WHAT IS A SOCIAL ENTERPRISE?

WHAT IS A SOCIAL ENTERPRISE?

There was a time when businesses were measured only by one standard: profit. If a company earned money, it was considered successful. Today, however, a new idea is steadily gaining ground around the world, including in the Philippines. It is called the “social enterprise.”

Simply put, a social enterprise is a business that exists not only to earn income, but also to solve a social or environmental problem. In a way, it stands between a purely profit-oriented corporation and a charitable non-profit organization. It earns revenues like a regular business, but its operations are guided by a social mission.

Traditionally, social enterprises re-invest their earnings back into their advocacy, whether it is helping poor communities, protecting the environment, creating jobs for marginalized sectors, or supporting sustainable agriculture. However, I also believe that there is another valid version of social enterprise: businesses whose owners may keep part of their profits, provided that their operations continue to serve a socially redeeming purpose.

In other words, the true measure of a social enterprise is not merely where the profits go, but whether the business contributes to nation-building and public welfare.

This is why I have long believed that many cooperatives are already social enterprises in practice. Agricultural cooperatives, for example, help small farmers pool their resources, gain better market access, and improve their incomes. That is already social justice in action.

Even businesses guided by ESG principles—Environmental, Social, and Governance standards—could qualify as social enterprises because they consciously balance profit with social responsibility.

Globally, successful examples abound. Companies like TOMS popularized the “buy one, give one” model, while Patagonia became known for supporting environmental conservation. Meanwhile, Greyston Bakery gained recognition for hiring people who face barriers to employment, including formerly incarcerated individuals.

The concept is growing rapidly because younger consumers are now “voting with their wallets.” They prefer brands that reflect their values. Around the world, businesses are seeking B Corp Certification, a global standard that measures social and environmental accountability.

In the Philippine setting, I believe social enterprises could play a major role in strengthening food security, agriculture, and rural development. Consider the root crop industry. Agencies like the Department of Agriculture, the Philippine Root Crop Research and Training Center or PhilRootcrops, the Bureau of Plant Industry, and the Bureau of Agricultural Research are already helping propagate crops such as cassava, sweet potato, taro, and ube.

These efforts are important because root crops are not merely “survival food.” They are climate-resilient crops that could help address hunger, improve farmer incomes, and even reduce dependence on imported wheat and rice.

Imagine if social enterprises were organized around root crop production, food processing, and agroforestry. Farmers could earn more, rural jobs could increase, and communities could become more self-sufficient.

As of 2026, government initiatives such as Project SAFE or Sustainable Agroforestry Farming Enterprise are already promoting root crops within agroforestry systems to improve food security and soil health. This is a welcome development.

Perhaps the time has come for us to redefine business success itself. Maybe the best businesses are not only those that make money, but those that make society better as well.

After all, an economy that benefits only a few people can never truly prosper.

RAMON IKE V. SENERES

www.facebook.com/ike.seneres  iseneres@yahoo.com  senseneres.blogspot.com  09088877282/06-18-2027

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