Purpose-driven enterprises in Australia: A focus on B Corps and Social Enterprises

Description

About the Research There has been a long-standing debate regarding the purpose of business, and the commanding perspective has been that the purpose of business is to maximise profits and shareholder value. This perspective is being challenged by the emergence of organisations with dual motives of pursuing social purpose and economic success, such as social enterprises and B Corps. There are a number of emerging business models that have a strong commitment to social and/or environmental purposes, whilst running profitable businesses. These are hybrid businesses that converge for-profit and not-for-profit values, beliefs, and practices while employing market mechanisms to address social and environmental issues. This emerging arena is garnering increasing support from a wide range of advisers, institutions, and investors. This study refers to this arena as the Purposeful Business Ecosystem (PBE), and the businesses that operate in this space are referred to as Purpose Driven Enterprises (PDEs). This study provides insights into a little- researched area to advance knowledge of how two different types of PDEs address their social and environmental challenges and implement their purpose-driven business models. This study aims to undertake a comparative analysis of two PDEs – B Corps and Social Enterprises – in Australia to understand the similarities and differences between them, and how they implement a dual purpose. I am conducting interviews with representatives of B Corps and Social Enterprises in Australia to understand their contribution to the PBE and their motivations to pursue a dual purpose in business. Research question: “What are the key similarities and differences between social enterprises and B Corps that operate within the purposeful business ecosystem in Australia?” Sub-questions: SQ 1: What are the practices and drivers of purpose-driven enterprises, focusing primarily on B Corps and Social Enterprises? SQ 2: What are the key challenges faced by B Corps and Social Enterprises? SQ 3: What is their role and contribution to the emerging purposeful business ecosystem? SQ 4: How are they attempting to influence traditional business practice?