By Lee Hyo-sik
Staff Reporter
A number of socially conscious economists from across the globe have converged on Seoul to send a united voice to the corporate world that businesses should do more to create jobs and care for the socially weak.
They said ``social enterprise'' is the key to the worldwide effort in overcoming the ongoing global economic crisis, urging business leaders to place greater weight on improving social well-being rather than pursuing profits.
In an academic seminar jointly organized by Columbia Business School, the state-run Korea Development Institute (KDI) said Wednesday that the gathering will shed light on a growing number of social enterprises here and abroad, as well as their expanding role in creating positive changes in society.
``Social enterprises can contribute greatly to increasing social welfare by generating jobs and looking after the underprivileged. Through market economy principles, they can also help solve poverty, environmental pollution and other social problems more effectively than the government,'' the institute said in a report.
Social enterprises are social mission-driven organizations that trade in goods and services for a social cause. They generate profits to achieve social and environment goals, while conventional corporations simply maximize shareholders' profit.
For instance, a typical bakery shop hires workers to make and sell pastries for profit but a social enterprise sells bread to employ the jobless before realizing profits, between a typical enterprise and a non-profit organization.
Prof. Raymond Horton, director of the social enterprise program at Columbia Business School, said social enterprises can play a crucial role in an effort to tide over the worldwide economic slump. ``Additionally, they can do more than create jobs and pay taxes through ethical corporate management and transparent governance. Socially responsible businesses can improve social welfare and help solve a wide range of social and environmental problems,'' Horton said during the seminar.
Former Seoul National University President Chung Un-chan also called on local businesses to become more socially responsible, adding social enterprises are the key to tackling the environment, human rights, unemployment, education and poverty, which the state has failed to effectively deal with.
``The government should promote the establishment of social enterprises by providing tax benefits and other support. A larger pool of talented human resources and volunteers are also essential to nurturing socially responsible firms,'' Chung stressed.