Social Entrepreneurship1. Social responsibility consists of obligations a business has to pay to society. The following (table I) presents some of them. The diversity of social responsibility opens the doors for questions concerning the extent corporations should be involved.2. An examination of the stages or levels of social responsibility behavior that corporations exhibit, reveals that distinct differences exist in the way corporations respond. S. Prakash Sethi, a researcher has established

a frame-work that classifies the social actions of corporations into three distinct categories: (Table II)

• Social obligation: React to social issues through obedience to the laws.• Social responsibility: Others respond more actively, accepting responsibility for various programs.• Social responsiveness: Still others are highly proactive and are even willing to be evaluated by the public.

Table I The Nature of Social Responsibility

Environment Pollution controlRestoration of protection of environmentConservation of natural resourcesRecycling efforts

Energy Conservation of energy in production and marketing operationsEfforts to increase the energy efficiency of productsOther energy-saving programs

Fair business Employment and advancement of womenpractices and minorities

Employment and advancement of disadvantaged individuals ( disabled, ex-offenders, former drug addicts,mentally retarded, and hardcore unemployed)Support for minority-owned businesses

Human Resources Promotion of employee health and safetyEmployee training and developmentRemedial education programs for disadvantaged employeesAlcohol and drug counseling programsCareer counselingChild day-care facilities for working parentsEmployee physical fitness and stress management programsAchievement Motivation programs

Community Donations of cash, products, services, or Involvement employee time

Sponsorship of public health projectsSupport of education and the artsCooperation in community projects( recycling centers, disaster assistance, andurban renewal)Support of community recreation programs

Products Enhancement of product safetySponsorship of product safety education programsReduction of polluting potential of productsImprovement in nutritional value of productsImprovement in packaging and labeling

Environment Awareness: The need to preserve and protect our natural resources motivated businesses into a stronger environment awareness.As illustrated in Table I, the environment stands out as oneof the major challenges of social responsibility. The recent“throwaway” culture has endangered our national resourcesfrom soil to water to air.Industry is being told that appropriate packing, elimination ofemissions, and planting two trees for every consumer durablesold would lead to environmentally sound world.The danger lies not in the half measures but in the illusionsthey foster, the belief that subtle course corrections guide usto a good life that will include a ‘conserved’ natural world.

Table II Framework of Classification of Corporate Social Behavior Dimension of Behavior Stage One: Social Obligation Response to social pressures

Maintains law public profile,but if attacked, uses PR methodsto upgrade its public image; deniesany deficiencies; blames public dissatisfaction on ignorance orfailure to understand corporatefunctions; discloses informationonly where legally required.

PhilanthropyContributes only when directbenefit to it clearly shown;otherwise, views contributions as responsibility of individual employees .

Dimension of Behavior Stage Two : Social Responsibility Response to social pressures

Accepts responsibility for solving current problems, will admit

deficiencies in former practicesand attempt to persuade publicthat its current practices meetsocial norms; attitude towardcritics conciliatory; freer information disclosures than stage one.

PhilanthropyContributes to non-controversial and established causes; matches employee contributions

Dimension of Behavior Stage Three: Social Responsiveness Response to social pressures

Willingly discusses activities with outside groups; makes information freely available to the public; accepts formal andinformal inputs from outside groups in decision making;is willing to be publiclyevaluated for its various activities.

PhilanthropyActivities of stage two, plus support and contributions to new, controversial groups whose needs it sees as unfulfilled and increasinglyimportant.

Redefining social responsibilities:A growing number of enterprises are attempting to redefinetheir social responsibilities because they no longer accept the notion that the business of business is business.Because of an international ability to communicate information widely and quickly, many entrepreneurs are beginning to recognize their responsibility to the world around them. Entrepreneurial organizations, the dominantinspiration throughout the world, are beginning the arduous task of addressing social-environmental problems.

Ecovision:Entrepreneurs need to take the lead in designing a new approach to business in which everyday acts of work and life accumulate as a matter of course into a better world.One theorist has developed the term “ecovision” to describea possible style to innovate organizations. Ecovision encourages open and flexible structures that encompass the employees, the organization, and the environment, with

attention to evolving social demands. The environmental movement consists of many initiatives connected primarily by values rather than by design. A plan to create a sustainable future should realize its objectives through a practical, clearly stated strategy. Key steps in ecovision:1. Eliminate the concept of waste. Seek newer methods of production and recycling.2. Make prices reflect costs. Reconstruct the system to incorporate a “green fee” where taxes are added to energy, raw materials, and services to encourage conversation.3. Restore accountability, Encourage consumer involvement making companies accountable.4. Promote diversity. Continue researching the needed compatibility of our ever-evolving products and inventions.5. Make conservation profitable. Rather than demanding

“low prices” to encourage production shortcuts, allow new costs for environmental stewardship.6. Insist on accountability of nations. Develop a plan for every trading nation of sustainable development enforced by tariffs.Even though the results specific to social responsibility andentrepreneurship are still emerging, a number of views arealready agreed on. The research is showing the differences between large firms and small firms. The reasons relate to the structure of smaller firms, which have fewer professional specialists, less formality and a stronger influence by the owner-entrepreneur.