Governance in Social Enterprises

2020 ◽  
pp. 180-202 ◽  
Author(s):  
Johanna Mair ◽  
Miriam Wolf ◽  
Alexandra Ioan
Keyword(s):  
Corporate Governance ◽  
Economic Value ◽  
Social Enterprises ◽  
Future Research ◽  
Multiple Goals ◽  
Multiple Stakeholders ◽  
Market Mechanisms ◽  
Social Mission ◽  
Theoretical Approaches ◽  
Enterprise Governance

Social enterprises—organisations that pursue a social mission using market mechanisms—are promising vehicles to create both social and economic value for society. Navigating and/or aligning multiple goals and interests of stakeholders is critical for them to avoid mission drift, i.e. losing sight of their social mission, while navigating market and political pressures. Governance has been identified as a key mechanism that helps social enterprises to thrive as hybrid organisations, fulfilling multiple goals and attending to demands of multiple stakeholders. In this chapter, we review canonical theoretical approaches on corporate governance and assess their usefulness to understand governance of social enterprises. We highlight productive angles to examine social enterprise governance and provide first empirical insights on how social enterprises are governed in order to inform future research in this domain.

Advances in Corporate Governance

2020 ◽  
pp. 292-300
Author(s):  
Helmut K. Anheier ◽  
Christoph M. Abels
Keyword(s):  
Corporate Governance ◽  
Comparative Analysis ◽  
Social Role ◽  
Social Enterprises ◽  
Principal Agent ◽  
Multiple Stakeholders ◽  
Principal Agent Theory ◽  
Agent Theory ◽  
Theoretical Approaches ◽  
Wide Range

Listed corporations have been at the centre of corporate governance research and professional concern. Yet, organisational diversity reflecting a wide range of corporate forms and an evolving understanding of the corporation’s social role have broadened the scope of corporate governance beyond the listed firm. This chapter synthesises the preceding chapters’ findings. Starting with a discussion of different theoretical approaches, the chapter demonstrates the need to reflect on the applicability of the principal–agent theory to organisational forms such as non-profits and social enterprises with multiple stakeholders. Afterwards, the varying needs for corporate governance are discussed, thereby pointing to how existing models and approaches play out in different organisational contexts. The chapter concludes with implications for the development of corporate governance, derived from this volume’s comparative analysis.

scholarly journals Corporate governance practices and outcomes in social enterprises in the UK

2015 ◽  
Vol 28 (1) ◽  
pp. 57-71 ◽  
Author(s):  
Walter Mswaka ◽  
Olu Aluko
Keyword(s):  
Social Enterprise ◽  
Social Enterprises ◽  
Content Type ◽  
Social Mission ◽  
The Social ◽  
Depth Analysis ◽  
Governance Models ◽  
The Uk ◽  
Enterprise Governance ◽  
The Impact

Purpose – The purpose of this paper is to explore the growth of social enterprise in the UK in the context of the renewed interest in the creative use of organisations with a social mission to complement public service delivery. Given the impact of globalisation and increased demands for effective social welfare interventions, this paper specifically focuses on the nature and type of social enterprise governance models and how they influence their outcomes. Design/methodology/approach – The study utilises a mixed method approach involving the complementary use of quantitative and qualitative data collection methods. Findings – The paper finds that the way in which the social enterprise governance structure is designed ultimately influences its outcomes. In particular, those with stewardship governance models tend to perform better than those with democratic models of governance. This leads to a conclusion that in the social context of the UK, social enterprise should aim for a paradigm shift in the design and selection of governance models. Research limitations/implications – Comparative regional experiences in other regions or social contexts could enrich our understanding of whether these results are applicable across the board. Practical implications – This paper is of potential benefit to researchers and particularly those designing policies for the governance of social enterprise. Originality/value – The study employs innovative analytical theoretical lenses not normally associated with the social economy, namely agency, stewardship and resource dependency theories to provide a more in-depth analysis of the governance of contemporary social enterprise.

Conducting Management Research in Latin America: Why and What’s in It for You?

