Social Intrapreneurism and All That Jazz

Key Takeaways

1. Social intrapreneurs innovate within companies to create both profit and social impact

"We define social intrapreneurs as 'people within a large corporation who take direct initiative for innovations that address social or environmental challenges while also creating commercial value for the company'."

Agents of change. Social intrapreneurs are employees who develop innovative solutions to social and environmental problems while creating business value for their companies. They operate within existing corporate structures, leveraging organizational resources and capabilities to drive sustainable change on a large scale.

Dual value creation. Unlike traditional corporate responsibility initiatives, social intrapreneurial projects aim to generate both societal benefits and commercial returns. Examples include:

• Allianz's microinsurance products for low-income markets
• Vodafone's M-PESA mobile payment system in Kenya
• Natura's sustainable sourcing practices in Brazil

Bridging business and society. Social intrapreneurs act as bridges between their companies and wider societal needs, identifying opportunities where business innovation can address global challenges such as poverty, climate change, and resource scarcity.

2. Successful social intrapreneurs share key mindsets, behaviors, and skills

"Social intrapreneurs demonstrated some dominant behaviours in the process of becoming aware of societal challenges and in their approach to resolving them. Three behaviours were most common: persistency and self-belief, learning, and outreach."

Mindsets:

• Societal value orientation
• Ability to transcend either/or thinking about business and society
• Openness to new experiences and challenges

Behaviors:

• Persistence in pursuing ideas despite obstacles
• Continuous learning and adaptability
• Proactive outreach to build partnerships and support networks

Skills:

• Entrepreneurial thinking and opportunity recognition
• Strong communication and storytelling abilities
• Capacity to navigate corporate politics and build alliances

These attributes enable social intrapreneurs to identify opportunities, develop innovative solutions, and successfully implement projects within complex organizational environments.

3. Companies react differently to social intrapreneurs based on their CR maturity level

"How companies react depends very much on their maturity in issues on corporate responsibility and sustainability."

CR maturity spectrum. Companies' responses to social intrapreneurism range from active rejection to mature empowerment, depending on their level of corporate responsibility (CR) maturity:

1. Defensive: Reject social innovation ideas
2. Compliance: Indifference or bemusement towards proposals
3. Managerial: Tolerate ideas but may unintentionally smother them
4. Strategic: Actively empower social intrapreneurs to create shared value
5. Civil: Engage in corporate activism and cross-industry collaboration

Alignment challenges. Social intrapreneurs often face challenges when their personal CR maturity level exceeds that of their organization. This misalignment can lead to frustration, exasperation, or even exit from the company.

Evolution of support. As companies progress along the CR maturity spectrum, they become more receptive to social intrapreneurial ideas and develop structures to support and scale these initiatives.

4. An enabling corporate environment is crucial for social intrapreneurism to thrive

"Companies can create an enabling environment for social intrapreneurship or, at the opposite extreme, a disabling environment."

Key enablers:

• Culture that fosters Dialogue, Autonomy, Risk-taking, Experimentation, and Sustainability (D.A.R.E.S.)
• Supportive leadership and "godparent" mentors
• Access to resources and flexible accounting mechanisms
• Organizational structures that promote cross-functional collaboration
• HR practices that recognize and reward social innovation

Disabling factors:

• Rigid hierarchies and bureaucracy
• Short-term thinking and excessive focus on quarterly results
• Lack of processes to engage employees in innovation
• Fear of failure and risk aversion

Cultivating "café culture." Companies that create time and space for informal idea-sharing and cross-pollination of concepts are more likely to foster social intrapreneurial initiatives.

5. External partnerships amplify the impact of social intrapreneurial projects

"Social intrapreneurs often feel alone inside their companies swimming against the current. External networks and groups help in finding people with similar ideas and values."

Key external partners:

• NGOs and civil society organizations
• Academic institutions and business schools
• Corporate responsibility coalitions
• Social innovation networks and incubators
• Government agencies and development organizations

Benefits of partnerships:

• Access to specialized knowledge and expertise
• Enhanced credibility and legitimacy for projects
• Expanded networks and resources
• Opportunities for experiential learning and skill development

Collaborative models. Successful social intrapreneurs often develop innovative partnership models, such as Accenture Development Partnerships, which combines corporate expertise with development sector needs.

6. Social intrapreneurism generates tangible benefits for individuals, companies, and society

"Social intrapreneurism does not only impact on company results but also on society and is thus a practical way to create what Porter and Kramer (2011) termed 'shared value'."

Individual impacts:

• Career advancement and new leadership opportunities
• Personal fulfillment and sense of purpose
• Development of new skills and networks

Company benefits:

• New revenue streams and market opportunities
• Enhanced innovation capabilities
• Improved employee engagement and talent retention
• Strengthened brand reputation and stakeholder relationships

Societal impacts:

• Scalable solutions to social and environmental challenges
• Financial inclusion and poverty alleviation
• Environmental conservation and resource efficiency
• Improved health outcomes and access to essential services

Measuring success. While quantifying the full spectrum of impacts can be challenging, leading companies are developing new metrics and accounting practices to capture the multi-dimensional value created by social intrapreneurial initiatives.

7. Managers can foster social intrapreneurism by "playing the C.H.A.N.G.E.S."

"Managers who want to promote social innovation in their companies need to learn how to 'play the C.H.A.N.G.E.S.' described above."

C.H.A.N.G.E.S. model:

• Cultivate "café culture" that fosters open dialogue and idea-sharing
• Humanize the organization to promote egalitarianism and generosity
• Account for social and environmental value creation alongside financial metrics
• Network inside and outside the organization to build consortia for action
• Grow people into leadership roles for sustainable business
• Experiment with social intrapreneurism pilots that can be scaled up for impact
• Strategize to achieve sustainable business and societal goals

Leadership role. Managers play a crucial role in creating an enabling environment for social intrapreneurism by championing these practices and providing air cover for emerging initiatives.

Systemic approach. Implementing the C.H.A.N.G.E.S. model requires a holistic approach that touches on corporate culture, strategy, HR practices, and operational processes.

8. The future of business lies in embracing social intrapreneurism as a new paradigm

"Ultimately we envision that social intrapreneurism will become not merely a new approach to corporate responsibility and sustainability practice but a gateway to an entirely different way of doing business."

Paradigm shift. Social intrapreneurism represents a leading edge of business transformation, moving beyond traditional CSR to integrate social and environmental value creation into core business strategies.

Emerging trends:

• Redefinition of business purpose beyond shareholder primacy
• Increased emphasis on stakeholder engagement and co-creation
• Growth of cross-sector collaborations and partnerships
• Development of new metrics and valuation models for sustainable business
• Rise of the sharing economy and servitization business models

Call to action. To accelerate the adoption of social intrapreneurism, the authors call for:

• Greater awareness-raising and education on the concept
• Development of support networks and communities of practice
• Integration of social intrapreneurism into business school curricula
• Increased research on best practices and impact measurement
• Corporate commitments to fostering enabling environments

By embracing social intrapreneurism, businesses can unlock new sources of innovation, drive sustainable growth, and contribute to solving global challenges at scale.

Last updated: August 8, 2024

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