The Difference Between Social Entrepreneurship and Corporate Social Responsibility

 

Having a business may not be for everyone. The fear of taking risks is definitely not a characteristic of an entrepreneur. So why dive into a business when there are so many challenges ahead, and there is no guarantee that you can succeed with it? We need to live, that’s why! We have to do something to sustain the needs of our families, which an ordinary 9-5 job could not provide. Some may have started out as a small family business that sprouted into a huge company. It wasn’t easy, but they found it hard to achieve their success.

In building a business, we all have roles that we need to focus on, which can help us make the business grow. The cost may vary depending on how huge or small a company is. But to incorporating a plan that can help the community might be just the ultimate key to success.

Entrepreneurship is the ability to start up a business with the vision of gaining wealth for the owner. It is not as easy to start up any business without knowing several factors: the kind of business to venture into, knowledge about the company, the products and services to offer, the target market, and the people who will help start the business. This takes a lot of responsibility to put up a company thinking of how it can make an entrepreneur earn profit and be able to create good relationships between employees and gain the trust of clients/customers.

Social entrepreneurs are today’s life changers that provide different innovations and transform the world into a much better community. With the best programs they create, they enable them to reach further and deepen their significance in improving society.

Corporate Social Responsibility refers to the steps initiated by a company in reaching out to its employee, community, and environment through a set of activities or programs. That does not directly need anything in return but will somehow affect the company’s growth through the CSR programs’ positive impact.

The CSR activities help the company gain an established preference by the public and its stakeholders, having trust that the company has built a strong foundation by preventing risks and unnecessary expenditure, which may contribute to the company’s collapse. This ensures an excellent public image for the business that may also attract other investors.

Social Responsibilities of an Entrepreneur

An entrepreneur has a responsibility towards the community. He does not only think about how to earn a profit. Still, He is conscientious enough to make a positive change in his community.

• Entrepreneurs started a business to gain profit. They should provide quality products at a reasonably fair price. But it does not mean giving unreasonable costs about the products they offer.
• Must meet with the agreed terms and conditions provided by suppliers so that business continues without breaching the supplier’s trust.
• He must pay his taxes correctly and on time.
• Provide a conducive workplace for employees
• Create a business that will be beneficial to the community and its environment.

 

 Corporate Social Responsibility

Companies need to embrace CSR because its positive impact can be their means of gaining success. It may cost them a considerable amount of money. Still, the return may just be more than what they can imagine, provided that their programs become successful.

• Environment and community involvement
• Fair Labor practices
• Organizational governance
• Human Rights
• Consumer issues
• Fair Operational Practices 

The Difference:

• CSR projects need approval from their shareholders. There should be careful consideration with its shareholders with regards to allocating funds. Entrepreneurs, however, take the responsibility of paying all the costs.
• CSR projects focus more on reducing environmental and social impacts. In contrast, an entrepreneur focuses on specific social issues like child abuse, education, and nutrition.
• Companies proactively invest to achieve more incredible wealth for society. While an entrepreneur focuses on a mutual interest of gaining wealth with the community. An example would be an entrepreneur providing a livelihood program for mothers like cooking in a restaurant owned by the entrepreneur.  Both of them are in a win-win situation.
• CSR may provide temporary solutions to existing problems, whereas Social entrepreneurship may give permanent solutions.
• CSR complies with the social/moral/religious obligations in a social issue. In contrast, social entrepreneurship has selflessness as its leading cause.
• CSR focuses on projects related to the core of the business. At the same time, Social entrepreneurship goes beyond their means of extending service.
• CSR projects are project-based, while social entrepreneurship is sustaining.
• CSR works by weighing what the shareholders and stakeholders might perceive, while social entrepreneurs focus on the client/customer.

There may just be some slight difference between the two. Both, however, may have the same goal: the improvement of the lives of the community.

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You may contact Armando “Butz” Bartolome for questions and more information.

Email: [email protected]

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Website: https://www.butzbartolome.com