothers, New York).

    Google Scholar 

  • Shepard, J. 2005. Sociology 9th ed. Belmont, CA: Thomson Wadsworth.

    Google Scholar 

  • Shepard, J., J. Shepard, J. Wimbush and C. Stephens: 1995, ‹The Place of Ethics in Business: Shifting Paradigms?’, Business Ethics Quarterly 5, 577–601

  • Shulman, B. 2003. The Betrayal of Work: How Low-Wage Jobs Fail 30 Million Americans and their Families. New York: The New Press.

    Google Scholar 

  • Skoll Foundation: 2005, http://www.skollfoundation.org.

  • Slum Rehabilitation Authority: 2007, ‹Expression of Interest’, http://www.sra.gov.in/

  • Smith, A.: 1776/1986, The Wealth of Nations, in R. L. Heilbroner (ed.), The Essential Adam Smith (W.␣W. Norton & Company, New York)

  • Stevenson, H.: 1985, ‹The Heart of Entrepreneurship’, Harvard Business Review 85, 85–94

  • Stone, C. 1975. Where the Law Ends: The Social Control of Corporate Behavior. New York: Harper Torchbooks.

    Google Scholar 

  • Suchman, M. 1995. “Managing Legitimacy: Strategic and Institutional Approaches.” Academy of Management Review, 20(3):571–610.

    Article  Google Scholar 

  • Turner, B.: 1996, ‹Preface to the Second Edition’, in E.␣Durkheim (Author), Professional Ethics and Civic Morals (Routledge, London)

  • Van Til, J. 1988. Mapping the Third World: Voluntarism in a Changing Social Economy. New York: Foundation Centre.

    Google Scholar 

  • Vaz, A.: 2008, ‹Khairat Village Comes Under One-Child-One-Laptop Scheme’, Merinews, http://www.merinews.com/catFull.jsp?articleID=130117

  • Venkataraman, S. 1997. “The Distinctive Domain of Entrepreneurship Research: An Editor’s Perspective. In J. Katz and R. Brockhaus (Eds.), Advances in Entrepreneurship, Firm Emergence and Growth Vol. 3. 119–138. Greenwhich, CT: Jai Press.

    Google Scholar 

  • Victor, B. and Stephens, C.: 1994, ‹The Dark Side of the New Organizational Forms: An Editorial Essay’, Organizational Science 5, 479–482

    Google Scholar 

  • Walzer, M. 1983. Spheres of Justice: A Defense of Pluralism and Equality. United States: Basic Books.

    Google Scholar 

  • Weber, M.: 1904–1905/1958, The Protestant Ethic and the Spirit of Capitalism (Charles Scribner’s Sons, New York)

  • Wolman, W. and A. Colamosca : 1997, The Judas Economy: The Triumph of Capital and the Betrayal of Work (Addison-Wesley Publishing Company, Inc., Reading, MA)

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Craig V. VanSandt.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Sud, M., VanSandt, C.V. & Baugous, A.M. Social Entrepreneurship: The Role of Institutions. J Bus Ethics 85 (Suppl 1), 201–216 (2009). https://doi.org/10.1007/s10551-008-9939-1

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-008-9939-1

Key words

Navigation