Unit Outline*

MGMT8516

Social Impact: Entrepreneurs and Social Innovation

Trimester 1, 2011 Crawley

Associate Professor Cheryl Kernot, Dr Joanne Sneddon and Professor Paul Flatau

Business School

www.business.uwa.edu.au * This Unit Outline should be read in conjunction with the Business School Unit Outline Supplement available on the Current Students web site http://www.business.uwa.edu.au/students

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MGMT8516/Crawley/JNS/14.10.10

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© The University of Western Australia 2011

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UNIT DESCRIPTION

Introduction

Welcome to Social Impact: Entrepreneurs and Social Innovation MGMT8516. Social Impact: Entrepreneurs and Social Innovation is the foundation course for the Graduate Certificate in Social Impact. It provides a general overview of the immense changes in the social landscape both globally and locally, which have occurred in recent years, examines social entrepreneurship and social innovation and the role of the third sector in Australia in some depth and introduces students to many of the concepts and topics explored in greater depth in the other three courses in the Graduate Certificate including social finance, impact investing, social investment, philanthropy and social impact assessment. You will find a plethora of terms and definitions in this field. For now we will use Barraket et al.’s 2010 definition of social enterprises. For Barraket et al. 2010, social enterprises are organisations that: ‘Are led by an economic, social, cultural, or environmental mission consistent with a public or community benefit; trade to fulfil their mission; derive a substantial portion of their income from trade; and reinvest the majority of their profit/surplus in the fulfilment of their mission’ (p. 4). The Commonwealth Club of California series on social entrepreneurship defines a social entrepreneur as “an innovator utilizing entrepreneurial passion and rigor to solve societal problems”.1 The ‘third sector’ is defined as the sector that includes not-for-profit organisations, voluntary organisations and social enterprises.

Unit content

The course examines the accelerating economic relationship between government, business and the third sector and the way this delivers social (including environmental) value in communities and drives social innovation. The course first examines the social economy through the emerging spectrum of organisational forms that generate both social and economic value: from not-for-profit organisations, to social enterprises, through to socially responsible business and traditional corporations, and government. It looks at why the traditional boundaries between government, business and the third sector have become blurred and fluid and what that means for the capacity of the community to deliver new forms of social impact. Second, the course examines trends and drivers re-shaping the dynamics of social impact. It reviews the key changes that have occurred within each of the sectors: the changing role of government from direct provider to enabler and the increasing focus of government programs on outcomes; the emergence of corporate responsibility within the business sector; the emergence of social enterprises within the third sector and the emergence of impact investing, new forms of philanthropy and social investment; and the increased emphasis by all sectors on the measurement of social impact. The course examines the ways in which these changes have been driven by innovation and, in turn drive social innovation. It incorporates a detailed analysis of Australian trends and challenges and includes assessment tasks that require a critical review of global trends and organisations that effect social change and impact. In a course like this, with a broad overview, we touch on key themes delving into some in greater depth. However, the case studies discussed in class and in assignments will provide opportunities to explore the themes in more detail.

1http://www.socialedge.org/features/opportunities/commonwealth-club-series-on-social-entrepreneurship.

Peredo and McLean 2008 propose the following definition: ‘social entrepreneurship is exercised where some person or persons (1) aim either exclusively or in some prominent way to create social value of some kind, and pursue that goal through some combination of (2) recognizing and exploiting opportunities to create this value, (3) employing innovation, (4) tolerating risk and (5) declining to accept limitations in available resources’.

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The goal of the unit

The course aims to develop an awareness and critical understanding of the accelerating economic relationship between the government, business and the third sectors and the way it is driving the delivery of social (including environmental) value in communities, and the way in which this (accelerating economic) relationship drives social innovation, both globally and locally. It aims to equip you to bring a cross-sector understanding of key concepts as they apply to each of the government, business and third sectors and to use this understanding to operate effectively in this changed and changing environment.

Learning outcomes

On completion of this unit, you should be able to:

• Describe the trends and drivers re-shaping the dynamics of the social economy;

• Identify the new organisational forms and other consequent influences (such as new forms of social investment) resulting from the accelerating interaction of business, government (and its public service agencies), philanthropic foundations and individuals, and community-based organisations;

• Critically evaluate the concepts of social entrepreneurship, social enterprise/business, social value creation, social innovation, social investment and social impact assessment;

• Apply this learning to conduct both individual and team analyses of contemporary examples of social purpose ventures and to explain their distinctive differences from economic purpose ventures;

• Analyse global trends and organisations that effect social change, social innovation and impact.

Educational principles and graduate attributes

In this unit, you will be provided with the opportunity to:

• Master the subject matter, concepts and techniques of social impact, social entrepreneurship and social innovation.

