ࡱ> /1,-.0wbjbj *|  p;P8T֡G^99Tf,1333333$6W9'''W99%.%.%.' 991%.'1%.%.*9 )R0֡UjԦ)Ԧד&Ԧ |!%."l@$yWW-^֡''''Ԧ : SOCIAL ENTREPRENEURSHIP AND SOCIAL TEACHINGS OF THE CHURCH Marijan Cingula Faculty of Economics and Business Zagreb  HYPERLINK "mailto:mcingula@efzg.hr" mcingula@efzg.hr Abstract Eternally open issue of entrepreneurial activities based on ethnical principles can be furthermore emphasized if development of social entrepreneurship is seen through influence of Catholic ethics. This paper shows social entrepreneurship as a developed form of entrepreneurship in which social care about common welfare is a complementation to economical components. Increased entrepreneurial responsibility is expressed in choice of activities as well as in way of conducting an entrepreneurial activity. Society's support to development of social entrepreneurship is achieved by giving a part of social activities to entrepreneurs who then complete them following market principles, thus releasing the scarce social investment resources into settling all other needs necessary for common welfare. Social entrepreneurship develops from entrepreneurial care for socially useful activities and from state support to entrepreneurial behaviour in traditionally non market activities. Catholic ethics, being the social influence on entrepreneurship, arises from social teachings of the Church and is being variedly developed throughout the centuries. After relatively passive attitude of the Church towards the problems of entrepreneurial development in the nineteenth century, Catholic ethics, inspired by social teachings, thrived in the twentieth century and it created conditions for providing answers to many questions of modern times. The author would like to show Catholic ethics to be completely in accordance with contemporary concept of social entrepreneurship pursuing standardization of social responsibility in business activities. Introduction The new evaluation of entrepreneurship appears at the moment of globalisation determined by many integration and disintegration components at the same time. Integration factors are linked to development of consciousness on need of responsible behaviour towards common goods, both natural that are limited and usable, as well as social ones that seek solidarity and subsidiary. Pope John Paul ll had a very specific opinion on that: Globalization must include solidarity. Globalization has profoundly transformed economic systems by creating unexpected possibilities of growth, but it has also resulted in many people being marginalized, whether by unemployment in the developed countries or by being consigned to even deeper poverty in the developing world. The pope has proposed that certain precise commitments be made to move closer to global solidarity, and he noted that some of these are quite urgent: debt forgiveness for the poorest countries, the sharing of technology and prosperity, greater efforts in conflict prevention and resolution and respect for human rights. Technology also helps creating a global connection because it speeds up dissemination of scientific achievements, breaks down information barriers and creates realistic pre-requisites to define minimum standards of a universally acceptable behaviour. Importance of entrepreneurship is being emphasized in economy, and not only because it is a faster way to develop small and medium businesses but also because it is a creative contribution to market success of business organisations, regardless their size. It was no accident that even in time when there were numerous theoretical controversies on entrepreneurship Peter Drucker emphasized innovativeness as a basic determinant of entrepreneurship: Admittedly, all new small businesses have many factors in common. But to be entrepreneurial, an enterprise has to have special characteristics over and above being new and small. Indeed, entrepreneurs are a minority among new businesses. They create something new, something different; they change or transmute values. It is interesting today to follow affirmation of entrepreneurial philosophy in transition countries that have not for decades known any private initiative beyond agriculture and miniature trade. In these countries private initiative is especially valuable because it substitutes the void created by the reduction of state intervention in economy which followed abolition of state planned economies. Individual initiative on level of national economy is being recognised as an irreplaceable resource in conditions of more modest material potentials, especially if in poor countries lack of domestic capital is not supported by international investments. Entrepreneurship is seen as an important factor of economic development even in the developed countries. There it mostly exists as a cooperation of small businesses and multinational companies, the results of which still dominate creation of gross domestic product. This relation is improved by application of information technology enabling immediate connection of business subjects in real time, regardless their size and geographical distance. In that way numerous business organisations are included in new value communities and they contribute to the creation of business organisation networks and their immediate communication. Since concepts of creativity and personal initiative are traditionally connected to concept of entrepreneurship, their strengthening, with use public support, makes solid grounds for expectations of a faster economic development in every modern state. However, considering state intervention cannot be avoided, not even in countries of developed democracy, it is better for state to intervene giving immediate support to small and medium businesses rather than to directly govern large companies. Therefore it is interesting to observe a special kind of entrepreneurship created so that a state intervention is focussed on creating conditions in which entrepreneurs, acting individually and creatively, personally take on the risk and responsibility for results of their investments. Instead of having the state as an anonymous and bad owner in economy (it was typical for socialist countries, or for liberal countries completely out of sphere of influence on economy), a new state is created as a possible generator of favourable conditions for individual initiative development, where responsibility for success is given to entrepreneur. In fact, it would be ideal if world community took over that role instead of national state. At this moment