SOCIAL BUSINESS: A REPORT ON SOCIAL IMPACTS

 

Cibele Roberta Sugahara

Pontifícia Universidade Católica de Campinas, Brazil

E-mail: cibelesu@puc-campinas.edu.br

 

Giovanni Moreira Rocha Campos

Pontifícia Universidade Católica de Campinas, Brazil

E-mail: giovanni.mrc@puccamp.edu.br

 

Marina Ardito Massaioli

Pontifícia Universidade Católica de Campinas, Brazil

E-mail: marina.am2@puccamp.edu.br

 

Bruna Nunes Fantini

Pontifícia Universidade Católica de Campinas, Brazil

E-mail: bruna.nf@puccamp.edu.br

 

Denise Helena Lombardo Ferreira

Pontifícia Universidade Católica de Campinas, Brazil

E-mail: lombardo@puc-campinas.edu.br

 

Submission: 1/10/2020

Accept: 3/19/2020

 

ABSTRACT

The positive socio-environmental impacts generated by Social Business arouse interest in initiatives that have at their core to serve a social purpose. Social innovation seeks to contribute to the socioeconomic environment and to have a positive social impact, so that the generation of value with social innovation can contribute to a more inclusive society. The objective is to point out the importance of the impacts generated by Social Business that participate in Business Accelerators. As methodology adopts the methodological procedures of the bibliographic research. The results reveal the existence of impact initiatives generated to meet social needs.

 

Keywords: Social Business; Social Innovation; Accelerators; Artemisia

1.       INTRODUCTION

The innovation in Social Business has gained relevance in Brazil in recent years. The positive social and environmental impacts generated by this type of enterprise arouse the interest in initiatives that have at their core to serve a social purpose. The focus of discussion on innovation over a long period has focused mainly on business innovation and technological innovation, focusing on market and for-profit activities. Social innovation seeks to contribute to the socioeconomic environment and to have a positive social impact. Thus, value creation with the social innovation can contribute to a more inclusive society.

Social innovation focuses on social problems in relation, for example, to justice, environmental preservation, access to health services and education. They excel for solutions and alternatives to social problems with the proposition of products, services or technologies beneficial to society (Phills, Deiglmeier & Miller, 2008).

For Rodrigues (2007) and André and Abreu (2006), social innovation aims at valuing the individual and meeting needs, without disregarding market needs. At the same time, it seeks to fill social gaps in society. The emergence of social innovations occurs through an entrepreneurial idea related to an unsatisfactory social situation that can be modified or improved.

In Brazil, the theme social innovation is mainly discussed by Social Business, Civil Society Organizations (CSOs), Impact Business Accelerators; Business Foundations, Non-Governmental Organizations (NGOs), among others.

Bignetti's work, entitled “Social Innovations: A Foray into Ideas, Trends, and Research Focuses,” presents a contribution to the conceptual evolution of the term 'social innovation', highlighting the first work published in 1970 by James B. Taylor entitled “Introducing Social Innovation. The Journal of Applied Behavioral Science” (Bignetti, 2011).

From the conceptual diversity that surrounds the term social innovation, we ask what are the main aspects involving social innovation in social business? The objective of this study is to present the main aspects involving social innovation and to indicate how social innovation is expressed in Social Business.

2.       METHODOLOGY

The method adopted in this study is characterized as bibliographic and documental research. As for the technical procedure, the Multiple Case Study is used.

The literature search was performed from the procedures of Marconi and Lakatos (2010). The first phase consisted of conducting a Google Scholar search of papers published in journals that adopted the bibliometric research approach in a study on social innovation. The work by Mukendi et al. (2017), entitled “Social Innovation in the Social Sciences: A Bibliometric Analysis from 2007 to 2017”, meets this criterion.

The work by Mukendi et al. (2017) was based on the choice of Scopus and Web of Science databases for bibliometric study. From the article by Mukendi et al. (2017) the 11 most cited articles in the Scopus and Web of Science Databases were read in order to verify how social innovation is conceptually approached. Then, from the articles, the main characteristics of social innovation were identified.

