Social Enterprises and Welfare Systems. The Role of Multi-Stakeholder Governance and Price Discrimination

22 Pages Posted: 21 Apr 2021

See all articles by Ermanno C. Tortia

Ermanno C. Tortia

University of Trento - Department of Economics and Management; Euricse

Carlo Borzaga

University of Trento; European Research Institute on Cooperative & Social Enterprises (EURICSE)

Date Written: March 11, 2020

Abstract

Social enterprises (SEs) have been active for some decades and have been regulated by law in several countries. Their operation showed ability to complement the provision of welfare services, especially social services, by the public sector and private enterprises, and to innovate in the introduction of new services, organizational and managerial models. In some cases, SEs succeeded in producing and innovating in an autonomous way, without depending on public financial support and procurement agreements. This paper starts from the state of the art in the study of SEs to propose different avenues through which they can be able to expand supply of welfare services and contribute to the decentralization of welfare systems. It traces these specific abilities to SEs’ peculiar institutional structure, especially their non-profit nature, the pursuit of public benefit and social missions, and multi-stakeholder governance. This last feature is considered the most remarkable emerging characteristic in the evolution of this organizational form. The paper then proceeds to focus on price discrimination as specific governance mechanism of the relations of production and exchange, involving different stakeholders and allowing SEs to widen their supply of services, achieve financial sustainability and contribute to the decentralization of the welfare system.

Keywords: Social enterprises, Welfare services, Welfare systems, Price discrimination, Multi-stakeholder governance

JEL Classification: D23, H75, G30, L22, L31

Suggested Citation

Tortia, Ermanno C. and Borzaga, Carlo, Social Enterprises and Welfare Systems. The Role of Multi-Stakeholder Governance and Price Discrimination (March 11, 2020). Journal of Entrepreneurial and Organizational Diversity, Vol. 9, No. 2, 2020, Available at SSRN: https://ssrn.com/abstract=3820522

Ermanno C. Tortia (Contact Author)

University of Trento - Department of Economics and Management ( email )

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Trento, TN Trento 38122
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HOME PAGE: http://www.unitn.it

Euricse ( email )

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Carlo Borzaga

University of Trento ( email )

Via Giuseppe Verdi 26
Trento, Trento 38152
Italy

European Research Institute on Cooperative & Social Enterprises (EURICSE) ( email )

Via S. Giovanni 36
38122 Trento (TN)
Italy

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