there is a distinct idea of global cooperation, at least in current church documents, although a significant progress cannot be noticed in actions of world institutions that should in fact achieve this cooperation. Globalization also requires greater cooperation by states to coordinate the economy, given that individual governments are often no longer able to exercise effective guidance. The Compendium calls for the creation of "adequate and effective political and juridical instruments" (No. 371) that will ensure "the common good of the human family." Translational cooperation for achieving common welfare can sound as a good political slogan but can only be achieved by trying to improve individuals life standards. It is Pope John Paul ll who pointed out the problem of global responsibility for an individual in his congregation address in Madrid in May 2003: If globalization is to benefit all the world's inhabitants, it must be directed and regulated with international consensus. When the forces of a market economy and special interests are the only things guiding the international exchange of capital, goods and information, the weakest members of society have no guarantee of benefit and risk greater exploitation. Social entrepreneurship should not be looked for in the sphere of introducing social or caritative factors into economy, but it should be looked for in the sphere of creating a social support for development of small profit centres that will achieve market success by their entrepreneurial potential and creativity of their founders. Since organisation networking in a business process is a result of new technology application or a result of outsourcing certain activities from large companies, the newly founded small companies will have good chances for success with minimal social support. Entrepreneurship in context of social development can equally contribute to economic and cultural development of each country or a smaller regional community. This kind of entrepreneurship would like to achieve for new business subjects, along with the existing small and medium businesses established on the market, to be the key factors for opening new work places and to become creative indicators in changes of social value system. However, Clayton Sinyai has well perceived that social entrepreneurship can only go so far, citing an expert: Asked about the phenomenon, Columbia economics professor Jeffrey Sachs-famous for advising post-Communist nations to speedily privatize their economies-offered a note of caution. "We see a lot of major successes in social entrepreneurship, and we're seeing more space for it in some societies," he told The New York Times. "But we cannot simply rely on social entrepreneurship for what government needs to do." There should be no doubt: entrepreneurs will continue to seek profit, and state will continue to look after common welfare. But social entrepreneurs together with the responsible state will create a market in which entrepreneurship will be based on market principles trying to constantly increase common welfare. Social entrepreneurship as a developed form of entrepreneurship Distinction of social entrepreneurship within the concept of traditional entrepreneurship makes sense only if basic business characteristics of entrepreneurship are kept. This implies that social entrepreneurship concept does not result from introducing nonmarket measures into business but from the need to achieve business results and social interests with minimal investments. Social entrepreneurship is surely a special form of entrepreneurship whose characteristics are more accentuated against the traditional concept of entrepreneurship. Universally accepted, traditional entrepreneurship characteristics such as trying to achieve business profit, creative approach to problem solving, business initiative and risk taking are not questioned by introduction of a social component. It is expected social entrepreneurship to develop a new economy model of the 21st century. Smiths entrepreneurship concept based on individual God loving should be completed by introducing care for common welfare. What has already proved to be a true assumption is the fact that it is small entrepreneurship initiatives that have possibility of faster and more efficient adjustment to market changes, and as a positive consequence they achieve faster employment growth and have better financial results. Social entrepreneurship is not an ideal picture of entrepreneurship without its basic market components but a specific kind of entrepreneurship in which both entrepreneurial and social components are completed by new content of more quality. Figuratively speaking, a social entrepreneur does not give somebody a fish or any bread, nor does his teach somebody how to catch a fish or bake bread. Instead he changes and advances fishing and bread making, and so surpasses all previous approaches to business. He is not settled by temporary solutions to a problem but he tries to change his environment: local community, society and the whole world.  David Bornstein finds examples of social entrepreneurs in people such as Henry Ford and Steven Jobs who changed society by their relation towards business. For David social entrepreneurs are: ... people with new ideas to address major problems who are relentless in the pursuit of their vision, people who simply will not take no for an answer, who will not give up until they have spread their ideas as far as they possibly can. If such concept appears to be too demanding it should not be disregarded that entrepreneurs have always changed the world by their creative contribution and their energy. Without their courage and their innovations many projects would never have been started or would even have brought any results. The first important component of social entrepreneurship is accentuated social responsibility in choosing a business activity. A social entrepreneur achieves its social mission above all by doing socially useful work where such job does not have even one component that would endanger moral criteria in relation to human community or in relation to natural environment. Profit is not the primary driving force of his entrepreneurial initiative. It is only an acceptable final solution of his activity that is driven by higher, social goals. If drive for keeping common welfare is completed by a reasonable market approach, a very effective combination is created that both fulfils entrepreneurs social needs and is beneficial to him.  