In order to complement the research on social innovation concepts, it was identified, from Google Scholar, which article on social innovation is most representative in Brazil, in relation to the number of citations. Bignetti's article (2011) entitled “Social innovations: a foray into ideas, trends and research focuses” highlights significant occurrence of citations (over 190 citations). The article presents a set of conceptual and methodological approaches to social innovation.

Regarding the selected case studies, the following criteria were adopted as a criterion of choice: To be a Social Business participant of the acceleration program of the NGO Artemisia, and working in the area of employability.

The documentary research was carried out from information made available on the selected Social Business websites.

To study social innovation in Social Business the intentional sample of the research includes the following Social Business: BLU 365; Canal Bloom; Colab; Nindoo; Parafuzo; Vittude; and Cloudia.

3.       SOCIAL INNOVATION: CONCEPTUAL ASPECTS

The concept of social innovation focuses on the search for solutions to social needs that result in social well-being (Young, 2011; Phills, 2013; Maclean, Harvey & Gordon, 2013; Saji & Ellingstad, 2016).

According to the OECD (2011) social innovation presents itself as a business opportunity to integrate social challenges. Social innovation involves new strategies, concepts and ideas geared to social needs or social problems that can contribute to social well-being. In Brazil, one of the studies that makes a significant contribution to the theoretical framework and concepts of social innovation is that by Bignetti (2011), which considers it to be:

The knowledge applied to social needs through the participation and cooperation of all actors involved, generating new and lasting solutions for social groups, communities or society in general (Bignetti, 2011, p. 4).

For Westley and Antadze (2010), the concept of social innovation involves the development of new ideas and ways to improve social well-being in search for solutions to people's problems or needs. Thus, for the authors, social innovation can promote social and institutional changes in their environment, contributing to the resilience of society as a whole and requiring a complex interaction between existing the action, the intention and the existing opportunities.

Dawson and Daniel (2010) highlight that social innovation aims at promoting social well-being and contributes to the generation of social capital. Thus, social innovation can be developed from existing technologies and knowledge to achieve new ways of achieving social goals, as well as the use of this knowledge and new technologies to improve social conditions such as infrastructure and environmental issues.

In addition, Dawson and Daniel (2010) stressed that the goal of social innovation is centered on the goal itself shaped within the collective and social policy processes. In addition, they highlight four key elements for understanding social innovation, namely: people; the challenges (can be a problem or an opportunity); the process (process by which the challenge is negotiated and understood); and the goal (solving the challenge in pursuit of social well-being).

According to Costa et al. (2013); Rodrigues (2007); Brunstein, Rodrigues and Kirschbaum (2008), the goal of social innovation is to seek to solve social problems. Mulgan (2006) emphasizes that the objective is related to activities, whose purpose is to meet social and organizational needs simultaneously (considering that the participating organizations in the innovation process have a social purpose).

Social innovation is concerned with valuing the individual and meeting their needs, without neglecting market needs. In addition, social innovation is aimed at filling a social gap (Souza & Filho, 2014).

For Neumeier (2012), social innovation relies on the modernization of new social practices, especially those that focus on new ways of organizing and regulating new lifestyles that change the course of social changes and that can serve as a model for other entrepreneurs.

On Table 1 presents some concepts about social innovation in the light of the literature.

 

Table 1: Concepts of Social Innovation according to articles researched at Scielo Brasil

Authors

Article

Article Title

Concept of Social Innovation

AGOSTINI et al. (2017)

BBR.Brazilian Business Review

An Overview On Social Innovation Research: Guiding Future Studies. 

Way to mitigate social problems, resulting in new or improved solution for a specific community.

GONSALVES; ANDION (2019)

Organizações & Sociedade

Ação Pública e Inovação Social: uma análise do sistema de garantia de direitos da criança e do adolescente de Florianópolis-SC.

Perceived as a process of “experimentation” in the face of public problems (perceived, interpreted, discussed and confronted); as dynamics of coding and coding of problematic situations in public arenas.

HOWALDT; DOMANS; KALETKA (2016)

Revista de Administração Mackenzie

Social Innovation: Towards a New Innovation Paradigm.

New combination and / or a new configuration of social practices in certain areas of action or social contexts, induced by certain actors or constellations of actors in a targeted and intentional manner, aiming to satisfy or respond to needs and problems.

