Who Should Define the “Social” in “Social Enterprise”

Abstract

During the past decade, new legal forms termed social enterprises have been introduced in the United States, purportedly to create opportunities for altruistic companies to be more socially responsible than traditional companies. This development has sparked significant controversy, however, with many legal scholars arguing that the forms introduce new types of corporate greenwashing. This exercise literally brings students into this debate, helping them clarify their values about the roles of government and business in a capitalist democracy. Such clarification can help all students navigate their roles in business and society, and it can help new entrepreneurs choose an appropriate legal form of incorporation. The exercise focuses on the most widely implemented social enterprise, the benefit corporation, inviting students to debate whether this form improves corporate social responsibility. It is appropriate for courses in business and society, business ethics and law, and social entrepreneurship.