Associate Professor of the Graduate School of Management of St. Petersburg State University (GSOM SPbU), researcher at the Center for Corporate Social Responsibility named after PricewaterhouseCoopers, expert of funds for regional social programs, Yulia N. Aray, spoke on the development of social entrepreneurship in Russia and how the crisis affected the social responsibility of business in an interview with the Expert North-West business publication.
In an interview, Yulia N. Aray explains the difference between social responsibility of business and social entrepreneurship, clarifying that the main goal of a socially responsible business is to make a profit, and the social value that a company creates through responsible interaction with employees, consumers, and the local community is its side result. In turn, the goal and mission of social entrepreneurship is directly tied to the solution of specific social problems, for example, the creation of jobs for socially vulnerable groups of citizens.
“Social entrepreneurship, in my opinion, is an endless source for social innovation. And this is understandable. Firstly, in order for such organizations to be at least self-sufficient in often unattractive, low-margin areas, they constantly have to use innovative approaches in organizing business processes, business models, and creating the products. Secondly, social entrepreneurs interact very closely with their beneficiaries and they know their needs, their characteristics. It means they can adapt goods and services, implement new ideas, as well as non-standard approaches to work faster and more accurately than others,” said Yu .N. Aray.
The expert noted that despite facing serious challenges in the first half of 2020, the social responsibility of business is not just a PR tool, but an inevitable vector for the development of any business that wants to develop sustainably in the long term.
The complete material can be found here >> (available in Russian only)