CORREIA; OLIVEIRA; GOMEZ (2016)

Revista de Administração Mackenzie

Dimensions of Social Innovation and the Roles of Organizational Actor: the proposition of a framework.

Cluster of concepts that have in common the type of innovation that seeks to benefit certain places and improve the living conditions of individuals.

GREGOIRE (2016)

Revista de Administração Mackenzie

Exploring Various Approaches of Social Innovation: a francophone literature review and a proposal of innovation typology.

Social innovation as the social change that accompanies any innovation in the production system, or as social change and even as new tools that contribute to improving service and social relationships between individuals involved in a service.

AGOSTINI; VIEIRA; BOSSLE (2016)

Revista de Administração Mackenzie

Social Innovation as a Process to Overcome Institutional Voids: a multidimensional overview.

Generation of new ideas and solutions that impact social problem solving, involving actors and stakeholders in promoting changes in social relations.

MORAIS DA SILVA; TAKAHASH;SEGATTO (2016)

Revista de Administração Mackenzie

Scaling up Social Innovation: a meta-Synthesis.

Focus on creating social value by meeting human needs, especially those unmet by population poverty.

MAGUIRRE; RUELAS; TORRE (2016)

Revista de Administração Mackenzie

Women Empowerment Through Social Innovation in Indigenous Social Enterprises.

Process that produces a tangible or intangible outcome that generates well-being in the community.

EGLER (2010)

Sociologias

Redes Tecnossociais e Democratização das Políticas Públicas.

Observing the social innovation that TICs produce in public policy to analyze the transformations that technologies bring about in policy.

KON (2018)

Brazilian Journal of Political Economy

A Inovação nos Serviços como Instrumento para a Inovação Social: uma visão integrativa.

Innovations that consist in detecting new community needs and responding to them through a process of knowledge accumulation as well as specialization in service activities.

ANDION et al. (2017)

Revista de Administração Pública

Sociedade Civil e Inovação Social na Esfera Pública: uma perspectiva pragmatista.

A way to promote greater effectiveness and efficiency in public management and a viable and more economical alternative to realize and disseminate sociotechnical innovations in certain niches, involving companies, universities, public agents and civil society actors.

BITTENCOURT; RONCONI (2016)

Revista de Administração Pública

Políticas de Inovação Social e Desenvolvimento: O caso da Bolsa de Terras.

It describes the whole process by which new responses to social needs are developed in order to deliver better social outcomes.

DOWBOR; CARLOS; ALBUQUERQUE (2018)

Lua Nova: Revista de Cultura e Política

As Origens Movimentistas de Políticas Públicas: Proposta Analítica Aplicada às Áreas de Criança e Adolescente, Direitos Humanos e Saúde.

Alternative and instrument help illuminate the performance of social movements that seek to transform their political goals into concrete actions, both within society and in the sphere of public policy.

Source: Prepared by the authors.

From the study of the concepts of social innovation presented in Table 1, it is clear that social innovation is mainly related to the search for resolution to social problems, developing new answers (innovations) to human needs.

In this sense, social innovation is considered a way to mitigate social problems, and may result in a new or improved solution for a specific community (Agostini et al., 2017). Social innovation includes public, private and NGO actions aimed at solving the problems required by the new paradigms of development of the economies. Therefore, the way to create solutions - from the diagnosis of the issue to be solved, the idealization of the idea to be applied, the planning of the actions to be implemented, until its dissemination, monitoring and control - is mostly represented by innovations in intangible activities. (Kon, 2018).

Social innovations can come from any entrepreneurial idea, related to an unsatisfactory social situation that can, for example, be modified through an artistic or cultural work. Therefore, knowing experiences of social innovation is essential to enable us to mature the ideas that the theory provided about management models and impact generation (Rodrigues, 2007; André & Abreu, 2006).

