Hybrid Business: A Point of Convergence Among Sustainable Development, Social Teaching of the Church and Entrepreneurship

Abstract

This paper finds its origins in a joint venture research project titled “Negocios 3.0: historias inspiradoras de casos de negocios inclusivos, cadenas hibridas de valor y liderazgo de alto impacto en Mexico y America Latina”, which was carried out by IPADE Business School and Ashoka Mexico in 2014. By presenting and reflecting upon the results of the study, this paper identifies points of convergence among the United Nations’ sustainable development goals, Catholic Social Teaching (CST), and entrepreneurship. The study consists of the description of some companies which have applied the so called “hybrid business” model, which implies putting into practice, along with some other advice proclaimed in Caritas in Veritate, the principle of subsidiarity. The first section of the paper, which uses a normative lens, offers an overview of the latest pronouncements of CST about the means and goals of development, and the role of business persons in it. In particular, the first section refers to the vade mecum of the Pontifical Council for Justice and Peace “The vocation of the business leader” which puts forward a framework of 6 principles and 3 objectives to assess the contribution of business to development. In the second section of the paper, we use a personal lens to highlight the profile and the role of an entrepreneur as a visionary and innovator in the process of development. We also provide several examples of how entrepreneurial passion and creativity give life to novel business solutions which become vehicles of development. In the third section, we present the results of the aforementioned research project, as a demonstration of the feasibility of the incorporation of CST through hybrid business models, emphasizing the way it benefits an organization’s profitability as well as underprivileged sectors. While hybrid business models entail certain difficulties, the success that has come along with them (as it will be shown through the cases presented by the study) supports the project of perfecting this kind of strategy which in the end is nothing but innovative.