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  • 작성자 사진speedshindong

What should social enterprises know about the balance between external legitimacy & internal morale?

Unintended Negative Effects of the Legitimacy-Seeking Behavior of Social Enterprises on Employee Attitudes. Frontiers in Psychology, 9(1991).



Abstract

In an emerging field such as social enterprise, it is important for an organization to

secure legitimacy to obtain resources and sustain its business. Specifically, when a

government distributing subsidies does not have adequate information to decide which

organization is trustworthy, it is the legitimacy-seeking activities of a social enterprise

that determines who receives a subsidy; this, in turn, decides which organization will

survive. One of the most effective ways to gain legitimacy is to explicitly emphasize

in the public promotion that the organization devotes to its social mission. In the

case of Work Integration Social Enterprises (WISEs), an organization emphasizes its

social employment of the disadvantaged individuals. However, we argue that social

enterprises’ public promotion that emphasizes social employment can lower the

expected wage, job satisfaction, and organizational commitment of the employees

who are hired due to their disadvantaged social status. This is because such obvious

promotional messages makes the employees more keenly aware of their disadvantaged

status; as a result, this reinforces their self-prejudice that they are not competitive

enough in the labor market. We test our hypotheses in the context of South Korean

WISEs and found general support for our arguments.

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