Lecture 3

Question 1

Hybrid organization
.

Answer 1

pursues both profit and social missions within a single organization

Question 2

Mission drift

Answer 2

giving less importance to their social mission and more importance to generating revenue and profit

Question 3

Logic

Answer 3

a person’s basic assumptions values and beliefs that they think should guide an organization’s behaviour

Question 4

What defines Commercial Profit Logic in terms of goals, governance, control, and legitimacy?

Answer 4

Primary Goal: Economic gain

Social Mission: A means, not a goal

Governance: Hierarchical control

Control: Shareholders

Legitimacy: Technical and managerial expertise

Question 5

What defines Social Welfare Logic in terms of products and services, goals, governance, control, and legitimacy?

Answer 5

Primary Goal: Address social needs (social mission)

Economic Resources: A means, not a goal

Governance: Democratic governance

Control: High participation and representation of local stakeholders

Legitimacy: Contributing to the social mission

Question 6

Benefit corporation

Answer 6

A legal for-profit entity whose charter includes legal responsibility for positive social or environmental goals (Patagonia)

Question 7

B Corporation

Answer 7

An organization that has received a private certification issued by B Lab, based on social and environmental performance, accountability and transparency (80-items).

Question 8

L3C — Low profit limited liability company

Answer 8

A legal structure that allows for investment in socially responsible enterprises that are for-profit.

Question 9

Conscious Capitalism/ Shared Value Approach

Answer 9

Business practices that increase the competitiveness of a company and at the same time contribute to positive economic and social impact in the community.

Question 10

Bottom-of-the-pyramid ventures

Answer 10

Corporate approach of expanding business by creating products or services to serve poorer populations.

Question 11

Social entrepreneurship

Answer 11

Founding a profit-seeking new business venture with the goal of tackling a specific societal problem while earning enough profit to sustain the business.

Question 12

Social enterprise

Answer 12

An established hybrid business with the dual goals of addressing a societal problem and making a profit.

Question 13

Designs for Achieving Commercial and Social Welfare

Answer 13

• Use separate departments
• Hire employees with a balanced mindset
• Set clear goals and measure effectiveness
• Collaborate with like-minded organizations
• Keep the social mission alive in the minds of employees
• Choose the correct legal framework

Question 14

Corporate social responsibility (CSR)

Answer 14

management’s efforts to make choices and take actions that contribute to the welfare and interest of all organizational stakeholders

Question 15

ESG framework

Answer 15

Environmental, social, and governance (ESG) dimensions
- measures CSR initiatives

Question 16

The green movement

Answer 16

Sustainability means meeting the current and future needs of stakeholders while preserving the environment and society so that future generations can meet their needs as well.

Question 17

The Triple Bottom Line

Answer 17

Sustainability is achieved at the intersection of People, Planet, and Profit

Question 18

The Consequences for Doing Good

Answer 18

• a positive relationship between socially responsible behaviour and a firm’s financial performance
• people prefer to work for companies that demonstrate a high level of ethical behaviour and social responsibility
• many customers would switch brands to do business with ethical and socially responsible companies