The Dimension of Accountability in Social Enterprises

Social enterprises are regarded as a new type of capitalism that combines market-based and philanthropic approaches. Based on the model, they serve as an innovative response to the lack of funding available to traditional non-profit organisations and the incapacity of traditional for-profit organisations and government agencies to meet the greater community’s needs. Numerous social enterprises in Malaysia achieve their objectives of promoting sustainable living and enhancing the economic status of disadvantaged individuals. However, due to their double-bottom-line objectives and multiple stakeholder participation, social enterprise accountability differs from that of for-profit and government organisations. The four common dimensions of accountability in social enterprises are accountability for social impact, financial accountability, accountability to stakeholders, and governance accountability. Nonetheless, it is essential to acknowledge that accountability in social enterprises is complex and requires ongoing efforts to balance competing priorities and satisfy the expectations of diverse stakeholders. Reporting should provide a clear and concise summary of the organisation’s impact, highlighting key accomplishments, obstacles, and lessons learned. As social entrepreneurship develops, the pursuit of accountability becomes increasingly important.