Final answer:
The primary goal of a social entrepreneur is to improve society. They focus on creating social value through their business activities, which can also yield financial sustainability, but with the main intent of addressing and solving social issues.
Option 'd' is the correct.
Step-by-step explanation:
The primary goal of a social entrepreneur is d. Improving society. Unlike traditional entrepreneurs whose main focus is on generating profits, social entrepreneurs aim to address and solve social problems and needs through their business activities.
They look at the broader impact of their actions on society and strive to create tangible improvements in the lives of people and communities. While they might still seek profits to sustain their operations, their objective goes beyond financial gain, encompassing a wider value that benefits society.
To understand the concept better, we can look at The Gizmo Company's scenario. Here, each investment has an additional 5% social benefit. This implies that for any rate of return that benefits the company, there is a parallel benefit for society. Similarly, social entrepreneurs seek out such opportunities where their endeavors yield a compound benefit: one for their organization and one for the society at large.
In contrast to the values proposed by Adam Smith's 'invisible hand,' which suggests that individuals' pursuit of personal gain can unintentionally benefit society, social entrepreneurs intentionally pursue societal benefit. They may engage in activities such as writing grants (c) or finding funding (e), but these are means to an end, not the end itself. Social exchange theory posits maximizing benefits in relationships (28), while functionalism addresses government's role in society (22). However, these are merely frameworks for understanding various aspects of social dynamics, not the guiding principles of social entrepreneurship.
The four ethical considerations listed (a-d; Maximize liberty, Do not restrict freedoms, Minimize harm, and Do not make matters worse) are reflective of the values social entrepreneurs hold. Their mission is not just to address market needs but also to work ethically in the social realm, enhancing the liberty and welfare of individuals, and ensuring their activities do not exacerbate existing social disparities.