Social Business Models: When Profits and Impacts Are Not at Odds
In the last decade the emergence of new social needs
as an effect of the economic crisis has stimulated the flourishing of
business endeavours characterised by explicit social goals. Social
start-ups, social enterprises or Corporate Social Responsibility
operations carried out by traditional companies are quintessential
examples in this regard. This paper analyses these kinds of initiatives
in order to discover the main characteristics of social business models
and to provide insights to social entrepreneurs for developing or
improving their strategies. The research is conducted through the
integration of literature review and case study analysis and, thanks to
the recognition of the importance of both profits and social impacts
as the key success factors for a social business model, proposes a
framework for identifying indicators suitable for measuring the social
impacts generated.
[1] BEPA, "Social Innovation. A decade of changes," European
Commission, 2014.
[2] S. Petitjean and P. Lemoine, "Social Entrepreneurships - One response
to the crisis," Europolitics, p. 15, 10 02 2014.
[3] OECD, "Growing Unequal?: Income Distribution and Poverty in OECD
Countries.," 2009.
[4] European Commission, "A map of Social Enterprises and their ecosystems
in Europe," 2014.
[5] R. L. Martin and S. Osberg, "Social entrepreneurship: The case for
definition.," Stanford social innovation review, vol. 5, no. 2, pp. 28-39,
2007.
[6] M. E. Porter and M. R. Kramer, "Creating Shared Value," Harvard
Business Review, pp. 68-84, January / February 2011.
[7] M. W. Johnson, C. M. Christensen and H. Kagermann, "Reinventing
your business model," Harvard business review, vol. 86, no. 12, pp. 57-
68, 2008.
[8] A. Osterwalder, Y. Pigneur and A. Smith, Business Model Generation,
Wiley, 2010.
[9] M. Yunus, B. Moingeon and L. Lehmann-Ortega, "Building Social
Business Models: Lessons from the Grameen Experience," Long Range
Planning, vol. 43, no. April-June, pp. 308-325, 2010.
[10] L. Michelini, Social Innovation and New Business Models: Creating
Shared Value in Low-Income Markets, Springer Science & Business
Media, 2012.
[11] I. Burkett, "Using the Business Model Canvas for Social Enterprise
Design," Knode, no date.
[12] Young Foundation, "The Social Business Model Canvas," no date.
(Online). Available: http://growingsocialventures.org/en/coursecontent/
social-business-model-canvas.
[13] Social Innovation Lab, "Social Business Model Canvas," no date.
(Online). Available: http://www.socialbusinessmodelcanvas.com/wpcontent/
uploads/Social-Business-Model-Canvas.png.
[14] K. M. Eisenhardt, "Building theories from case study research,"
Academy of Management Review, vol. 14, no. 4, pp. 532-550, 1989.
[15] R. K. Yin, Case Study Research: Design and Methods, London: Sage,
1994.
[16] W. Tellis, "Introduction to Case Study," The Qualitative Report, vol. 2,
no. 3, 1997.
[17] T. Eisenmann, G. Parker and M. W. Van Alstyne, "Strategies for twosided
markets," Harvard business review, vol. 84, no. 10, p. 92, 2006.
[18] http://www.globalissues.org/article/26/poverty-facts-and-stats, "Poverty
Facts and Stats," 2013. (Online).
[19] World Health Organization, "World Bank (2011) World report on
disability," World Health Organization, Malta, 2012.
[20] A. Toffler, The third wave, New York: Bantam books, 1981.
[21] D. Cheng, "The peer economy will transform work (or at least how we
think of it)," Harvard Business Review, 2013.
[22] J. Elkington, Cannibals with Forks: The Triple Bottom Line of Twenty-
First Century Business., Oxford: Capstone, 1997.
[23] GECES Sub-group on Impact Measurement, "Proposed Approaches to
Social Impact Measurement in European Commission legislation and in
practice relating to: EuSEFs and the EaSI," GECES, 2014.
[24] A. Ebrahim and V. Rangan, "The Limits of Nonprofit Impact: A
Contingency Framework for Measuring Social Performance," Harvard
Business School, Harvard, 2010.
[25] The SROI Network, "A guide to Social Return on Investment," The
SROI Network, 2012.