2020 ◽  
Vol 46 (5) ◽  
pp. 615-636 ◽  
Author(s):  
Herman Aguinis ◽  
Isabel Villamor ◽  
Sergio G. Lazzarini ◽  
Roberto S. Vassolo ◽  
José Ernesto Amorós ◽  
...  
Keyword(s):  
Latin America ◽  
Latin American ◽  
Economic Value ◽  
Social Enterprises ◽  
Future Research ◽  
Management Research ◽  
High Quality Research ◽  
Test Management ◽  
Local Contexts ◽  
Natural Laboratory

We make the case that conditions and timing are right and, despite some challenges, there are many benefits to conducting management research in Latin America. Some of these conditions include an upward trend in the productivity of Latin American researchers, increased collaboration between researchers in Latin America and those in other regions, and societal, cultural, and economic characteristics that make the region an ideal “natural laboratory” to build and test management theories. Demonstrating that our arguments are not just about potential but are founded in reality, we offer a selective summary of recent research conducted in Latin America that made important contributions to micro and macro management domains and theories. These include (a) leadership; (b) small and family businesses; (c) entrepreneurship; (d) social inclusiveness, inequity, and vulnerable populations; (e) strategy and competitive dynamics in natural resource industries; (f) strategy in unstable macroeconomic contexts; (g) public (industrial) policies and business development; (h) hybrid public-private collaborations; and (i) social enterprises and blended social and economic value creation. We also describe opportunities for future research in these domains. Finally, we offer practical and actionable advice on how to address typical challenges encountered when conducting management research in Latin America. Solutions apply to those residing inside and outside of Latin America and include, among others, identifying universities with a research-oriented career path, recognizing credible university rankings and their impact, and capitalizing on local contexts to generate high-quality research. We hope our article will serve as a catalyst for future management research in Latin America.

Boardroom’s independence and corporate performance: the ever-elusive conundrum

2015 ◽  
Vol 15 (5) ◽  
pp. 747-758 ◽  
Author(s):  
Karim S. Rebeiz
Keyword(s):  
Corporate Governance ◽  
Organizational Behavior ◽  
Corporate Performance ◽  
Economic Value ◽  
Future Research ◽  
Archival Data ◽  
Content Type ◽  
Academic Literature ◽  
Challenges And Opportunities ◽  
Governance Challenges

Purpose – The purpose of this paper is to unravel the root causes as to why the boardroom independence–corporate performance linkage remains an elusive conundrum in the academic literature, and to propose practical recommendations for future research endeavors. Design/methodology/approach – The probing of the underlying issues is made via an extensive review of the existing literature. A thoughtful analysis is conducted from a multi-disciplinary perspective by soliciting feedback from academics with corporate governance expertise in finance, accounting, economy, strategy, management and organizational behavior. Findings – The lack of consensus on the economic value of an independent boardroom is attributed to three reasons. The first reason is ontological complexities inherent to the very nature of the corporation. The second reason is methodological complexities intrinsic to normative research with large archival data. The third reason is self-serving behavioral motive that cannot be factored in archival data. Research limitations/implications – The infusion of complementary methodologies to the existing empirical dogmatism would provide the framework for a better understanding of corporate governance challenges and opportunities, particularly as it relates to making causal inferences on boardroom independence and corporate performance. Practical implications – New insights on boardroom independence would directly influence corporate practices. Social implications – The determination as to what constitutes optimum boardroom configuration has emerged as an issue of considerable importance to shareholders, policymakers and other stakeholders. Originality/value – Virtually no studies have been conducted in a comprehensive and systematic manner addressing the fundamental question as to why research pertaining to boardroom independence–corporate performance has not yielded unequivocal results in the relevant academic literature, thus the originality and value of this research.

