The Innovation of Social Enterprise Certification Regulations through Social Value: The South Korea’s Case

The Innovation of Social Enterprise Certification Regulations through Social Value: The South Korea’s Case

Purpose: The purpose of this study aims to find the way in which policy implementation structure is established to support social enterprise applicants. Together with it, the study proposes the social innovative measures of the social enterprise certification program based on bureaucratic administration through the discovery of social val-ues. Methods: The article examines public data on social enterprise certification from 2007 to 2022 and interviews with the stakeholders in social enterprise by utilizing Enroljas’ mimetic institutional isomorphism that focuses on the system, actors, and the interaction among actors as variables. Chapter 2 discusses social enterprise, admin-istrative decentralization, social value and social innovation. Chapter 3 conducts an institutional analysis of the certification support administrative system. Chapter 4 undertakes an institutional analysis of the designation support administrative system. Chapter 5 pinpoints the limitation of the certification in the realization of social value, suggest the social purpose company as innovation, and compares the independent legal entity of social enterprise between Korea, UK and US. Results: The certification and designation system are operated by the dual management mode of administra-tive organization and intermediate organization. The policy implementation structure consist of vertical structure between administrative organizations and horizontal structure between administrative ones and intermediary. The certification system suppresses the realization of the social value of social enterprises and experiences the organizational identification. Conclusion: The independent legal entity of social enterprises is an institutional innovation instead of bureau-cratic certification program. This outcome is confirmed by comparing the institutions of social enterprise legal entities in the United States and the United Kingdom.