Exploring Social Entrepreneurship : A Case Study about Legitimacy from a Consumer Perspective

Sammanfattning: This thesis is focused on the derivation of a new approach to business. Emphasis is put on organizations contributing to both economic success as well as social progress.  This dual financial and social value creation is referred to as social entrepreneurship. Increased attention and inclusiveness of the concept has led to confusion regarding the means of organizations acting within the recited phenomenon. Organizations are met with skepticism and are questioned in the matters of legitimacy. Differences of opinion centralize on whether companies invest these resources because it is demanded, because it strengthens the brand or simply because it is the responsibility of the corporation. The perception of legitimacy is dependent on the support the organization receives from its different constituencies. To explore social entrepreneurship, a case study was conducted. This case study was executed through a consumer perspective, seeing as legitimacy is upheld by the perception of the organizations immediate audience. The case company used, GodEl, operates using traditional business models with the purpose of maximizing profits. However, 100% of their earned dividend is donated to various charity organizations. This study is set out with the ambition to gain an understanding of a corporation operating within social entrepreneurship. The conclusions imply that the customers of GodEl legitimize their choice through diverse legitimizing dimensions. The findings indicate that pragmatic legitimacy is a stronger legitimizing dimension than moral legitimacy. These conclusions imply that larger emphasis is given to consumer self-interest, rather than the consequences and judgment of the organizations accomplishments. The ways in which customers legitimize their choices, may also be argued as the same factors affecting GodEls legitimacy regarding their operations.