Social Economy Insider - 3rd edition

ISSUE 03 NOVEMBER 2024

SOCIAL ECONOMY INSIDER Mainstreaming Business Models for Sustainability

YOUR SOCIAL ECONOMY MAGAZINE

WELCOME Welcome to our magazine, your essential guide for staying abreast of the latest trends in the social economy sector.

In this edition, we explore the dynamics and relationships between Mainstream Businesses (MBs) and Social Economy (SE) models. This issue delves into specific case studies, examining how partnerships between MBs and SEs can boost competitiveness, strengthen market presence, and what barriers still hinder deeper collaboration.

We are thrilled to present the third edition of Social Economy Insider – dive in to discover insights into social economy trends, policy updates, research, and much more.

Independent and Autonomous Social Economy Insider emerged from the writing of the baSE project, but it aims to transcend the boundaries of the project and become an independent and sustainable entity that unites different actors in the social economy sector.

We would like to invite you all to contribute to the SE magazine by sharing your thoughts and insights on the latest trends and developments in the field. Your contributions can take the form of articles, case studies, interviews, podcasts or any other format that you feel would be engaging and informative for our readers.

Send us an email at baseproject4skills@gmail.com

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CONTENTS SE AT A GLANCE What’s new?

Policy insights..............................

04

Global pulse................................. 05 The best of SE.............................. 06

Mainstream businesses and social economy models Introduction.................................. 08 Interview – Antoine Détourné.... 09 Article: SE Enterprises and MBs – Crafting a Sustainable Future in Europe.............................................. 10 Resources..................................... 12 Research – Banking for and with the third sector.............................. 14 Meet the practitioners................ 15

Now and next

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POLICY INSIGHTS — EUROPE’S CHOICE : Political guidelines for the next European Commission 2024-2029 The new political guidelines proposed by the European Commission’s re-elected president, Ursula von der Leyen, focus on reinforcing the unity and resilience of the European Union through several key areas: security, economic prosperity, competitiveness, climate action and social fairness. These policies build upon existing EU priorities, including competitiveness and innovation, within the framework of the digital and green transitions.

Among these, social fairness – including issues such as the promotion of quality jobs and skills development – remains a priority, aligning with the European Pillar of Social Rights. Simultaneously, greater emphasis is now placed on other priorities like a stronger European Defence Union, global leadership, an economic foreign policy that prioritises security, and completing the EU’s enlargement process for geopolitical reasons.

While the document broadly addresses social fairness, the social market economy, and related initiatives – such as implementing the European Pillar of Social Rights, which underpins the Social Economy Action Plan – they are not specifically mentioned, not even the term “social economy”. This omission downplays the diverse and broad ecosystem of the social economy, which is key for both the industrial autonomy of the EU and to preserve the EU way of life. More specifically, the social economy is key in supporting sustainable practices, quality jobs, fair wages, social protections and digital innovation, all while upholding democratic principles at its core.

PRIORITIES FOR THE SE Renewal of the European Parliament SE Intergroup Appointment of a Commissioner responsible for the SE To pursue the Social Economy Action Plan

GLOBAL PULSE — Promoting the Social and Solidarity Economy (SSE) for Sustainable Development (77/281) The UN General Assembly, in collaboration with the United Nations Inter-Agency Task Force on Social and Solidarity Economy (UNTFSSE), prepared a report on the implementation of the resolution 77.281.

Key Points Key Frameworks and Progress: About 30 countries have framework laws on SSE International developments include: ILO's 2022 resolution and strategy OECD recommendations EU Social Economy Action Plan African Union's 10-year SSE strategy Major Challenges: Access to finance and business services Lack of tailored support mechanisms Insufficient statistical data and visibility Better integration into education and research Varying legal and policy frameworks across regions Recommendations: Mainstream SSE in UN development planning Strengthen the UNTFSSE Create conducive environments through policy and legal frameworks Promote inclusive public procurement policies Foster international cooperation and knowledge exchange Support statistical development and research Consider SSE in upcoming multilateral processes

Picture: Planet Volumes (Source: https://unsplash.com

THE BEST OF THE SE — Prizes, awards from NEB Festival The New European Bauhaus Prizes 2024 celebrate innovative projects that promote sustainability, inclusiveness, and beauty in shaping a better future for Europe. Let’s check together the winners!

