This chapter introduces the volume, Social and Sustainable Enterprise: Changing the Nature of Business, which is edited by Sarah Underwood, Richard Blundel, Fergus Lyon and Anja Schaefer.  The book draws together contemporary research contributions that seek to critically explore a range of issues in the speciﬁc context of social enterprise, sustainable entrepreneurship and social responsibility. Collectively, the chapters in this volume consider the challenges facing social enterprises globally, their environmental impact and the difﬁculties for policy makers in their efforts to tackle complex international environmental problems. The volume contributors draw on a range of research themes, methodological approaches and international contexts to enhance our understanding of the meaning, critical nature and value of social and sustainable enterprise development. Thus, this volume speaks directly to the core objectives of this book series by providing an opportunity for the ISBE [Institute for Small Business and Entrepreneurship] community of interest to challenge current thinking and create a research agenda for future inquiry

Blundel, Richard

Lyon, Fergus

Schaefer, Anja

Underwood, Sarah

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Open Research OnlineThe Open University’s repository of research publicationsand other research outputsIntroducing social and sustainable enterprise: changingthe nature of businessBook SectionHow to cite:Underwood, Sarah; Blundel, Richard; Lyon, Fergus and Schaefer, Anja (2012). Introducing social and sustainableenterprise: changing the nature of business. In: Underwood, Sarah; Blundel, Richard; Lyon, Fergus and Schaefer, Anjaeds. Social and Sustainable Enterprise: Changing the Nature of Business. Contemporary Issues in EntrepreneurshipResearch, 2. Bingley: Emerald Group Publishing, xi-xv.For guidance on citations see FAQs.c© 2012 Emerald Group PublishingVersion: Accepted ManuscriptLink(s) to article on publisher’s website:http://books.emeraldinsight.com/display.asp?K=9781781902547&sf1=contributor&st1=Susan%20w/2%20Marlow&cur=GBP&sort=sort date/d&m=1&dc=2Copyright and Moral Rights for the articles on this site are retained by the individual authors and/or other copyrightowners. For more information on Open Research Online’s data policy on reuse of materials please consult the policiespage.oro.open.ac.ukOpen Research OnlineThe Open University’s repository of research publicationsand other research outputsSocial and Sustainable Enterprise: Changing the Na-ture of BusinessEdited BookHow to cite:Underwood, Sarah; Blundel, Richard; Lyon, Fergus and Schaefer, Anja eds. (2012). Social and Sus-tainable Enterprise: Changing the Nature of Business. Contemporary Issues in Entrepreneurship Research, 2.Bradford: Emerald.For guidance on citations see FAQs.c© 2012 Emerald PublishingVersion: Version of RecordLink(s) to article on publisher’s website:http://www.emeraldinsight.com/books.htm?issn=2040-7246Copyright and Moral Rights for the articles on this site are retained by the individual authors and/or other copy-right owners. For more information on Open Research Online’s data policy on reuse of materials please consultthe policies page.oro.open.ac.ukCONTEMPORARY ISSUES IN ENTREPRENEURSHIP RESEARCHVOLUME 2SOCIAL AND SUSTAINABLE ENTERPRISE:CHANGING THE NATURE OF BUSINESSEDITED BYSARAH UNDERWOODUniversity of Leeds, UKRICHARD BLUNDELOpen University Business School, UKFERGUS LYONMiddlesex University, UKANJA SCHAEFEROpen University Business School, UKThis chapter is © Emerald Group Publishing and permission has been granted for thisversion to appear on The Open University ‘Open Research Online’ repository(http://oro.open.ac.uk/). Emerald does not grant permission for this chapter to be furthercopied/distributed or hosted elsewhere without express permission from Emerald GroupPublishing LimitedFurther details can be found on the CIER series homepage:http://www.emeraldinsight.com/books.htm?issn=2040-7246Introduction to Social and Sustainable Enterprise:Changing the Nature of BusinessAround the world, people are confronted by a variety of complex and pervasiveenvironmental, social and economic challenges. In many cases, including anthropogenicclimate change, resource depletion, financial system disruption and poverty, there has beenan increasing recognition that ‘wicked problems’ require entirely new ways of thinking, andthat the solutions are unlikely to be found by governments, businesses or civil society actorsoperating in isolation. In parallel with these developments, many observers havecommented on a growing interest in various forms of social entrepreneurship and in newmodels of enterprise that seek alternative ways of delivering products and services, whilealso securing the ‘triple bottom line’ of social, environmental and economic sustainability.This volume draws together a selection of contemporary entrepreneurship research studiesthat explore different aspects of this phenomenon. Our original call for papers was basedaround the themes addressed in one of ISBE’s longstanding annual conference tracks. Itattracted some strong