Social Enterprises and Benefit Corporations in China

Abstract

The reform of China’s social welfare system, the development of civil society, and the prosperity of corporate social responsibility have nourished the seeds of social enterprises in China, while the introduction of international social enterprise concepts has inspired social enterprises to take root. There are no legal forms specifically designed for social enterprise. Therefore, social enterprises have to adopt a legal status with one of the existing legal forms, such as enterprises, civil nonenterprise units, and specialized farmers’ cooperatives, and they are regulated and protected by the laws and regulations related to them. Also, the identity of social enterprises is given through the B Corp certification system or the indigenous certification system. Although the Chinese government is still cautious about formulating specific social enterprise laws and policies at the national level, there have been breakthroughs in local governments’ supportive attitudes and actions toward social enterprises. From a macroperspective, the state’s emphasis on the participation of market forces in public services and the introduction of China’s innovative policies in areas such as rural revitalization, elderly care, and so on have a positive impact on the practice of social entrepreneurship.