Creating Social Value in Societies

Introduction

Modern societies demand and expect high value from social entrepreneurial activities and business outcomes. Businesses exist because of societies and societal needs (Porter, Hills, Pfitzer, Patscheke, & Hawkins, 2012). In this regard, society dictates the business outcomes it values or to which it attaches significant importance (Porter & Kramer, 2006).

Creating social value is a dedicated conscious process incorporating all positive stakeholders commitment and decisions that create great and better societies (Auerswald, 2009; Porter & Kramer, 2011). Social value creation process contains both a tactical and a strategic operational focus, which confidently set in motion the development of desired societies from the present to the perceived future (Porter & Kramer, 2006). It is due to the decision to better societies and to improve business efficiencies that the need for partnership is advocated for in the social value creation process (Porter & Kramer, 2011).

The concept of ‘‘shared value’’ that benefits all stakeholders is a great decision to be included in the creation of social value in societies (Porter & Kramer, 2011). The shared value concept is one that ensures business survival and also benefits society (Porter & Kramer, 2011). The creation process should include stakeholders’ functions from the social entrepreneur’s business model, to government involvement via policies and regulatory frameworks (Kirlin, 1996) and societal expectation and appreciation (Porter & Kramer, 2011). It is important to state that every business or firm has the capacity to be socially responsible (Baron, 2005) based on social capital (Bowles & Gintis, 2002; Russo & Perrini, 2010) or individual and community influences (Rossi, 2001). The current chapter focuses on social entrepreneurship as a valuable and effective tool in creating social value in societies due to social enterprises’ unique platform and business model to solve societal problems profitably (Peredo & Mclean, 2006).

The United Kingdom is a reference point in terms of location showing developments and efforts in the social value creation process worth emulating.

The following are the objectives of this chapter:

• 1.

  To provide a comprehensive definition of social values incorporating key stakeholders’ perspectives.

• 2.

  To identify and explain the forms and nature of social values.

• 3.

  To identify and state the processes and procedures involved in creating social value in societies by considering the inputs of social entrepreneurs or social enterprises (business and social), government regulatory framework/policies, timing, defined mediums and platforms, society’s expectations and expected or actual social value outputs and performance measuring models.

• 4.

  To critically analyse the evolution of social value creation from a theoretical perspective.

• 5.

  To critically identify and analyse stakeholders’ involvement in social value creation.

• 6.

  To provide a theoretical framework for the concepts “collective responsibility” and “shared value” in social value creation.

• 7.

  To provide solutions and recommendations to issues associated with the subject while also identifying future research directions.