Dr David Bozward Learning Goals Definition of social enterprise Understand the crosssector theories of social enterprise Identify popular companies in the health sector and their social impact ID: 421855
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Slide1
Social Enterprise Cross Sector Theory
Dr. David BozwardSlide2
Learning Goals
Definition of social enterprise.
Understand the cross-sector theories of social enterprise.
Identify popular companies in the health sector and their social impact.Slide3
Origins & Early Development
Social entrepreneurship (primarily US-led)
ASHOKA (USA) - 1980
School for Social Entrepreneurs (UK) - 1997
Schwab Foundation (USA) - 1998
Community Action Network (UK) - 1998
Social enterprise (primarily EU-led)
Social Audit Tools - for worker and community co-ops (UK) - 1979
Social Cooperative Law (Italy) - 1991
Social Enterprise Institute (Harvard, US) - 1993
EMES European Research Network (EU) - 1994
Social Enterprise London (UK) - 1998
Social Enterprise Alliance (USA) - 1998
Social Exclusion Unit (UK Government Report) - 1999Slide4
UK Definition
‘Social enterprise’ means an enterprise whose primary objective is to achieve social impact rather than generate profit for owners and stakeholders. It operates in the market through the production of goods and services in an entrepreneurial and innovative way, and uses surpluses mainly to achieve social goals. It is managed in an accountable and transparent way, in particular by involving workers, customers and stakeholders affected by its business activity.
See DTI (2002) A Strategy for Social Enterprise, London: HM Treasury, p7.Slide5
Cross Sector Theory
Hybridisation (
Nyssens
, 2006:318)
"…we argue that social enterprises mix the economic principles of market, redistribution and reciprocity, and hybridize their three types of economic exchange so that they work together rather than in isolation from each other."
Leadbeater's
Model (1997)
First theorisation of social entrepreneurship as cross-sector
Recognises private and public sector influences
Does not see social enterprise as a distinct sector
Does this lead to hybrid forms of organisation?Slide6
Public Sector
Third Sector
Private Sector
A –
Non
Profit
B - CSR
C -
More
than Profit
D –
Multi
Stakeholder
Cross Sector
Theory
More mission
focused
More market
focusedSlide7
Cross-Sector Theory of Social Enterprise
Type A
Non-Profit Model
Public interest outlook, hostility to private sector ownership and equity finance.
Between public and third sectors
.
'Non-profit' - obtains grants and/or contracts from public sector and third sector
organisations
- structured to prevent profit and asset transfers.
Type B
Corporate Social Responsibility Model
Suspicious of the third sector as a viable partner in public service delivery and economic development.
Between public and private sectors
.
Corporate social responsibility projects - environmental, ethical or fair trade business - ‘for-profit’ employee‑owned business.
Type C
More That Profit Model
Antipathy to the state (central government); realistic about the state’s capacity to oppress minorities.
Between private and third sectors
.Single or dual stakeholder co‑operative, charity trading arm, membership society / association, or a trust that uses trading surpluses to increase social investment.
Type D
(ideal)
Multi-Stakeholder Model
Replaces public, private and third sector competition with a democratic multi-stakeholder model.
At the overlap of all three sectors
.Multi-stakeholder, democratic enterprise using direct and representative democracy to achieve equitable social and economic benefits.
Adapted from Ridley-Duff, R. J. (2008) “Social Enterprise as a Socially Rational Business”,
International Journal of Entrepreneurial
Behaviour
and Research,
14(5): 291-312.Slide8
Social Enterprise Factors
Company Structure
Strategic Intention
Governance
Financial
Total Turnover
Turnover dedicated to social impact
Social Impact
Interventions
PR & PolicySlide9
NHS
England
Governance
Public
Social Strategic
Intention
The English NHS is controlled by the UK government through the Department of Health (DH), which takes political responsibility for the service. Resource allocation and oversight was delegated to NHS England, an arms-length body, by the Health and Social Care Act 2012.
Total Turnover
£95bn
Social Impact Turnover
100%
Interventions
The NHS in England deals with over 1 million patients every 36 hours.
PR / PolicyBest Practice PolicyExampleSlide10
Public Sector
Third Sector
Private Sector
A –
Non
Profit
B - CSR
C -
More
than Profit
D –
Multi
Stakeholder
Cross Sector
Theory
Slide11
Nuffield Health
Governance
Charity
Social Strategic
Intention
Prevention of sickness by helping people to become and remain fit and healthy;
Identification, assessment and containment of health risks;
and treatment of health problems.
