The regulation of social enterprises in the United Kingdom and South Korea: lessons for Malaysia

Purpose This study aims to analyze the legislative frameworks governing the Community Interest Companies in the UK and social enterprises in South Korea, drawing comparative lessons to formulate recommendations for key legislative elements for the Malaysian legislature and other countries seeking to support this growing sector. Design/methodology/approach This study uses the doctrinal legal studies approach known as the black letter approach, to interpret and analyze the legal frameworks of the UK and South Korea. A thorough legal analysis was undertaken to consider the lessons specifically applicable to the Malaysian legislature. Based on this analysis, recommendations are proposed specifically for the Malaysian legislature and, more generally, for other jurisdictions. Findings The study revealed that both the UK and South Korea use unique methodologies in recognizing and regulating the social enterprise sector demonstrating that no single “one-size-fits-all” approach. The effectiveness of a specific legal form or legal certification depends on, among other matters, the legal and social enterprise landscape of a given country. These two frameworks offer valuable learning opportunities for Malaysia, and other jurisdictions regarding the key elements of social enterprise legislation. Originality/value This paper addresses the research gap on social enterprise regulation by comparatively analyzing the UK and South Korean frameworks. Considering the Malaysian context, the paper formulates recommendations regarding the key elements of legal frameworks for social enterprise. It contributes to the field by exploring both approaches – creating a specific legal form and conferring legal certification – and identifying key legislative elements and providing practical guidance for legislature.