What should Social Enterprises do to Cope Well with the Diversity of Stakeholders and Financial Requirements?

Abstract

The article answers two questions: First, stakeholders of social enterprises such as donors, and beneficiaries – especially beneficiaries – are the reason for the birth of social enterprises. What actions do social enterprises need to take to match the importance of this audience? In other words, how do businesses need to show awareness of the importance of this audience? Secondly, with the core operational goal of solving environmental and social problems, what does social enterprise do with financial concepts? Because social enterprises still have to compete with traditional enterprises, monetary value is an undeniable criterion for measuring operational efficiency. This article introduces two new approaches to measuring the effectiveness of social enterprise operations. This is also the answer to the above two questions. It means that social enterprises should integrate the measurement of achieving the desires of their stakeholders into the measurement of operational efficiency and assign monetary value to the environmental and social outcomes they generate.