• Adapt acquired knowledge about entrepreneurship and innovation to the social business context.

• Communicate in English clearly, concisely and logically.

• Acquire the skills needs to embrace rapidly-changing technologies in a global environment.

• Think and reason logically and creatively.

• Undertake problem identification, analysis and resolution.

• Question accepted wisdom and be open to new ideas and possibilities.

• Acquire mature judgement and responsibility in ethical, moral, social, and practical, as well as academic matters.

• Work independently and in a team.

• Acquire cross-cultural and other competencies to take a citizenship and leadership role in the local, national or international community.

Core concepts

• Social enterprise

• Social entrepreneurship

• Social innovation

• The third sector

• Social impact

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Additional key concepts

• Market failure

• Equity

• Social programs and social policy

• Social impact assessment

• Cost-benefit analysis

• Social Return on Investment

• Social accounting

• Corporate social responsibility

• Community engagement

• Social investment

• Social finance

• Impact investing (social investing)

• Microfinance and microlending

• Social Impact Bond

• Philanthropy

• Social leadership

TEACHING AND LEARNING RESPONSIBILITIES

Teaching and learning strategies

We believe that learning is a dynamic process involving: the instructor; the instructors’ experiences; the subject matter; and the learning styles and experience of the students. Students often hold the wisdom of the subject within themselves. Their experiences are therefore an integral ingredient in the learning experience; they need to be accessed through effective facilitation to enable students to make sense of the materials and enrich the learning experience for others.

In order to enrich the learning process with students’ experiences, we actively encourage students to contribute in group and class discussions and in-class learning activities. All class activities and discussions employ some form of Socratic dialogue to challenge students to seek solutions to both simple and complex problems from a range of perspectives. To enact this approach, we pose problems common to the topic, use guest lecturers and cases to stimulate discussion and critical analysis. We make use of case studies to generate debate and encourage critical and creative thinking in each topic to which students can relate. Thus, to get the most out of this unit, students are required to attend and participate in each lecture having undertaken the required pre-reading and be willing to listen and contribute to class discussions.

Teaching and learning evaluation

You may be asked to complete two evaluations during this unit: The Student Perception of Teaching (SPOT) and the Students’ Unit Reflective Feedback (SURF). The SPOT is optional and is an evaluation of the lecturer and the unit. The SURF is completed online and is a university wide survey and deals only with the unit. You will receive an email from the SURF office inviting you to complete the SURF when it is activated. We encourage you to complete the forms as your feedback is extremely important and can be used to make changes to the unit or lecturing style when appropriate.

Attendance

Participation in class, whether it be listening to a lecture or getting involved in other activities, is an important part of the learning process, therefore it is important that you attend classes. More formally, the University regulations state that ‘to complete a course or unit students shall attend prescribed classes, lectures, seminars and tutorials’. Where a student, due to exceptional circumstances, is unable to attend a scheduled class, they are required to obtain prior approval of the unit coordinator to be absent from that class. Any student absent from class without having had such absence approved by the unit coordinator may be referred to the faculty for advice and may be required to withdraw from the unit.

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CONTACT DETAILS

We strongly advise students to regularly access their student email accounts. Important information regarding the unit is often communicated by email and will not be automatically forwarded to private email addresses. The unit is team taught by Associate Professor Cheryl Kernot, Dr. Joanne Sneddon (UWA) and Professor Paul Flatau (UWA) and has a number of guest lecturers. Contacts for the UWA lecturers are listed below. Any administrative questions can be addressed to Paul Flatau.

Unit coordinator Professor Paul Flatau

Lecturers Names: Associate Professor Cheryl Kernot, Dr. Joanne Sneddon and Professor Paul Flatau

Email: joanne.sneddon@uwa.edu.au

paul.flatau@uwa.edu.au

Phone: 08 6488 1727 (Joanne Sneddon)

08 6488 1366 (Paul Flatau)

Consultation hours: By phone or by appointment

Lecture dates & times:

Fridays & Saturdays, 9.00am - 5.00pm

Friday 18th March 2011 Saturday 19th March 2011 Friday 1st April 2011 Saturday 2nd April 2011 Friday 8th April 2011

