Chapter 14
ethical responsibility
A firm's obligation to abide by the unwritten ethical standards, norms, and values of the communities in which it operates.
philanthropic responsibility
A firm's obligation to contribute to the enhancement of the communities in which it operates.
legal responsibility
A firm's obligation to obey the written and codified laws of the countries in which it operates.
sustainable stakeholder advantage
the ability of an organization to consistently gather resources from, or provide services to, key stakeholders such as donors, volunteers, students, or clients
value net
A model of value creation that describes how an organization interacts with others in its environment to create value. The value net consists of four elements: customers, suppliers, competitors, and complementors.
cash donation
A monetary gift as one organization transfers money to a recipient group.
social constructionist
A social entrepreneur who builds something that did not exist before.
social engineer
A social entrepreneur who designs and creates new social systems to create large-scale change.
complementor
An individual or organization that makes customers value the organization's output more because of its product or service.
social entrepreneur
An individual or organization that uses free market principles and creates for-profit businesses with the goal of creating value.
hybrid organization
An organization pursuing more than a single goal; each goal has equal importance.
base of the pyramid (BoP)
Describes those living in conditions of extreme poverty around the world, usually defined as less than $2 per day.
social value
Improvements in the noneconomic elements of individual's lives and community well-being.
in-kind donation
Philanthropy accomplished as one organization transfers product, employee time, or other services to a recipient group.
economic value
The creation of income, wealth, and other economic outcomes for individuals and organizations.
shared value
The simultaneous creation of economic value (for the business) and social value (for the larger community).
social entrepreneurship
The use of innovative organizations and business models to create social value.
1. economic value 2. social value 3. shared value
What are the 3 types of value?
institutional change
When entrepreneurs strive to change the way people and groups think about problems and they work to create or change social institutions-from government policies to social values and norms.
economic resonsibility
a firm's obligation to generate economic profits
social bricoleur
a social entrepreneur who creates something new through the combination of diverse and different elements
corporate social responsibility
activities of companies designed to further some social objective and that lie beyond the direct economic interests of the organization
competitor
and individual or organization that makes customers value the organization's output less because it offers its own product or service
customers
individuals or groups that purchase, or receive, the outputs of the organization
philanthropy
gifts that promote the good or well-being of others
suppliers
individuals, groups, or organizations that provide important inputs for the organization
capacity building
the transfer of skills and abilities from one organization to another
