BUSINESS ETHICS IN SOCIAL ENTERPRISES
Keywords:
business ethics, social enterprise, entrepreneurship, ethical principlesAbstract
Social enterprises are enterprises created with the idea of achieving a certain social mission by investing profits from the sale of products or services. It is very important for social enterprises to adhere to ethical principles and to implement best practices that will contribute to the wider social interest through clearly defined codes of ethics. The aim of this paper is to point out the importance of social entrepreneurship and the role of business ethics in social enterprises. Authors around the world deal with social entrepreneurship and social issues, bearing in mind the growing importance of focusing on solving wider social problems. Nevertheless, a small number of scientific and professional papers are dedicated to integrating the practice of business ethics with social entrepreneurship and the analysis of the direct link that connects these two inseparable concepts. Social entrepreneurs are engaged in entrepreneurial activity with the aim of creating innovative solutions to long-standing social issues. Social enterprises perform their entrepreneurial activities in order to fulfill their social mission. In today's business environment, a growing number of companies are focusing not only on maximizing profits as a business goal, but also on ethical goals. Business owners and managers are becoming increasingly aware that ethical behavior can help them reduce transaction costs and improve their business. The development of social entrepreneurship is extremely important, having in mind the great role it plays in stimulating and strengthening the entire economy. The social economy in the European Union employs over 11 million workers, which is about 4.5% of the active population and contributes 10% to the gross domestic product. In 2014, there were 1,196 social enterprises in the Republic of Serbia. Although in the Republic of Serbia this form of business is relatively recent in nature, it is estimated that 0.6% of the active population works in social enterprises and that they contribute 0.2% to the gross domestic product. Social entrepreneurship is proof that the achievement of business goals and social goals are complementary, and that financial success does not exclude responsible behavior towards the community. Social enterprises are generators of new ideas and implementers of innovations. In modern business conditions, an increasing number of companies focus not only on maximizing profits as a business goal, but also on ethical goals, because the ethical behavior of companies can significantly contribute to the improvement of the company's business. By expanding their business globally, social enterprises strive to maximize social impact through the implementation of ethical principles and corporate socially responsible practices. Future research could be aimed at deepening the analysis of the application of ethical principles and the existence of clearly defined codes of ethics in social enterprises
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