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This presentation was given in 2013 and explores how businesses can apply social enterprise thinking, and not only help society, but also improve customer and staff loyalty.
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Presented by Marcus Coetzee, ASEN
www.asenetwork.orgwww.facebook.com/ASENetworktwitter.com/ASENtweets
HOW TO APPLY SOCIAL ENTERPRISE THINKING TO YOUR BUSINESS
Prepared for the SAB Foundation: Entrepreneurs’ and Innovators’ Conference (June 2013)
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KEY THEMES TO BE DISCUSSED
• What is a Social Enterprise?
• Benefits of being a Social Enterprise.
• How to apply Social Enterprise thinking to your business.
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A BUSINESS PERSPECTIVE
Although this presentation has been pitched primarily for a business audience, there will still be valuable insights for NPOs.
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WHAT IS A SOCIAL ENTERPRISE?
SOCIAL MISSION
BUSINESS THINKING
ENTHUSIASIM
Remember that organizations that cannot adopt social enterprise business models can still embrace social enterprise thinking!
AMBITION
CREATIVITY
SOCIAL ENTERPRISE
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EVOLUTION OF ENTERPRISES
Another view is that organizations will all evolve into a social enterprise as their social consciousness increases.
SocialEnterp
riseResponsible Enterprise
Compliance Enterprise
‘Wild West’ Enterprise
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EXAMPLE: TRADE-MARK
TRADE-MARK is a social enterprise that connects the best trades-people from the townships with those who require their services. Trademark has a rigorous selection process and a performance-monitoring system that ensures both accountability and the highest quality service.
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EXAMPLE: IYEZA EXPRESS
Iyeza Express sends medication couriers on bicycles to collect chronic medication from local clinics for those unable to do so themselves. A nominal service fee is charged to sustain the operation.
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WHY DO SOCIAL ENTERPRISES EXIST?
• Massive development needs facing the world.
• Shortage of resources (donor funding, government expenditure, CSI funding etc.) to spend on addressing social problems.
• Difficult to grow successful social purpose organizations unless you have control over your money.
• Current organizational models not working effectively (hence the popularity of hybrid models).
• Increasing number of businesses (and business leaders) are getting involved in social issues.
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SOCIAL ENTERPRISE CHECKLIST
Does the enterprise have a clear social purpose?
Does the enterprise sell goods or services to its customers?
Does the enterprise use its profits to further its social agenda?
Does the enterprise run ethically?
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SOCIAL ENTERPRISES ARE YOU AWARE OF?
Exercise instructions:
• Groups of 4
• Each group to identify potential social enterprises
• Apply checklist
• Identify three valid social enterprises
• Report back to the plenary
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IS YOUR BUSINESS A SOCIAL ENTERPRISE?
Exercise instructions:
• Do the checklist for your business.
• How many of these criteria do you meet?
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BENEFITS OF BECOMING A SOCIAL ENTERPRISE
Customer loyalty
More than 88% of consumers think companies should try to achieve their
business goals while improving society and the
environment.
83% of consumers think companies should support
charities and nonprofits with financial donations.
Staff loyalty
32% of employees would seriously consider leaving their job if their company gave no / little money to
charity.
65% would seriously consider leaving their job if their company harmed the
environment.
83% would seriously consider leaving their job if their employer used child
labour in sweatshop factories.
Make a difference to
the world
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SOCIAL ENTERPRISE THINKING &YOUR BUSINESS
How do you feel about applying social enterprise thinking to your business?
1This doesn’t work for me
at all.
2It’s
interesting, but still doesn’t
apply to my business.
3I am
intrigued. Could
introduce some
elements into my
business.
4I want to be
more responsible,
but not necessarily a
Social Enterprise
yet.
5YES! All
of it please.
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8 TACTICS TO APPLY SOCENT THINKING
1. Measure your social impact
2. Employ a marginalized group
3. Sell a social product
4. Change your shareholding
5. Reinvest the majority of profits back into your business's social impact
6. Develop social enterprises in your supply chain
7. Certify your product
8. Do your best to run responsibly
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TACTIC 1: MEASURE SOCIAL IMPACT
Pointers:
- Determine stakeholders
- Determine measurement indicators
- Use an existing model (e.g. social accounting, normal impact evaluation, IRIS standards, SROI)
- Market your social impact to your stakeholders
Shonaquip is a social enterprise that manufactures wheelchairs and provides training and advocacy around disability issues.
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TACTIC 2: EMPLOY A MARGINALISED GROUP
Pointers:
- Simply creating jobs does not make a social enterprise
- Identify an appropriate marginalized group
- Use skills development funding to improve their skills
- Use your CSI budget to address their social needs.
- Gain B-BBEE points
Moyo restaurant not only employs and up-skills disadvantaged groups, but also utilises responsible urban farming for all its produce.
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TACTIC 3: SELL A SOCIAL PRODUCT
Pointers:
- Design a product to alleviate a social problem
- Collaborate with nonprofits and the targeted customer group to get the design right
- Can be an additional product range
- Consider producing the product at cost or with minimal markup
ePap is a highly nutritious porridge, manufactured by Econocom Foods. It contains all the necessary vitamins and minerals, and is sold to NGOs and Feeding Schemes.
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TACTIC 4: CHANGE SHAREHOLDER STRUCTURE
Pointers:
- Sell shareholding to a non-profit organization or social enterprise
- Gain ownership, management control and enterprise development points for B-BBEE
Cape Town based development NGO, Ikamva Labantu, purchased a 50.1% stake in ITEC Holdings in 2008, benefiting from the dividends paid out.
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TACTIC 5: REINVEST PROFIT INTO SOCIAL IMPACT
Pointers:
- Existing social enterprises can simply keep their money in the business, as their social impact will grow as they grow.
- Other enterprises could determine a % of product revenue or net profit that gets spent on a social cause.
- Engage in cause-related marketing and branding.
GreenPop is a Cape Town based social enterprise that sells volunteer tree-planting opportunities online and reinvests its profit into further greening and reforestation projects.
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TACTIC 6: DEVELOP SE INTO YOUR SUPPLY CHAIN
Pointers:
- Identify opportunities in your supply chain
- Find a suitable social enterprise or set up a new one
- Use your CSI budget to address the support the cause of the social enterprise
- Gain preferential procurement, ED and socio-economic development points for B-BBEE
The Foschini Group used ED funding to set up a clothing factory for the Sean Kelly Centre for the Sensory Disabled, creating employment and sustainable income for the project.
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TACTIC 7: CERTIFICATION
Consider:
- Identify an appropriate certification (e.g. FSC, Fair Trade, Fair Trade Tourism, Bean There)
- Get certified
- Market your certification and use it to distinguish your business from its competitors
The WWF SASSI project certifies sustainable seafood outlets and educates consumers about responsible fishing practice and endangered species.
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TACTIC 8: RUN RESPONSIBLY
Pointers:
- Be mindful of your business's social and environmental impact
- Treat your staff, customers and other stakeholders with respect and integrity
SAB has various initiatives that make the business run responsibly. From alcohol education to waste reduction, almost all business areas are scrutinised to be sustainably run.
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WHICH OF THESE APPEAL TO YOU?
Which of these tactics is most applicable to your business?
Which tactics are you already employing?
Which tactics excite you the most?
Any more questions?
Rodin’s ‘The Thinker’
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THANK YOUwww.asenetwork.orgwww.facebook.com/ASENetworktwitter.com/ASENtweets
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Marcus [email protected]
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