Taking the role of meeting general needs, regardless its effect on market grounds, entrepreneur releases limited state resources, and by clever management they can be redirected into other needed socially useful activities. Business ethics of a social entrepreneur begins by rejecting all those activities that endanger social interest and natural environment. The second important component of social entrepreneurship is increased responsibility towards social community and individual in the process of doing business. Elementary components of any entrepreneurship are paying taxes, being responsible towards suppliers, buyers and employees. Those components are defined by state legislation, and increased responsibility is expected of social entrepreneur regarding application of moral guidelines and entrepreneurial business ethics. Ethical behaviour is not a sufficient condition for social entrepreneurship but it is its integral component. In process of creating a new social value and meeting his individual needs, a social entrepreneur will not jeopardize neither the interests of his employees, buyers and suppliers nor of the greater social community. He will gladly give up the activity that would, in the name of increasing profit, endanger people and their natural environment. A social entrepreneur at the same time creates individual and common welfare but not at the expense of promoting social values above individual ones. Social entrepreneur is surely not a loser, even if he temporarily gives up the profit in the name of protecting common welfare. In this way he creates conditions for long- term business in his own interest and interest of common welfare that is an inseparable part of his mission. The importance of social entrepreneurship arises from the two mentioned forms of its responsibility. Responsibility for choosing an activity leads to meeting socially useful needs and to releasing part of limited resources for reasonable meeting of other needs. Responsibility for way of doing business frees the society from long-term loses that would be created by a possible nonethical procedures in interest of gaining short-term profit. At the same time it defends the society from any violence against environment and in that way preserves interests of future generations. According to some believes economy is an element of construction and humanization of the world, it is a means in service of man and his development and therefore entrepreneurial behaviour should always be seen in the context of a certain ethics. This ethics is used to surpass only economic components and to build such production and business relations that promote the idea of social entrepreneurship. The international community also acknowledges social entrepreneurship as an important factor for general and economic development. For this reason it encourages development of institutions whose wish is to stress out the social commitment for developing entrepreneurship which cannot be left exclusively to initiative of a few entrepreneurs, especially if what is expected is more significant participation of small and medium businesses in contributing to social income or to employment. The social entrepreneur is more exposed to risk of nonlegal pressures than an ordinary entrepreneur who does not care for common welfare, or even than an entrepreneur who misuses an opportunity in condition of a reduced social supervision. Therefore care for social entrepreneurship is really caring for the entire society. Catholic social teachings as ethical frame of social entrepreneurship The most frequent understanding of entrepreneurship, being a high risk profit-oriented activity, is closely linked to traditional believes that the common welfare and market behaviour cannot reach a harmonious coexistence. According to such believes social world view belongs to ethical or religious spheres and market behaviour to liberalism. Therefore the concept of social entrepreneurship as a synthesis of market success and concern for common welfare could not have been created neither under the auspices of the traditional Church ethics nor in the context of liberal understanding of society. Relation of Church as an institution against economic relations in society has gradually evolved and questions of social entrepreneurship began gradually opening until they became a central topic of modern social teachings. Present concept of Church social teachings is expansion of Pope Leo Xlll encyclical Rerum Novarum and Pope Pius Xl encyclical Quadragesimo anno that mark fortieth anniversary of the Catholic Church first official document on its social teachings appearing. There is no need to further point how late the Church was in relation to historical needs. The fact remains that the nineteenth century was filled with other theories of social teachings without foothold in Christian ethics. However at the end of the twentieth century Pope John Paul ll published a number of encyclicals with subject of social teaching that matched the number of all his predecessors encyclicals. The Catholic Church influenced the economic thought, firstly by its original Biblical texts and then by a scholastic contribution of numerous thinkers in the Middle Ages. However in the eighteenth and the ninetieth century the Church lost its pace with the lay (world) theories that recognised numerous open theoretical and practical questions important for the economic development. Social disintegration, being the consequence of industrial production domination over feudal agriculture, led to creation of new classes: workers and their employers, while the traditional classes of landowners and serves almost completely lost their importance. The classical economic theory, Marxism, liberalism, and later also modern theories, noticed the problem of collective creation and individual distribution of excess values. For those reasons they offered solutions that led to violent political revolutions and taking over of state power in many countries. All that time the Church has relatively passively let aggression theories such as communism take over the domination over care on social justice and equality. Only some hundred years ago did a formal and serious interest raise under the auspices of the Church for destiny of many poor classes in all the countries, regardless the level of their economic or political development. A big change followed the arrival of Leo Xlll to the head of Catholic Church. The Church started opening towards the world and there was dialogue with modern thoughts