BETWEEN MISSION AND MONEY: A LESSON LEARNED FROM SOCIAL ENTERPRISE IDENTITY

Anita Wijayanti, I Made Narsa

Abstract


Social Entrepreneurship is a popular business model that proposes entrepreneurship to solve social and environmental problems by selling products or services. In Indonesia, the development of the number and awareness of entrepreneurs supported by the Social Entrepreneurship ecosystem is growing. However, due to the need for a unified definition of 'Social Entrepreneurship' and the slow pace of formal recognition from the government, organizations have developed with mixed practices and results. This study aims to describe the practice of Social Enterprise through the disclosure of corporate identity. Using Identity and Stakeholder Theory, this study explores the five characteristics of identity: mission, activity, governance, performance, and accountability. This multiple case study uses 10 Indonesian Social Enterprises. Data was collected through interviews and speeches in webinars coupled with documentation studies of uploaded narratives, photos, and videos on the company's official website, carried out from March to June 2023. Data analysis uses Nvivo to find themes from various Social Enterprise identity criteria groups. The results show that Social Enterprise has a unique mission and activities that carry a social value where community, empowerment, welfare and sustainability are more emphasized than profit. Institutional commitment as a Social Enterprise is proven by disclosing the impact achieved through impact reports, impact achievement profiles, SDG achievements, or articles in the news column. However, Financial performance is rarely disclosed, even though several companies have disclosed the distribution of their profits. Accountability practice in formal and informal to its stakeholder. This study provides guidelines for how companies disclose and be accountable for their identity as a Social Enterprise.

Keywords


Social Enterprise; Identity Theory; Social Value; Impact; Accountability

Full Text:

PDF

References


Ab Samad, N. H., Arshad, R., Asat, S. H., and Kasim, N. 2017. Sustainability and Accountability of Social Enterprise. Management and Accounting Review (MAR), 16(2), pp. 181-202. DOI: https://doi.org/10.24191/mar.v16i2.562.

Abeysekera, I. 2020. Intangibles Disclosure on Entrepreneurial Small Businesses' Websites to Influence Stakeholders' Impressions. Australian Accounting Review, 30(1), pp. 22-32. DOI: https://doi.org/10.1111/auar.12277.

Adam, S., Avilés, G., Ferrari, D., Amstutz, J., Crivelli, L., Enrico, C., and Zoebeli, D. 2016. Work Integration Social Enterprises in Switzerland. Non-profit Policy Forum, 7(4), pp. 509-539. DOI: https://doi.org/10.1515/npf-2016-0014.

Agrawal, A., Gandhi, P., and Khare, P. 2021. Women Empowerment Through Entrepreneurship: Case Study of a Social Entrepreneurial Intervention in Rural India. International Journal of Organizational Analysis. DOI: https://doi.org/10.1108/IJOA-03-2021-2659.

Aida, I. and Hati, S. R. H. 2013. Social Entrepreneurship in Indonesia: Lessons from the Past. Journal of Social Entrepreneurship, 4(3), pp. 277-301. DOI: http://doi.org/10.1080/19420676.2013.820778.

Alliance, S. E. 2018. Social Enterprise: What is Social Enterprise?.

Alter, K. 2007. Social Enterprise Typology. Virtue Ventures LLC, 12(1), pp. 1-124.

Altinay, L., Sigala, M., and Waligo, V. 2016. Social Value Creation Through Tourism Enterprise. Tourism Management, 54, pp. 404-417. DOI: https://doi.org/10.1016/j.tourman.2015.12.011.

Anastasiadis, M. 2016. Work Integration Social Enterprises in Austria – Characteristics, Evolution and Perspectives. Non-profit Policy Forum, 7(4), pp. 541-564. DOI: https://doi.org/10.1515/npf-2016-0008.

Andrikopoulos, A., Merika, A. A., Triantafyllou, A., and Merikas, A. G. 2013. Internet Disclosure and Corporate Performance: A Case Study of the International Shipping Industry. Transportation Research Part A: Policy and Practice, 47, pp. 141-152. DOI: https://doi.org/10.1016/j.tra.2012.10.016.

ANGIN. 2019. 52 Figures and Organizations Moving Social Entrepreneurship in Indonesia. Retrieved from https://www.angin.id/wp-content/uploads/2019/09/52-Figures-and-Organizations-Moving-Social-Entrepreneurship-in-Indonesia-v2.pdf.

