Threat Or Opportunity

All this leads us to the inherent complexity surrounding the subject of CSR, regarding its connection to stakeholder theory and its “essentially contested” nature. So, whilst some studies have shown a positive relationship between CSR and financial performance, others are currently investigating the notion of non-market performance .Consequently, the notion of the Corporate Social Entrepreneur is equally controversial: not solely due to the arguments about the role of business and whether or not CSR helps financial performance; but also because the concept of employee discretion has been identified as a key factor regarding a social orientation at work, or, a moral character (in the ancient philosophical sense). And whilst the possibility of unethical behavior is also acknowledged as an outcome of discretion and agency: corporate irresponsibility which has been the traditional focus in the study of business ethics, is regarded as insufficient and only the starting point, if the quest is for organizations to develop a socially responsible organizational context. This is of particular relevance in the wake of the global financial crisis caused by financial irregularities and lapses in corporate governance and personal integrity.

The penetration of the social realm into corporate strategy has gathered momentum in the last years. The movement for CSR has “won the battle of ideas”. By now, most well managed companies have adopted the practices and certifications de rigueur in their industries, having gone through the “defensive” and the “compliance” stages of CSR. Managing the social and environmental footprint of economic activity is generally accepted as part of the cost of doing business. But much remains to be done. If companies are to move their CSR activities from satisfying behaviour and take their commitment to society and the environment to the next level, they will need to rethink their current approaches to CSR, tapping into the creativity of every individual.

CSE, like all entrepreneurship, is not about managing existing operations or CSR programs; it is about creating disruptive change in the pursuit of new opportunities. It combines the willingness and desire to create joint economic and social value with the entrepreneurial redesign, systems development, and action necessary to carry it out. Accelerated organizational transformation faces a host of obstacles well-documented in the change management literature. Because CSE expands the core purpose of corporations and their organizational values, it constitutes fundamental change that can be particularly threatening and resisted. Furthermore, it pushes the corporation’s actions more broadly and deeply into the social value creation area where the firm’s experiences and skill sets are less developed. The sought for disruptive social innovations intrinsic to the CSE approach amplify this zone of discomfort. However, these challenges are separable, as experiences in innovative companies reveal.

Furthermore, it is continually becoming more evident that values-based leadership, synergistic Corporate Social Entrepreneurship generation of social and economic value, and strategic cross-sector alliances are key ingredients to achieving sustainably successful business. The CSE process will contribute to our collective quest for superior organizational performance and societal betterment. This is the great opportunity and action imperative.