Lecture venue: BUSN:142 Sir Rod Eddington Case Study

A bit about your lecturers …

Cheryl Kernot was appointed the Centre for Social Impact’s first Director of Social Enterprise in September 2008. Cheryl spent the previous five years working in the UK as a Programme Director at the Skoll Centre for Social Entrepreneurs at the Said Business School at Oxford University and prior to that as the Director of Learning at the School for Social Entrepreneurs in London. Her specialist role at the Skoll Centre was to assist and mentor start-up social businesses particularly in the delivery of innovative health services. She was a representative on the UK Social Enterprise Coalition policy working group on health social enterprises, and a presenter at the Skoll World Forum. Currently she is a judge on an international case-writing competition (social enterprise cases) is leading a research project on social procurement and co-authoring a book on Australian social enterprises. She has also written a background paper on social enterprise and social inclusion for the Department of Prime Minister and Cabinet. Since December 2007 Cheryl has been an honorary board member of Foresters Community Finance which is pioneering social investment in social enterprises, and is also on the founding committee of a UK charity which works to provide shelter and education for street children in Kampala, Uganda. In 2009 she was elected Chair of the Fair Trade Association of Australia and New Zealand. She was an elected member of the Australian Parliament from 1990 – 2001 holding social policy portfolios and is a qualified secondary school teacher.

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Jo Sneddon is an Assistant Professor at the UWA Business School in Entrepreneurship and Innovation and Small Business Management. Jo has a PhD in management and an MBA from the University of Western Australia. Over the past six years, she has been engaged in a series of research projects and consultancies for national and state scientific research agencies including the Commonwealth Scientific and Industrial Research Organisation, the Department of Agriculture and Food. Jo also consults to Australian rural research and development corporations, Australian Wool Innovation and Meat and Livestock Australia, on innovation and research management issues. Jo’s research focus is institutional, sustainable and social entrepreneurship and ethical consumerism.

Paul Flatau commenced as the Chair in Social Investment and Impact and Director of the Centre for Social Impact (CSI) at the UWA Business School in December 2010. He was formerly the Director of the Australian Housing and Urban Research Institute WA Research Centre at Murdoch University. Paul has over 60 publications in the fields of labour economics, the history of economic thought, and the economics of social policy. Much of Paul’s work in recent years has involved close contact with the not-for-profit sector, with government partners and with industry. Paul has made significant contributions to the analysis of social and economic outcomes and the effectiveness of programs and interventions in a number of fields including Indigenous housing, poverty, unemployment, homelessness, and housing. His teaching has covered most areas of economics but has been concentrated in the fields of the economics of social policy, macroeconomics, and the economics of human resources.

Guest Lecturers

Dr Ingrid Burkett. Dr Ingrid Burkett is Social Innovations Manager at Foresters Community Finance (Qld). She is a member of The National Compact Sector Advisory Group, which was established in 2010 by the Australian Government. She is Vice President of the International Association for Community Development and previously lectured in the School of Social Work at University of Queensland and worked for Oxfam Australia. Ingrid is also Chair of the Upatree Arts Co-operative.

Professor Peter Shergold. Peter Shergold is Macquarie Group Foundation Chair and CEO of the Centre for Social Impact. He was formerly a CEO in the Australian Public Service for two decades. In 1987 he established the Office of Multicultural Affairs and from 1991 headed the Aboriginal and Torres Strait Islander Commission (ATSIC). He has since served as Public Service Commissioner, Secretary of the Department of Employment, Workplace Relations and Small Business, Secretary of the Department of Education, Science and Training and from 2003 to 2008 Secretary of the Department of the Prime Minister and Cabinet. He was made a Member of the Order of Australia in 1996, and a Companion of the Order in 2007 and this year became the Chancellor of the University of Western Sydney. He was appointed to the Western Australian Economic Audit Committee in 2008 and was appointed independent chair of the Partnership Forum in 2010.

Kylie Charlton. Kylie Charlton holds the position of Social Investment Fellow at The Centre for Social Impact (CSI) where she specialises in the development of a system of social finance in Australia. Kylie is also a Managing Director and founding team member of Unitus Capital, a financial advisory firm specialising in arranging capital for microfinance institutions (MFIs) and other social enterprises benefiting those at the bottom of the economic pyramid. Working at the intersection of mainstream capital markets, social investment and philanthropy, Kylie has arranged capital for MFIs and social enterprises, advised banks and investment funds, and raised capital for specialised investment funds including playing a leading role in the development and launch of the Unitus Equity Fund I, L.P. Kylie was Vice President in the Project and Structured Finance Group at Citigroup with 11 years’ experience in commercial and investment banking in Sydney and New York prior to transitioning her career into social finance.

Les Hems. Les is the Director of Research at the Centre for Social Impact and was formerly Director of GuideStar UK. His research career commenced at the Aston Business School in 1984. In 1994 he established the research team at the National Council for Voluntary Organisations (NCVO), in 1998 he became a principal researcher for the Johns Hopkins University Comparative Nonprofit Sector Project, and in 2000 he established a new research centre at University College London which became part of the Institute for Philanthropy. Les has played a pivotal role in a number of UK government initiatives including the National Survey of Third Sector Organisations.