According to Maurer (2011) social innovation is divided into five dimensions, namely:

•        Dimension of transformations - focuses on the emergence of innovations from catastrophic scenarios, as a place in crisis, this way the environment needs to be transformed to improve the situation;

•        New dimension - characterized by the innovation factor or by new ideas that can affect the environment in which they will be implemented, thus requiring implementations and even new social norms;

•        Innovation dimension - are social experiments that have as their objective the common, general, collective or corporate interest;

•        Actors dimension - characterized by the fact that each individual has their own interests. However, collective work enables these actors to achieve better management of the environment and situation on formal and informal agreements;

•        Process dimension - aims to evaluate the project outcome, analyzing the complexity of the actions, the tension of the actors, among others, in order to measure the improvements applied.

The emergence of social innovation depends on the knowledge about the needs that will be linked to the project and the analysis of the existing resources for its realization, which involves obtaining a relative dimension of the dynamics to be developed. In this sense, André and Abreu (2006) state that one of the main factors that motivate social innovation is its sustainability, but when they are not guided by market logic, it is necessary to create partnerships to mobilize financial resources.

André and Abreu (2006) point out that in the fight against social exclusion, for example, when an institution's action or product is recognized and used by other institutions, the innovative factor tends to be lost. However, when this innovation has a major impact on the transformation of the power relationship, this innovative factor is more likely to be sustained (André & Abreu, 2006).

4.       IMPACT INITIATIVES, SOCIAL BUSINESS AND IMPACT ACTIONS

Social Business is characterized by impact initiatives that are generated in search of solutions to social problems. The literature points out that Social Business is allocated to different impact initiatives generated by social needs. Faced with action to satisfy these demands, organizations can act from a common purpose and interest.

Social and environmental impact initiatives are the means by which social innovations are established. There are common characteristics in the types of solutions to solve social problems of the population promoted by Social Business. Among these means used for solutions, we can highlight the use of information and communication technologies; the collective action through cooperative construction, whether in the creation, improvement or application of such solutions; management processes with a tendency towards decentralization and horizontalization and, in some cases, even self-management of groups acting together (Anastacio et al., 2018).

It is important to highlight that one way to leverage the activities of organizations called Social Business is the participation of Accelerators. When seeking an Accelerator, organizations are provided with guidance, financial support, physical support for work development, and access to networks that they would hardly otherwise have access to, such as contact with potential investors and large companies.

Artemisia is an example of Acceleradora - a nonprofit organization, a pioneer in the dissemination and promotion of social impact business in Brazil. Among the social businesses accelerated by Artemisia, we highlight the businesses that work in the area of employability, housing, education, among others.

In this context, in addition to leveraging its activities, Social Business also develops ways to generate social and environmental impact, as can be seen in Figure 1.

Figure 1: Examples of social and environmental impact generation of Social Business

Source: Social Finance Task Force (2017).

Impact ventures or impact businesses have the mission of generating impact. These organizations aim to generate social and environmental impact with positive and sustainable financial results (Força Tarefa de Finanças Sociais, 2017).

Figure 2 presents types of social enterprises that are classified according to the work of the Social Finance Task Force (2017).

Figure 2: Spectrum of enterprise typologies

Source: Social Finance Task Force (2017).

The study by Anastacio et al. (2018) on Civil Society Organizations (CSOs) makes an important contribution to how impact business or social business can generate revenue. According to the authors there are civil society organizations that generate their own revenue; civil society organizations associated with a social business; social businesses that invest profits, whether or not they can distribute dividends among associates; social businesses that reinvest part of their profits and distribute dividends or not. There are also the production or marketing cooperatives, whose purpose is not linked to the generation of social and environmental impact, and the merely industrial or commercial cooperatives, both are not considered impact business.

5.       RESULTS AND DISCUSSION

From the information obtained about Social Business, the present work presented concepts about social business and examples of business accelerated by the NGO Artemisia. The organization has a program that aims to challenge entrepreneurs to test business models with social impact (Artemisia, 2018).

Facebook invited Artemisia to share its knowledge and social business acceleration methodology within Hack Station (Facebook's first center for innovation in the world). The program selects entrepreneurs with potential for social impact and scalability. Among the selected social businesses, there are solutions that involve the following areas: education, employability, early childhood, civic engagement, financial services, health and micro entrepreneurship (Artemisia, 2018).

The objective of the Social Business studied and the main impacts generated by these enterprises are presented below.

