Public trust in Chinese elder-care social enterprises: common awareness and diverse perspectives from key stakeholders

Social enterprises (SEs) in China are a relatively new phenomenon, defined as hybrid organizations combining business activities with a social mission. Unlike non-profits, SEs generate revenue but reinvest profits into societal projects. While the number of SEs is growing rapidly, a lack of legal status and clear definition creates ambiguity. This study focuses on elder-care SEs, a significant segment of the Chinese SE sector, to explore public trust. Public trust is crucial for SEs, especially in ambiguous situations, as it bridges information uncertainty. This research employs a stakeholder-specific trust approach, identifying five key stakeholder groups to understand how their perceptions shape overall public trust. The central research question is: How do key stakeholders of Chinese elder-care SEs trust this hybrid organization?

The paper reviews literature on social enterprises, highlighting their hybrid nature and the challenges of ambiguity in their legal framework and public perception. It discusses the importance of public trust for value-driven organizations operating under ambiguous conditions. The concept of stakeholder trust is introduced as a lens to understand public trust, considering stakeholders' varying relationships with the organization and their influence on trust formation. The study draws upon existing research on trust attributions (ability, benevolence, integrity, transparency, and value congruence) and stakeholder theory, integrating these with the context of Chinese elder-care SEs and their hybrid organizational characteristics.

This study used a qualitative methodology, combining semi-structured interviews and participatory observations with purposive sampling to gather data from five key stakeholder groups. Seventeen semi-structured interviews and three participatory observations were conducted between March 2022 and January 2024, with additional data added in May 2023. Participants included founders and employees of elder-care SEs (of varying sizes), representatives from intermediary organizations involved in SE certification, investors with diverse investment objectives, and customers of elder-care services. A semi-structured interview guide, informed by a heuristic framework integrating trust attributions and the dual dimensions of elder-care SEs (social and business), guided data collection. Thematic analysis was used to identify common awareness and diverse perspectives among stakeholders regarding trust in elder-care SEs.

The analysis revealed two major themes: common awareness and diverse perspectives. Regarding common awareness, a significant finding was the widespread lack of public awareness and confusion surrounding the concept and practice of elder-care SEs. The public often struggled to distinguish SEs from other elder-care providers, resorting to a binary classification of "public" or "private." Despite this lack of awareness, stakeholders generally held positive perceptions of the social mission aspect of SEs, although there was weak consensus on their operational standards and definitions. The diverse perspectives theme highlighted the heterogeneous ways stakeholders assessed the trustworthiness of elder-care SEs. Founders' adherence to hybridity varied significantly based on factors like business maturity and community embeddedness. Employees' perspectives differed based on their roles and relationships within the SE; some were more deeply committed to the SE's values than others. Intermediary organizations applied relatively standardized criteria, emphasizing social mission fulfillment and business sustainability, while investors exhibited more varied criteria, reflecting diverse investment objectives and risk tolerances. Customers primarily focused on service quality and competence, with limited awareness or concern regarding SE's unique organizational identity.

The findings demonstrate that public trust in Chinese elder-care SEs is complex and multifaceted. The lack of public awareness and clear SE norms poses a significant challenge to their growth and legitimacy. The study's framework, based on stakeholder-specific trust, reveals the diverse perspectives and the different levels of rigor applied to assess the hybridity of these organizations. The contrasting approaches of different stakeholders towards assessing SEs underscores the need for clearer communication about what constitutes an SE and the value it delivers. The study offers implications for policymakers, investors, and SE practitioners seeking to build public trust and improve the legitimacy of this emerging organizational form.

This study contributes to the understanding of public trust in emerging hybrid organizations like Chinese elder-care SEs. The findings highlight the critical role of public awareness, consensus on SE norms, and the diverse perspectives of stakeholders in shaping trust. Future research could focus on expanding the stakeholder sample to include other crucial groups, adopting quantitative methods to broaden the scope of the analysis, and exploring the effectiveness of different strategies to improve public trust in SEs across various regions in China.

The study's limitations include the focus on a specific geographical region and a relatively small sample size of stakeholders. The reliance on a stakeholder-specific approach also means other stakeholders were not included, potentially affecting the generalizability of the findings to the broader public. Further research with a larger, more diverse sample and a broader geographical scope is needed to validate these findings.