Corporate Entrepreneurship Research Paper

Corporate Entrepreneurship Research Paper-59
However, if entrepreneurs are defined to be persons who are ingenious and creative in finding ways that add to their own wealth, power, and prestige (Baumol 1990), then it is to be expected that not all of their activities will deliver a productive contribution to society (cf. Empirical studies have even shown that (on average) entry into self-employment has a negative effect on the monetary income of individuals (Hamilton 2000; Parker 2004). There have been dozens of definitions of entrepreneurship.

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Milton Friedman argued that the social responsibility of firms is to maximize profits.

This paper examines this argument for the economic environment envisioned by Friedman in which citizens can personally give to social causes and can invest in profit-maximizing firms and firms that give a portion of their profits to social causes.

Copies of working papers are available from the author.

Corporate Social Entrepreneurship Austin & Reficco March 3, 2009 Corporate Social Entrepreneurship James Austin and Ezequiel Reficco Corporate Social Entrepreneurship (CSE) is a process aimed at enabling business to develop more advanced and powerful forms of Corporate Social Responsibility (CSR). The A to Z of corporate social responsibility: a complete reference guide to concepts, codes and organisations. The civil corporation: the new economy of corporate citizenship.

The CSE Concept CSE emerges from and builds on three other conceptual frameworks: entrepreneurship, corporate entrepreneurship, and social entrepreneurship. Social entrepreneurship - a new look at the people and the potential. Visser, Wayne, Dirk Matten, Manfred Pohl, Nick Tolhurst, Katja Böhmer, Aron Ghebremariam, Judith Hennigfeld, and Sandra S. Chichester, England ; Hoboken, NJ: John Wiley & Sons.

CSE’s conceptual roots begin with Schumpeter’s vision that nations’ innovation and technological change emanate from individual entrepreneurs with their unternehmergeist or fiery spirit generating “creative destruction” of old ways with new ones (1912, 1934, 1942). Working Paper, Division of Research, Harvard Business School, Boston, MA. These economic entities involve some element of innovation at start-up, and some degree of innovativeness is needed to survive over time.However, innovation is not central to this phenomenon. CSE integrates and builds on the foregoing concepts and has been defined by Austin, Leonard, Reficco, and Wei-Skillern (2006) as “the process of extending the firm’s domain of competence and corresponding opportunity set through innovative leveraging of resources, both within and outside its direct control, aimed at the simultaneous creation of economic and social value.” The fundamental purpose of CSE is to accelerate companies’ organizational transformation into more powerful generators of societal betterment. Carroll (2006) provided a rich historical account of the evolution over the last fifty years of businesses’ approach to societal responsibilities. Innovation and entrepreneurship are often regarded as overlapping concepts. An organizer and coordinator of economic resources (Marshall 1890); 6.This can be traced back to probably the most well known definition of entrepreneurship, by Schumpeter (1934: 74), who defines entrepreneurs as individuals that carry out new combinations (i.e. Schumpeter distinguishes four roles in the process of innovation: the inventor, who invents a new idea; the entrepreneur who commercializes this new idea; the capitalist, who provides the financial resources to the entrepreneur (and bears the risk of the innovation project); the manager, who takes care of the routine day-to-day corporate management. An arbitrageur, alert to opportunities (Kirzner 1973; 1997); 7.This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Citizens obtain social satisfaction from corporate social giving, but that giving may not be a perfect substitute for personal giving.The paper presents a theory of corporate social responsibility (CSR) and shows that CSR is costly when it is an imperfect substitute, but entrepreneurs and not shareholders bear that cost.


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