Briefly explain aims of a social enterprise.
CAMBRIDGE
A level and AS level
Year Examined
October/November 2017
Topic
Social Entrepreneurship
👑Complete Model Essay
Social Enterprises: A Different Breed of Business
Traditional businesses are often driven by the single-minded pursuit of profit maximisation. Social enterprises, however, offer a refreshing departure from this norm. While they engage in commercial activities, their primary purpose extends far beyond the bottom line. This essay will delve into the distinctive aims of social enterprises, exploring how they strive to make a tangible difference in the world.
Prioritising Social Impact over Profit Maximisation
Unlike traditional businesses, social enterprises do not measure success solely in terms of financial gain. Their core objective lies in addressing social issues and improving community well-being. While they need to be financially sustainable, profit is a means to an end, not the ultimate goal. They aim to secure enough resources to effectively deliver social services and create a positive impact.
A powerful example is the Grameen Bank, founded by Nobel laureate Muhammad Yunus. This microfinance institution provides small loans to impoverished individuals, particularly women, in Bangladesh. By enabling them to start businesses and generate income, Grameen Bank combats poverty and empowers communities.
Embracing the Triple Bottom Line
Social enterprises subscribe to the triple bottom line framework, balancing people, planet, and profit. This holistic approach ensures their operations are not only financially viable but also socially responsible and environmentally sustainable.
Patagonia, the outdoor clothing company, exemplifies this approach. They are committed to fair labor practices, using organic cotton, and donating a percentage of their sales to environmental organisations. This demonstrates their commitment to social and environmental goals alongside financial sustainability.
Creating Employment Opportunities for the Disadvantaged
Many social enterprises focus on providing employment opportunities to individuals facing significant barriers to work. This could include people with disabilities, the long-term unemployed, or those recovering from addiction.
In the UK, The Big Issue, a street newspaper, offers homeless people a chance to earn a legitimate income by selling the magazine. This initiative not only provides financial support but also helps individuals regain self-esteem and integrate back into society.
Championing Sustainable Practices
Environmental sustainability is a core value for many social enterprises. They incorporate environmentally friendly practices into their operations, minimising their ecological footprint and promoting responsible consumption.
TOMS Shoes, known for its "One for One" model, donates a pair of shoes to a child in need for every pair purchased. They also prioritise sustainable materials and ethical manufacturing processes, aligning their business model with environmental responsibility.
Promoting Fair Employment Practices
Rather than prioritising profit maximisation at all costs, social enterprises strive to create a supportive and equitable work environment. This often includes paying a living wage, providing training opportunities, and promoting employee well-being.
The Eden Project in Cornwall, UK, a renowned eco-tourism destination, is a strong advocate for fair employment. They pay their staff a living wage and offer various development programs, demonstrating their commitment to employee welfare.
Conclusion
In conclusion, social enterprises represent a paradigm shift in the business world. By prioritising social impact, embracing the triple bottom line, creating opportunities for the disadvantaged, championing sustainability, and promoting fair employment practices, they demonstrate that businesses can be both profitable and a force for good. While financial sustainability remains important, social enterprises prove that genuine success lies in positively impacting the world around them.
Briefly explain aims of a social enterprise.
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A-Level Business Studies Essay Guide: Social Enterprises
This guide will help you write a compelling essay on social enterprises for your A-Level Business Studies exam. It will cover the key aspects of social enterprises, their aims, and how to structure your essay effectively.
Understanding Social Enterprises
A social enterprise is a business that prioritizes social and environmental goals alongside financial viability. Its primary mission is to achieve a positive impact on society while being commercially sustainable. Unlike traditional for-profit businesses, social enterprises are driven by a social mission rather than solely profit maximization.
Aims of a Social Enterprise: A Multi-faceted Approach
Social enterprises operate with a diverse range of aims, encompassing economic, social, and environmental objectives. Here are some key distinctions from traditional businesses:
Economic Aims:
- Financial Sustainability: Social enterprises strive for financial stability to ensure long-term viability and continued service delivery.
- Resource Generation: They seek to generate sufficient resources to fund their social mission, often through income-generating activities.
- Fair Trade Practices: They may engage in fair trade practices, ensuring ethical sourcing and fair pricing for products and services.
Social Aims:
- Community Empowerment: Social enterprises aim to empower communities by providing services, creating jobs, or addressing social issues.
- Social Inclusion: They often prioritize employing individuals from disadvantaged backgrounds, offering opportunities for skill development and social integration.
- Social Impact Measurement: Social enterprises may employ metrics to assess their social impact and demonstrate the value they bring to their communities.
Environmental Aims:
- Sustainability: They often adopt sustainable practices in their operations, minimizing their environmental footprint and promoting environmental responsibility.
- Conservation: Social enterprises may focus on conservation efforts, protecting natural resources or supporting eco-friendly initiatives.
- Green Products and Services: They may offer environmentally friendly products and services, promoting sustainable consumption patterns.
The Triple Bottom Line: A Holistic Approach
Many social enterprises adopt the "Triple Bottom Line" framework, considering not only economic performance but also social and environmental impact. This framework emphasizes the interconnectedness of these aspects and the simultaneous pursuit of all three goals.
Essay Structure: Guiding Your Argument
When structuring your essay, consider the following:
Introduction:
- Define social enterprises and their distinguishing characteristics.
- State your thesis, outlining the key aims you will discuss.
Main Body:
- Paragraph 1: Focus on economic aims, including financial sustainability, resource generation, and fair trade practices.
- Paragraph 2: Explore social aims, such as community empowerment, social inclusion, and impact measurement.
- Paragraph 3: Discuss environmental aims, including sustainability, conservation, and green products/services.
Conclusion:
- Summarize the key aims of social enterprises.
- Highlight the significance of social enterprises in addressing social and environmental challenges.
- Conclude by emphasizing the importance of understanding the multifaceted nature of social enterprise aims.
Effective Essay Writing Tips:
- Provide Specific Examples: Illustrate your points with real-world examples of social enterprises and their specific aims.
- Use Relevant Terminology: Incorporate key business terms and concepts relevant to social enterprises.
- Critical Analysis: Evaluate the potential challenges and limitations of social enterprises, considering potential trade-offs between different aims.
- Clear and Concise Writing: Use clear, concise language and avoid jargon. Structure your ideas logically and ensure smooth transitions between paragraphs.
- Proofread Carefully: Before submitting your essay, proofread it thoroughly for any errors in grammar, spelling, and punctuation.
By following these guidelines and incorporating relevant examples and analysis, you can write a comprehensive and well-structured essay that demonstrates a thorough understanding of social enterprises and their diverse aims.
Extracts from Mark Schemes
Aims of a Social Enterprise
A social enterprise may not focus on making profits or maximising profits like a normal business but rather seek to secure enough resources to provide services to the community.
A social enterprise may seek to achieve a triple bottom line set of objectives rather than simply generate profits or maximise sales, or grow the business.
A social enterprise may have as its primary purpose the provision of jobs to local disadvantaged citizens who may have difficulty in securing employment in traditional ways.
A social enterprise may engage in business activities such as sustainable production to support and protect the environment.
A social enterprise may seek to give employees a ‘living wage’ and a supportive working environment at the expense of maximising profits.