HYBRID BUSINESS MODELS YBRID BUSINESS MODELS AS A RESPONSE TO THE MODERN S A RESPONSE TO THE MODERN GLOBAL CHALLENGES
Keywords:hybrid business models, social entrepreneurship, B-Corporations, Benefit Corporations
Introduction. In response to global challenges, there are emerging alternative solutions that can be based on hybrid approaches, including hybrid business models that have the characteristics of private business and the public sector in their conventional perception.
Problem Statement. The discussion on the introduction and spread of hybrid forms of business, their benefits is at the early stages of development, it focuses on the motives of commercial companies to start activities traditionally performed by government or non-profit organizations.
Purpose. The identification of patterns, the determination of motives for the creation and the formation of hyb rid business models.
Materials and Methods. The legal framework and R&D works of researchers have been studied with the use of general scientific and special methods: analysis and synthesis for studying the current state and development of hybrid forms of business, abstraction approach, and logical method for drawing the conclusions.
Results. Modern business refocuses on solving social problems. There are hybrid business models that combine the characteristics of economic entities from different sectors: public (social and environmental problems) and private (profit). The hybrid business models are represented by Benefit Corporations and B-Corporations, in which the social component is reflected in the mission, registered in the statutory documents, and is a part of the operating activities. The hybrid approach to the functioning of corporations may be deemed a continuation of the concept of corporate social responsibility as well as a way to systematic implementation of social and environment practices.
Conclusions. The analyzed world experience of the development of hybrid business models should be implemented in domestic practice. It is time to widely popularize the idea and capabilities of Benefit Corporation and B-Corporation as well as to introduce legal regulation for these companies. This contributes to the most effective
solution of social problems of the modern society in general and Ukraine in particular.
Andrei Dmitrievich Sakharov. Bibliographic reference book. Part 1: Works. Andrei Sakharov Foundation (Ed. by Saveliev E). (2006). Moskow. 368 p. [in Russian].
Davos-2021: Macron predicted what the “postcoronavirus world” would look like. Mirror of the week. January 26, 2021.
[in Ukrainian] (Last accessed: 06.02.2021).
Scott, W. R. (2001). Institutions and organizations (2nd ed.). Thousand Oaks: Sage Publications. 345 p.
Gehman, J., Grimes, M. (2017). Hidden badge of honor: How contextual distinctiveness affects category promotion
among certified B corporations. Academy of Management Journal, 60(6), 2294—2320.
OECD. (2016). OECD and the sustainable development goals: Delivering on universal goals and targets better policies for 2030: An OECD action plan on the sustainable development goals. Paris: Meeting of the OECD Council at Ministerial Level Paris, 1—2 June 2016 URL: http://www.oecd.org. (Last accessed: 06.02.2021).
UN. (2015). Transforming our world: The 2030 agenda for sustainable development (pp. 25—27). New York: United Nations General Assembly. September. 2015. URL: https://www.un.org/sustainabledevelopment/ (Last accessed: 06.02.2021).
BTeam. (2021). Who We Are. https://bteam.org/who-we-are/leaders (Last accessed: 06.02.2021).
Tobin, D. J. (2013). The evolution of the corporation: The public benefit corporation. Blaney McMurtry LLP 1-20, August 28, 2013. URL: https://www.blaney.com/articles/the-evolution-of-the-corporation-the-public-benefit-corpo ration (Last accessed: 06.02.2021).
Davis, J. H., Schoorman, F. D., Donaldson, L. (1997). Toward a stewardship theory of management. Acad. Manag. Rev., 22(1), 20—47.
Del Baldo, M. (2019). Acting as a benefit corporation and a B Corp to responsibly pursue private and public benefits. The case of Paradisi Srl (Italy). International Journal of Corporate Social Responsibility, 4, 4. URL: https://doi.org/10.1186/s40991-019-0042-y (Last accessed: 06.02.2021).