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TEXTBOOK(S) AND RESOURCES

Unit website

http://www.webct.uwa.edu.au An email providing details on how to access WebCT will be sent to enrolled students prior to commencement of the trimester. There is no required textbook for this unit but readings and case studies will be available for enrolled students on WebCT.

Key References

The following references provide grounding in the main topic areas covered by the course. A set of readings designed for pre-lecture reading are listed in the Unit Schedule below. In most cases they are available on WebCT.

Balkenhol, B. 2008. Microfinance and Public Policy. Outreach, Performance and Efficiency. Palgrave Macmillan

Barr, N. 2004. The economics of the welfare state. 4th Edition, Oxford: Oxford University Press. [UWA Library in process]

Bishop, M. and Green, M. 2008. Philanthro-capitalism: how the rich can save the world. Bloomsbury Press.

Barraket, J., Collyer, N., O’Connor, M. and Anderson, H. 2010. Finding Australia’s Social Enterprise Sector: Final Report, Australian Centre for Philanthropy and Nonprofit Studies. [WebCT]

http://www.socialtraders.com.au/sites/www.socialtraders.com.au/files/FASES full final report July 2010.pdf

Benedikter, R. 2011. Social Banking and Social Finance. Answers to the Economic Crisis. New York: Springer.

Burkett, I. 2010. Social procurement in Australia. Centre for Social Impact. [WebCT]

http://www.csi.edu.au/uploads/31642/ufiles/SP_in_Australia-_Final_Low_Res_for_Web.pdf

Bornstein, D. 2007. How to change the world: social entrepreneurs and the power of new ideas. Oxford: University Press. [Reid Library Reserve UWA Library]

Crane, A., et al. 2008. The Oxford Handbook of Corporate Social Responsibility. Oxford: Oxford University Press. [UWA Library on-line]

Economic Audit Commission 2009. Putting the Public First. Partnering with the Community and Business to Deliver Outcomes, Final Report. Western Australian Government.

http://www.dpc.wa.gov.au/Publications/EconomicAuditReport/Pages/Default.aspx See also links to the Partnership Forum.

Elkington, J. & Hartigan, P. 2008. The power of unreasonable people: how social entrepreneurs create markets that change the world. Harvard Business Press. [Reid Library Reserve UWA Library]

Goldsmith. S, Georges. G, Burke. T. G, and Bloomberg. M. R. 2010. The Power of Social Innovation: How Civic Entrepreneurs Ignite Community Networks for Good. Jossey-Bass.

HM Treasury 2003. The Green Book. Appraisal and Evaluation in Central Government. http://www.hm-treasury.gov.uk/data_greenbook_index.htm. [WebCT]

Mulgan, G. 2006. The Process of Social Innovation. innovations, spring 145-162. [WebCT]. Nicholls, A. (ed.) 2006. Social entrepreneurship: new paradigms of sustainable social change. Oxford: Oxford University Press.

Nicholls, J., Lawlor, E., Neitzert, E., and Goodspeed, T. 2009. A guide to Social Return on Investment, Cabinet Office Office of the Third Sector. [WebCT]

Peredo, A.M. and McLean, M. 2008. Social entrepreneurship: A critical review of the concept. Journal of World Business, 41, 56–65. [WebCT][UWA Library]

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Phillips, S. and Rathgeb Smith, S. (eds.) 2009. Governance and regulation in the third sector: International perspectives, London: Routledge.

Productivity Commission 2010. Contribution of the not-for-profit sector, Research Report, Canberra. http://www.pc.gov.au/projects/study/not-for-profit/report.

Journals

The following provides a list of journals which you may find useful to access particularly when conducting research for assignments. Most but not all journals are accessible through the UWA library and articles are downloadable from the library portal. Social entrepreneurship and social enterprises Social Entrepreneurship eJournal, International Journal of Social Entrepreneurship and Innovation, Journal of Social Entrepreneurship, The Journal of Entrepreneurship, Social Enterprise Journal Social innovation Stanford Social Innovation Review, Philadelphia Social Innovations Journal, Innovations, The Innovation Journal. NFPs, the third sector and social leadership The Nonprofit Quarterly, Nonprofit Management and Leadership, Nonprofit and Voluntary Sector Quarterly, Journal of Civil Society, Third Sector Review. A selection of the many journals in the social policy and social issues field Journal of Social Policy, Just Policy, Social Policy and Society, Australian Social Work, International Journal of Social Welfare, Social Problems, Social Forces, The Australian Journal of Social Issues, Public Administration Social corporate responsibility and social accounting Journal of Business Ethics, Social and Environmental Accountability Journal

Australian sources of news

www.csi.edu.au www.probonoaustralia.com.au www.apo.org.au www.philanthropy.org.au www.thirdsectormagazine.com.au

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UNIT SCHEDULE

Day 1 Friday 18th March, session 1: 9am-3:00pm – Introduction to “Social Impact: Entrepreneurs and Social Innovation” (Lunch 12.30-1.30)

Cheryl Kernot

• Class introductions.