that were not always in line with the Christian teachings. Leo Xlll announced eight famous encyclicals, and among a particularly important one Rerum novarum (Of new things) from 1891. This encyclical was a real beginning of the Catholic social thought because it mentioned big changes and new matters that started to appear among nations. It put a special accent on transition of then current social considerations from political to economic field. Describing the workers misery, the encyclical does not fall behind Marxist texts, but it points out that the real remedy for the perceived social disease cannot be violent state coup but Gods love, human solidarity and faith in eternal life. Instead of starting a communist revolution the solution is to spread the Christian teachings and state care for common welfare. Workers are surely entitled to a just compensation for their work and a worthy place among other social classes. Leo Xlll recommends worker associations for creation of independence and discipline. He also stands for cooperation of workers and employers. The constant care for justice and solidarity of all the state institutions and individuals could overcome social inequalities and create conditions for worthy life of all people. Rerum novarum encyclical is very valuable for showing that the Catholic Church recognized then current social problems, felt for the sufferings of the poor classes, opposed such condition and refused to accept it as a natural order. The encyclical also encourages the Church and the state to get involved in the solution for social and economic problems, and to offer a better remedy for a malignant disease than the one offered by socialists or communists. Leo Xlll believes that there is a possible solution within the existing system, but not without changing the basic values. He urges the rich for solidarity and workers for discipline. He offers to both the Church teachings as basis for cooperation and in return expects from the Church to actively support it instead of being a passive observer. Pope Pius Xl was so thrilled by Leo Xlll thoughts that in 1931 he celebrated the fortieth anniversary of his encyclical by publishing a new encyclical Quadragesimo anno (Forty years) in which he gives thanks in the name of all the Catholics to his predecessor for leaving them such valuable messages. Emphasizing numerous inspirational messages from the other encyclicals, Pius Xl still perceives the great importance of the social question that is a difficult subject of human society. In his encyclical he pointed out the basic points of Rerum novarum by examining for the past forty years the actions of the Church, state and work associations, and possible unions between workers and employers. He expanded discussions on ownership and relations between work and capital. He emphasized state authorities in protecting ownership, as well as employers' obligation to use their wealth for common welfare and not only for individual enjoyment at expense of public misery. He noticed unjust capital demands as well as unjust work demands in the socialist idea of forbidding private ownership and creating a socialist state. Pius Xl might as well predicted the biggest evil of state bureaucracy in his message that state can 'trick the careless' even worse than the capital owner can. He commented very reasonably spending of newly created goods stressing that in a just distribution interest of workers and their families have to be met, as well as company interest and common welfare interests, i.e. interests of state which cares about common welfare. In his encyclical Pius Xl honoured Leo Xlll and emphasized the importance of his thoughts, but he also added the ideas of the Church's social responsibility and accentuated the need of State and individual cooperation for creation of a more just society. Pope John XXlll announced to the Church and the world in 1961the encyclical Mater et magistra' (Mother and Teacher) in which he wanted to reconcile the modern development of social issue and the Christian teachings. Assuming that there is the need for the Church to be at the same time a mother and a teacher, John XXlll says that care of souls and heavenly goods must be completed by care of everyday human life needs, and not only on level of food and survival but also regarding other material and social goods. He also acknowledges his predecessors who started studying the social teachings, and he puts a particular accent on the need to harmonize economic and social advancement. For rewarding work he introduces justice as the measure, and he wishes to harmonize requests of justice with company structure. He advocates workers' participation in management in medium and large companies, and he also encourages activities of workers associations. Private ownership should not be an obstacle to care for common welfare because its use must be synchronised with common needs. A very valuable contribution of John XXlll is recognizing the differences among economic activities. He points out negligence of agriculture and the need of a harmonized development of all the economic sectors. The state tax policy could influence a harmonized development since it is the precondition for common welfare. Social insurance and protection should help the weak and helpless, and solidarity and reciprocity must become a part of every economic activity. Besides noticing differences among economic activities, John XXlll also notices the differences among certain areas and states, and is in favour of harmonization of economic development in order to increase differences between the rich and the poor. He wants to achieve world cooperation in facing social problems, and is in favour of doing so on principles of Gods love and law of life. He emphasizes the importance of upbringing and education as well as preservation of life values. In his second encyclical Pacem in Terris (Peace on Earth) in 1963, John XXlll stressed the great importance of peace among all peoples on Earth. In order to bring peace, such an order acceptable to every man and to every culture was established. But even on grounds of Christian teachings it is difficult to achieve public consensus on what common welfare really is. It is important that the message contains basic economic rights, such as right to work and right to ownership. Women should be given a special right to harmonize their work and mother duties. Right to work brings responsibility to do the work, but also to receive a just remuneration that would be worthy