Astrid, G. I. G. 2015. Social Enterprises: Examining Accountability for Social and Financial Performance. Queensland University of Technology.

Austin, J., Stevenson, H., and Wei–Skillern, J. 2006. Social and Commercial Entrepreneurship: Same, Different, or Both?. Entrepreneurship Theory and Practice, 30(1), pp. 1-22.

Azzahra, B. 2022. ASEC (A Social Enterprises Connector): Platform Data Social Enterprises Terintegrasi sebagai Sarana Keberlanjutan Social Movement Pasca Covid 19. Paper Presented at the Seminar Nasional Pariwisata dan Kewirausahaan (SNPK).

Basuony, M. A., Mohamed, E. K., Elragal, A., and Hussainey, K. 2020. Big Data Analytics of Corporate Internet Disclosures. Accounting Research Journal. DOI: https://doi.org/10.1108/ARJ-09-2019-0165.

Blazquez, D., Domenech, J., and Debón, A. 2018. Do Corporate Websites' Changes Reflect Firms' Survival?. Online Information Review.

Borzaga, C. and Depedri, C. 2012. The Emergence, Institutionalisation and Challenges of Social Enterprises: The Italian Experience. Social y Cooperativa, 75, pp. 35-53.

Bradford, A., Luke, B., and Furneaux, C. 2018. Social Enterprise Accountability: Directions, Dominance, and Developments. Social Enterprise Journal, 14(2), pp. 156-179. DOI: https://doi.org/10.1108/SEJ-03-2017-0018.

Bradford, A., Luke, B., and Furneaux, C. 2020. Exploring Accountability in Social Enterprise: Priorities, Practicalities, and Legitimacy. VOLUNTAS: International Journal of Voluntary and Non-profit Organizations, 31(3), pp. 614-626. DOI: https://doi.org/10.1007/s11266-020-00215-8.

Carvalho, B., Wiek, A., and Ness, B. 2022. Can B Corp Certification Anchor Sustainability in SMEs?. Corporate Social Responsibility and Environmental Management, 29(1), pp. 293-304.

Chandra, Y. 2017. Social Entrepreneurship as Emancipatory Work. Journal of Business Venturing, 32(6), pp. 657-673. DOI: https://doi.org/10.1016/j.jbusvent.2017.08.004.

Chandra, Y. and Liang, S. 2017. Social Enterprise as a Mechanism of Youth Empowerment. The Hong Kong Journal of Social Work, 51(01n02), pp. 115-144. DOI: https://doi.org/10.1142/S0219246217000080.

Chedli, M. K. E. 2016. The Impact of Social Partnership on the Environment. Journal of Economic Development, Environment, and People, 5(4), pp. 6-23. DOI: https://doi.org/10.26458/jedep.v5i4.510.

Chinchilla, A. and Garcia, M. 2017. Social Entrepreneurship Intention: Mindfulness Towards a Duality of Objectives. Humanistic Management Journal, 1(2), pp. 205-214.

Civera, C., Cortese, D., Mosca, F., and Murdock, A. 2020. Paradoxes and Strategies in Social Enterprises' Dual Logics Enactment: A csQCA between Italy and the United Kingdom. Journal of Business Research, 115, 334-347.

Claeyé, F. 2016. Social Enterprise in South Africa: A Tentative Typology.

Connolly, C. and Kelly, M. 2011. Understanding Accountability in Social Enterprise Organisations: A Framework. Social Enterprise Journal, 7(3), pp. 224-237. DOI: https://doi.org/10.1108/17508611111182386.

Cooney, K. 2011. An Exploratory Study of Social Purpose Business Models in the United States. Non-profit and Voluntary Sector Quarterly, 40(1), pp. 185-196. DOI: https://doi.org/10.1177/0899764009351591.

Council, B. 2020. Creative and Social Enterprise in Indonesia. Retrieved from Indonesia.

Dees, J. G. 1998. Enterprising Non-profits: What do You do When Traditional Sources of Funding Fall Short. Harvard Business Review, 76(1), pp. 55-67.

Dees, J. G. 2003. Social Entrepreneurship is About Innovation and Impact, Not Income. Social Edge, pp. 1-4.

Desiana, P. M., Ma’arif, M. S., Puspitawati, H., Rachmawati, R., Prijadi, R., and Najib, M. 2022. Strategy for Sustainability of Social Enterprise in Indonesia: A Structural Equation Modeling Approach. Sustainability, 14(3), pp. 1383.