Total Turnover
£650.2m
Income from the Hospital and Wellbeing’s clinical activities;
Wellbeing membership
Management contracts for wellbeing services
Social Impact Turnover100%Interventions51,300 orthopaedic procedures, reducing patients’ pain and increasing their mobility;29,500 general surgical procedures;
16,300 ophthalmic procedures to improve patients’ sight; and52,800 MRI scansPR / PolicyNone noteworthySlide12
Cancer Research
Governance
Charity
Social Strategic
Intention
Increase our investment to support the earlier diagnosis of cancer.
Increase our research effort in lung, pancreatic,
oesophageal
cancers and brain
tumours
to accelerate progress.
Discover and develop new tests, surgery and radiotherapy techniques, new drugs, and speed up the pace at which research is translated into benefits for patients.
Optimise
every individual’s chance of beating cancer.Work towards the day when no one in the UK smokes.Give every cancer patient information to know their choices and to join the fight against cancer.Total Turnover£490m£163m Legacies £123m Donations£76m Retail
£70m Events£38m Local GroupsSocial Impact Turnover100%InterventionsFund 4,000 scientists. Continues to fund some of the UK’s best cancer research, including 26 new programme grants, 12 translational projects, 17 trials and feasibility studies and 13 fellowships and awards for new investigators. Remain the largest charitable funder of cancer research worldwide.PR / PolicyHelped secure smoke-free legislation across the UK and a ban on sunbeds in England and Wales for under-18s.Slide13
British Red Cross
Governance
Charity
Social Strategic
Intention
Help millions of people prepare for, respond to and recover from all kinds of crises – disasters, conflicts and health-related or other personal crisis.
Total Turnover
£228.4m
£106.5m Donations
£21.8m Legacies
£28.1m Retail
£44.0m Contracts and fees
£25.1m Grants
£2.9m Other income Social Impact Turnover100%
InterventionsVolunteers and staff treated 32,500 people at more than 7,800 events.PR / Policy1) securing inclusion of first aid on the national curriculum and encouraging more schools to teach first aid; 2) driving changes in the asylum system to reduce destitution of people receiving refugee status, and promoting the continued need for legal support for refugees seeking to be reunited with their families; 3) winning policy support at a national and local level for the importance of low level preventative health and social care to allow people to live with dignity and independence where possible in their own homeSlide14
St John Ambulance
Governance
Charity
Social Strategic
Intention
Increase the number of adults and young people able to deliver first aid
Increase the number of young people participating in St John Ambulance’s youth
programmes
, as well as extending the reach of these to disadvantaged groups
Increase awareness of the importance of first aid, encouraging people to acquire first aid skills
Maximise
St John Ambulance’s impact at events.
Total Turnover
£91.4mFirst aid training £38.8m (40%)First aid – ambulance and transport services £18.7m (19%)First aid provision and youth development £8.3m (9%)First aid products £8.3m (9%)Social Impact Turnover100%Interventions
250,000 people trained in the workplacePR / Policy15 million adults were reached with our ‘Save the boy’ TV campaignSlide15
Public Sector
Third Sector
Private Sector
Non
Profit
CSR
More
than Profit
Multi
Stakeholder
Cross Sector
Theory
Slide16
Bupa
Governance
Private (private company limited by guarantee)
Social Strategic
Intention
Focused program on three pillars: Orphans, Employees and Community.
Total Turnover
£9.1bn - £628.2M Profit
Social Impact Turnover
None Stated
Interventions
Health Care : 22m customers
CSR Activities are:
Orphans: 2451 Orphans free medical insurance and Day Activity in SaudiEmployees: Bupa football & basketball tournament, Bupa weight loss program and Bupa Stairs walk.Community: Health & wellbeing Information, E-Sehaty, and Bupa Global Challenge Initiative.PR / PolicyBupa will harness our expertise to better effect for customers and wider society, taking a greater role in shaping the patient’s healthcare journey and working with health systems to shape health policy in the interests of communities.Slide17
Boots
Governance
Private (Walgreens Boots Alliance, Inc.)
Social Strategic
Intention
We believe in making a difference and are proud of the contribution
we make to the wellbeing of the communities we serve.
Total Turnover
£23.4bn (Global) / £1.38bn (UK)
Social Impact Turnover
£3.9m
(UK)
Interventions
To establish meaningful multi-year partnerships with charitable organisations that share our values of making a difference and our commitment to improving health and wellbeing in the local communities that we serve.To raise over €5 million by 2016 to establish a ‘biobank’ for colorectal cancer in partnership with the EORTC Charitable Trust.For each principal business to establish partnerships with charitable organisations with supporting activities to improve the health and wellbeing of people within its local community. To make use of our significant consumer reach – through our owned and franchise pharmacies as well as the
Alphega Pharmacy network – with local programmes to deliver health related information and advice to customers and patients.PR / PolicySlide18
GSK
Governance
Private
Social Strategic
Intention
Our strategic priorities – grow, deliver, simplify – help us work towards our vision, while enhancing business performance and delivering sustainable growth.