of keeping the human dignity. John XXlll emphasizes individual's duties in realization of their rights and very thoroughly analyzes the current economic changes: rise of life standard and public welfare, bigger role of women in public life, and disintegration in poor countries. Just as cooperation and solidarity are needed among people living in the same community, so is better cooperation needed among states of the world community. Interstate solidarity is a good way to avoid conflicts and keep the world peace. John XXlll recognized the signs of his time since he knew well the great works of his predecessors and in them he found an analytical basis for judging the current changes. He certainly gave an indispensable contribution to development of Catholic modern social teachings. Pope Paul Vl published in 1967 encyclical Populorum progressio (Development of Peoples) in which he stresses out that the social issue became the world issue. According to him it is necessary to include even the poorest peoples in enjoying the fruits of world civilization, which remains to be Church duty. Standing for peace and justice Paul Vl perceives bigger and bigger imbalance and undeserved misery in a great part of humanity. People exposed to misery and ignorance tend to accept ideologies that even more blur the image of human dignity. That as a consequence leads to very dangerous reactions in people, it leads to riots and it is a way to totalitarian ideologies. The Church should start changing the world by preaching, introducing literacy and providing examples of care for our fellow men. The desired ideal is Christs love and it can be gained by reasonable use of ownership for public welfare. More human working conditions and distribution of the newly gained value should also be set in order to remove the existing differences and avoid new dangerous conflicts. This encyclical mentions precise measures that should be taken for achieving the wanted ideal. Universal purpose of goods, industrialization, social reforms, planning in service of man, introducing literacy and cultural advancement are only some of the programs that should together be implemented by the Church, states and professional organisations. Advancement of peopleshas a special value because it insists on solidary development of mankind, care for helping the weak, cherishing the dialogue among different civilizations, universal love and appeal to the young. Paul Vl recognised the advancement as the new name of peace, so the final call for its establishing was directed to Catholics, Christians, people of good faith, statesmen and thinkers who should all be included in the big common work. He celebrated the anniversary of the first social encyclical Rerum novarum by writing apostolic letter to Cardinal Maurice Roy, the chairman of Council of Laymen and Pontifical Council for Justice and Peace. Under the title Octogesima adveniens (Eightieth anniversary) from 1971, Paul Vl has once again pointed out the importance of social teachings for well-being of the Church and all the people in the world. Acknowledging the new social issues, as for example: position of women, discrimination, life in the cities, lack of working places or protection of natural environment, he called Christians to take on the responsibility and initiative for action to overcome the new and the old social issues. Pope John Paul ll announced to the world a greater number of the encyclicals, and each of them gave a significant contribution to the development of the Church social teachings. In 1979 he wrote Redemptor hominis (The Redeemer of Man) wanting to stress out the relation of man and Christ. However that relation could not be shown without emphasis on social issues. The Pope put ethics as the Church care for directing progress in front of technology. He passed a judgement on individual parties that identified with the state (the so-called socialist countries) and recognized the people as the subject that uses the state for achieving common welfare. Encyclical Laborem exercens (On Human Work), published in 1981, was dedicated to human work. It celebrated the ninetieth anniversary of Rerum novarum. Through work man earns his daily bread and contributes to the advance of science, culture and well-being of the society in which he lives. Work is the measure of mans success and it is a mark that distinguishes man from other living creatures that do not act consciously but on instinct. Finally work is the key to social question. Work can be objectively seen as a technique, or subjectively as a confirmation of mans personality and his dignity. Conflict that exists between labour and capital is the consequence of individual ownership and group work when creating of a new value. Workers and employers should come to an agreement on remuneration for work and on common effort to achieve public good. They must do so using their associations (union) and the state. The Church has a special role because it guards spirituality and therefore sees work as Christs work. In 1987 Sollicitudo rei socialis (On Social Concern) was published, celebrating the twentieth anniversary of Paul Vl encyclical Populorum progressio. The title itself reveals the importance of social issues for advancement of peoples and man as an individual. John Paul ll stressed out in his message the importance of his predecessors work, and then he described the new picture of the world, including concepts such as terrorism, demography, refugee issues, political and economical individual rights, and natural environment protection. After description of the state in the encyclical, there is a theological analysis of contemporary problems with special accent on the Churchs responsibility for social care of man and peoples. Centesimus annus (Hundredth anniversary) was written in 1991, celebrating the hundredth anniversary of the encyclical Rerum novarum. Having already published several encyclicals dedicated to the social question, John Paul ll could with great conscientiousness and accuracy show the current condition in the world as it was a hindered years after publishing the first encyclical. He considers the fall of communism in many states to be the most important event, and 1989 marked the end of dominion of Marxist ideology in a significant part of the world. The Pope saw in it victory of the Church teachings on existence of Christ and return to traditional human and civilization values such as political democracy and private ownership. John Paul ll had very good knowledge of entrepreneurial