The modern business world is moving towards a big change where businesses will be catalyst to a positive consequence. The main objective of those businesses will not to earn great profitability for shareholders but to leave a positive impact on communities and consumers. In other words, businesses that strongly work on their ethics and values, that commit to do right things and that depends upon 3Ps – Profit, Purpose and People are only going to survive in future. Any organization that works on this kind of business agenda is called social enterprise. Here is more to know about this modern business framework –
How do social enterprises work?
Growth and profitability are the two most important goals on which every business works from beginning. But now, the modern business strategy needs to involve commercial strategies for increasing improvement in human and ensure the well-being of environment rather than just earning profits for shareholders.
For meeting this goal, every social enterprise develops independent business strategies and list relevant activities that can resolve employment issues and support social growth. Social enterprises work not only for employing people who are exploited in the labor market but also take care of social benefits, consumers’ favor and improvement of the environment.
What is the importance of social enterprises?
The modern business world demands social enterprises for meeting their goals that lie upon attaining sustainability. For this purpose, organizations work upon the triple bottom line business strategy that ensures overall growth of the business along with profitable deals for the society and environment. The three dimensions of triple bottom line are three Ps i.e. people, planet and profit. These three Ps covers the overall growth of human and society as well as improvement in the environment. In this way, social enterprises work with an accounting framework with the specific goal of environmental, social and financial improvement.
What is the projected consequence of social enterprising?
The overall concept of conscious capitalism and social enterprising is that a business should not be running just for the sake of financial profit. A strong and effective business model that can bring sustainability to businesses is required now. To meet the demand of modern smart customers, none of the business can imagine good growth without explaining to consumers that for what the business works, how it works and why it works. Also, people want to know that how any business does is profitable on social and environmental aspects. In future, only businesses who will be able to satisfy these queries of consumers will survive. As social enterprising is the perfect business framework to satisfy customers and attaining sustainability, it is the best working business model for long term success.