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Chapter 2
The Evolution from Public-Mindedness to Social Enterprise
Philanthropy, understood as giving motivated by a sense of public-mindedness, has existed
alongside the development of human civilization itself. Across all major cultures, societies have
endured eras marked by famine, war, and widespread disease. In such times, generosity and
mutual aid became essential for collective survival. Religious teachings have also long reinforced
the value of giving. Whether in Buddhism, Christianity, or Islam, acts such as almsgiving, donating
to the common good, and contributing to communal welfare have been framed as both moral
obligations and enduring expressions of human virtue. These practices helped to transmit and
preserve the ethical foundations of society, ensuring their continuity across generations. In earlier
periods, giving was deeply shaped by religious belief, often intertwined with expectations of
spiritual reward in the afterlife.
In the aftermath of World War II, the world entered a new era of modern economic development,
defined by capitalist structures and market mechanisms. This shift was accompanied by the hope
that material well-being would gradually extend to all. However, while economic growth surged
forward at an unprecedented pace, it also brought with it an array of unintended consequences.
Chief among these were stark income disparities resulting from the concentration of wealth in
the hands of a few, and widespread environmental degradation that disproportionately affected
the many. In response, traditional charitable giving began to evolve, from a model based on short-
term welfare and individual virtue into one focused on addressing systemic issues and improving
societal outcomes over the long term. Examples include the increasing support for initiatives
aimed at mitigating the global climate crisis. The act of giving, once rooted in religious merit-
making, thus began to take the form of donations that sought measurable impact and tangible
improvements in society.
This chapter sets out to provide foundational context for understanding the emergence and
purpose of social enterprises within a global framework. It presents a panoramic overview of how
public-mindedness evolved in Western agrarian societies, first through religious and communal
giving, then through the formation of philanthropic institutions in the industrial era, and
ultimately into the rise of social enterprises. These enterprises do not aim to maximize profit but
rather place social benefit at the center of their mission. Profit becomes merely a financial tool,
one that sustains operations and enables long-term social value creation.
The chapter also explores how mounting societal and environmental pressures have compelled
profit-driven businesses to adopt greater social responsibility. In addition to charting this
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