Social Entrepreneurship and Corporate Social Responsibility in the Context of a Moral Economy: Dilemma for Developing Countries (Case of Georgia)

Open access


This research discusses the role of social entrepreneurship as an important feature of the moral economy, i.e., a socially responsible business practice. Developing countries, e.g., Georgia, a post-Soviet country, differ from those in the West in this aspect. The author aims to identify peculiarities of social entrepreneurship and corporate social responsibility of Georgian businesses. Desk research provides conceptual analysis of the existing quantitative and qualitative studies, based on prominent scientists’ works in economics and entrepreneurship. A “moral economy” understands business activities as “social services.” Social responsibility is a business’s moral framework, suggesting a company’s obligation to generate social benefit. Social entrepreneurship combines the best practices from the nonprofit and for-profit activities to tackle social needs poorly addressed by businesses and governments. Social entrepreneurship is a relatively new phenomenon in post-Soviet countries, where nongovernmental organizations help in solving many social problems, but their efforts are typically insufficient. Entrepreneurs must find a balance between a company’s success, employees’ needs, and environmental and social stability. These three priorities form the foundations of corporate social responsibility. Economic history provides many examples of moral standards driving the stability of a socio-economic system and profitability of companies with macroeconomic and microeconomic positive impacts. Companies operating in Georgia spend their funds on social projects and charity; moreover, such socially oriented activities are sometimes chaotic. Companies need to implement social responsibility projects as part of their business plans. Strengthening corporate social responsibility could thus support development of social entrepreneurship.

Balarjishvili I. (2017) Contradictions of development of civil society as economic actor in Georgia. Country experiences in economic development, management and entrepreneurship. Proceedings of the 17th Eurasia business and economics society conference (pp. 171–186). Springer International Publishing.

Balarjishvili I., & Natsvlishvili I. (2017) Elites and society: Contradictions of economic and institutional interests (by the example of Georgia). International Journal of Business and Management Studies, 06(01), 155–162.

Bosma, N. S., Schott, T., Terjesen, S. A., & Kew, P. (2016). Global Entrepreneurship Monitor 2015 to 2016: Special report on social entrepreneurship. Global Entrepreneurship Research Association, 2016. Retrieved from

Chiladze I. (2015). Business social responsibility and Christianity. In R. Gogokhia and G. Shikhashvili (Eds.), Christianity and economics (pp. 169-176). Tbilisi-Batumi: Ivane Javakhishvili Tbilisi State University Publishing (in Georgian)

Chokheli E. (2015). The role of social responsibility and the growth perspectives in business (The Case of Georgia). Retrieved from

Chokheli E., & Narmania, D. (2015) Impact of corporate social responsibility on the competitiveness of companies. Retrieved from

Corporate Social Responsibility in Georgia. (2013). Retrieved from

Dahlsrud A. (2008) How corporate social responsibility is defined: An analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15(1): 1–62. Retrieved from

Jandieri G. (2014). A brief economic history of Georgia: A lesson has to be remembered. Georgian Foundation for Strategic and International Studies.

Haupt R. (2015). Business and Christian Faith: a contradiction? In R. Gogokhia and G. Shikhashvili (eds.), Christianity and economics (pp. 187-191). Tbilisi-Batumi: Ivane Javakhishvili Tbilisi State University Publishing (in Georgian)

Kuratko D. F. (2014). Entrepreneurship: Theory, process, practice. 9th ed. South-Western: Cengage Learning.

Lezhava, B., Brekashvili P., & Melua I. (2014). Global Entrepreneurship Monitor. 2014 Georgia Report). Retrieved from

Natsvlishvili I. (2017). Gender inequality and women’s entrepreneurship-challenges and opportunities (case of Georgia). Country Experiences in Economic Development, Management and Entrepreneurship. Proceedings of the 17th Eurasia Business and Economics Society Conference (pp 491-505). Springer International Publishing.

Natsvlishvili I. (2016). Social attitudes toward starting business and challenges of entrepreneurial activities in Georgia. In S. M. Sobol, (Ed.), III International Scientific and Practical Conference proceedings “Strategic Imperatives of Modern Management” (SIMM-2016) (pp. 64-71), Kiev: National University named after Vadym Hetman.

Natsvlishvili I. (2012). Entrepreneurial attitudes in post-Communist countries (case of Georgia). International Journal of Business and Management Studies, 1(3), 451–457.

Seelos C., & Mair J. (2005). Social entrepreneurship: Creating new business models to serve the poor. Business Horizons 48, 241—246. Retrieved from

Nicholls, A. (Ed.). (2006). Social entrepreneurship: New Models of Sustainable Social Change. Oxford University Press Inc: New York

Mulej, M. & Robert G, Dyck, R. G. (Eds.). (2014). Social responsibility beyond neoliberalism and charity. Volume 3: Social responsibility - methods, dilemmas and hopes. Retrieved from

The Centre for Strategic Research and Development of Georgia (2013). Guide into Social Entrepreneurship. Tbilisi. (in Georgian)

The Centre for Strategic Research and Development of Georgia (2010a). Social Entrepreneurship - The Experience of Georgian Public Organizations. Tbilisi. (in Georgian)

The Centre for Strategic Research and Development of Georgia (2010b). Development of Civil Society Organizations in Georgia – Dynamics and Trends. Tbilisi. (in Georgian)

Naše gospodarstvo/Our economy

Journal of contemporary issues in economics and business

Journal Information


All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 127 127 39
PDF Downloads 88 88 30