submissions from within and beyond the ISBE research community.The editors reviewed papers relating to social and sustainable entrepreneurship, theenvironmental impacts of enterprise, and ethics and social responsibility in enterprise.While social enterprise is considered to be still a relatively new phenomenon inextant scholarship, it has recently attracted considerable political interest, in the UnitedKingdom at least, as a result of the Coalition Government’s Big Society agenda. Defined as ‘abusiness with primarily social objectives whose surpluses are principally reinvested for thatpurpose …, rather than being driven by the need to maximise profit for shareholders andowners’ (DTI, 2002), social enterprise in all its forms has the potential to revolutionise theway we ‘do business’, creating new opportunities for sustainable entrepreneurship andsecuring futures. In this volume, chapters address what is meant by social and sustainableenterprise in all its forms, and include research contributions from across Europeancountries and the Middle East. Indeed, Pruthi’s work explores the concept of socialenterprise from an Indian case-base perspective and examines the practical and culturaltrade-offs in creating social value for those who need such basic items as clothing. Herresearch emphasises the need for such entrepreneurial work to be supported in emergingeconomies.National and regional governments around the world have signed up to ambitiousenvironmental sustainability goals in areas such as carbon emissions reduction, tacklinglocal environmental pollution and waste recycling (Calogirou, Sørensen, Bjørn Larsen, &Alexopoulou, 2010; Parker, Redmond, & Simpson, 2009). There have also been a number ofinternational agreements designed to address environmental issues, such as the CleanDevelopment Mechanism, which forms part of the United Nations Framework Conventionon Climate Change (the ‘Kyoto Protocol’). These policy makers are trying to tackle complexand deeply engrained environmental problems, which require radical changes in existingpatterns of production and consumption. At the same time, there is an urgent need forSMEs and a variety of types of entrepreneurial actor to contribute towards the kind of socialand technological innovations that will underpin any large-scale sustainability transitions(Blundel, Monaghan, & Thomas, 2012). Kishna, Negro, Alkemade and Hekkert look at thestrategies adopted by entrepreneurs in the Dutch horticulture sector as they develop radicalinnovations. The study takes a technological innovation systems perspective. By relatingtheir case-based evidence to existing literature, the authors are able to probe fordifferences between five entrepreneurs who are engaging directly with new environmentaltechnologies, and five who have adopted other forms of innovation. Hinnells and O’Neil arealso concerned with technological innovation, but in the UK energy sector. Their case-basedchapter sets out a number of new business models that have emerged in this industrysector, as entrepreneurial new entrants and incumbent organisations respond to policyimperatives to reduce energy-related carbon emissions at a national level. The first namedauthor combines his experience as an energy researcher with that of a practitioner who isdirectly involved in effecting change in the European electricity market. Gibbs and O’Neilldraw on an important strand in the entrepreneurship research literature that challengesnotions of the ‘heroic individual’. Their chapter examines the formal and informal supportnetworks that have grown up around sustainable entrepreneurship in the UK house-buildingindustry, and draws out the wider implications for policy and practice. In contrast, Parryaddresses the environmental impact of smaller firms, with a particular focus on therelationship between sustainability practices and disclosure. The chapter uses thetheoretical framework to provide insights into the obstacles faced by small firms and micro-businesses, and to highlight discontinuities between environmental policy and firm-levelbehaviours.Social and ethical responsibilities of enterprise have a key contribution to make tomoves towards greater sustainability. These responsibilities comprise economic, legal,ethical and discretionary responsibilities (Carroll, 1979). Although earlier research hastended to conceptualise business ethics and corporate social responsibility (CSR) as entirelyvoluntary (i.e. not enshrined in law), increasing private and public policy aims to set upstandards and expectations of business behaviour. ISO 26000 is so far the mostcomprehensive private standard addressing CSR and sustainability. National and supra-national governments increasingly make attempts to foster CSR and see it as a cornerstonein economic recovery and sustainable development. Thus, the latest European Unionstatement on CSR describes it as contributing to product innovation and services beneficialto society, as well as minimising and preventing negative effects (EU, 2011).Business ethics and CSR are best considered as a field of enquiry and practice, ratherthan tightly defined