We focus on understanding the needs of patients, consumers and individual markets so we can channel our research into developing appropriate products.
These insights also enable us to adapt our business model to improve availability and affordability.
Total Turnover
$23bn / $6.6bn profit
Social Impact Turnover
$221m
Interventions
We donated medicines valued at £146 million (at cost), including 763 million albendazole tablets to fight lymphatic filariasis and soil-transmitted helminths in 2013PR / PolicySlide19
Astra Zeneca
Governance
Private
Social Strategic
Intention
Established products
Growth platforms
Pipeline
Total Turnover
$26bn / $6.9bn
Social Impact Turnover
$1.2bn
Interventions
Through our three patient assistance programmes in the US we donated products valued at an average wholesale price of over $1.05 billion (2012: $1.12 billion).Young Health Programme (YHP) country programme and have 18 programmes under way around the world. With over 480,000 young people directly reached with the skills and information they need to improve their health, we have exceeded our target of reaching a minimum of 300,000 young people by the end of 2013PR / PolicySlide20
Summary
We often think of social with only one meaning for the entire sector.
Social enterprise is a useful umbrella terms for any (democratic) organisational form / activity where ‘people are not in it for the money’ but still generate a financial surplus
.
Social
enterprises transcend traditional sector boundaries and have the potential to form a
social economy
with distinct characteristics.
Models and diagrams can help to describe and explain the boundaries of the social economy, and its link to other economic sectors.Slide21
References and Reading
Alter, K. (2007)
Social Enterprise Typology,
www.virtueventures.com/typology
(version 1.5, published
27
th
November 2007)
CECOP (2006) “Social enterprises and worker cooperatives: comparing models of corporate governance and social inclusion”, paper to
CECOP European Seminar
, Manchester, 9
th
November.
Dees, G. (1998) “Enterprising Non-Profits: What do you do when traditional sources of funding fall short?”, Harvard Business Review, January-February, pp. 54-67.
Defourny, J. (2001) “Introduction: from third sector to social enterprise” in Borzaga, C. and Defourny, J. (eds) The Emergence of Social Enterprise, London: Routledge, pp.1-28.DTI (2002) A Strategy for Success, London: HM Treasury.Leadbeater, C. (1997) The Rise of the Social Entrepreneur, London: Demos.Morgan, G. G. (2008) “The
Spirit of Charity”, Professorial Lecture, Centre of Individual and Organisation Development, Sheffield Hallam UniversityNyssens, M., (2006) Social Enterprise at the Crossroads of Market, Public and Civil Society, London: Routledge.Ridley-Duff, R. J. (2008) “Social Enterprise as a Socially Rational Business”, International Journal of Entrepreneurial Behaviour and Research, 14(5): 291-312.Seanor, P., Bull, M. & Ridley-Duff, R. J. (2007) “Contradictions in social enterprise: do they draw in straight lines or circles?”, paper to 31st Institute of Small Business and Entrepreneurship Conference, Glasgow, 5th-7th November.Somers, A. (2007) "Blurring boundaries? New Labour, Civil Society, and The Emergence of Social Enterprise", presentation to the
4th Social Entrepreneurship Research Conference, London Southbank University.Spreckley, F. (2008) Social Audit Toolkit (Fourth Edition), St Oswalds Barn: Local Livelihoods Ltd.Westall, A. (2001) Value-Led, Market-Driven: Social Enterprise Solutions to Public Policy Goals, London: IPPR.Slide22
Resources and Support
Harvard Business School:
http://www.hbs.edu/socialenterprise/about/history.html
Brief history of social enterprise at a leading US university
Social Enterprise Alliance:
http://www.se-alliance.org/
The lead organisation advocating for social enterprise in the USA
The Social Enterprise Coalition:
http://www.socialenterprise.org.uk/
The lead organisation advocating for social enterprise in the UK
EMES European Research Network: http://www.emes.net Leading European network of researchers examining Third Sector and Social EnterpriseCo-operatives UK: http://www.cooperatives-uk.coop/ One of the founders of Social Enterprise Coalition in the UK.
Social Enterprise Magazine: http://www.socialenterprisemag.co.uk/Popular sectoral magazine.The Social Enterprise Institute: http://www.sml.hw.ac.uk/socialenterprise/ Scottish institute researching social enterprise at Herriot-Watt UniversityOffice of the Third Sector: http://www.cabinetoffice.gov.uk/third_sector/social_enterprise/Slide23
Public Sector
Third Sector
Private Sector
A –
Non
Profit
B - CSR
C -
More
than Profit
D –
Multi
Stakeholder
Cross Sector
Theory