NAŠE GOSPODARSTVO / 
OUR ECONOMY

Social Entrepreneurship and Corporate Social Responsibility in the Context of a Moral Economy: Dilemma for Developing Countries (Case of Georgia)

Ia Natsvlishvili

Abstract


This research discusses the role of social entrepreneurship as an important feature
of the moral economy, i.e., a socially responsible business practice. Developing
countries, e.g., Georgia, a post-Soviet country, differ from those in the West in this
aspect. The author aims to identify peculiarities of social entrepreneurship and
corporate social responsibility of Georgian businesses. Desk research provides
conceptual analysis of the existing quantitative and qualitative studies, based
on prominent scientists’ works in economics and entrepreneurship. A “moral
economy” understands business activities as “social services.” Social responsibility
is a business’s moral framework, suggesting a company’s obligation to generate
social benefit. Social entrepreneurship combines the best practices from
the nonprofit and for-profit activities to tackle social needs poorly addressed
by businesses and governments. Social entrepreneurship is a relatively new
phenomenon in post-Soviet countries, where nongovernmental organizations
help in solving many social problems, but their efforts are typically insufficient.
Entrepreneurs must find a balance between a company’s success, employees’
needs, and environmental and social stability. These three priorities form the
foundations of corporate social responsibility. Economic history provides many
examples of moral standards driving the stability of a socio-economic system
and profitability of companies with macroeconomic and microeconomic positive
impacts. Companies operating in Georgia spend their funds on social projects
and charity; moreover, such socially oriented activities are sometimes chaotic.
Companies need to implement social responsibility projects as part of their
business plans. Strengthening corporate social responsibility could thus support
development of social entrepreneurship.


Keywords


entrepreneurship, social entrepreneurship, corporate social responsibility, post-Soviet Georgia, developing country

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