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Social Economy

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Social Economy

Within reading the articles of social enterprise versus the social economy I learned a lot about how each different organization plays a role in the market. Based on the reading and with doing some research I have found some key points that I agree and disagree upon. Based on the concept of a social enterprise and the concept of achieving a business strategy they can be structured for a non- profit or for profit organization. My only concern is that even though some are not for profit like The Red Cross still questions arise. Even though they are a non-profit organization the employers have to be getting something in order to meet the standard of living?
And also the CEO of the red cross there making a profit? For example the CEO of the American
Red Cross Marsha J. Evans yearly income was 651,957. So the question that comes up is how can they be considered non-profit if at the end of the day there making a great profit? Social enterprises differ in that, inversely, they do not aim to offer any benefit to their investors, except where they believe that doing so will ultimately further their capacity to realise their philanthropic goals. Many entrepreneurs, whilst running a profit focussed enterprise that they own, will make charitable gestures through the enterprise, expecting to make a loss in the process. However unless the social aim is the primary purpose of the company this is not considered to be social enterprise. The term is more specific, meaning 'doing charity by doing trade', rather than 'doing charity while doing trade'. Another example is an un-corporation, which may pursue social responsibility goals that conflict with traditional corporate shareholder primacy, or may donate most of its profits to charity. Within the terminological landscape described in the previous section, it is possible to argue that some forms of social entrepreneurship may be found in the private for-profit sector and the public sector.

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