• Introduction to the content and structure of the unit.

• Introduction to the team assignment and other assessment components.

• Introduction to the changing social landscape as it applies to the public, private and social or third sectors.

• The Kim Alter hybrid spectrum of new organisational forms (http://www.4lenses.org/setypology)

• An introduction to the concepts of social enterprise and social entrepreneurship.

• Examples of social entrepreneurs and social enterprises and their role in Australia.

• The drivers of social entrepreneurship.

• Social entrepreneurship in action (‘live’ case study – a social entrepreneur). Readings Barraket et al. (2010) Bornstein (2007) Elkington & Hartigan (2008) Nicholls (2006) Peredo and McLean (2008). Australian Social Enterprise Stories, Kernot & McNeill, Chapter 1 (forthcoming March 2011). [WebCT] Case Study - Identifying market opportunities in 10 Great Divides [WebCT] Case study - So you want to be a social entrepreneur? [WebCT] Soft Landing [WebCT] Flannery, M. 2007. Kiva and the birth of person-to-person microfinance. innovations, winter and spring, 31-56. [WebCT]

Why is Food Connect Taking Off [Webct] In-Class Exercises Case Study: Correcting Market Failures (Stanford Graduate School of Business) [WebCT] - Group Exercise

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Day 1 Friday 18th March, session 2: 3.00pm-5pm – Market failure, equity, and social justice and social interventions

Paul Flatau and Joanne Sneddon

• Market failure, equity and social justice: pivotal forces in understanding social activities and social interventions in creating community benefit.

• Understanding the role of government, not-for-profit (NFP) organisations, and social entrepreneurs/social business in achieving community benefit. Changing roles over time.

• Sustainable entrepreneurship.

Readings Barr (2004) Barraket et al. (2010) Bornstein (2007) Elkington & Hartigan (2008) Goldsmith et al. (2010) Nicholls (2006) Peredo and McLean (2008).

Cooney, K. Williams Shanks, T.R. 2010. New approaches to old problems: market‐based strategies for poverty alleviation, The Social Service Review, 84, 1, 29-55. [WebCT]

Dean, T.J. and McMullen, J. 2007. Toward a theory of sustainable entrepreneurship: reducing environmental degradation through entrepreneurial action. Journal of Business Venturing, 22(1): 50-76. [WebCT]

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Day 2 Saturday 19th March, session 1: 9am-12.30pm – Mapping the ‘Social Sector’ in Australia

Paul Flatau

• Introduction and critical review of the role of the third/social sector in Australia and its significance.

• Introduction to challenges facing the third/social sector in WA. Readings Barraket et al. (2010) Productivity Commission (2010) Lyons, M. 2009. The Nonprofit Sector in Australia: A Fact Sheet. Briefing Paper No. 3. Centre for Social

Impact. http://www.csi.edu.au/uploads/31642/ufiles/Briefing paper No1.pdf http://www.dpc.wa.gov.au/Publications/EconomicAuditReport/Pages/Default.aspx http://www.dpmc.gov.au/nonprofit_reform_council.cfm http://www.nationalcompact.gov.au/ In-Class Exercises The Australian Government Not-for-Profit Sector Reform Council group exercise The Not-for-Profit Sector Reform Council has been established by the Australian Government to ‘implement the Government’s commitment to smarter regulation, reduced red tape and improved transparency and accountability of the sector’. It will also provide advice on the Productivity Commission’s (2010) report into the not-for-profit sector and ‘support the implementation of the National Compact: Working Together.

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Day 2 Saturday, session 2: 1.30pm-5pm – Social innovation

Cheryl Kernot

• Introduction to social innovation

• Social innovation deficits- and potential public policy responses

• Social innovation in the public economy

Readings Goldsmith et al. 2010

Mulgan 2006

Chakravorti, B. 2007. Innovation without borders, innovations, summer, 113-124. [WebCT]

Khoja, K. 2009. Connecting a nation. Roshan brings communications services to Afghanistan. innovations, winter, 33-50. [WebCT]

Dees, G., Battle Anderson, B. and Wei-skillern, J. 2004. Scaling social impact. Strategies for spreading social innovations, Stanford Social Innovation Review, Spring, 24-32. [WebCT]

Ivatury, G., Moore, J., and Bloch, A., 2009. A doctor in your pocket. Health hotlines in developing countries, innovations, winter, 119-153. [WebCT]

Phills, J.A. Jr., Deiglmeier, K., and Miller, D.T. 2008. Rediscovering Social Innovation, Stanford Social Innovation Review, Fall, 34-43.

