Social enterprises more than islands of sanity?
A review of The Civil Corporation: The new economy of corporate citizenship by Simon Zadek
Simon Zadek hints at an answer to a question that has been nagging me for some time: is social enterprise in the vanguard of a real transformation of the economy, or are social enterprises no more – and no less – than islands of sanity in a mad world?
The Civil Corporation, as the name suggests is focused on large corporations. Despite this Zadek offers exciting insights into role of smaller, innovative, values-led businesses in the evolution civil corporations – corporations that are truly responsible, accountable and deliver real environmental and social benefits.
Zadek describes the current situation where a small, but growing, number of corporations (for example Marks & Spencer) are striving to seriously address environmental and social problems. Zadek argues that this trend can only continue if they develop strategies that not only deliver social and environmental benefits, but also competitive advantage; if other companies follow their lead; and if governments introduce policies that level up the competitive playing field to support responsible companies and penalise free-riders.
Much of the innovation that has spurred such change so far has come from NGOs and values-based businesses – such as the Body Shop, New Economics Foundation, the fair trade and organic movements.
Zadek suggests the innovations required include sharing new approaches and techniques; developing the competencies to implement them; sources of patient money; and a market that rewards values. If social enterprises embrace the opportunity, they can be part of a transformation to create world worth living in for our children and grandchildren.
This review first published in Good Company magazine.
19 November, 2007 at 1:59 am
Hi Osbert,
Found this blog via your LinkedIn profile, via your WiserEarth profile, via a WiserEarth discussion forum on for-profits.
Just wanted to let you know of two books which is highly relevant to this one you reviewed (if you haven’t known already):
1. The Divine Right of Capital: Dethroning the Corporate Aristocracy by Marjorie Kelly
2. The Post-Corporate World: Life After Capitalism by David C. Korten
This should help to answer “is social enterprise in the vanguard of a real transformation of the economy, or are social enterprises no more – and no less – than islands of sanity in a mad world?” a bit more. The first one dissects the corporation and it’s larger economic context, the second one suggests that corporations should behave as holons (an embedded entity) in a holarchy (of society and nature).
Unfortunately, I haven’t had the opportunity to actually read those books. Only managed to read reviews and interviews about the books. Anyway, hope to be of use in any way.
Best regards,
Bowo