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Journal of Business Ethics

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05.11.2018 | Original Paper

Social Enterprises, Venture Philanthropy and the Alleviation of Income Inequality

verfasst von: Francesco Di Lorenzo, Mariarosa Scarlata

Erschienen in: Journal of Business Ethics | Ausgabe 2/2019

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Abstract

Building on the literature on hybrid organizations, this manuscript explores the relationship between the organizational activity of social enterprises backed by venture philanthropy investors and income inequality. Using Ashoka’s portfolio of Indian social enterprises as empirical context of Western venture philanthropy investing activity, our results suggest that (a) Indian municipalities with social enterprises that have received venture philanthropy investments experience a decrease in income inequality level and (b) when these social enterprises are dominated by a collectivistic organizational identity orientation the effect is stronger. Our findings have implications for the research on hybrid organizations, financing of social entrepreneurship and grand ethical challenges.

Vorheriger Artikel The Bright Side of Hybridity: Exploring How Social Enterprises Manage and Leverage Their Hybrid Nature

Nächster Artikel Data Envelopment Analysis and Social Enterprises: Analysing Performance, Strategic Orientation and Mission Drift

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As an example, let’s consider an Indian-based Ashoka-backed SE X that operates in the state S. The state S has three municipalities: M1, M2 and M3. The SE X operates in M1 only. M2 and M3 have not experienced any activity from X or any other Ashoka-funded SEs in the 1987–2004 period. We therefore used them (i.e. M2 and M3) as counterfactuals for M1. In the case of 2 or more municipalities available as counterfactual, we took the average of them for each variable in the models.

To clarify, our previous example SE X received one investment from Ashoka in 2001; we therefore estimated the Gini coefficient in the municipality in which it operated using IPUMS data related to 1993–1998 (pre-investment) and 1999–2004 (post-investment).

These data have been collected by GuideStar India website (https://guidestarindia.org/), which provides information about the NGOs registered in each state and municipalities. We would really like to thank an anonymous reviewer for directing us toward this website.

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Titel: Social Enterprises, Venture Philanthropy and the Alleviation of Income Inequality
verfasst von: Francesco Di Lorenzo
Mariarosa Scarlata
Publikationsdatum: 05.11.2018
Verlag: Springer Netherlands
Erschienen in: Journal of Business Ethics / Ausgabe 2/2019
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-018-4049-1

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