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Wealth creating organization that has for its bottom line the provision of service to its constituencies or the public at large single bottom line to double/triple bottom lines
Income/ Profits Benefits and Service to the community Positive Impact on the Environment/ Cultural Integrity
It exists for a community (often marginalized) that sought to jointly improve their lot through collaborative, cooperative, and prosperity creatingcreating-sharing mechanisms
Creative, not bound by norms and traditions, skilled to do more than less
Exhibit a heightened sense of accountability to the constituencies served and for the outcomes created
Making sure that social improvements or social benefits are realized by their clients
a mission to create and sustain a social value (not just private value)
Working
Opportunity
Where
Oriented:
others see a problem an SE sees opportunity and they use this to relentlessly pursue their mission.
Basic goal is to uplift the lives and improve the well being of under-privileged and underdisadvantaged groups : To make others prosper A mechanism that deals with the MARKET to effect social change or meet development objectives
Traditional Enterprise
Stockholders or Proprietors. People who have capital invested in the Business Profits
Social Enterprise
Poor Sectors, Groups Community. May or may not own/ control the business Quality of Life, Environmental sustainability Distributive: Benefits distributed to a broader segment of society. Income not at the expense of society and the environment
Accumulative: Min Cost = Maximize profits/ Returns for the investor. Social and Environmental Cost externalized
Enterprise Philosophy
Copenhagen Business School New Markets Build Skills for Innovation Develop Bottom of the Pyramid Market
Premium Pricing
Margins + Sales
Gain New Clients Customer Loyalty Motivations for Business to Partner with Social Enterprise Motivates Staff Lower Capital Cost /Ethical Investors Efficiency Avoid Consumer Boycott
SMEs will always provide inputs to small producers or will process inputs from small producer. If SMEs are not FAIR:
The producers will switch to other products/ crops The producers will try to get even by bringing in bad quality
The long-term equilibrium is possible only if a longwinwin-win situation exists in the transaction
Good Non-Profit organizations (Social NonEnterprises) base their strategy on their mission and not on their money. This creates disciplined organizations. Many Non-Profits (Social Enterprises) have Nonfunctioning board and CEOs that are accountable to their Board
People are more committed to the cause, bring in resources and have knowledge of the operations
Social Enterprises in the Philippines Developing Sub-sectors/ industries SubKooperatibang Likas ng Nueva Ecija/ Pecuaria Development Cooperative Inc. = Introduced organic farming and consolidates organic products of the farmers in Nueva Ecija/ Bicol
Community Crafts Association of the Philippines = Exports handicrafts from communities. The communities as partners in business and not just raw material suppliers One Network Bank = rural bank in Mindanao that supports joint ventures in agribusiness among farmers, bank employees and the bank itself. Philippine Social Enterprise Network = 22 members engaged in various social enterprise activities in the country (Buglas Bamboo Institute, Inc)
BASIX, India
10,000 villages covered in India (micro-finance) (micro2 Billion Rs loaned out since 1996
Titan Industries (India), 6th largest global player in the manufacturers brand
Support social development projects using 63% of total capital of parent Firm (Philanthropic Foundation) Dutch organization engaged in processing wood from community managed Forests
Community receive better income therefore they maintain their forest area Partnership with business maintains the efficiency in operations and stable links with the markets
Grown and harvested by communities Processed and Standardized by TRC Sold to stable markets and high end markets
The Future is not some place we are going to, but one we are creating; the paths to it are not found but made; and the making of those pathways changes both the maker and the destination
Australian Commission for the Future, 1996
Thank You