economy and was in favour of moderate acceptance of risk on the market, but above all he was in favour of dignity of man and his work. Solidarity and mutuality remain to be great concerns of the Church, states and professional associations, for example unions. Putting in the spotlight relation of state and culture, the Pope wanted to stress out the need for implementation of rights and democracy for achieving the common good. He did not forget to put man in the central position within the state and the Church. That brings individual dignity in the political democracy, economic justice and Christs announcement. Similar to stating its attitude on social problems too late in the nineteenth century, the Church has equally remained a passive observer in numerous abuses at expense of common welfare happening under protection of national politics in almost all the transitional countries at the end of the twentieth century. A small number of individuals got rich quickly, and middle class citizen almost completely disappeared. That brought to impoverishment of these transitional countries and a large number of their inhabitants. Increase of national debt, and at the same time outflow of money to private accounts abroad are the best indicators that even international aid can be transferred, with abuses of powerful individuals, from socially endangered countries to highly developed countries with safe bank systems. That phenomenon is immanent to transitional countries regardless national or religious affiliation of their inhabitants. So it can be concluded that individual greed, void of sympathy for common welfare, has found rich ground in all conditions of weakening state supervision and mechanisms of legal protection. In the context of open global conflict between the poor and the rich communities, however there can be seen constant attempts of the leading Church heads to create conditions for writing off debts of very poor and over-indebted countries. Social entrepreneurship- real model or utopia? Social entrepreneurship should not be linked to religious beliefs or to moral of smaller social groups for danger of putting that concept closer to utopia than to social reality. It should be seen in the context of real economic categories. It is true that economic trade creates certain distance, even conflict of interests between the two parties (supplier and buyer). However at the same time it brings to creation of money balance and certain respect between the two parties. It is not surprising that corporative economy prefers respects against arrogant individualism in market processes. Economic subject demands conditionless respect in all social forms. This respect is achieved through certain behaviour standards that do not have to be religion initiated. In developed democracies, the market and its liberal forms participate in the creation of general principles of social freedom and democracy. That fact affirms the market to be the generator of democratic behaviour and a real indicator of the way liberalism can be the basis upon which social wealth is created. Generally, the problem of contrasting liberal logics and common welfare is not valid in real understanding of social entrepreneurship. There are many positive examples of successful people that did their entrepreneurial job with intentions for general good in the society. Finally, social entrepreneurship is affirmed in two ways: individual choice of activity of common social interest and social support to strengthening entrepreneurship in the sphere of social services and care for public good. The development of information technology brings especially favourable conditions for creation of social entrepreneurship in real market environment. Networking of companies on Internet, direct or indirect, known in the theory of modern business as business to business (colloquial: B2B), leads to creation of the so-called value added communities in which the technological networking of companies does not depend on their commitment to the same company or the same business organisation. Direct communication results in timely deliveries of the needed raw materials, semi-manufactured products and parts. In that way even the most complicated products can be assembled correctly, on time, and respecting all the regulations set by the highest quality standards. That no longer requires formal involvement of suppliers in the business system, so very often some business functions or their parts are moved out of the organisation, in order to decrease expenses, and the care for rationalization is put on the supplier outside the system. However, electronic networking of such organisations does not reduce total efficiency but it does create especially favourable conditions for existence of many small and medium companies tightly connected with large business systems. For bigger influence of social entrepreneurship in society needed is a synchronized action of individuals who want to work not only for their own benefit but also for the benefit of common good and of state institutions that give room to entrepreneurs for free market activities even if they were previously treated as public and non-profit. Therefore in order to understand and create social entrepreneurship it should be freed of prejudice about caritative and non-market behaviour. What should be recognized instead is the opportunity given by the market and democracy to modern day entrepreneurs. It is an opportunity to earn, in concordance with their partners (buyers, employees, suppliers), state and natural environment, a just market remuneration for their work and invested capital. They should not have long-term loses on either side for it would endanger elementary interests of civil society and legal state. Modern management is oriented towards motivating associates, and not towards exploiting them, whereas social entrepreneurship is oriented towards market and affirmation, not destruction, of common good. Individual affirmation can be achieved by care for common good, not by getting rich at other peoples expense. However that is not a matter of religious or utopian beliefs, but of standardized business in democratic conditions and under legal supervision. Standardization of social responsibility In the context of social care on entrepreneurial responsibility, it is not surprising that the need arises to coordinate procedures and rules on the global level. International standard SA 8000 sets requests for establishing and maintaining of systems for management of