1 Social Business as Future Institutional Technology in European Countries Stefanie Mauksch, Henning...

1

Social Business as Future Institutional Technology in European Countries

Stefanie Mauksch, Henning Engelke, Inga-Lena Darkow, Heiko von der Gracht

CEFU - Center for Futures Studies and Knowledge Management

EBS Business SchoolWiesbaden, Germany

The 4th International Seville Conference onFuture-Oriented Technology Analysis (FTA)

12 & 13 May 2011

2

Social Business as Future Institutional Technology

Introduction

What is Social Business?

„The origin of the idea of social business was really quite simple: Whenever I wanted to deal with a social or economic problem, I tried to solve the problem by creating a social business around it. Over time I became convinced that it is an excellent way to address social and economic problems, but one that is missing in the framework of economic theory. I strongly feel that it should be included. The missing piece in the theoretical framework is what I call social business.“

Prof. Muhammad Yunus

Founder of Grameen Bank and Nobel Peace Price Laureate

3


Introduction

Muhammad Yunus’ Social Business Principles

1. Tackling of social problems

2. Financial and economic sustainability

3. Repayment of investions, but no repayment of dividends

4. Profit stays within the company for expansion and improvement

5. Ecological responsible behaviour

6. Market-based loans

7. Do it with joy!

4


Introduction

Example: Grameen Danone Foods

Company: Joint Venture between Grameen and Danone

Objective: supplying nutritious food to poor children of Bangladesh

Formation: 2006 in Bangladesh

Product: Yoghurt Shakti Doi

Price: 80g cup for 8/12 Taka

Production: over 10,000 kilos per year

Distribution: Grameen Borrowers

5


The Process: From Theses to Scenarios

Research Steps

Development of scenarios

Development of projections

Selection of experts

Evaluation of results and arguments

Collection of data

6



Literature Review

Most approaches introduce the topic and elaborate categories for the definition of social business

Rare empirical research; most work with case studies None of the studies employs statistical analyses None develops a futures perspective

Findings

Compares social enterprises across seven regions and countries based on social origins theory

and identifies different concepts and contexts

•2010•Kerlin

Compares contrasting American and European conceptions of social enterprise through an extensive literature review

•2006•Kerlin

Presents case study: Grameen Danone Foods and examines potential uplift through social business•2009•Ghalib, Hossain, & Arun

Analyses public policies introduced in several European countries and logic of finance social enterprises•2010•Defourney & Nyssens

•Research Detail•Year•Authors

Social Business

Presents social business as new business model

Example-driven approach; names five criteria of successful social business

•2010•Yunus, Moingeon, & Lehmann-Ortaga

Analyses socioeconomic performance of work-integration social enterprises

Examines origins, nature and objectives of resources used by social enterprises

•2005•Vidal

7



Real – Time Delphi

Anonymous, systematic, multi-level survey procedure Feedback of expert group opinions is provided after each round

Anonymous, systematic, multi-level survey procedure Feedback of expert group opinions is provided after each round

Delphi

Real – Time DelphiReal – Time Delphi

Web-based platform where calculations of group assessments are carried out immediately

Web-based platform where calculations of group assessments are carried out immediately

16 Theses | 1.200 Arguments16 Theses | 1.200 Arguments

8



The Experts

Academy

17 (25%)Social Entrepreneurs

15 (22%)For-Profit Companies

68 (100%)

7 (10%)Social Business Investors

13 (19%)

16 (24%)

Governmental and Non-Governmental Organizations

1

5

4

3

2

No. of experts (% of total)

Group

Invitations: 149 – Total 1,212 Arguments (= 17/Person)

Total

9


Results

Main Topics

1. Social Business reflects the zeitgeist: Change in vales as most important topic

2. Steady but sustainable: Social Business fills supply gaps

3. Standards as enablers

4. Social Entrepreneurship vs. Welfare State

5. Social Business in the economic system – Entrepreneurs instead of do-gooder

6. First choice of employees: Socially responsible companies

7. Mainly applicable to the social services sector

10


Results

Main Topics

1. Establishment of Standards for Social Businesses

2. Social Business engagement will lead to identification of employees with their company

3. Social Business will be part of education offers

EP – expected probability of occurence (0-100%)I – expected impact on German economy (1-5 Likert-Skala)D – desirability of occurence (1-5 Likert-Skala)IQR – interquartile range; red >= 20 (dissent), blue <= 20 (consent)C - convergence

Social enterprise has considerably contributed to stabilizing the global economy. 37,91 2,3414,42,9

2030: Social Business projections EP C in %IQRDI

Social enterprise activities have only occurred countercyclical to economic growth.

27,52 -16,7302,22,8

Social enterprises are intense competitors of traditional for-profit enterprises.

37,33 -4,4303,72,8

Through their buying behaviour, consumers express their expectations of enterprises concerning their social enterprise endeavours.

59,84 -1,2404,33,6

Continuous difficulties in implementing principles of financial sustainability have caused social enterprises to be at risk.

38,45 -8,0301,42,8

Social enterprise investors solely invest in projects with the highest social impact.

50,56 -2,0403,22,8

Many firms actively pursue social enterprise activities to encourage employee identification with own enterprise and products.

70,07 -1,1264,13,5

Social enterprise could only be established in certain industries (i.e. healthcare, social services).

53,98 -7,7312,13,2

Special standards (i.e. audits, governance codes and legal forms) have been established in social enterprise.

73,89 -2,6204,33,6

The importance of material aspects of welfare has decreased in society due to social enterprise.

41,310 -4,3314,13,2

Social enterprise has led to a stronger regional orientation of economy.

40,611 -7,5213,53,0

Social problems have been greatly reduced through social enterprise.

56,212 -5,2314,83,3

With the increasing life expectancy of social enterprises, classical profit orientation has priority over social return-on-investment.