The BLU 365 Social Business aims to help Brazilians with financial difficulties, assisting them through debt negotiation services, extra income, financial guidance, among others. The social impact of the organization is that it has helped over 900,000 families. Clients have digital channels available to negotiate their debts without leaving home or experiencing embarrassment. Such BLU 365 initiatives and missions are extremely relevant in Brazil, considering the significant number of indebted families in Brazil.

The Channel Bloom organization aims, through its website and application, and with a target audience focused on parents and caretakers, to provide scientific, welcoming and tools that help their clients strengthen their affection and bond with their children.  The resources available are quite varied, ranging from audios to courses, all focused on the greater challenges of how to raise a child.

The social impact of Canal Bloom can be seen from services promoting the socio-emotional development of children in early childhood (from birth to 6 years). It is based on studies that point out that appropriate investments in early childhood influence the lives of children and society as a whole, and that lack of investment can break a cycle of socioeconomic opportunity and affect full child development.

Colab Social Business makes use of an application and a website to promote interaction between the citizen and the government. Thus, it allows the user, the opportunity to report problems found in their city (can be done with photos and indicating the address), as well as indicate ways to improve the city, evaluate and analyze the services provided by the public administration.

The social impact caused by Colab, from the point of view of the public administration, is associated with the efficiency of government, which can promote more transparent management and lower costs. On the citizen side, the platform offers the opportunity for people over 13 years old to participate, to monitor the development of cities and to contribute to improvements.

Nindoo Social Business makes use of a virtual platform to promote user interaction. It aims to accelerate the process of diagnosing and treating rare diseases, discovering new treatments and more effective drugs, while enabling a more personalized education focused on the needs of the people. It is active in health care and seeks to reduce the difficulty and inefficiency in diagnosing rare syndromes by enabling disease evolution mapping to find more effective drugs and treatments.

Parafuzo Social Business aims to connect users who seek to hire domestic and corporate cleaning services with self-employed professionals from large urban areas. Parafuzo offers access to the search for a quality job and income generation. The company sends standardized job offers, with fair values and guarantee of receipt, allowing greater autonomy of the professional.

Table 2: Summary of the main objectives, social impacts and initiatives of Social Business

Social Business

Objetive

Social Impact

Iniciatives

BLU 365

Provide debt negotiation, extra income, financial guidance services, among others for the financially challenged population

The Social Impact Business supported the negotiation of more than 900,000 indebted households.

Digital channels for clients available for debt negotiation.

CANAL BLOOM

Helping customers bond with children

Socio-emotional development of children in early childhood.

Providing scientific information and tools to achieve the business objective.

CLOUDIA

Facilitate communication processes between patients and healthcare facilities via chat applications and website.

Cost reduction in customer service, reduction of absenteeism, fast service and reduction of downtime of health professionals.

For institutions: A callcenter is offered with unlimited attendance positions and sending reminders to patients. For patients: It offers the convenience of being able to communicate instantly with institutions at any time.

COLAB

Connect citizens to public management from a social networking platform (App urba-no). Allow citizens to point out the problems of their city by indicating ideas or improvement projects.

On the part of the government, enable the reduction of costs and greater transparency about the services provided by the government.

On the part of the citizen, offer the possibility of people's participation in the indication of problems and solutions for the city.

Enable citizen engagement to improve municipal management. The platform user can register in the service, describe the city's problems and ideas for solving them. Assign grades to the public services.

NINDOO

Accelerate the process of diagnosing and treating rare diseases, discovering new treatments and more effective drugs, while enabling a more personalized education focused on the individual's needs.

Nindoo is a digital platform that puts itself between developers and users.

Developers can make their applications available in the model library, and on the other hand, anyone can access the platform and search in that library for some model - or combination of models - to help solve their problem.

Make artificial intelligence more inclusive and accessible.

PARAFUZO

Connect platform users seeking to hire home and corporate cleaning services with self-employed professionals from large urban areas.

Find quality employment for the professional who works with home and corporate cleaning.

Provide standardized work offerings with fair values and guarantee of receipt, allowing autonomy of the professional.

VITTUDE

Connect psychologists and patients.

Improve the quality of life of the target people, especially those who live in small cities and who do not have access to these professionals.

