Chapter 06 · Governance & regulationDevelopment, Impact & Global Frameworks
Social enterprise
Definition
A social enterprise is an organisation that uses business activity to pursue a social or environmental purpose alongside financial sustainability.
References
This reference provides supporting context for how “Social enterprise” is defined and used.
Overview
What it means in practice
Social enterprise should be read as a development and impact term. Its meaning depends on the affected population, institutional context, geography, evidence base and power relationships involved.
In practice, users should state whose perspective is being considered, what outcome is intended and what limitations apply. That keeps social enterprise from becoming a broad claim detached from lived context or evidence.
Why it matters
Social enterprise matters because development language can influence funding, accountability, rights, participation and claims about impact. Clear wording helps readers distinguish aspiration, programme design, measured outcome and social context.
Common misconception
A common error is to use Social enterprise as universally positive without examining who benefits, who carries risk and who has voice in the decision.
Review questions
Who is affected, who decides and who is accountable? What evidence supports the claimed outcome? What local context or limitation should shape interpretation?
How it is used
In professional practice, “Social enterprise” helps standard setters, scheme owners, certification bodies, auditors and organisations seeking assurance describe or assess an organisation that uses business activity to pursue a social or environmental purpose alongside financial sustainability. It is commonly encountered in standards, certification, conformity assessment, audits, controls and assurance engagements.
A credible application identifies the named standard or scheme, version, scope, criteria, assurance level and competent decision-maker.