[26] London Business School, Nef, Small Business Service, "Measuring
social impact: the foundation of social return on investment (SROI),"
Nef, 2004.
[27] R. Layard and S. Glaister, "Cost-benefit analysis," Cambridge,
Cambridge, 1994.
[28] A. Arvidson, F. Lyon, S. McKay and D. Moro, "Valuing the Social? The
nature and controversies of measuring Social Return on Investment
(SROI)," Voluntary Sector Review, vol. 4, no. 1, pp. 3-18, 2013.
[29] EVPA, "A Practical Guide to Measuring and Managing Impact," EVPA,
2013.
[30] C. Weiss, "Nothing as practical as good theory: Exploring theory-based
evaluation for comprehensive community initiatives for children and
families," in New approaches to evaluating community initiatives:
concepts, methods, and contexts, Washington, The Aspen Institute,
1995, pp. 65-92.
[31] Investing for Good, "Guidelines for how to measure and report social
impact," Adrian Hornsby, 2012.
[32] B. Meldrum, P. Read and C. Harrison, "A Guide to Measuring Social
Impact - White Paper," Social Impact Tracker, no date.
[33] J. Clifford, K. Markey and N. Malpani, "Measuring Social Impact in
Social Enterprise: The state of thought and practice in the UK," E3M,
London, 2013.
[34] M. Epstein and K. Yuthas, Measuring and Improving Social Impacts,
San Francisco: BK, 2014. [35] B. J. Calder, L. W. Phillips and A. M. Tybout, "The concept of external
validity," Journal of Consumer Research, vol. 9, no. 3, p. 240-244, 1982.
[36] J. E. McGrath and D. Brinberg, "External validity and the research
process: a comment on the Calder/Lynch dialogue," Journal of
Consumer Research, vol. 10, no. 1, p. 115-124, 1983.
[37] R. E. Stake, The Art of Case Study Research, London: Sage
Publications, 1995.
[1] BEPA, "Social Innovation. A decade of changes," European
Commission, 2014.
[2] S. Petitjean and P. Lemoine, "Social Entrepreneurships - One response
to the crisis," Europolitics, p. 15, 10 02 2014.
[3] OECD, "Growing Unequal?: Income Distribution and Poverty in OECD
Countries.," 2009.
[4] European Commission, "A map of Social Enterprises and their ecosystems
in Europe," 2014.
[5] R. L. Martin and S. Osberg, "Social entrepreneurship: The case for
definition.," Stanford social innovation review, vol. 5, no. 2, pp. 28-39,
2007.
[6] M. E. Porter and M. R. Kramer, "Creating Shared Value," Harvard
Business Review, pp. 68-84, January / February 2011.
[7] M. W. Johnson, C. M. Christensen and H. Kagermann, "Reinventing
your business model," Harvard business review, vol. 86, no. 12, pp. 57-
68, 2008.
[8] A. Osterwalder, Y. Pigneur and A. Smith, Business Model Generation,
Wiley, 2010.
[9] M. Yunus, B. Moingeon and L. Lehmann-Ortega, "Building Social
Business Models: Lessons from the Grameen Experience," Long Range
Planning, vol. 43, no. April-June, pp. 308-325, 2010.
[10] L. Michelini, Social Innovation and New Business Models: Creating
Shared Value in Low-Income Markets, Springer Science & Business
Media, 2012.
[11] I. Burkett, "Using the Business Model Canvas for Social Enterprise
Design," Knode, no date.
[12] Young Foundation, "The Social Business Model Canvas," no date.
(Online). Available: http://growingsocialventures.org/en/coursecontent/
social-business-model-canvas.
[13] Social Innovation Lab, "Social Business Model Canvas," no date.
(Online). Available: http://www.socialbusinessmodelcanvas.com/wpcontent/
uploads/Social-Business-Model-Canvas.png.
[14] K. M. Eisenhardt, "Building theories from case study research,"
Academy of Management Review, vol. 14, no. 4, pp. 532-550, 1989.
[15] R. K. Yin, Case Study Research: Design and Methods, London: Sage,
1994.
