Research Article
A Case Study of Social Enterprise using Linked Employment System for The Disabled: Bearbetter
1 Chung-Ang University, 2 Sejong University, 3 Woosong University
Published: January 2017 · Vol. 21, No. 1 · pp. 139-160
Full Text
Abstract
The purpose of this case study is to assess the social achievements of social enterprises in Korea and to give a practical implication for potential social entrepreneurs. Social enterprise is an organizational form reflecting a nation’s social responsibility and value of life. In Korea, social enterprise promotion act was enforced from year 2009 and many social enterprises were started for last 9 years. However, the failure rate of social enterprises is increasing continuously and the status of Korean social enterprise is still staying at an immature stage. In this case study, we select Bearbetter, a for-profit social enterprise running by those with developmental disabilities, as a good business case of social enterprise in Korea. The company has been made success using linked employment system for the disabled. The act on employment promotion for the disabled requires that mid and above sized companies to employ a certain rate of the disabled. Bearbetter sells its products manufactured by the disabled employees to the client companies by making contracts with them requiring the disabled employment. Then, the client companies can have a penalty exemption by hiring disabled persons indirectly through the linked employment system of Bearbetter. Bearbetter made a great performance and economic growth using the linked employment system. In addition, Bearbetter builds a customer loyalty by manufacturing quality goods and providing good delivery service. The company sets up advanced manufacturing facilities for improving the efficiency of the disabled employees and provides special equipments for safe delivery of its products. The case of Bearbetter shows how virtuous circulation system between social enterprises and other companies can creat a synergy effect. This case study also suggests that governance’s policy on social enterprise can make a significant influence on the success of social enterprise.