34,713 -10,0301,62,8

Numerous consumers are now willing to pay more for products and services from social enterprises.

51,914 -1,3414,23,4

The discipline of social enterprise has become a core element of training offerings.

64,615 -8,0314,63,7

Social enterprise has made a fundamental contribution to achieving climate targets (reduction of CO2-emissions).

32,616 -9,0304,52,9

11


Results

Clustered Future Projections – Strategic Map

T1: Economic stabilizationT2: Countercyclical tendencyT3: CompetitivenessT4: Consumer‘s buying behaviourT5: Profitability/SurvivalT6: Investor‘s investment behaviour

T7: Employee identificationT8: Industry sectorsT9: Establishment of standardsT10: Change in valuesT11: Regionalization of the economy

T12: Social problem-solving potentialT13: Shifts in motivationT14: Consumer‘s buying behaviourT15: Education and trainingT16: Reduction of CO2-emission

T12

T14

T8

T4T15

T7

T9

T5

T10

T11T1T16

T13T3

30 40 50 60 70 80

2,0

3,0

4,0

Expected Probabilities

Imp

ac

t o

n G

erm

an

ec

on

om

y

T6

surprises

eventualities

expectations

Red: dissent; IQR >= 20Blue: consent < 20

12


Results

Main Arguments

There will be a shift in the value system of society 1441

2 Social Business will be a marginal phenomenon 109

Social Businesses complement the traditional economic system 1013

4 Social Businesses need to generate a profit 101

Consumers will act more and more responsibly 875

6 In 2030, Social Business will still not be fully established 67

Social Businesses need to be competitive with regards to pricing 667

8 Social Businesses will be established in specific industries only 64

Social Business is necessary in solving social problems 579

10 Companies should fulfill their responsibility to society 54

Arguments mentions

13


Social Business Scenarios for 2030

The Social Guardian

Exploding social costs andextremely high

taxes

All private suppliers replaced

by publicly subsidized

organizations

State cares for the old and the

young

14



The Social ParadiseEstablishment of

innovative forms of corporate

organizations

Supply of affordable social services has

improved

Competition and market principles in

the Third sector

15



Social Fallow

Social market economy has broken

down

Donations at an all-time low and social

services solely covered by private

corporations

Two-class society

16



Social CapitalismSocial sector

dominated by free market economy

Social businesses are more sucessful than

traditional ones

Social businesses are forced to remain

competitive

17


Research Team

Stefanie MaukschInternal Research Assistant

[email protected]

+ 49 611 7102 2108

Henning EngelkeExternal Research Assistant

[email protected]+ 49 611 7102 2100

Dr. Heiko von der GrachtManaging Director

[email protected]+ 49 611 7102 2100

Center for Futures Studies and Knowledge Managementwww.ebs.edu/futurestudies

Dr. Inga-Lena DarkowResearch Director

[email protected]

+ 49 611 7102 2100

mailto:[email protected]




18


References

Defourny, J., & Nyssens, M. (2010). Social enterprise in Europe: At the crossroads of market, public policies and third sector. Policy and Society, 29(3), 231-242. doi: DOI: 10.1016/j.polsoc.2010.07.002

Ghalib, A., Hossain, F., & Arun, T. (2009). Social Responsibility, Business Strategy and Development: The Case of Grameen-Danone Foods Limited. [Article]. Australasian Accounting Business & Finance Journal, 3(4), 1-14.

Kerlin, J. (2006). Social Enterprise in the United States and Europe: Understanding and Learning from the Differences. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 17(3), 246-262. doi: 10.1007/s11266-006-9016-2

Kerlin, J. (2010). A Comparative Analysis of the Global Emergence of Social Enterprise. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 21(2), 162-179. doi: 10.1007/s11266-010-9126-8

Vidal, I. (2005). Social Enterprise and Social Inclusion: Social Enterprises in the Sphere of Work Integration. [Article]. International Journal of Public Administration, 28(9/10), 807-825. doi: 10.1081/pad-200067347

Yunus, M., Moingeon, B., & Lehmann-Ortega, L. (2010). Building Social Business Models: Lessons from the Grameen Experience. Long Range Planning, 43(2-3), 308-325. doi: DOI: 10.1016/j.lrp.2009.12.005

19

Mission

Create the future together

Center for Futures Studies Research and Knowledge Management Research

Achievements

Network

•Part of EBS Network with 180 partner universities and 200 business partners worldwide

•Anchored in the Foresight-Community: Network for Future Studies Research, European Foresight Network, World Future Society, Oxford Scenario Network, EIRAC

•Present in emerging markets (Russia, India and China)

•www.ebs.edu/smi/futurestudies.html

Key Aspects

•To pursue scientifically-established research in Futures Studies and manage its quality

•To generate futures knowledge to support decision-making processes on governmental, economic and scientific issues

•To establish Futures Studies research as an academic discipline / strategic instrument in business practice

•Contract research with business partners (futures studies, tool development)

•Scenario transfer: turn research results into strategy

•Collaborate in public sector research projects

•High diversity in team (mix of expertise)

•Methodical and professional competence

•Scenario and Delphi Analyses

•Roadmapping & Backcasting

•Early Warning and Risk Management

•Wildcard Analyses

•Futures Studies Workshops

•Method Integration (Scenario-Toolbox)

Timeframe

Scenario 2

Scenario 3

Scenario 4

Scenario 1

Center for Futures Studies. Shaping the future together!Methodological Lead


http://www.ebs.edu/smi/futurestudies.html

1 Social Business as Future Institutional Technology in European Countries Stefanie Mauksch, Henning...

Documents

Transcript of 1 Social Business as Future Institutional Technology in European Countries Stefanie Mauksch, Henning...