For psychologists: the platform provides a financial management system, virtual agenda, and electronic chart; improves the online presence of psychologists. For patients: provides access to start treatment and use of smartphone to talk with the psychologist.

Source: Prepared by the authors from Artemisia.

From the cases studied, it was found that organizations work with the use of digital platforms, either by applications or websites, but with different focus in order to cause positive social impact.

In the case of Social Business Nindoo and Canal Bloom, it is clear that organizations focus their efforts on the development of services focused on emotional, physical and psychological health.

Vittude Social Business and Cloudia are organizations that have an emphasis on solving social problems for accessibility and communication as they seek to facilitate the means of interaction of customers (platform users) with those who provide services.

It is important to highlight that organizations accelerated by Hack Station are in line with the goals of the United Nations Sustainable Development Goals (SDG) (UN, 2015). The SDGs are part of a worldwide Sustainable Development agenda developed in 2015, consisting of 17 goals and 169 targets to be achieved by 2030 worldwide. The agenda foresees global actions on four main themes: social, environmental, economic and institutional (UN, 2015). Table 3 shows the SDGs covered by the Social Business of this study.

Table 3: Sustainable Development Goals in Social Business

Social Business

Sustainable Development Objetivos

COLAB

Engagement

Civic

11 - Sustainable Cities and Communities

BLU365

Financial Services

1 - Poverty Eradication;

4 - Quality Education;

8 - Decent Work and Economic Growth;

9 - Industry, Innovation and Infrastructure;

10 - Reduction of inequalities;

12 - Responsible Consumption and Production;

17 - Partnerships and means of implementation.

Bloom Channel

Early Childhood

3 - Health and Wellness;

4 - Quality Education;

5 - Gender Equality;

10 - Reduction of inequalities.

Cloudia

Health

3 - Health and Wellness;

9 - Industry, Innovation and Infrastructure;

Nindoo

Health

3 - Health and Wellness;

4 - Quality Education.

Vittude

Health

3 - Health and Wellness.

Parafuzo

Employability

8 - Decent Work and Economic Growth;

10 - Reduction of Inequalities.

Source: Prepared by the authors.

6.       FINAL CONSIDERATIONS

The concepts of social innovation presented in this paper applied to the Social Business make it possible to observe a conceptual alignment in relation to impact initiatives that are aligned with the Sustainable Development Goals, 2030 Agenda.

Social innovation in Social Business is present in different impact initiatives and seems to influence the behavior of society.  This allows defining demand-driven actions that result in access to services and products that guarantee a decent life.

The participation of groups in a fragile situation, such as the low-income population, to the services and / or products offered by the Social Business seems to facilitate social integration and promote an improved quality of life.

Furthermore, it is observed that in Civil Society Organizations, the social innovation assumes applicable and scalable relevance to social issues. Thus it seems that the formulation of social innovation is in line with the Sustainable Development Goals. This is because social innovation has a greater meaning that is based on the creation of a common well-being, as identified by Howaldlt; Domanski and Kaletka (2016).

Social businesses such as Cloudia, Nindoo and Virttude contribute to highlighting the impacts that social innovation can have on society by providing access to health services through, for example, digital platforms. This practice is presumed to be consistent with SDG 3 - UNO Health and Welfare (Ensuring a healthy life and promoting well-being for all, at all ages).

Thus, the challenge for Social Business is to align market logic with the human needs that arise in society by trying to fill social gaps through a process that takes into account the collaboration among, business, governments, CSOs and other organizations.

The study shows that social innovation is not yet dispersed in traditional business models, that is, mainly aimed at solving economic issues, which operate with the profit-oriented market logic. However, considering its social character, it is clear that the social businesses studied emphasize the creation of value for people, by allowing, for example, access to services with cost reduction.

In this sense, it seems that social innovation applied to Social Business focuses on the social inclusion of people and the generation of access to products and services for people in a less favored social situation.

In addition, social innovation materializes from ideas that meet social needs with solutions that can make use of digital platforms, websites, smartphones, among other technologies. It can be said that the social businesses studied seem to promote social innovations and positive and lasting social, environmental and economic impact in different areas of society.

7.       ACKNOWLEDGMENTS

We thank the scholarship granted by the National Council for Scientific and Technological Development CNPq for this study.

                        

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