Clarifying Ethics in Social Enterprise

Editing

Excerpted editing sample. Original content © Springer (authors credited in original publication). Used here in a limited form to demonstrate editorial skill.

For these excerpts, I prioritized conceptual clarity and refined the original academic material to be more relevant for real-world decision-making.

Original Content

Abstract

How can a critical analysis of entrepreneurial intention inform an appreciation of ethics in social enterprise business models? In answering this question, we consider the ethical commitments that inform entrepreneurial action (inputs) and the hybrid organisations that emerge out of these commitments and actions (outputs). 

Ethical theory can be a useful way to reorient the field of social enterprise so that it is more critical of bureaucratic (charitable) and market-driven (business) enterprises connected to neoliberal doctrine. Social enterprise hybrid business models are therefore reframed as outcomes of both ethical and entrepreneurial intentions. 

We challenge the dominant conceptualisation of social enterprise as a hybrid blend of mission and market (purpose-versus-resource) by reframing hybridity in terms of the moral choice of economic system (redistribution, reciprocity and market) and social value orientation (personal, mutual or public benefit). We deconstruct the political foundations of charitable trading activities, co-operative and mutual enterprises and socially responsible businesses by examining the rationalities (formal, social and substantive) and ethical commitments (utilitarian, communitarian, pragmatic) that underpin them. 

Whilst conceptual modelling of social enterprise is not new, this paper contributes to knowledge by developing a theory of social enterprise ethics based on the moral/political choices that are made by entrepreneurs (knowingly and unknowingly) when choosing between systems of economic exchange and social value orientation, then expressing it through a legal form.

Edited Content

Abstract

How can studying the motives of entrepreneurs help us understand ethics in social enterprise (SE) business models? To answer this, we look at the ethical choices that guide entrepreneurs (their actions), and the hybrid business models that result from these choices (their outcomes).

Together, ethical and entrepreneurial aims drive SE business models. Ethics can guide social entrepreneurs in questioning the limitations of both charitable and market-driven models, and instead help them think more critically and creatively about how they want to structure their organizations.

We challenge the idea that SEs are just a static hybrid mix of mission and market. Rather, we focus on the moral choices behind them: decisions about how products are received or exchanged, and whether they primarily benefit individuals, groups, or wider society. 

We examine charitable trading activities, co-operative and mutual enterprises, and socially responsible businesses by looking at the motivations and ethical commitments behind them. 

While studying SE models is not new, this paper adds to our understanding by developing a theory of SE ethics. It focuses on the moral and political decisions entrepreneurs make when choosing economic and social value systems, and when legally aligning their businesses with those choices.

This abstract was edited to distill the paper’s core theory while increasing its relevance for social enterprise founders. The revision clearly highlights how ethical reasoning guides organizational choices. The revision supports both academic readers evaluating the theory and operators looking for frameworks to guide decision-making.  

Original Content

Introduction

Whilst there appears to be broad support for integrating ethical decision-making into social enterprise (SE) governance systems (Ridley-Duff and Bull 2016; Spear et al. 2009) and developing ethical production and consumption practices through ‘fair trade’ business models such as Fairtrade (see Davies and Crane 2010; Davies et al. 2010; Doherty and Davies 2013; Mason and Doherty 2015), there is a void in the SE literature on the connection between its alleged hybridity and resulting business ethics. We will argue that this void hides the diversity of ethical, moral and political choices implicit in the labels applied to different SE business models.

Edited Content

Introduction

Many people agree that ethics should be part of social enterprise (SE) governance (Ridley-Duff and Bull 2016; Spear et al. 2009), and that practices like fair trade help guide ethical businesses (Davies and Crane 2010; Davies et al. 2010; Doherty and Davies 2013; Mason and Doherty 2015). However, there is a void in the research on how the hybrid nature of SE affects ethics. This void tells us that the variety of moral, ethical, and political choices behind different SE business models is not well understood. 

This section was edited to emphasize the research gap and clarify why it matters. The revision helps both scholars and practitioners understand the consequences of what dominant framings miss.

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