Cases:

Maryland First State in the Union to create Benefit Corporation Legislation [WebCT]

Health Care and the Art of Motorcycle Maintenance [WebCT]

The following are emerging journals in the very new field of social innovation. Well worth a read. Stanford Social Innovation Review, Philadelphia Social Innovations Journal, Innovations, The Innovation Journal.

In-Class Exercises

Group exercise on social ‘deficits’ and social innovation responses (read Mulgan 2006)

Work on Assignment 3

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Day 3 Friday April 1st 9am-12.30 pm – Social procurement

Guest Lecture: Dr Ingrid Burkett, author of Social Procurement in Australia, research commissioned by CSI.

• Social procurement: context, development and current public policy interest

• Case studies on social procurement

Readings Burkett 2010. Burkett, I. 2010. Social procurement: A guide for Victorian Local Government. Centre for Social Impact. http://www.csi.edu.au/uploads/31642/ufiles/SP_in_Australia_Case_Study_Compendium_final_Low_Res.pdf

Burkett, I. 2010. Social Procurement in Australia: A Compendium of Case Studies. Centre for Social Impact. http://www.csi.edu.au/uploads/31642/ufiles/2010-Social-Procurement-A-Guide-For-Victorian-Local-Government.pdf

In-Class Exercises Group case analysis from the Burkett readings

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Day 3 Friday 1st April, session 2: 1.30 pm-5pm – The changing landscape for the public and social sectors

Guest Lecture: Professor Peter Shergold, CEO of the Centre for Social Impact.

• The changed and changing relationship between the public and social sectors in Australia as seen through a study of the contracting out of employment services, previously a function of government.

• WA Government responses to the changing relationships

• Public sector: New futures (Leadbeater)

• The role of the social sector in the new UK Government’s ‘Big Society’ policy plans.

Readings Economic Audit Commission 2009. Brookes, M., Lumley, T. and Paterson, E. 2010. Scaling up of the big society. New Philanthropy Capital. http://www.philanthropycapital.org/publications/improving_the_sector/improving_charities/scaling_up.aspx

Leadbeater, C. 2009. Innovation Included. Why co-owned businesses are good for public services. Employee Ownership Association and eaga. http://www.aeoa.org.au/docs/0024/Ownership matters - EOA (UK) manifesto.pdf

Leadbeater, C. 2008. The User Generated State: Public Services 2.0. http://www.charlesleadbeater.net/archive/public-services-20.aspx

In-Class Exercises Discussion and group exercise on public sector futures - Application of the Leadbeater Readings

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Day 4 Saturday 2nd April, session 1: 9am-12.30 pm – Social finance: Impact investing

Guest Lecture: Kylie Charlton, Social Investment Fellow at the CSI.

• Introduction to social finance – the response of the capital markets to the funding needs of social businesses.

• Emerging forms of social finance.

• Balancing investor expectations and social mission.

Readings Freireich, J., & Fulton, K. 2009. Investing for Social and Environmental Impact: A Design for Catalyzing an

Emerging Industry. Cambridge, MA: Monitor Institute. http://www.monitorinstitute.com/impactinvesting/

Palandjian, T.P., The Parthenon Group; Bridges Ventures Bridges Ventures 2010. Investing for impact: case studies across asset classes. http://www.bridgesventures.com/sites/bridgesventures.com/files/Investing for Impact Report.pdf

Rhyne, E., and Guimon, A. 2007. The Banco Compartamos Initial Public Offering. Insight No. 23. ACCION International, Center for Financial Inclusion http://publications.accion.org/publications/InSight_23_227.asp

Chu, M. and Cuellar, R.G. 2008. Banco Compartamos: Life after the IPO. Harvard Business School Case 308-094 Case study.

Rosenberg. R. CGAP reflections on the Compartamos Initial Public Offering: A case study on micro-finance interest rates and profit. Focus Note 42. http://www.cgap.org/p/site/c/template.rc/1.9.2440/

Kumar, V. and Rozas, D. 2010. Exclusive: SKS Microfinance journey to IPO – An inside story. MicroFinance Focus. http://www.microfinancefocus.com/news/2010/05/17/exclusive-sks-microfinance-journey-to-ipo-an-inside-story/

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Day 4 Saturday 2nd April, session 2: 1.30 pm-5pm – Social impact investing in Australia

Guest Lecture: Kylie Charlton

• Social impact investing in Australia.

• Social impact bonds: an emerging UK initiative.

Readings Bishop, M. and Green, M. 2008. Philanthro-capitalism: how the rich can save the world. Bloomsbury Press.