Dewi, M. K., Manochin, M., and Belal, A. 2019. Marching with the Volunteers: Their Role and Impact on Beneficiary Accountability in an Indonesian NGO. Accounting, Auditing and Accountability Journal. DOI: https://doi.org/10.1108/AAAJ-10-2016-2727.

Doherty, B., Haugh, H., and Lyon, F. 2014. Social Enterprises as Hybrid Organizations: A Review and Research Agenda. International Journal of Management Reviews, 16(4), pp. 417-436.

Ebrahim, A., Battilana, J., and Mair, J. 2014. The Governance of Social Enterprises: Mission Drift and Accountability Challenges in Hybrid Organizations. Research in Organizational Behavior, 34, pp. 81-100. DOI: https://doi.org/10.1016/j.riob.2014.09.001.

Everaert, P., Bouten, L., and Baele, A. 2019. CSR Website Disclosure: The Influence of the Upper Echelons. Accounting, Auditing and Accountability Journal, 32(2), pp. 421-455. DOI: https://doi.org/10.1108/AAAJ-03-2017-2882.

Ferguson, K. M. 2012. Merging the Fields of Mental Health and Social Enterprise: Lessons from Abroad and Cumulative Findings from Research with Homeless Youths. Vol. 48.

Ferré-Cerdà, L., Viana-Neves, O., Nawej, J. L., and Carlsson, M. 2020. B Corp Certification - A Strategic Step Towards Sustainability?.

Filatova, U. 2020. Environmental Entrepreneurship as a Type of Social Entrepreneurship. Paper Presented at the E3S Web of Conferences.

Fotheringham, S. and Saunders, C. 2014. Social Enterprise as Poverty Reducing Strategy for Women. Social Enterprise Journal, 10(3), pp. 176-199. DOI: https://doi.org/10.1108/SEJ-06-2013-0028.

Freeman, R. E. 2015. Stakeholder Theory. Wiley Encyclopedia of Management, pp. 1-6. DOI: https://doi.org/10.1002/9781118785317.

Gesso, C. D. 2021. An Entrepreneurial Identity for Social Enterprise across the Institutional Approaches: From Mission to Accountability toward Sustainable Societal Development. International Journal of Business and Management, 15(1).

Gidron, B. and Monnickendam‐Givon, Y. 2017. A Social Welfare Perspective of Market‐Oriented Social Enterprises. International Journal of Social Welfare, 26(2), pp. 127-140.

Grassl, W. 2012. Business Models of Social Enterprise: A Design Approach to Hybridity. ACRN Journal of Entrepreneurship Perspectives, 1(1), pp. 37-60.

Hall, M. and O'Dwyer, B. 2017. Accounting, Non-Governmental Organizations, and Civil Society: The Importance of Non-profit Organizations to Understanding Accounting, Organizations and Society. Accounting, Organizations and Society, 63, pp. 1-5.

Haryanti, D. M., Hati, S. R. H., and Anggriyani, D. S. 2020. Profit untuk Misi Sosial. Jakarta: DBS Foundation.

Hockerts, K. 2010. Social Entrepreneurship between Market and Mission. Hockerts, Kai." Social Entrepreneurship between Market and Mission." International Review of Entrepreneurship, 8(2010), pp. 177-198.

Hockerts, K. 2017. Determinants of Social Entrepreneurial Intentions. Entrepreneurship Theory and Practice, 41(1), pp. 105-130. DOI: https://doi.org/10.1111/etap.12171.

Jones, T. M., Wicks, A. C., and Freeman, R. E. 2017. Stakeholder Theory: The State of the Art. The Blackwell Guide to Business Ethics, pp. 17-37. DOI: https://doi.org/10.5465/19416520.2010.495581.

Karamoy, H. 2017. Accessibility, Accountability and the Impact of Social Enterprise. Journal of Life Economics, 4, pp. 1-12. DOI: https://doi.org/10.15637/jlecon.204.

Kim, M. J. 2018. A Study of the Economic and Social Performance of Social Enterprise. The International Journal of Advanced Culture Technology, 6(2), pp. 43-50.

Kusumasari, B. 2016. The Business Model of Social Entrepreneurship in Indonesia. BISNIS and BIROKRASI: Jurnal Ilmu Administrasi dan Organisasi, 22(3), pp. 156-168.

