How Social Enterprises Create Sustainable Value through their Business Models

The Master of Science in Sustainability Management Program of the John Gokongwei School of Management invites all the members of the Loyola Schools community to the Thesis Defense of Ms. France Justine A. Arugay (MS in Sustainability Management candidate) on April 8, 2022, at 9:00 in the morning (online).

Ms. Arugay’s thesis entitled, "How Social Enterprises Create Sustainable Value through their Business Models" will be presented to Dr. John Luis D. Lagdameo, Mr. Edwin M. Salonga, MPA and Ms. Monique Ann A. Tiongco, MS.  Her adviser is Dr. Ma. Assunta C. Cuyegkeng.

Abstract

Sustainable value creation is associated with the generation of environmental, economic, and social value that delivers satisfaction for multiple stakeholders in the short and long term. Social enterprises, having dual goals of social mission and financial viability are entities most likely to attain creation of sustainable value. This study focuses on how ten Philippine social enterprises create sustainable value through their business models. A qualitative method using thematic analysis toward a multiple case study was used. Results show that eight of the social enterprises explicitly create sustainable value (environmental, social, and economic) across their value chain while the two other social enterprises only explicitly create social and economic value but still implicitly create environmental value. Analyzing the value chain of each enterprise is necessary to understand how they do business and thus, arrive at their business models. More importantly, the value chain showed the connections and helped understand more deeply what the building blocks in the business model are doing in the creation of its corresponding value (environmental, social, and/or economic). A novel contribution of this study is a social enterprise model canvas that shows how sustainable value is created through business models that have social value propositions of providing market access with or without a combination of competence development, enterprise development, and community development. All ten Philippine social enterprises use a market access type of business model most of which are combined with various social value propositions. In conclusion, the creation of sustainable value of social enterprises happens through the social value propositions of their business models and is seen with the aid of their value chains.