[16] W. Tellis, "Introduction to Case Study," The Qualitative Report, vol. 2,
no. 3, 1997.
[17] T. Eisenmann, G. Parker and M. W. Van Alstyne, "Strategies for twosided
markets," Harvard business review, vol. 84, no. 10, p. 92, 2006.
[18] http://www.globalissues.org/article/26/poverty-facts-and-stats, "Poverty
Facts and Stats," 2013. (Online).
[19] World Health Organization, "World Bank (2011) World report on
disability," World Health Organization, Malta, 2012.
[20] A. Toffler, The third wave, New York: Bantam books, 1981.
[21] D. Cheng, "The peer economy will transform work (or at least how we
think of it)," Harvard Business Review, 2013.
[22] J. Elkington, Cannibals with Forks: The Triple Bottom Line of Twenty-
First Century Business., Oxford: Capstone, 1997.
[23] GECES Sub-group on Impact Measurement, "Proposed Approaches to
Social Impact Measurement in European Commission legislation and in
practice relating to: EuSEFs and the EaSI," GECES, 2014.
[24] A. Ebrahim and V. Rangan, "The Limits of Nonprofit Impact: A
Contingency Framework for Measuring Social Performance," Harvard
Business School, Harvard, 2010.
[25] The SROI Network, "A guide to Social Return on Investment," The
SROI Network, 2012.
[26] London Business School, Nef, Small Business Service, "Measuring
social impact: the foundation of social return on investment (SROI),"
Nef, 2004.
[27] R. Layard and S. Glaister, "Cost-benefit analysis," Cambridge,
Cambridge, 1994.
[28] A. Arvidson, F. Lyon, S. McKay and D. Moro, "Valuing the Social? The
nature and controversies of measuring Social Return on Investment
(SROI)," Voluntary Sector Review, vol. 4, no. 1, pp. 3-18, 2013.
[29] EVPA, "A Practical Guide to Measuring and Managing Impact," EVPA,
2013.
[30] C. Weiss, "Nothing as practical as good theory: Exploring theory-based
evaluation for comprehensive community initiatives for children and
families," in New approaches to evaluating community initiatives:
concepts, methods, and contexts, Washington, The Aspen Institute,
1995, pp. 65-92.
[31] Investing for Good, "Guidelines for how to measure and report social
impact," Adrian Hornsby, 2012.
[32] B. Meldrum, P. Read and C. Harrison, "A Guide to Measuring Social
Impact - White Paper," Social Impact Tracker, no date.
[33] J. Clifford, K. Markey and N. Malpani, "Measuring Social Impact in
Social Enterprise: The state of thought and practice in the UK," E3M,
London, 2013.
[34] M. Epstein and K. Yuthas, Measuring and Improving Social Impacts,
San Francisco: BK, 2014. [35] B. J. Calder, L. W. Phillips and A. M. Tybout, "The concept of external
validity," Journal of Consumer Research, vol. 9, no. 3, p. 240-244, 1982.
[36] J. E. McGrath and D. Brinberg, "External validity and the research
process: a comment on the Calder/Lynch dialogue," Journal of
Consumer Research, vol. 10, no. 1, p. 115-124, 1983.
[37] R. E. Stake, The Art of Case Study Research, London: Sage
Publications, 1995.
@article{"International Journal of Business, Human and Social Sciences:71200", author = "Elisa Pautasso and Matteo Castagno and Michele Osella", title = "Social Business Models: When Profits and Impacts Are Not at Odds", abstract = "In the last decade the emergence of new social needs
as an effect of the economic crisis has stimulated the flourishing of
business endeavours characterised by explicit social goals. Social
start-ups, social enterprises or Corporate Social Responsibility
operations carried out by traditional companies are quintessential
examples in this regard. This paper analyses these kinds of initiatives
in order to discover the main characteristics of social business models
and to provide insights to social entrepreneurs for developing or
improving their strategies. The research is conducted through the
integration of literature review and case study analysis and, thanks to
the recognition of the importance of both profits and social impacts
as the key success factors for a social business model, proposes a
framework for identifying indicators suitable for measuring the social
impacts generated.", keywords = "Business model, case study, impacts, social business.", volume = "9", number = "11", pages = "3756-9", }