Kusumastuti, R. and Juwono, V. 2022. Social Enterprise in Action: A Study of Indigenous Community-based Enterprise in Rural Areas to End Poverty in All its Form (Irodori Leaf-Business Kamikatsu, Japan and Ikat Woven-Business Pringgasela Lombok, Indonesia). KnE Social Sciences, pp. 424–431.

Kwong, C., Bhattarai, C. R., Bhandari, M. P., and Cheung, C. W. 2023. Does Social Performance Contribute to the Economic Performance of Social Enterprises? The Role of Social Enterprise Reputation Building. International Journal of Entrepreneurial Behavior and Research.

Lee, R. L. and Blouin, M. C. 2019. Factors Affecting Web Disclosure Adoption in the Non-profit Sector. Journal of Computer Information Systems, 59(4), pp. 363-372. DOI: https://doi.org/10.1080/08874417.2017.1370988.

Loan, A. 2018. Accountability in Social Enterprises Around the World. Retrieved from https://accountablenow.org/accountability-in-social-enterprises-around-the-world/.

Mair, J. and Noboa, E. 2006. Social Entrepreneurship: How Intentions to Create a Social Venture are Formed Social Entrepreneurship, pp. 121-135. Springer.

Maksum, I. R., Rahayu, A. Y. S., and Kusumawardhani, D. 2020. A Social Enterprise Approach to Empowering Micro, Small and Medium Enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), pp. 50. DOI: https://doi.org/10.3390/joitmc6030050.

Mason, C. 2009. Governance in Social Enterprises.

Mason, C., Kirkbride, J., and Bryde, D. 2007. From Stakeholders to Institutions: The Changing Face of Social Enterprise Governance Theory. Management Decision. DOI: https://doi.org/10.1108/00251740710727296.

Molecke, G. and Pinkse, J. 2017. Accountability for Social Impact: A Bricolage Perspective on Impact Measurement in Social Enterprises. Journal of Business Venturing, 32(5), pp. 550-568.

Nadzri, F. A. A., Lokman, N., Yusuf, S. N. S., and Naharuddin, S. 2021. Accountability and Transparency of Accredited Social Enterprises in Malaysia: Website Disclosure Analysis. Management and Accounting Review (MAR), 20(3), pp. 246-276.

Nair, R., Arshad, R., Muda, R., and Joharry, S. A. 2022. Web-Disclosure Practices for Transparency and the Sustainability of Non-Profit Organisations. International Review on Public and Non-profit Marketing, pp. 1-23. DOI: https://doi.org/10.1007/s12208-021-00330-2.

Paraskevopoulou, P. 2015. Stakeholder Communication Through the Websites and Expression of Success. (Master Thesis Master Thesis), Sewesh University of Agriculture Sciences. Retrieved from http://stud.epsilon.slu.se.

Pinheiro, P., Daniel, A., and Moreira, A. 2021. Social Enterprise Performance: The Role of Market and Social Entrepreneurship Orientations. VOLUNTAS: International Journal of Voluntary and Non-profit Organizations, 32(1), pp. 45-60.

PLUS. 2022. Understanding the State and Profile of Social Enterprise in Indonesia. Retrieved from Jakarta: https://usahasosial.com/wp-content/uploads/2023/04/Understanding-the-State-and-Profile-of-Social-Enterprise-in-Indonesia-2022-Platform-Usaha-Sosial-PLUS.pdf.

Pratono, A. H., Pramudija, P., and Sutanti, A. 2016. Social Enterprise in Indonesia: Emerging Models Under Transition Government.

Puspadewi, I., Soetjipto, B. W., Wahyuni, S., and Wijayanto, S. H. 2019. Managing Paradox for the Sustainability of Social Enterprises: An Empirical Study of Forestry Community Cooperatives in Indonesia. Journal of Social Entrepreneurship, 10(2), pp. 177-192. DOI: 10.1080/19420676.2018.1541008.

Qastharin, A. R. and Vanourek, G. 2020. Understanding the Business Model of Social Enterprise: Case Study of Indonesia Mengajar. The Future Opportunities and Challenges of Business in Digital Era, 4.0, pp. 239-243.

Ridley-Duff, R. 2008. Social Enterprise as a Socially Rational Business. International Journal of Entrepreneurial Behaviour and Research, 14(5), pp. 291-312. DOI: https://doi.org/10.1108/13552550810897669.