REGAINING A SENSE OF BELONGING

SET Community Gardens Initiated by volunteers in Amsterdam-Ijburg, SET is a regenerated public space turned into a permaculture community garden and center. Located next to a playground and temporary residency for young status holders and students, SET applies spatial participatory co-design to connect intergenerational communities from diverse sociocultural backgrounds.

There other 20 laureates of the New European Prizes 2024 that were announced at the award ceremony in Brussels. Explore all these exceptional projects here:

New European Bauhaus Prizes 2024

RECONNECTING WITH NATURE Făget Forest Park, Cluj's Green Lung Integrated multi-use management and operational plan for Făget Forest-Park (the largest planted area in the vicinity of Cluj-Napoca), meant at solving potential conflicts between different uses (nature protection and conservation of biodiversity; mitigation of climate change and regional climate regulation; recreational and tourism activities), in a NEB approach.

PRIORITISING THE PLACES AND PEOPLE THAT NEED IT THE MOST Rooftop Garden Rooftop garden involves various urban gardens installed on rooftops of municipal buildings and farmed by entities of people with disabilities. The main objectives are the improvement of the quality of life of the users as well as the promotion of urban agriculture. Finally, these locally grown products are offered to organizations that work with people at risk of exclusion.

INTRODUCTION — Mainstream Business and Social Economy Models A mainstream business model is focused primarily on maximising profit for shareholders, while the SE offers an alternative model that addresses societal challenges, such as poverty, unemployment and the environment.

Mainstreaming business models for sustainability (BMfS) is challenging because they are more demanding than traditional models in terms of the value they aim to create and the stakeholders they seek to benefit. However, they are essential for driving sustainability transitions. “Mainstreaming” refers to the widespread acceptance and adoption of new BMfS by both established companies and new market entrants.

Few companies have systematically examined the sustainability limits,

vulnerabilities, and potential of their current models, which puts their future competitiveness, license to operate, and shareholder returns at risk. Managers have often treated sustainability and societal challenges as separate from core business operations. There is still a long way to go before sustainability is used coherently to guide management thinking and corporate action. This disconnect is both a missed opportunity and a social priority that needs immediate attention.

Picture: Provided by ESS France

INTERVIEW WITH

ANTOINE DÉTOURNÉ

— General Delegate of ESS France and member of the CSR Platform of France Stratégie

Business cannot be viewed solely as a profit-driven entity Antoine Détourné highlights the limits of corporate social responsibility (CSR) and its sustainable development. He also mentions that there are two types of CSR policies: some proactive – paying attention to stakeholders and to ecological and social issues – and others more superficial or image-driven. Most approaches fall between these two positions.

The concept of corporate territorial responsibility (responsabilité territoriale des entreprises –RTE) is mentioned as a manner of further bridging the two models, emphasising a company's role in supporting local communities – a principle central to the SSE but increasingly adopted in CSR frameworks.

Antoine Détourné suggests that both worlds – SSE and CSR – would benefit

The SSE and CSR are two worlds that do not ignore each other, but would benefit from working more closely together to mutually enrich one another.

He compares the model with SSE (social and solidarity economy) companies – SSE models can also struggle with issues like environmental impact or governance, much like their mainstream counterparts, but they still prioritise social utility and democratic governance, with profit being a means to achieve broader social or environmental goals, not an end in itself.

from greater collaboration, particularly in areas like sponsorship, skill-sharing, and joint ventures. Examples such as those developed by the ARES integration group in partnership with the SEB group should be developed. ARES provides its knowhow in developing people's skills, and in return SEB provides opportunities for ARES employees in the integration process.

Interview by Care News

ARTICLE “SOCIAL ECONOMY ENTERPRISES AND MAINSTREAM BUSINESS – CRAFTING A SUSTAINABLE FUTURE IN EUROPE” — Written by: Marta Bruschi (Diesis Network)

"Buy Social" represents a transformative approach to procurement that is gaining momentum across Europe and beyond. Rooted in the principles of sustainability, social responsibility and inclusiveness, "Buy Social" initiatives aim to channel purchasing power towards products and services offered by social enterprises (SEs).

