Lecture 2 Finding Social Enterprise In The Third Sector

Social Enterprise Lecture 1 The Third Sector

the3rd sector


This lecture introduces students to key concepts within the third sector:

Social Economy Voluntary Sector

Non-Profit Sector Charity Sector

Public Sector Social Sector

Private Sector Social Enterprise Sector

3rd System Civic Society


Social Economy Voluntary Sector

Non-Profit Sector Charity Sector

Social Sector 3rd System

Social Enterprise Sector

Are terms used interchangeably to describe areas of the

3rd sector of the economy.


Third sector

Private sector

Mapping the sector

Public Sector


Third sector

Private sector

Mapping the sector

Public Sector

Market

Civil Society

(distinct from the state and the market)

State


Third sector

Private sector

Mapping the sector

Public Sector?Market State


Third sector

Private sector

Mapping the sector

Public Sector

?Health

Government

Education

Social Security

Social Justice

Social Care

Defence

Urban Planning

Postal Service

Transport

Power

Telecommunications


Third sector

Private sector

Mapping the sector

Public Sector

Characteristics ?

??Market State


Third sector

Private sector

Mapping the sector

Public Sector

Market

Civil Society

State

Available to those who can afford

Available to all


Third sector

Private sector

Mapping the sector

Public Sector

Market

Civil Society

State


Available to all

Available to whom?


Third sector

Private sector

Mapping the sector

Public Sector

Market

Civil Society

State


Available to all

Available to whom?

To whomever they serve, they are institutional forms not owned by the controlling arm of the state or the shareholders of the private – they are independent to take their own path to justice – the collective power of people to address their cause


Third sector

Private sector

Mapping the sector

Public Sector

Market

Civil Society

State


Available to all

Available to whom?

Organisations of the 3rd Sector

Campaigners, Activists, Humanitarians, Environmentalists, Anti- state, Anti-

capitalist

Welfare provision (Healthcare, Human Rights, Mental Health provision, Drugs

Health)

Community Development

International Relations and International disaster

Environment Religion Arts

Education Culture (Museums) Music

Banks and Debt finance Farmers

Disadvantaged groups – socially excluded, minority groups, disability groups

After-School clubs Book clubs Sports Clubs


Third sector

Private sector

Mapping the sector

Public Sector

Market

Civil Society

State


Available to all

Free Democratic

Society

Available by cause


Third sector

Private sector

Mapping the sector

Public Sector

Market

Civil Society

State


Available to all

State Control

Available by cause


Third sector

Private sector

Mapping the sector

Public Sector

Market

Civil Society

State


Available to all

UK political, economic and social system


Etzioni (1973)

Neither the state nor the market alone could

catalyse the necessary innovations and reforms

of society but rather than the source will be a

‘third alternative’ that can combine the

efficiency of the entrepreneurial marketplace

with the welfare orientation of the state.


Historical context for the third sector. . . .

Reading any book that offers an historical perspective on the 3rd

sector takes the movement back to the earliest systems of

society.

Early Egyptian civilizations developed a strong moral code,

founded on social justice.

Caring for the poor, needy and elderly. . .



1601 – ‘Poor Laws’ – Victorian Period

1883 - Charity Organisation Society – was one of the largest formal organisations of the British Empire.

1900’s – With Industrialisation vast charities in healthcare, social services and education existed – to the point that government saw it morally wrong to and inefficient to leave these services outside of state control.

1950’s - But not until the 1950’s did we see the National Health Service (although many services were still carried out by 3rd sector

organisations)

1970’s - During the 1970’s the 3rd sector became a political weapon against Prime Minister Thatcher and her Conservative Party – as the state failed to accommodate public needs – yet rather than turn to the 3rd sector – they chose the private sector to privatise – Power (coal, electricity), Transport (road and rail).

2000’s - Today’s modernisation of reforms where public-private partnerships are the trend the 3rd sector has a clear role to play in the future direction of service delivery – especially Social Enterprise



During the mid 1990’s there was an increasing drive to ‘marketise’ the welfare delivery. Thus 3rd sector organisations becoming more involved with the state and being used more.

Since 2000 the situation is becoming even more significant – yet the demands of the organisational structures of the state are being seen as major barriers to understanding 3rd sector organisations.

So as the 3rd sector develops through the withdrawal of state provision they relationship with the 3rd sector is one of gatekeeper and financier.

The 3rd sector is beholden on the relationships with the state to finance their missions as organisations


Size of the third sector. . . .

£67 Billion goes into the 3rd sector (Pharaoh 2004)

1,684,000 jobs (Borgaza and Defourney 2004)

How much social, environmental value has been generated . . . . ?????


These organisations are driven by the desire to improve the

world in which we all live. People who manage these

organisations, people who work in them, people who

volunteer for them all believe they are creating a fairer, more

healthier, more moral and better world. . . A mission to the

cause.

The mission therefore is first and foremost in the minds of

the people and in the development of the organisation.

People throughout these organisations are very mission

focused. So managing these organisations is different to the

public or the private sector. The ethos and mission rule.

Mission


Organisations whose 1st objectives are social

not economic.

. . . Driven by a cause.

Socially Entrepreneurial.

That is the 3rd Sector.

Why? . . . The 3rd Sector


Further Reading. . . . (all in the handbook)

Anheir (2005); 4-9; 29-31; 114-138

Borzaga and Defourney (2004); Chapter 15

Hudson (2004); Introduction; Chapter 1

Nicholls (2006); Preface, Introduction

Pearce (2003) – Chapter 1,2,3

Werther and Berman (2001); 3-49

The 3rd Sector


the3rd sector

Lecture 2 Finding Social Enterprise In The Third Sector

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Transcript of Lecture 2 Finding Social Enterprise In The Third Sector