What is it about?
The paper examines how to assess profitability in social organizations. We develop a conceptual framework and empirically test it using a sample of microfinance institutions.
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Why is it important?
Extreme profitability, especially in cases where clients are simultaneously the intended beneficiaries of a social organization, has the potential to undermine the social mission of the organization.
Perspectives
I hope this article provides readers with an understanding of how to assess profits for social enterprises. To adequately understand profits for these organizations, social measures and commitment to stakeholders also needs to be accounted for.
Patrick Reichert
Solvay Brussels School of Economics and Management
Read the Original
This page is a summary of: What is a Fair Level of Profit for Social Enterprise? Insights from Microfinance, Journal of Business Ethics, August 2018, Springer Science + Business Media,
DOI: 10.1007/s10551-018-3986-z.
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