Abstract

Social enterprise is a model of hybrid organization driven by the need to generate positive externalities by reinvesting their surplus for social and environmental objectives. One of the biggest problems arising from joining financial goals with social goals is the presence of increasing tensions between the members and stakeholders involved. Nevertheless, there has not been enough focus on how managers, employees, and stakeholders respond to the tensions caused by contradictions and how they try to reach a balance between financial, environmental, and social goals. Therefore, the present study is aimed at investigating how members of an agricultural cooperative in the Apulia region (Italy) try to join the organizational forms of business and social values, namely, the sustainable practices related to CO2 emission reduction, resource use efficiency, and food waste mitigation. Additionally, the study goes further and explores whether and how these contradictory pressures are solved. Starting from the sensemaking approach, the study carried out an inductive case study through the use of a multiple case study design and in-depth interviews. The findings highlight the following two novel aspects: (1) Managers prefer to adopt a cumulative mitigating hybridization approach and (2) a weak integration can be noticed between social and commercial dimensions, originating from a lack of holistic perspective and poor interorganizational communication.

Highlights

  • During the last 30 years, we have observed, for the first time, growth in the number of organizations that run at the juncture of the social and commercial sectors

  • More and more, the objectives of firms are aimed at social responsibility activities, and, non-profit organizations (NPOs) increasingly deal with commercial activities in order to find funds complementary to their philanthropic activities [5]

  • We developed a detailed case analysis of one of the most important fruit and vegetable (F&V) cooperatives in the Apulia region (Italy), and the results should help empower producers and ensure them of capital distribution and a stable income

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Summary

Introduction

During the last 30 years, we have observed, for the first time, growth in the number of organizations that run at the juncture of the social and commercial sectors These organizations, often called “social enterprises” (SEs) represent a type of hybrid organization that combines social missions with financial self-sufficiency [1,2,3]. There has been growing pressure on private enterprises to become more transparent and reveal information about their sustainable performances This pressure increases the need of SEs to reconsider their operations and become more transparent and more sustainable by embracing innovative green business models to overcome the global challenges [4,6]. SEs need to formalize new strategies aimed at meeting environmental protection requirements [9,10]

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