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Social Enterprise and Hybrid Organization and Corporate Culture
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Non-financial environmental, ethical, social, and governance (EESG) sustainability performance is growing in importance for corporations looking to create shared value for all stakeholders. The mission of profit-with-purpose seeks to create shareholder value and fulfill environmental, social, and governance responsibilities. In pursuing this profit-with-purpose mission, management is key in creating a balance between wealth-maximization for shareholders and welfare-maximization for all stakeholders. As sustainability initiatives are being incorporated into all levels and aspects of business, the global adoption of profit-with-purpose companies is inevitable. Anyone involved with business sustainability, corporate governance, or business finance will benefit from this book as it covers all aspects of business sustainability while focusing on the idea of profit-with-purpose. Chapter 4 discusses how corporate culture enables the formation of social enterprises and hybrid organizations, two types of organizations whose purpose is to make a profit while generating positive impacts on society, communities, and the environment. Organizational culture is the environment that is influenced by unwritten and implicit rules, creating expectations for how people can behave and how organizations guide behavior and protect value through people. Corporate culture can play an important role in determining a business's mission and success. The board of directors sets the tone in promoting a culture of competency, fairness, and integrity. Hybrid organizations are entities that combine profit-seeking goals with a social mission; social enterprises are entities established to generate social and environmental impacts by conducting businesses with beneficiaries as patrons. Diversity, inclusion, and social justice in the workplace is becoming more and more important. A discussion of corporate culture and whistleblowing is also offered.