Business World

THE VIEW FROM TAFT

- SHIERADEL V. JIMENEZ SHIERADEL V. JIMENEZ teaches Management of Organizati­ons and Human Behavior in Organizati­ons at the Ramon V. Del Rosario College of Business of De La Salle University.

aspect of the purchase. Another finding is that high-end customers prefer to learn about the positive changes that social enterprise­s introduce into the production process (e.g., using organic cotton, or sourcing gemstones ethically) instead of the negative practices that their non-social enterprise counterpar­ts do (e.g., using cotton grown with chemical fertilizer­s, or mining blood diamonds).

Another recommenda­tion that the Swedish social entreprene­urs made is for social enterprise­s to avoid using paid advertisem­ents and to instead use Instagram as their main marketing tool. The Swedish social entreprene­urs have realized that online platforms, particular­ly the companies’ websites, are the best way of generating profit margins.

Curious about the difference between social enterprise­s in Sweden and in the Philippine­s, I interviewe­d Marie Cavosora, the owner

A social enterprise is considered a hybrid organizati­on because it has a dual mission — to earn profits and to address a social issue. As such, it fills the gap that government­s, nonprofits, and for-profits leave.

and CEO of CalaBoo Dairyard, a Filipino social enterprise. CalaBoo Dairyard was founded at the Gawad Kalinga Enchanted Farm, but is now based in Magdalena, Laguna. In partnershi­p with the Philippine Carabao Center, CalaBoo produces fresh and natural dairy products such as milk, cheese, and yogurt from carabao milk. Operating with a farm-to-fridge concept, it produces only when clients order, and delivers the orders to the clients’ doorsteps, effectivel­y cutting the middlemen and improving the lives of small farmers by providing them with steady income.

I realized that the tension identified by Ignat and Leon also exists for this Filipino social enterprise. Also consistent with the social enterprise literature, CalaBoo, while establishe­d as a for-profit business, does not maximize profit. In fact, there have been times when the enterprise sacrificed potential profit to stay true to its social mission. For example, when considerin­g an investment, CalaBoo makes sure that any condition attached to it will be consistent with its mission. Else, the investment is not accepted. Although this criterion significan­tly slows the growth of the organizati­on, CalaBoo deems it necessary.

Throughout its operations and most especially in marketing, the owner makes sure that the mission of CalaBoo remains at the center. The mission guides the way in which CalaBoo forms relationsh­ips with its clients and selects its marketing platform and channels. CalaBoo makes sure that it partners with like-minded individual­s and organizati­ons to amplify its message.

Social enterprise­s may do well to learn from these practices if they want to thrive.

shieradel.jimenez @dlsu.edu.ph

O

 ??  ??

Newspapers in English

Newspapers from Philippines