Bolton, E., & Savell, L. 2010. Towards a new social economy: Blended value creation through Social Impact Bonds. London, UK: Social Finance UK. http://www.socialfinance.org.uk/sites/default/files/Towards_A_New_Social_Economy_web.pdf

Canadian Taskforce on Social Finance 2010. Mobilizing private capital for public good. http://socialfinance.ca/uploads/documents/FinalReport_MobilizingPrivateCapitalforPublicGood_30Nov10.pdf

Charlton, K. 2010. Impact investing: creating social and environmental returns alongside. financial returns. Australian Philanthropy, 75, Autumn. http://www.philanthropyaustralia.org.au/publications/journal/75/Beyond-feel-good-philanthropy_Michael-Liffman.pdf

Liebman, J. B. 2011. Social Impact Bonds: A promising new financing model to accelerate social innovation and improve government performance. Washington, DC: American Progress. http://www.americanprogress.org/issues/2011/02/pdf/social_impact_bonds.pdf

Loder, J., Mulgan, G., Reeder, N., & Shelupanov, A. 2010. Financing social value: implementing Social Impact Bonds. London, UK: The Young Foundation. http://www.youngfoundation.org/files/images/01_10_Socail_Impact_Bonds_FINAL.pdf

Ministry of Justice 2010. Breaking the cycle: effective punishment, rehabilitation and sentencing of offender. London, UK. http://www.justice.gov.uk/consultations/docs/breaking-the-cycle.pdf

Mulgan, G., Reeder, N., Aylott, M., & Bo’sher, L. 2010. Social Impact Investment: The opportunity and challenge of Social Impact Bonds. London, UK: The Young Foundation. http://www.youngfoundation.org/files/images/10-11-30_Social_Impact_Investment_Paper.pdf

Social Finance 2009. Social Impact Bonds. Rethinking finance for social outcomes. http://www.socialfinance.org.uk/sites/default/files/SIB_report_web.pdf

The Social Investment Task Force 2010. Social Investment Ten Years On. Final Report of the Social Investment Task Force. http://www.socialinvestmenttaskforce.org/downloads/SITF_10_year_review.pdf

In-Class Exercises Class debate “to invest or grant”. See guidelines for the debate in the Attachment.

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Day 5 Friday 8th April session1: 9am-12.30pm – Measuring social impact

Guest Lecturer: Les Hems, Director of Research at the CSI and Cheryl Kernot

• Accountability and transparency in the third sector.

• Demand for the measurement of social impact.

• Demonstrating social impact.

• Introduction to Social Return on Investment (SROI).

Readings Arvidson, M., Lyon, F., McKay, S., and Moro, D. (2010), The ambitions and challenges of SROI, Third Sector Research Centre Working Paper 49. [WebCT]

London Business School, nef, and Small Business Service 2004. Measuring social impact: the foundation of social return on investment (SROI).

Nicholls, J., Lawlor, E., Neitzert, E., and Goodspeed, T. 2009. A guide to Social Return on Investment, Cabinet Office Office of the Third Sector. [WebCT]

HM Treasury 2003. The Green Book. Appraisal and Evaluation in Central Government. http://www.hm-treasury.gov.uk/data_greenbook_index.htm. [WebCT]

Cases PWC Transparency jury report [WebCT] Six Mary’s Place [WebCT] Social Return on Investment in community empowerment: a worked hypothetical example [WebCT] In-Class Exercises Worked example of SROI Day 5 Friday 8th April session2: 1.30pm-5pm – Team assignment Presentations

Cheryl Kernot

• Team assignment presentations

• Key learnings from the course

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ASSESSMENT MECHANISM

The purpose of assessment

There are a number of reasons for having assessable tasks as part of an academic program. The assessable tasks are designed to encourage you to explore and understand the subject more fully. The fact that we grade your work provides you an indication of how much you have achieved. Providing feedback on your work also serves as part of the learning process. The assignments allocated for this unit seek to provide a blend of individual and group work some of which will involve practical components while others are more theoretically focused. Students should be prepared to read outside the material provided by the lecturer. The individual assignments are designed to measure understanding and skills acquisition against the topics presented in the unit. Assignment tasks seek to integrate various elements covered within the weekly topics, both written material, lectures, tutorials and cases. The team assignment is designed to develop research and team-based skills and the application of criteria-related evaluation.

Assessment mechanism summary

Item Weight Due date Remarks Class participation 10% Ongoing Assignment 1 – individual essay 30% Friday 8th April 2011 Maximum 2500

words Assignment 2 – individual case analysissocial finance

30% Thursday 21st April 2011 Maximum 2500 words

Assignment 3 – Group assignment 30% Wednesday 27th April2011

2500 to 3000 words

Note 1: Results may be subject to scaling and standardisation under faculty policy and are not

necessarily the sum of the component parts. Note 2: Your assessed work may also be used for quality assurance purposes, such as to assess

the level of achievement of learning outcomes as required for accreditation and audit purposes. The findings may be used to inform changes aimed at improving the quality of Business School programs. All material used for such processes will be treated as confidential, and the outcome will not affect your grade for the unit.