In essence, "Buy Social" represents a powerful paradigm shift in the world of commerce, one that underlines the potential for business to be a force for positive change. Social economy organisations (SEOs) are already contributing to these circular value chains through their activities and the business models and practices they implement.

However, they often lack appropriate scaling strategies and the partnerships necessary to fully unlock their potential.

There is a significant untapped potential for collaboration and partnerships between mainstream enterprises and SEOs within the realm of sustainability. Present-day environmental and social challenges, coupled with the growing awareness of these issues, are intensifying consumer preferences for eco-friendly and socially responsible products. Additionally, social and legislative pressures are compelling an increasing number of companies to fully integrate sustainability into their business strategies in order to maintain their social licence to operate.

After analysing collaborations between social and mainstream enterprises, it is clear that such partnerships evolve over time, and have several key features that can enhance their effectiveness and make them more impactful over time.

These include: Robust policies: implementing well-defined policies that serve as enablers, providing the necessary resources, guidance and momentum for collaborations to thrive; Intentional collaboration and community integration: fostering partnerships that create economic and social value while prioritising community dialogue and engagement; Continuous learning and adaptation: emphasising the importance of learning from early stages, adapting to changing circumstances, and transforming transactional exchanges into mutually beneficial relationships; Multi-level impact: recognising that collaboration extends beyond mere transactions to include significant outcomes such as capacity building and community development.

Undoubtedly, an increasing number of mainstream businesses are aligning themselves with the social economy’s goals. This, plus the gradual integration of environmental, social and corporate governance (ESG) criteria into mainstream business governance is paving the way for fresh opportunities for collaboration and entry into new markets.

ESG-focused partnerships can attract impact investors, venture capitalists who prioritise environmental and social returns. This can lead to innovative products and services that meet the demands of socially conscious consumers.

Mainstream businesses look for collaborations with SEs because these possess expertise in navigating risks associated with environmental and social challenges, typically have established connections and trust within local communities, and have developed innovative solutions to address social issues.

Mainstream businesses can capitalise on SEOs’ expertise to enhance their product offerings and strengthen their market position, leading to mutually beneficial outcomes.

While change will not occur overnight, both parties must acknowledge their respective strengths and weaknesses and actively share knowledge and resources to support one another in overcoming these challenges.

RESOURCES CORNER From REVITALESE project blog: This series of blog posts put together by the partnership of the RevitaLESE project shows tools like sales and marketing plans that come from mainstream businesses but are equally applicable to SEOs.

What is a sales plan?

A flexible sales plan focusing on units sold, volume and total economic value is crucial for managing production, supply and cash flow in uncertain times.

Get to your buyers

The Job-To-Be-Done tool helps businesses identify why customers buy their product, focusing on both functional needs and emotional needs.

Marketing is a relationship Whether targeting individuals or masses, creating personalised “personas” is key to shaping desired behaviours, tracked with metrics and influenced by strategic messaging.

Change Management in SE Organisations By fostering adaptability and innovation, change management enables social economy organisations to sustain positive social change and better serve their stakeholders.

Marketing Your Social Enterprise

Building a strong brand for social enterprises involves creating emotional connections through a compelling brand story.

Experiences from SE actors and public authorities RREUSE, the largest network of social enterprises dedicated to reuse, repair, and recycling, has highlighted the inspiring work of various organisations in its recent public procurement research report. This study presents concrete cases of public tenders and related policy measures from France, Ireland, the UK (Scotland), Spain, Croatia, Finland and Austria, covering topics such as product/waste streams in the construction and demolition sector, furniture, paint and textiles.

Inclusive Olympics : The Paris 2024 Olympic Games, a massive event with significant public investment, prioritised purchases from social economy businesses and reusing materials to reduce its carbon footprint, while promoting inclusive job opportunities.

DID YOU KNOW? To help companies respond to public procurement contracts, ESS 2024 has put together a series of practical information sheets and resources to assist companies in their bidding process.

