Exam 14: Social Entrepreneurship: an Overview

Correct Answer:

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$\bullet$ Customers may demand a heighted sense of social accountability and will not do business with a company that ignores this aspect in their operations.
$\bullet$ Creating environmental and social value may attract greater number of customers who are less sensitive to economic prices because of the sense of value they gain from doing business with a social venture (i.e., Tom's shoes)
$\bullet$ Social ventures may incur costs to implement efficiencies that avoid negative environmental externalities that may become severe liabilities to other firms if legislative changes come suddenly designed to reverse such externalities.