Social Enterprise Exits

2017 ◽  
Author(s):  
Dana Brakman Reiser ◽  
Steven A. Dean
Keyword(s):  
Corporate Governance ◽  
Small Business ◽  
Mergers And Acquisitions ◽  
Venture Capital ◽  
Social Enterprise ◽  
Social Enterprises ◽  
Social Entrepreneurs ◽  
Social Mission ◽  
Small Business Finance ◽  
Public Company

This chapter explores how social enterprise law can shape social enterprise exits, whether by sale, dissolution, or bankruptcy. It explains that the threat of exit looms large over social enterprises, their founders, and their investors. It then draws on lessons from unlikely sources—venture capital, public company mergers and acquisitions, and small business finance—to design contract terms and corporate governance provisions that can prevent exit from threatening a venture’s social mission. The chapter argues that even in the context of exit by dissolution, contract, and governance can be deployed to preserve a firm’s chosen balance of finance and social mission. It cautions social entrepreneurs and investors, however, that the utility of these tools wanes if a venture becomes insolvent. Whether in a formal bankruptcy proceeding or a more informal dissolution, if assets are insufficient to meet a social enterprise’s financial obligations, creditors’ interests become paramount.

The influence of knowledge absorptive capacity on shared value creation in social enterprises

2017 ◽  
Vol 21 (5) ◽  
pp. 1163-1182 ◽  
Author(s):  
Vanessa Campos-Climent ◽  
Joan Ramon Sanchis-Palacio
Keyword(s):  
Absorptive Capacity ◽  
Economic Value ◽  
Social Enterprises ◽  
Mediating Effect ◽  
Future Research ◽  
Shared Value ◽  
Content Type ◽  
Mediating Role ◽  
Definition Of

Purpose In downturns, social enterprises (SEs) arise as a resilience business model. The authors focus on knowledge absorptive capacity (KAC) as a key dynamic capability to create shared value (SHV). The purpose of this study is to analyze whether it exists a cause-effect relationship between KAC and SHV creation in SEs. Design/methodology/approach The research model relates KAC and SHV creation. SHV creation involves two components: economic value (EV) and social value (SV). The authors argue that KAC has a positive effect on EV and SV creation, considering SV as a mediator variable. The model is tested by means of PLS-SEM. Findings The results reveal the existence of a positive and significant relationship between KAC and SHV creation, as well as the mediating role of SV creation. Research limitations/implications The sample comprises 127 SEs from the Euro-Mediterranean region (euro-region comprising areas from France and Spain), it would be interesting to include other euro-regions in future research. Practical implications The authors confirm KAC as an important antecedent of SHV creation and also that SEs create EV by means of SV, pointing to the existence of direct and indirect effects. This way, confirming the existence of a mediating effect. Originality/value It points the importance of KAC in SEs, something that has not been addressed before by the literature. It also goes beyond performance by considering SHV creation as a measure of SEs’ outcomes, as well as the definition of the variable SHV including not only social related issues but also environmental (green) issues.

scholarly journals Do Value Added Intellectual Coefficient and Corporate Governance Contribute to Firm's Economic Value Added

2019 ◽  
Vol 2 (2) ◽  
pp. 96-108
Author(s):  
Saarce Elsye Hatane ◽  
Maria Agustin ◽  
Vera Radja Kana ◽  
Jean Marc Dautrey
Keyword(s):  
Corporate Governance ◽  
Intellectual Capital ◽  
Audit Committee ◽  
Audit Quality ◽  
Economic Value ◽  
Value Added ◽  
Future Research ◽  
Company Value ◽  
Auditor Quality ◽  
Positive Effect

This study is about examining the influence of Intellectual Capital and Corporate Governance to EVA. Data used in this study were collected from a sample of 121 consumer goods companies in Indonesia and Malaysia from 2010 to 2017. Panel data multiple regression was performed to examine the research framework. The intellectual capital was measured by VAIC value, while the corporate governance was explained by the audit committee, remuneration board, and auditor quality and tenure. This study found that HCE, SCE, audit committee gender, remuneration size and remuneration gender had no effect on EVA in both Malaysian and Indonesian companies. In contrast, the audit committee size was found to affect the EVA of the companies in both countries. The CEE affected the company value of Malaysian companies while it had no effect on Indonesian companies. Audit quality and audit tenure had a positive effect only on Malaysian companies and none on Indonesian companies. This study used limited variables and a narrow business sector, thus the future research may expand the research model for other types of industries and apply the model in other countries.