Explore the differences between RFP,CFP, EOI and navigate the various types of procurements with ease!

Do you speak “public procurement”? Discover the glossary of vocabulary here!

Discover the benefits and requirements for forming a temporary consortium (groupement momentané d’entreprises) here!

ESS 2024 is a programme that aims to make the Paris 2024 Olympic and Paralympic Games the first sustainable, inclusive, and socially responsible Games in history.

RESEARCH BANKING FOR AND WITH THE THIRD SECTOR — Reading the weak signals of transformation to accompany sustainable development processes

Authors: Baldazzini Andrea, De Benedictis Luca, Venturi Paolo. 2022

Considering the evolution of the third sector over the last 20 years, its significant contribution to the country's development process is now evident.

In the past, the third sector was seen as a second-rate social actor, positioned between the state and the market, and regarded simply as a compensation mechanism for the failures and distortions generated by the two main systems. However, today we are witnessing a profound change in this approach.

Indeed, there is an awareness of the indispensable role that this ‘third pillar’ has in fuelling democratic processes by holding together equity and growth, and promoting an economy that does not separate production from redistribution, and avoids a trade-off between public and private value.

The value generated by the third sector must therefore be understood as a true form of social investment, which is not limited to benefiting the community as the bearer of needs and interests (stakeholder), but aims to involve it by virtue of the wealth of resources at its disposal (asset-holder), even going so far as to generate significant forms of economic value.

MEET THE PRACTITIONERS We introduce you to a captivating section showcasing the remarkable endeavours of social economy practitioners across Europe.

We delve into the inspiring stories and innovative practices that are reshaping our societies for the better.

Join us as we uncover the transformative power of social economy initiatives, highlighting the individuals and organisations that are making a profound impact on their communities.

LABORAL KUTXA

Laboral Kutxa is a credit cooperative with more than 2,000 working members, who are the ones who make it possible to develop this vision in the field of banking.

The bank presents itself as a cooperative, different and unique in Spain, with the mission of promoting shared development and a shared future in the society of which it forms part. It offers a full range of financial products, such as accounts, loans, mortgages and insurance, with a focus on social responsibility and sustainable economic development of the community.

ZENTZUA PROJECT Laboral Kutxa is immersed in an ambitious and innovative process called Zentzua (Meaning in Basque) to reflect deeply with its employers on its purpose, its identity, its values and its commitments to its stakeholders (employees, customers and society); ) – that is to say, on the meaning of the company. Zentzua is a guide to the promotion of the values of closeness, solidarity and social, cultural and identity promotion on which Laboral Kutxa is built.

Through collaborative sessions, Zentzua fosters emotional connections and shared experiences that enhance a sense of belonging, reinforcing personal ties within the organisation and establishing a shared meaning in people’s work, creating a stronger organisational unity and a solid commitment among employees, a supportive environment where both personal and professional alignment contribute to the cooperative mission.

ROMANIA B2B BFSE-B2B PROJECT BFSE-B2B is developing a model of training and B2B events, with the aim of improving the competitiveness and commercial capacity of social enterprises. It foresees business agreements serving the interests of both for-profit and social enterprises seeking to cultivate new, valuable business relationships.

The project is working in four different countries.

In Romania BFSE-B2B has developed a series of impactful initiatives to strengthen social enterprises through three areas: Capacity building and B2B mutual learning: Romania organised over ten B2B meetings with companies like IKEA and Decathlon, helping social enterprises strengthen their business skills and form sustainable partnerships with mainstream businesses; Branding: the project launched "OPYA Fashion," an eco-friendly brand repurposing textile waste into fashion items, underscoring social enterprises' role in sustainable innovation within the fashion sector; Raising awareness: a social enterprise fair at Palas Mall, participation in the European Social Economy Conference, and five promotional videos helped raise public and business awareness about the value of buying from social enterprises.

COOPERATION BETWEEN WISES AND MBS FROM “BOOKLET OF SUCCESSFUL B2B PARTNERSHIPS” The Buy WISEly project, which supports work integration social enterprises (WISEs) and mainstream businesses (MBs) in partnering for sustainable, socially responsible B2B transactions, analysed 19 good practices from 7 countries: Austria, the Netherlands, Italy, Ireland, France, Spain and Romania.

