Key Concept 6:
Judging from the economist point of view, market value is enhanced by the residue captured by both supplier surplus in terms of profits captured by the entrepreneurs or organizations and the consumer surplus in terms of benefits perceived i.e. psychic benefits as well. In this way, Robert Barro’s view is justifiable in that no institution can match the power of the large corporation in creating value, as large corporate is capable to generate larger amounts of both supplier surplus and consumer surplus and thus the residues in the market. Residue values are not just financial but also exhibit both reputational and ethical residue values. In other words, by venturing into the social innovation, an enterprise is also enjoying the reputation and ethical residue value projected by the societies. On the commercial basis, the existence of an ethical residual is precisely what makes it possible for products that have a clear and persuasive ethically based brand to be priced at a premium. It is this creation of ethically strong brand that motivate further ethical commitment or reinvestment of social entrepreneurs, social innovation, and new ventures etc. These financial, reputational, and ethical residuals are thus characterized as the “private values” returned to the social entrepreneurs or social innovation entities.