social responsibility. It was created as a voluntary standard to ensure respect of rights and morals in the production of goods and services. It is also applicable to all kinds of business and other organisations. The standard was developed in New York by the organisation SAI (Social Accountability International), former CEPAA (Council on Economic Priorities Accreditation Agency), and in cooperation with a large number of companies, non-government organisations and unions. Mission of this standard is global improvement of working conditions, and it is based on conventions of International Labour Organisation (Occupational Safety and Health Convention, Women Protection Convention, and so on) and United Nations conventions (Convention on the Rights of the Child, Universal Declaration on Human Rights, and so on). International Standardization Organisation (ISO) prepares an international standard ISO 26000 with requests for establishing system of managing social responsibility. Since its structure will be coordinated with the already existing ISO standards for management systems (quality and environment management), the future system for managing social responsibility will be a suitable component of integrated management systems. The most prominent demands of the current SA 8000 standard are standards for health and safety at work, which gives it a special significance in the context of managements social responsibility. What is the importance of standardization in global context? Firstly, it should accentuate concordance on what the benefits are for all those that standards apply to. Further on, it should determine the frames within which the problems will be solved on national level so that operational implementation of the standardization idea could be achieved. The biggest problems however happen when any global idea tries to be implemented on national level. The reason for that is non existent responsibility of any world government, or any world inspection supervision mechanism, or even any world repression or world judiciary mechanism, regardless the effort of the United Nations and other global organisations such as the World Bank, International Monetary Fund or transnational courts with limited mandate to justify their existence. All these organisations lack the democratic election mechanisms since they function according to logics of the chief financier, meaning they are responsible to finance source and not to an imaginary world democratic electoral body. The positive side of standards is that they are more technically and less politically defined, and are therefore focused on processes and procedures used to achieve a certain quality level, regardless the subjective environment influences. To avoid subjectivism there should be a national legislature that accepts standard and implements it according to their national supervision and sanctioning mechanisms. The assumption is that all these national mechanisms are based on democratic components and market economy. Standards are minimum needed tolerance in the sphere of social responsibility in order to achieve principles of social entrepreneurship. For having a better overview of the importance of international standardization in the sphere of social responsibility there should be given a full overview of the standardization scope. Child labour. Child labour is forbidden for children under 15 years of age. It is necessary to ensure help for children who could lose their job due to application of this standard (education, development, health and safety). Forced labour. Forced labour is forbidden. Employment of workers must not be conditioned by retaining identification documents or deposit. Health and safety. Employer, i.e. management must ensure a healthy and safe working environment, take measures to prevent injuries at work, introduce education on health and security at work, establish a system that recognizes possible threats on health and security, ensure usage of clean sanitary rooms and potable water. Free associations. Management must ensure for workers to freely and without pressure establish and join unions and to collectively negotiate. Discrimination. Any discrimination based on race, nationality, origin, religion, abilities, sex, sexual orientation, association membership, or political affiliation is forbidden. Discipline. It is forbidden to punish, psychologically or physically abuse or verbally humiliate. Working hours. Working hours must be in accordance with law regulations, but no longer than 48 hours a week with at least one day off per week, overtime work is on voluntary basis and cannot exceed 12 hours a week, it is paid according to a privileged hourly wages (mandatory overtime work can be determined for a short term by a collective agreement). Remuneration. Worker remunerations must be in line with legal regulations and sufficient for meeting basic workers' needs. Discipline measures in form of pay cuts are forbidden. Management system. Requests for establishing social responsibility management system SA 8000 include requests for: documentation (policies, procedures), board management representative responsible for fulfilling requests, planning and implementation, supplier evaluation, corrective and preventive actions, external communication and entries. By establishing social responsibility certification system, entrepreneurs show high level of consciousness for modern business and care for individual and environment. Conclusion Social entrepreneurship can be seen as a special form of entrepreneurship that includes both traditional concepts of entrepreneurship, market, as well as care for common good. Common good is not only an abstract formulation on non-determined ethic values, but it is also the coordination of certain business interests with interests of development of social community and protecting the natural environment. That implies that social entrepreneurship cannot be a Utopian thinking about giving up the profit but it is affirmed in the conditions of normal market functioning. For the social component of entrepreneurship it is important to avoid possible long-term loses on either sides involved in the traditional market exchange of supply and demand. If interests of all sides included in an entrepreneurial activity are not achieved, instability appears very soon which leads to different social conflicts. Social rebellion and dissatisfaction of workers are equally dangerous as is dissatisfaction of buyers due to high prices and poor quality or dissatisfaction