CASE STUDY 1 #SBK - GIGASPORT

WISE enterprise #sbk Soziale Betriebe Kärnten

Mainstream Business Gigasport GmbH

WHAT? #sbk Soziale Betriebe Kärnten GmbH is the sports department that assembles new bicycles for Gigasport GmbH, and upon request, repairs the bicycles of customers. #sbk also manages the new bicycle inventory and provides personnel for Gigasport to process orders.

HOW? The cooperation between them was initiated by Gigasport over 20 years ago. Initially, it involved only assembling bikes. It has since expanded to year-round bicycle assembly at the Klagenfurt, Villach, and Spittal/Drau locations, encompassing the entire bicycle range.

POSITIVE IMPACT: #sbk has become a crucial partner covering competence areas of Gigasport with professional expertise. The collaboration ensures self-generated income, while allowing transitional employees to gain practical expertise in bicycle repair and assembly.

OBSTACLES: The collaboration has intensified and expanded over the years and no major obstacles or challenges have incurred, which is thanks to the ongoing constructive and reflective communication between the parties.

CASE STUDY 2 BIGMAT - ABELELAVORO

MB BigMat Di De Tommasi Bruno

WISE enterprise Consorzio Sociale Abele Lavoro

WHAT? An unofficial agreement between BigMat and Consorzio Abele Lavoro (CSAL) to host internships of people over 50 years old with disabilities who have completed CSAL’s vocational training course of warehouse assistant.

HOW? The cooperation between them began in 2020 with the creation of a job placement for a person with disabilities, after CSAL asked BigMat to host an internship for one of their trainees.

BENEFITS: The service of selecting and accompanying disadvantaged people to work is funded by public projects and therefore CSAL receives funding against the results obtained.

Companies that hire people therefore receive a free service.

POSITIVE IMPACT: The path and tutoring proposed by CSAL supports people with disabilities in acquiring soft and relational abilities, essential to consolidate their placement in the company and support a person’s skills and motivation.

KEY COMPONENTS: BigMat sensitivity to inclusion, acceptance of disadvantaged people and willingness to structure a business organisation to realise it. CSAL's effective job placement and tutoring method with disadvantaged workers, functional to MBs. Effective and alive communication.

OBSTACLES: Internal changes at the management level and consequent difficulty re-establishing contact and working towards an ongoing cooperation. The challenge is to establish a continuous workflow and effective communication to strengthen the good practices of job placement in the BigMat enterprise Check the Booklet in ....

NOW AND NEXT EDIH NETWORK SUMMIT 2024 The EGG 26th and 27th of November Brussels, Belgium

B-WISE FINAL CONFERENCE European Economic and Social Committee, Room VMA23 13th of November, 9:30-18:00 Brussels, Belgium

FINAL EVENT : CODE OF CONDUCT FOR THE SE 102, Rue de la Loi - 1000 Bruxelles 28th of November, 10:00-14:00 Brussels, Belgium

SOCIAL ENTERPRISE DAY Social Enterprise World Forum (SEWF) 21st of November Brussels, Belgium

DISCLAIMER The information and opinions expressed in this magazine are solely those of the authors and do not necessarily represent the views or endorsement of the publication, its editors nor the European Commission.

All content, including articles, reports, media and images, is provided for informational purposes only.

Readers are encouraged to verify any information and consult with the mentioned authors, where applicable, before making decisions based on the content of this magazine.

This magazine is a product of the baSE project, co-funded by the European Commission. For more information about the baSE project, please visit www.socialeconomyskills.eu. The collection of materials for this magazine has been led by Diesis Network, with Giulia Georg, Frederica Teixeira and Gabriele di Giandomenico serving as the main editors and providing support in gathering materials and content from all the baSE partnership organisations.

For inquiries, please contact: Social Economy Insider www.socialeconomyskills.eu https://www.linkedin.com/showcase/base-project/ baseproject4skills@gmail.com

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