Question

Social entrepreneurship is a growing phenomenon. Do you believe that for-profit businesses can have a social mission? Should they do so, if it means hurting profits?

Answer 1

Social entrepreneurship is a new phenomenon that has earned the interest of a large number of people lately. Social entrepreneurship is all about establishing a business enterprise with the aim of solving social issues or brining social change in society. Yes, a for-profit business can have a social mission. It actually also aligns with the corporate social responsibility of the business. Many business organizations have adopted it. It is because it allows the business to earn goodwill, name, fame, and support from people on a large scale. The business also earns brand value or brand equity by engaging itself with a social mission.

It is acceptable up to a good extent to have a social mission even if it hurts the profit. If an organization has to sacrifice some of its profit by having a social mission and generating value for society in which it operates it must do that as company earns goodwill, name, respect, and support from the society in return. It may look burdensome in the short term, but in the long term, the organization creates value for itself in the market. An organization is not all about profit, but also about the value it creates in society and for society.