Introduction

2017 ◽  
Author(s):  
Dana Brakman Reiser ◽  
Steven A. Dean
Keyword(s):  
Corporate Governance ◽  
Social Enterprise ◽  
Contract Law ◽  
Social Enterprises ◽  
Social Mission ◽  
For Profit ◽  
History Of ◽  
The Law

This introduction provides an overview of the challenges social enterprises face in raising capital and briefly describes the authors’ array of potential solutions, grounded in finance, corporate governance and contract law. It argues that to distinguish themselves from conventional for-profit ventures, social enterprises must broadcast their commitment to pursuing a social mission as well as profits. The chapter then explains that, although the law has evolved to accept the existence of social enterprises, it does not offer them a means to prove that they are what they claim to be. The introduction briefly articulates how social enterprise law could make the leap from permissive to protective—the topic the rest of the book will explore comprehensively. It concludes with a roadmap of the remaining chapters, which trace the history of social enterprise law and chart its possible future.

The Practical Intelligence of Social Entrepreneurs: Managing the Hybridity of Social Enterprises

2019 ◽  
Vol 10 (1) ◽  
Author(s):  
Byungchae Jin
Keyword(s):  
Social Entrepreneurship ◽  
Economic Value ◽  
Social Enterprises ◽  
Social Value ◽  
Practical Intelligence ◽  
Social Entrepreneurs ◽  
Non Profit ◽  
Social Mission ◽  
The Creation

AbstractThe hybridity of social enterprises – that is to say, their simultaneous pursuit of both economic and social value – has increasingly drawn the attention of scholars in the fields of social entrepreneurship and, more broadly, entrepreneurship. To date, there has been significant debate as to whether or how social enterprises are distinct from for- and non profit organizations and whether generating economic rents and achieving a social mission can complement or substitute for each other. To add nuance to this literature, this study focuses on the role of social entrepreneurs’ practical intelligence, seeking to understand how the practical intelligence of social entrepreneurs can contribute to creating both economic and social value. We generally find positive relationships between practical intelligence and the creation of both social and economic value. However, empirical evidence suggests that some dimensions of practical intelligence are closely related to the creation of economic value, whereas others are related to creating social value. Based on the findings, we discuss how practical intelligence can effectively help social entrepreneurs manage the hybridity of their social enterprises.

scholarly journals Impact Investing Strategy: Managing Conflicts between Impact Investor and Investee Social Enterprise

2019 ◽  
Vol 11 (15) ◽  
pp. 4117 ◽  
Author(s):  
Agrawal ◽  
Hockerts
Keyword(s):  
Social Enterprise ◽  
Social Impact ◽  
Economic Value ◽  
Social Enterprises ◽  
Impact Measurement ◽  
Impact Investing ◽  
Industry Specialization ◽  
Social Mission ◽  
For Profit ◽  
The Impact

Impact investing pursues the dual goals of creating socio-economic value for the marginalized, and ensuring net positive financial returns. Impact investing firms achieve their goals through their investments in projects and enterprises which create both social and commercial values. The primary aim of this article is to contribute to our understanding of the process of impact investing, particularly with respect to issues related to aligning impact investing and investee social enterprise goals. The research method employs case-based research methodology. The data consist of six cases of impact investing and their investee social enterprises. In addition, the data involve interviews with experts from the field of impact investing. The findings are that: (1) Social mission plays an important moderating role in the inter-organizational relationship between the impact investor and the investee social enterprise, (2) and an emphasis on due diligence, sector specialization, and communication increases the likelihood of investment while (3) social impact measurement and reporting and frequent engagement increase the likelihood of post-investment alignment. The key contribution of this article is that impact investing (unlike venture capital) is influenced by the ability of its investee to create social value, which plays an important role in the inter-organizational relationship between investor and investee. Furthermore, similar to industry specialization in the for-profit investing, social sector specialization is equally relevant for alignment and returns.

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