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Focus on Social and Sustainability Goals: The Blurring Line Between a Commercial Enterprise and a For-Profit Social Enterprise

In: Digital Economy Post COVID-19 Era

Author

Listed:
  • Sanjeev Pathak

    (Management Development Institute)

  • Arun Kumar Tripathy

    (Management Development Institute)

  • Abinash Panda

    (Management Development Institute)

Abstract

This paper compares commercial enterprise with for-profit social enterprise from institutional and resource-based perspectives. From an institutional theoretical perspective, commercial enterprises gain social legitimacy when they are in tune with societal needs and culture. However, they need resources to address societal needs if viewed from a resource-based perspective. For-profit social enterprise primarily focuses on social objectives while generating resources (profit) for survival. Commercial enterprises are increasingly focusing on social and sustainability goals without diluting their profit motive. The genesis of both kinds of organizations is different, but the way they focus on both economic and social goals—the differences in how they operate are getting blurred. It may be plausible to have a future with both kinds of entities that are indistinguishable.

Suggested Citation

  • Sanjeev Pathak & Arun Kumar Tripathy & Abinash Panda, 2023. "Focus on Social and Sustainability Goals: The Blurring Line Between a Commercial Enterprise and a For-Profit Social Enterprise," Springer Proceedings in Business and Economics, in: Prashant Mishra & Ashu Sharma & Sayantan Khanra & Sumit K. Kundu & Sushanta Kumar Mishra (ed.), Digital Economy Post COVID-19 Era, chapter 0, pages 457-465, Springer.
    • Handle: RePEc:spr:prbchp:978-981-99-0197-5_29
    DOI: 10.1007/978-981-99-0197-5_29
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