academic concepts (Crane, McWilliams, Matten, Moon, & Siegel, 2008).Not only is there an increasing diversity in terminology describing what seem like essentiallyvery similar ideas (e.g. CSR, corporate responsibility, business ethics, socially responsiblemanagement, corporate citizenship, etc.), but the kind of issues considered by researchersin this field and encompassed by social responsibility activities of firms are equally diverseand far reaching. For example, Business in the Community, a UK business alliance thatpromotes social responsibility in business enterprises defines the scope of businessresponsibility as encompassing ‘the workplace, marketplace, community and theenvironment’ (BITC, 2010, p. 1). Similarly, various means and tools through which socialresponsibility can be fostered have been developed, including international standards suchas ISO 26000; social and environmental reporting practices and attendant emergingstandards, such as the Global Reporting Initiative, ethical codes aimed at definingacceptable individual and organisational behaviours, or environmental managementsystems, such as ISO 14000 or EMAS, that aim to systematically audit and improve theenvironmental performance of enterprises. In line with the wide scope of ethical and socialresponsibility theory and practice, this volume presents a wide range of responsibility foci,types of organisations and industries, national contexts and research designs. Öberg takes aperspective that considers mostly the internal workings of CSR, focusing on the link betweenCSR and innovation. Her chapter is based on an analysis of annual reports issued by 58companies listed on the Swedish stock exchange, and speaks directly to current policyconcerns at European Union level. Öberg shows that while there are indeed various linksbetween CSR and innovation in these reports, these vary between industries and alsodepending on the aspect of innovation being considered. Vidal-Salazar, Ferrón-Vilchez andCordón-Pozo also consider an issue internal to companies, namely the non-financialremuneration received by Spanish employees, how highly this is valued by employees andwhether it is perceived to have diminished during the financial crisis unfolding since 2008.The chapter is based on a large scale, quantitative survey. The authors find that employeesdo indeed value these non-financial benefits but consider them to be reduced since theonset of the crisis. This is found to have ethical implications for company–employeerelationships. Whereas, the focus of Ibrahim, Jamali and Karatas-Ozkan’s work is more onfirms’ relationship with their external environment. Based on qualitative research with smalland medium sized enterprises in Egypt, the authors employ a social capital lens to gaindeeper understanding of the nature of CSR in this particular context. They conclude thatsocial capital can both foster and impede the development of CSR practices, and that a CSRorientation on the part of SMEs in Egypt can increase their social capital.The variety in this volume of topics, research approaches and geographic locations ofthe contributors is a testament to the rapid growth in academic interest in social,sustainable and ethical enterprise. For such a broad subject area, ISBE continues to providea platform and a network for those interested in such innovative ways of doing ‘good’business. We trust that the volume will be of interest to entrepreneurship researchers,policymakers, practitioners and the general reader.Sarah UnderwoodRichard BlundelFergus LyonAnja SchaeferEditorsREFERENCESBITC. (2010). Core marketing brochure 2010–2011. London: Business in the Community.Blundel, R. K., Monaghan, A., & Thomas, C. I. (2012). Promoting environmentally sustainableenterprises: Some policy options. In R. Blackburn & M. Schaper (Eds.), Government,SMEs and entrepreneurship development: Policies, tools and challenges. Aldershot:Gower.Calogirou, C., Sørensen, S. Y., Bjørn Larsen, P., & Alexopoulou, S. (2010). SMEs and theenvironment in the European Union. PLANET SA and Danish Technological Institutefor European Commission, DG Enterprise and Industry.Carroll, A. B. (1979). A three-dimensional conceptual model of corporate socialperformance. Academy of Management Review, 4, 497–505.Crane, A., McWilliams, A., Matten, D., Moon, J., & Siegel, D. (2008). The corporate socialresponsibility agenda. In A. Crane, A. McWilliams, D. Matten, J. Moon & D. Siegel(Eds.), The Oxford handbook of corporate social responsibility. Oxford: OxfordUniversity Press.Department of Trade and Industry. (2002). Social enterprise: A strategy for success. GreatBritain. London: Department of Trade and Industry.European Commission (EU). (2011). A renewed EU strategy 2011–14 for corporate socialresponsibility. Brussels: European Commission.Parker, C. M., Redmond, J., & Simpson, M. (2009). A review of interventions to encourageSMEs to make environmental improvements. Environment and planning C:Government and policy, 27(2), 279–301.

Introducing social and sustainable enterprise: changing the nature of business

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