CSR Middle East, CSR dedicated platform with 3.555 corporate members in the Middle East.

Does CSR activity equate to Corporate Social Entrepreneurship?

I know I am not the only person asking this question but if we are a fan of Covey and we "begin with the end in mind" , is it not true that both CSR and Corporate Social Entrepreneurship ( CSE) have a common end game of:

1. Addressing a societal concern or issue

2. Running a successful business with an entrepreneurial sustainable spirit

3. Measuring impact to ensure targets and expectations are met

Or do we have a case of both CSR and CSE looking and acting like ducks, but they are really different?

First you need to remove the misconception that a social enterprise is a charity. Social entrepreneurs who may bet set up as NGOs ( one option) are some of the brightest and best busy savvy entrepreneurs out there on the market today.

Dubai recently held it's first ever Social Enterprise week

Take a look at this table below:

	Non-Profit	Social Enterprise	Socially Responsible Business	Conventional For-Profit Business
Mission or start-up motivation	Socially-driven	Socially-driven with profit concern	Profit-driven with social concern	Profit-driven
Impact measurement	Impact on society	Multiple matrices: profit, social value, environmental impact	Triple-bottom-line consideration: economic, social and environmental sustainability	Revenue, profit and business-value generating
Primary funding	Charitable contribution, public funding, foundation grants, government support	Self-generated income, capital investment, loans, partnership, etc	Self-generated income, capital investment, loans, partnership, etc	Self-generated income, capital investment, loans, partnership, etc
Profit distribution	Non-profit, income generated is distributed to the needy and covers operation costs	Principally reinvest to operation to further social benefits. A portion may be redistributed to stakeholders	Distribute to owners/ shareholders/ employees, and to reinvest to business operation and community	Distribute to owners/shareholders and reinvest to business operation
Core activities	Develop programs or campaigns to elicit donor participation and/or financial support	Develop or promote socially beneficial programs, products or services that provide revenue streams. Directly address social needs through products and services or through the employment of disadvantaged people.	Develop or promote products or services to generate income while integrating CSR into core business operation, and committed to community development. Create positive social change indirectly through the practice of CSR	Pursue competitive strategies to launch or promote products or services to generate income

Looking at the table above, the distinction between a social enterprise and a socially responsible company is small.

Is this because the concepts of CSR and social entrepreneurship have emerged from the same context (sustainable development), which is to promote the achievement of social goals and sustainability through market-based strategies.

However one will note the key difference is a social enterprise directly addresses social/environmental problems or needs through its services/products offered, or through employment of socially disadvantaged groups. Social enterprises use a significant part, if not all, of profits earned to pursue a social mission rather than distribute to shareholders.

A good corporate citizen( CSR) creates indirect positive social solutions, for example, via implementing fair employee welfare schemes, creating a philanthropic foundation, providing employee volunteers for community projects, using energy efficient materials, ensuring an accountable supply chain, or promoting CSR communication.

All different from a traditional non-profit organisations which rely on philanthropic and government support.

Still confused?

You are not alone. I think we have a case of maybe both CSRs and CSEs being ducks but maybe with different stripes? Regardless, all organisations should strive to operate with a sense of social responsibility, walk the talk, and provide better value to stakeholders while generating income for sustainable growth.

Does CSR activity equate to Corporate Social Entrepreneurship?

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