Abstract
This study introduces a human empowerment framework to better understand why some businesses are more socially oriented than others in their policies and activities. Building on Welzel’s theory of emancipation, we argue that human empowerment—comprised of four components: action resources, emancipative values, social movement activity, and civic entitlements—enables, motivates, and entitles individuals to pursue social goals for their businesses. Using a sample of over 15,000 entrepreneurs from 43 countries, we report strong empirical evidence for two ecological effects of the framework components on prosociality. We find that human empowerment (1) lifts entrepreneurs’ willingness to choose a social orientation for their business, and (2) reinforces the gender effect on prosociality in business activity. We discuss the human empowerment framework’s added value in understanding how modernization processes fully leverage the potential of social business activities for societies.
Highlights
Social responsibility is a new paradigm in the business world
Following the evolutionary logic of Welzel’s theory of emancipation, we outline a specific sequence: existential empowerment in terms of higher levels of action resources leads to psychological empowerment in terms of higher levels of emancipative values and social movement activity which in turn increases institutional empowerment in terms of civic entitlements
This study contributes to the literature in a threefold manner: First, by incorporating Welzel’s (2013) theory of emancipation to explain how the components of our human empowerment framework elevate prosociality in doing business, we provide a richer theoretical understanding of why businesses are socially oriented in their activities
Summary
Social responsibility is a new paradigm in the business world. An increasing number of businesses extend beyond narrow economic interests to socially responsible practices which contribute to the common good. Compared to any earlier point in history, businesses place importance on improving societal quality of life, social cohesion, and well-being through socially responsible actions (Banerjee 2008; Brammer et al 2012; Meynhardt et al 2018). The rise of socially responsible business behavior began in North America and Europe (Beckman et al 2009), and originates from industrial betterment and welfare movements during Great Britain’s industrialization such as the establishment of profit-sharing, lunch rooms, hospital clinics, and other offerings to prevent labor problems and improve performance (Carroll 2008). Businesses’ contributions to individuals’ welfare were initially voluntary, but are increasingly recognized as essential in order to operate in today’s world (ILO 2013a)
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