BAU: Business as Unusual!

If we are to avoid Business As Usual competition and profit spiraling against resources and people, we can choose to make business differently. The choices include but are not limited to social enterprise, trust, cooperative, industrial and provident society…

I have searched about the various forms of these structures from the Community Economic Development network, the Office for the Voluntary and Community Sector and the New Zealand Cooperative association, and overseas from Social Traders in Australia and various dedicated government websites in Europe.

Social entreprise

Social enterprises mix social and/or environmental aims with a commercial orientation. Peter Holbrook, CEO of Social Enterprise UK, at a meeting on Thursday 26 April 2012 in Wellington (hosted by the Department of Internal Affairs), shared how social enterprise models will let communities stay ahead of the curve and have a valuable role to play through providing innovative approaches. Latest CED Bulletin announces the imminent creation of a social enterprise network in NZ.

Sources: http://www.ocvs.govt.nz/work-programme/building-capacity/social-enterprise.html  and http://www.ced.org.nz/?p=2081

Cooperatives

A cooperative “means an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise”. ILO Definition

2012 is International Year of Cooperatives, “Cooperatives are a reminder to the international community that it is possible to pursue both economic viability and social responsibility. ” United Nations Secretary-General Ban Ki-moon

In 2002, ILO passed a recommendation for governments to promote and support cooperatives, creating a legal framework that enables them to thrive, rather than limiting them in the informal economy.

Governance Options

	Cooperative	Industrial and provident society	Social Enterprise
Definition	an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise	An industrial and provident society is an entity of a minimum of 7 members and the secretary for carrying on any industry, business or trade authorised by its rules with the exclusion of banking. Names ending in Society Limited	Social enterprises are organisations that: a. Are led by an economic, social, cultural, or environmental mission consistent with a public or community benefit; b. Trade to fulfil their mission1; c. Derive a substantial portion of their income from trade2; and d. Reinvest the majority of their profit/surplus in the fulfilment of their mission.
Purpose	Mutual support for members or the promotion of a specific purpose or social benefit.	Improve the conditions of living or the social well being of members or be for community benefit.	economic, social, cultural, or environmental mission consistent with a public or community benefit;
Economic aspects	Members contribute to the capital. At least part of that capital is usually the common property of the cooperative. Benefits go to : developing their cooperative, setting up reserves, benefiting members in proportion to their transactions supporting other activities as approved by the membership.	Usually consist of the owners of small businesses who, while continuing to operate independently, become part of this larger entity for mutual benefit. They work (industrial) and receive benefits (provident) from the society for their future wellbeing.	Operationalised as 50% or more for ventures that are more than five years from start-up, 25% or more for ventures that are three to five years from start-up, and demonstrable intention to trade for ventures that are less than two years from start-up.Trade (exchange of goods and service)s, including:·monetary, non-monetary and alternative currency transactions, where these are sustained activities of an enterprise; contractual sales to governments, where there has been an open tender process ; and·trade within member-based organisations, where membership is open and voluntary or where membership serves a traditionally marginalised social group
Values	self-help, self-responsibility, democracy, equality, equity and solidarity; as well as ethical values of honesty, openness, social responsibility and caring for others;	To be defined by society	To be defined by enterprise
Principles	voluntary and open membership; democratic member control; member economic participation; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for community.	To be defined by society	To be defined by enterprise
Advantages	Mutual bond between transacting shareholders Power to Issue shares with a nominal value; and manage shares to ensure continuous active membership of company Strong supporting national and international framework	A society becomes a separate legal entity once incorporated; • A society will have a common seal (no longer applicable to companies); • A society can lease, rent, buy and sell property, borrow money and enter contracts in its own name, generally under its common seal. No member of the society can have personal rights or interest in any of the assets of the society; • A society will continue as a separate entity even though its membership changes; and • Members will not be personally liable for the debts, contracts or other obligations of the society.	Range of naturally occuring ‘types’ that emerge from common approaches, ideals and social purposes. 1. Income generation – Many nonprofit organizations see social enterprise as a way to reduce their dependence on charitable donations and grants through commercial activity 2. Employment – Many people see employment or engagement of marginalised groups as the principle motivation for social enterprise. 3. Service delivery – Social enterprise has the capacity to create or retain services needed in communities.
Legal New Zealand	Co-operative Companies Act 1996	Industrial and Provident Societies Act 1908
Sources	http://nz.coop/http://www.ilo.org/ilolex/cgi-lex/convde.pl?R193http://www.cecop.coop/What-is-a-cooperative	http://www.nz.coop/docs/0403_MED_co-operative-organisations.pdf	http://www.socialtraders.com.au/ http://www.ocvs.govt.nz/work-programme/building-capacity/social-enterprise.html

Sources:

• Australian social enterprise powerful network Social Traders http://www.socialtraders.com.au/about-social-enterprise-0
• New Zealand Social Entrepreneur Fellowship http://www.nzsef.org.nz/
• New Zealand Social Innovation and Entrepreneurship Research Centre (SIERC), http://sierc.massey.ac.nz/index.html
• Community Economic Development http://www.ced.org.nz/?page_id=457
• Office for the Voluntary and Community Sector http://www.ocvs.govt.nz/work-programme/building-capacity/social-enterprise.html
• New Zealand Cooperative Association http://www.nz.coop, in particular http://www.nz.coop/docs/0403_MED_co-operative-organisations.pdf
• Co-operative 2012 United Nations International Year of Cooperatives http://social.un.org/coopsyear/index.html and http://social.un.org/coopsyear/cooperatives-are.html
• International Labour Organisation http://www.ilo.org/ilolex/cgi-lex/convde.pl?R193
• European Confederation of cooperatives and worker-owned enterprise http://www.cecop.coop and http://www.cecop.coop/What-is-a-cooperative
• New Economic Foundation http://www.neweconomics.org/  in particular http://www.neweconomics.org/sites/neweconomics.org/files/Social_investment_for_community_development_1.pdf