Hiller, J. S. (2013). The Benefit Corporation and Corporate Social Responsibility. Journal of Business Ethics, 118(2),
Nicholas, A., Sacco, S. (2017). People, planet, profit: Benefit and B certified corporations — comprehension and outlook of business students. http://digitalcommons.salve.edu/cgi/viewcontent.cgi?article=1069&context=fac_staff_pub (Last accessed: 06.02.2021).
Emerson, J., Bonini, S. (2003). The blended value map: Tracking the Intersects and Opportunities of Economic, Social and Environmental Value Creation 182 p. https://community-wealth.org/content/blended-value-map-tracking-intersects-and-opportunities-economic-social-and-environmental (Last accessed: 06.02.2021).
Cummings, B. (2012). Benefit corporations: How to enforce a mandate to promote the public interest. Columbia Law Review, 112, 581—586.
Mahoney, L. S., Thorne, L., Cecil, L., LaGore, W. (2013). A research note on standalone corporate social responsibility reports: Signaling or greenwashing? Critical Perspectives on Accounting, 24, 350—359.
B Lab. (2021). Benefit impact assessment. http://benefitcorp.net/b-impact-assessment (Last accessed: 06.02.2021).
Clark, W. H. Jr., Biddle, D., Reath, L. L. P., Vranka, L., Canonchet Group LLC. White Paper. The Need and Rationale for the Benefit Corporation: Why it is the legal form that best addresses the needs of social entrepreneurs, investors, and ultimately, the public. B Lap Version of January 18, 2015. https://benefitcorp.net/sites/default/files/Benefit_Corporation_White_Paper.pdf. (Last accessed: 06.02.2021).
Kim, S., Karlesky, M. J., Myers, C. G., Schifeling, T. (2016, June). Why companies are becoming B Corporations. Harvard Business Review, Digital article. URL: https://hbr.org/2016/06/why-companies-are-becoming-b-corporations/ (Last accessed: 06.02.2021).
André, R. (2012). Assessing the accountability of the benefit corporation: Will this new grey sector organization enhance corporate social responsibility? Journal of Business Ethics, 110, 133—150.
Strine, L. E. Jr. (2015). The dangers of denial: The need for a clear-eyed understanding of the power and accountability structure established by the Delaware general firm law. Wake Forest Law Review, 50, 761—777.
Rawhouser, H., Cummings, M., Crane, A. (2015). Benefit corporation legislation and the emergence of a social hybrid category. California Management Review, 57, 13—35.
White, T. J. (2015). Benefit corporations: Increased oversight through the creation of the benefit corporation commission. Journal of Legislation, 41, 329.
Baudot, L., Dillard, J., Pencle, N. (2020). The emergence of benefit corporations: A cautionary tale. Critical Perspective on Accounting, 67—68.
Nazaruk, V. (2015). So far, social entrepreneurs in Ukraine cannot compete for resources with business. Portal Gurt. URL: https://www.gurt.org.ua/interviews/29086/ [in Ukrainian] (Last accessed: 06.02.2021).
European Commission. (2016). Growth Sectors of the Social Economy in the EU: Social enterprises. URL: https://
ec.europa.eu/growth/sectors/social-economy/enterprises_en (Last accessed: 06.02.2021).
C hien-Chung, Huang, Donner, В. (2018). The Development of Social Enterprise: Evidence from Europe, North America, and Asia. Research Report, 40, March, 2018. URL: https://socialwork.rutgers.edu/sites/default/files/report_40.pdf (Last accessed: 06.02.2021).
How to Cite
Authors published in the journal “Science and Innovation” agree to the following conditions:
Authors retain copyright and grant the journal the right of first publication.
Authors may enter into separate, additional contractual agreements for non-exclusive distribution of the version of their work (article) published in the journal “Science and Innovation” (for example, place it in an institutional repository or publish in their book), while confirming its initial publication in the journal “Science and innovation.” Authors are allowed to place their work on the Internet (for example, in institutional repositories or on their website).