of suppliers to which companies under the state protection do not pay for the delivered goods and services. Even dissatisfaction of the state, caused by uncollected taxes, equally endangers social stability, because in those conditions quality of social activities is the first to go down: from hospital care to court and police protection. On the level of a small state conflicts are more easily noticed, but consequences of their creation can also be more quickly attenuated. Encouragement of social entrepreneurship is possible only if there is simultaneous affirmation of legal state and civil society institutions. If every small entrepreneur needs social support in terms of creating conditions for more favourable financing or better education, social entrepreneur also needs other kinds of protection. This protection is given to him by institutions of social democracy. Social entrepreneurship can be accepted as a real model of social development, and the intensity of its affirmation is going to depend on social support and application of information technology. Society support to social entrepreneurship is no different than the traditional support to small and medium companies. Institutional and material support will give better results if there is climate of social security in local communities, which would be appropriate to a developed civil society and free market competition. Internet based direct networking of small and medium companies with large business systems is an additional impulse to development of social entrepreneurship. At this moment Christian social teachings contribute to affirmation of social entrepreneurship more than just a moral influence on a limited religious group because it promotes the idea of global dispersion of the social entrepreneurship principles as a creative initiative of an individual and state institutions to achieve common good. This completely corresponds to the super national activities of standardizing social responsibility and making it a normal component of a successful market business. 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Z.: Odnos gospodarskog i socijalnog u svjetlu katolickog socijalnog nauka (Relation of Economic and Social in Light of Catholic Social Teachings), in Trzisna demokracija u Hrvatskoj-stanje i perspektive (Market Democracy in Croatia: Situation and Prospects), (HAZU, Zagreb-Varazdin, 2000) Sinyai, Clayton, Meet the Innovators America, The National Catholic Weekly, New York (Sep 13, 2004) What is a Social Entrepreneur ,  HYPERLINK http://www.ashoka.org/fellows/social_entrepreneur.cfm http://www.ashoka.org/fellows/social_entrepreneur.cfm Warsh, D.: `to je to poduzetniatvo (What is Entreprneurship), u knjizi: Collins, E.G.C. and Devanna, M.E.: Izazovi menad~menta u XXI. stoljeu (The New Portable MBA), MATE, Zagreb, 2002. Zenit,  Toward a Moral Economic Life  HYPERLINK "http://www.catholiceducation.org/articles/social_justice/sj00190.html" http://www.catholiceducation.org/articles/social_justice/sj00190.html  It is a fact that the Church has been slow to recognize the gravity of the ecological problems, for the society and for the individual. There are beliefs that the encyclical, pointing out the importance of nature for man, as well as importance of social concern for nature, Sollicitudo Rei Socialis, The Social Concerns of the Church (John Paul II, 1987), is actually a proof that the Catholic Church moved on this sensitive issue after almost all the other world institutions had already done so. For more detail: Sean McDonagh, S.S.C., The Greening of the Church, (1990): 175, 187.  HYPERLINK "http://www.shc.edu/theolibrary/resources/comments_cst.htm" http://www.shc.edu/theolibrary/resources/comments_cst.htm  Editorial, Solidarity in globalization, America (Jun 3-Jun 10, 2000): 3.  Peter, F. Drucker, Innovation and Entrepreneurship, (Melbourne: Collins, 1993): 22.  Means, G. and Schneider, D., Meta-Capitalism, (New York, John Wiley and Sons, 2000): 19.  Pontifical Council for Justice and Peace,The Compendium of the Social Doctrine of the Church (Vatican, 2004)  Zenit, Toward a Moral Economic Life  HYPERLINK "http://www.catholiceducation.org/articles/social_justice/sj00190.html" http://www.catholiceducation.org/articles/social_justice/sj00190.html  Globalization must be regulated by international consensus, America, The National Catholic Weekly, New York (May, 19, 2003): 5  Sinyai, Clayton, Meet the Innovators America, The National Catholic Weekly, New York (Sep 13, 2004): 24  Dees, J. G., Haas, M. and Haas, P.: The Meaning of "Social Entrepreneurship", 1998,  HYPERLINK http://www.the-ef.org/resources-Dees103198.html http://www.the-ef.org/resources-Dees103198.html  Warsh, D.: Sto je to poduzetnistvo, in: Collins, E.G.C. and Devanna, M.E.: Izazovi menadzmenta u XXI. stoljecu, (MATE, Zagreb, 2002.): 4.  What is a Social Entrepreneur,  HYPERLINK http://www.ashoka.org/fellows/social_entrepreneur.cfm http://www.ashoka.org/fellows/social_entrepreneur.cfm  David Bornstein, Social Entrepreneurs and the Power of New Ideas (Oxford University Press, 2004): 1  Merging Mission & Money,  HYPERLINK http://www.socialentrepreneurs.org/home.htm http://www.socialentrepreneurs.org/home.htm  Sagi, B. 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a.h"+B*CJOJQJ^JaJeh@phr@)h a.h"+B*CJOJQJ^JaJph h a.h"+CJOJQJ^JaJ uvS[Ѹћmi_iUH;0h$Ch"+B*phh$Ch"+6B*phh$Ch"+B*\phh"+B*\phjh"+0JUh"+(h a.h"+B*CJOJQJ\aJph0h a.h"+0J>*B*CJOJQJ^JaJph8j h a.h"+B*CJOJQJU^JaJph1h a.h"+B*CJOJQJ^JaJmHphsH)h a.h"+B*CJOJQJ^JaJph2jh a.h"+B*CJOJQJU^JaJphXaFstujvwwwww w$w&w*wgdJQgdc+"gdZgd~Tgd%)gdkrgdQgdHrgdZgd/gd<7gd$C[\<WXY[|ͳ윔xqiqZOhQh"+B*phjh"+0JB*UphhJ&h"+6 hJ&h"+h"+0J>*B*phj| h"+B*Uphh"+B*phjh"+B*Uphjh"+0JUh<7h"+6B*phh<7h"+B*\phh<7h"+B*ph h<7h"+jh<7h"+0JUh"+h#h"+B*CJaJph|}?`ab~ 'r𼫠xe[WSLSLJU hJ&h"+hQh"+jh"+0JU$jhQh"+B*UphjhQh"+0JUhQh"+CJaJmH sH hQh"+CJ]aJhQh"+CJaJ!jhQh"+0JCJUaJ hQh"+hQh"+0J>*B*ph$jhQh"+B*UphhQh"+B*phjhQh"+B*Uphocijalnog nauka , Zbornik radova s meunarodnog simpozija: Trzisna demokracija u Hrvatskoj-stanje i perspektive, (HAZU, Zagreb-Varazdin, 26. and 27. 10.2000): 49.   Declaration on Small and Medium-sized Enterprises at the Dawn of the 21st Century , CEI Working Group on SME and United Nations Economic Commission for Europe, (Budapest, 24 November 2000): 4.  Manzone, G.: Il Mercato, Teorie economiche e dottrina sociale della Chiesa, Queriniana, Brescia, 2001., p. 328.  For more detail see: Caloia, A.: L imprenditore sociale, Piemme, Casale Monferrato, 1995.  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