Page 65 - Social Enterprise A New Business Paradigm for Thailand

Following the award, Yunus was invited to speak around the world, sharing his ideas and
experiences in social business. This led to meaningful exchanges and a cross-pollination of

knowledge among those interested in social entrepreneurship (explored further in Chapter 5).
Taken together, these developments show that public benefit organizations increasingly focus on
generating value for the broader public, rather than acting for individual or group benefit. Over
time, many have also begun adapting into self-sustaining social enterprises.

2.1.2 Capitalism and Corporate Social Responsibility (CSR)
The second major force contributing to the emergence of social enterprise was the rise of
corporate social responsibility (CSR) within the business sector. Although many wealthy
industrialists had donated generously to society since the 19th century, as philanthropists, their
giving was still largely personal and voluntary. It typically took the form of donations from private
foundations, personal funds, or family trusts, and did not reflect a broader shift in corporate

behavior at an industry-wide level.

Following the Industrial Revolution in England in the late 18th and early 19th centuries, rural
populations began migrating to cities in large numbers to work in factories. Yet these workers had
no voting rights, faced overcrowded and hazardous working conditions, received low wages,
endured long hours, and were subject to exploitative child and female labor practices. These poor
conditions began to draw public concern, leading to mounting pressure from civil society groups
on businesses to pay greater attention to humanitarian values and social equity.

A frequently cited example of this shift is the formation of the Young Men’s Christian Association
(YMCA) in the UK during the late 19th century. The YMCA aimed to encourage private enterprises
to apply Christian values in ways that contributed positively to society, and this concept soon

spread to the United States (Angudelo, Jóhannsdóttir, and Davídsdóttir, 2019).

The emergence of corporate giving, henceforth referred to as “corporate philanthropy,” was, in
part, a response to growing pressure from academics, community leaders, and the general public,
who were increasingly aware of the environmental consequences of corporate activity. This social
pressure was supported by scholars and thinkers who began to search for frameworks to guide
corporate behavior.

In 1953, a major milestone occurred when Howard Bowen, later recognized as the father of CSR,

published Social Responsibilities of the Businessman. The book introduced the key idea that
“corporations should be responsible to society.” Soon after, in the 1960s, another turning point
came with the publication of Silent Spring by Rachel Carson. The book raised widespread public
awareness about the devastating effects of chemical pollutants on living organisms and global
ecosystems. During the same decade, large-scale protests emerged around civil rights, social
welfare, opposition to war, and the dangers of chemicals used in both industry and warfare.

32