Rostiani, R., Paramita, W., Audita, H., Virgosita, R., Budiarto, T., and Purnomo, B. 2015. Understanding Social Enterprises in Indonesia. Journal of Indonesian Economy and Business, 29. DOI: https://doi.org/10.22146/jieb.6356.

Rostiani, R., Paramita, W., Audita, H., Virgosita, R., Budiarto, T., and Purnomo, B. R. 2014. Understanding Social Enterprises in Indonesia: Drivers and Challenges. Journal of Indonesian Economy and Business, 29(2).

Ruskin, J., Seymour, R. G., and Webster, C. M. 2016. Why Create Value for Others? An Exploration of Social Entrepreneurial Motives. Journal of Small Business Management, 54(4), pp. 1015-1037. DOI: https://doi.org/10.1111/jsbm.12229.

Sanzo-Pérez, M. J., Rey-García, M., and Álvarez-González, L. I. 2022. Downward Accountability to Beneficiaries in Social Enterprises: Do Partnerships with Non-profits Boost It without Undermining Accountability to Other Stakeholders?. Review of Managerial Science, 16(5), pp. 1533-1560. DOI: https://doi.org/10.1007/s11846-021-00485-6.

Sean, L. J. 2017. Collaborations, Board Independence and Website Social Impact Disclosures: A Study of Social Enterprises. Queensland University of Technology.

Selsky, J. W. and Parker, B. 2005. Cross-Sector Partnerships to Address Social Issues: Challenges to Theory and Practice. Journal of Management, 31(6), pp. 849-873. DOI: https://doi.org/10.1177/0149206305279601.

Singgalen, Y. A. 2022. Peran Perusahaan Sosial dalam Pemberdayaan Masyarakat untuk Penghidupan Berkelanjutan. Jurnal Ilmu Sosial Dan Humaniora, 11(2), pp. 257-268.

Spear, R., Cornforth, C., and Aiken, M. 2009. The Governance Challenges of Social Enterprises: Evidence from a UK Empirical Study. Annuals of Public and Cooperative Economics, 80(2), pp. 247-273. DOI: https://doi.org/10.1111/j.1467-8292.2009.00386.x.

Utami, W., Nugroho, L., and Nemoto, M. 2020. The Conception and Practices of Social Enterprise between Indonesia and South Korea. Al Farabi Uluslararası Sosyal Bilimler Dergisi, 5(4), pp. 41-48.

van Eck, W. and Kelly, D. 2018. The Sustainability Journey: An Exploration into Small and Medium-Sized Enterprises' Quest for Legitimacy: The B Corp Case.

Verhaar, F. D. R. 2023. Sustainability as a Strategy: The B-Corp Certification's Effect on Consumers' Willingness to Pay.

Vidal, I. 2014. Multi-Stakeholder Governance in Social Enterprise Social Enterprise and the Third Sector, pp. 192-202. Routledge.

Villela, M., Bulgacov, S., and Morgan, G. 2021. B Corp Certification and Its Impact on Organizations Over Time. Journal of Business Ethics, 170, pp. 343-357. DOI: https://doi.org/10.1007/s10551-019-04372-9.

Wang, W.-J. 2009. Accountability in Social Enterprises: An Analytical Framework. The University of Pittsburgh's Johnson Institute for Responsible Leadership Working Papers.

Wangsirilert, C. and Simon, L. 2017. How Large-Scale Companies and Social Enterprises Improve the Sustainability of Their Partnership?. (Master of Science), KTH Industrial Engineering and Management Stockholm, Sweden.

Wellens, L. and Jegers, M. 2014. Beneficiary Participation as an Instrument of Downward Accountability: A Multiple Case Study. European Management Journal, 32(6), pp. 938-949. DOI: http://dx.doi.org/10.1016/j.emj.2014.03.004.

Wry, T. and York, J. G. 2017. An Identity-Based Approach to Social Enterprise. Academy of Management Review, 42(3), pp. 437-460. DOI: http://dx.doi.org/10.5465/amr.2013.0506.

Yu, X. 2011. Social Enterprise in China: Driving Forces, Development Patterns and Legal Framework. Vol. 7. Emerald.




DOI: http://dx.doi.org/10.21776/ub.jam.2023.021.04.09

Refbacks

  • There are currently no refbacks.