Social enterprise a world movement - PowerPoint PPT Presentation

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Social enterprise a world movement


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Title: Social enterprise a world movement

Social Enterprise - The Social Value Act Dave
Miller Social Entrepreneur SE UK Associate
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Four things...
  • What is social value?
  • Background to the Public Services (Social Value)
  • What the Act covers
  • What can you do?

What is social value?
  • Social value has been loosely defined as
  • the additional benefit to the community from a
    commissioning/procurement process over and above
    the direct purchasing of goods, services and
  • This may also be your USP as a business!

Background to the Public Services (Social
Value) Act
  • The social enterprise sector has long called for
    social value to be factored into commissioning
  • support local job creation
  • improve access to market entry for civil society
  • minimise the impact of the spending cuts on civil
    society organisations
  • Social Enterprise UK included this recommendation
    in our 2010 General Election manifesto

More background
  • In July 2010, Chris White MP tabled the Public
    Services (Social Value) Bill
  • He felt the Bill
  • tied in to the Big Society vision
  • would help create a mixed market of providers and
    encourage market entry for civil society
  • could give rise to cross-departmental
  • The Bill became law on 8th March 2012 and was
    implemented on 31st January 2013

What the Act covers
  • Public bodies are required to consider how they
    might improve the economic, social and
    environmental well-being of the area at the
    pre-procurement stage of public service
  • The Act applies to
  • all public service contracts over a certain
  • those public services contracts with only an
    element of goods or works
  • All English bodies will have to comply with the
    new law, including local authorities, government
    departments, NHS Trusts, PCTs, fire and rescue
    services, and housing associations.

What the Act covers cont.
  • Thresholds
  • 113,057 (central govt)
  • 173,934 (everything else)
  • The Act does not apply in legislation to
    contracts below these amounts
  • But.

What can you do? 5 point plan
  • Get informed - be in the know
  • Get in touch - be proactive
  • Get thinking - be confident
  • Get ready - be aware
  • Get real - be realistic

Key documents
  • Social Enterprise UK guide
  • http//
  • Cabinet Office Procurement Policy Note 10/12 The
    Public Services (Social Value) Act 2012 advice
    for commissioners and procurers 20th December
  • https//

Any Questions? Social
Enterprise UK
Corporate governance and responsibilities
The system of rules, practices and processes by
which a company is directed and controlled
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Principles of Corporate Governance
  • Ethical approach
  • Balanced objectives
  • Each party plays their part
  • Decision-making processes in place
  • Equal concern for all stakeholders
  • Accountability and transparency

Balancing stakeholder interest
  • Owners
  • Management
  • Customers
  • Suppliers
  • Investors
  • Government
  • Community

typical governance problems and challenges
  • board recruitment such as problems
    recruiting/electing people with the right
    skills and experience and areas of expertise
    that are commonly lacking
  • board roles some roles may be problematic for
    the board to fulfill (safeguarding values and
    mission shaping strategy risk assessment
    ensuring effective performance ensuring board
    operates in responsible and accountable manner
    maintaining an effective board compliance with
    external (government) demands and measures)
  • problems in managing relationships with
    management boards becoming a rubber stamp or
    conversely interfering too much
  • managing the tension between social and business
  • managing member relations and involvement
  • managing the demands of different stakeholders
    and regulators.

Key governance paradoxes
  • Who governs? experts vs stakeholders
  • Board roles conformance vs performance
  • Relationship with management supervision vs
  • Multiple or ambiguous accountability

Member-led / mutual challenges
  • Often problems in attracting people with
    appropriate skills to serve on board, people get
    involved because they are interested in the
    cause rather than governance
  • Election process can mean boards to not have
    appropriate skill mix
  • Problem of maintaining membership involvement and
    commitment, particularly as the organisation
    grows and becomes more professionally led.
  • Public sector spin-offs/hybrids
  • Managing multi-stakeholder boards
  • Managing staff involvement and control
  • Managing tensions between staff who are members
    and those who are not
  • Developing appropriate mechanisms to involve
  • Managing contracting relationships

Governance themes
  • A common theme is the range of governance
    structures goes from Small informal to larger
    more formal professional, with different issues
    associated. Eg some issues of insularity with
    small informals
  • Multi-stakeholder structures issues about how
    to manage different interests
  • Influence of regulatory structures on boards
    can be quite demanding, requiring a number of
  • Involving users a wide variety of ways of
    addressing this including users on boards
  • Location and expertise? Eg Few inner city
    accountants ready to sit on regional SE boards?
  • A lot of specific issues that can arise around
    different types (see types below)
  • eg1 business people moving into SE sector,
    getting pressure to shape up through Governance
  • eg 2. Charities overdoing governance and
    procedural stuff, and so hampering
    entrepreneurial activity
  • contracting issues not just public sector,
    but also subcontracting with private business
  • Transitions a lot of trends eg towards
    increasing emphasis on governance but also
    organisations in transition moving into
    contracting, moving from small business, spinning
    off from public sector

Corporate governance in employee owned businesses
some examples
Case Study John Lewis Partnership
John Lewis Partnership Council
  • 83 of its members are elected by Partners
    (others by Chairman)
  • Hold management to account, influence policy and
    make key governance decisions.
  • Elects five directors to the Partnership board.
  • Has the ultimate power of dismissing the Chairman
    if he fails to fulfil his responsibilities.
  • Influencing Partnership policy and how profits
    are spent, such as pay, pensions and discount
  • The Chairman appears before the Council twice a
    year to report and answer questions on his
    running of the Partnership.

Case Study Central Surrey Health
  • Representative body The Voice
  • 7 democratically elected representatives from
    across business geographically split
  • Objectives
  • Enable co-owners to have a say in and feel
    involved with how Central Surrey Health is run
  • Hold the Board to account on behalf of the
    co-owners of CSH
  • Question and influence the Board on company
    direction and performance

Case Study Central Surrey Health
  • How this is done
  • Formal reporting by the MDs to the Voice
  • The Voice appoints a non executive director that
    sits on board
  • Feedback to co-owners
  • Co-owner engagement
  • Objectives learning / development

Case Study Central Surrey Health
  • Recent work
  • Representing views on range of issues from
    efficiency projects to IT investment.
  • Closely involved in the development of 2012-2016
    strategy, securing Central Surrey Healths values
    and vision
  • Consulting co-owners on key projects such as
    Co-ownership Strategy

Any Questions? Social
Enterprise UK
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