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Assessment components

Class Participation

Your contribution to class discussions, presentations and case analysis is an essential element of this course. Social and sustainable enterprise is an experiential subject, which will be enhanced by your willingness and ability to share your thoughts and experiences during the class. The mark allocated to group and class discussions and will be assessed by the lecturer using the following criteria. I may also give surprise quizzes at the beginning of class to insure that the assigned materials are read in preparation for class.

Grade Evaluation Criteria

D-HD Excellent preparation and participation: demonstrates understanding of the concepts

and relates them to personal experience, offers analysis of concepts, responds well to other students comments, demonstrates ongoing and active involvement in the class

CR-D Good preparation and participation: demonstrates understanding of the facts presented in the readings, offers interpretation of concepts, contributes to discussions, demonstrates consistent ongoing participation

P-CR Adequate preparation and participation: demonstrates basic understanding of the material but no further analysis, sporadic involvement

Individual assignment – essay

Explain and illustrate the factors you identify as driving the current international interest and public policy focus on “Social” as evidenced in the increasing focus on the emergence of social entrepreneurship and social business, the increased number of businesses schools offering courses in social entrepreneurship and social innovation, the use of the terms social value creation, social return on investment, social finance, social impact, and social inclusion, among others. How connected are these different ‘social’ streams? Is this a passing fad? Justify your answer. This assignment draws on your wider readings, class presentations and discussions. It requires an analysis and synthesis of a range of factors. You should ensure you understand each of the terms being used in the question as that will help to inform your thinking. You should take an international perspective. Mark allocation

Marking Guide

10 The analysis and illustration of the factors 10 Connectedness and is this a passing fad? 10 Evidence of wider reading, quality and presentation of the written work

Individual assignment – case analysis

This assignment requires a combination of an analysis of the Kiva case study and some extra research. It builds on the class discussions on micro-finance. Compare Kiva and the Grameen Bank, both of which apply micro-finance principles: Mark allocation

Questions

10 What are the key innovations of each? 14 What factors were/are key to the success of each? 66 What do you see as the potential application of the Kiva model?

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Kiva There is at present a relatively small literature on Kiva at present www.kiva.org Austin, R. 2007. Kiva as a test of our “Societal Creativity”. innovations, winter and spring, 57-62. [WebCT]

Coates, B. and Saloner, G. 2009. Case Study. The Profit in Nonprofit. Stanford Social Innovation Review, Summer, 68-71. [WebCT]

Flannery, M. 2007. Kiva and the birth of person-to-person microfinance. innovations, winter and spring, 31-56. [WebCT]

Flannery, M. 2009. Kiva at Four. innovations, spring, 31-49. [WebCT] Hartley, S. 2010. Kiva.org: Crowd-Sourced Microfinance and Cooperation in Group Lending. http://dash.harvard.edu/handle/1/3757699 [WebCT].

Grameen Bank Here are some key websites http://nobelprize.org/nobel_prizes/peace/laureates/2006/yunus-lecture-en.html# http://www.grameen-info.org/ http://www.grameenamerica.com/ http://muhammadyunus.org/ The literature on the Grameen Bank is voluminous. The following list has been selected as representative of the literature but is by no means exhaustive, nor necessarily the reflective of only the most robust studies. Most articles can be downloaded from the UWA Library and have been included on WebCT. Adams, D.W. and Fitchett, D.A. eds. 1992. Informal Finance in Low-Income Countries, Westview, Boulder.

Groh, B. and Somolekoe, G. 1996. Mighty oaks from little acorns: can Microenterprise serve as the seedbed of industrialisation, World Development, 24 (2) 1879-1890.

Holcombe, S. 1995. Managing to Empower: The Grameen Bank's Experience of Poverty Alleviation, London: Zed Books.

Khandker, S., Khalily, B. and Khan, Z. 1993. Grameen Bank: What do we know? Washington D.C.: World Bank, 1993

Khandker, S. R. 2005. Microfinance and Poverty: Evidence Using Panel Data from Bangladesh. World Bank Economic Review, 19 (2): 263-286.

Nawz, S. 2010. Microfinance and Poverty Reduction: Evidence from a Village Study in Bangladesh. Journal of Asian and African Studies, 45(6) 670–683.

Selinger, E. 2008. Does Microcredit ‘‘Empower’’? Reflections on the Grameen Bank Debate. Human Studies, 31:27–41.

Schneider, H. ed., 1997. Microfinance for the Poor?, Development Centre, OECD and IFAD, Paris. Wahid, A. (ed.) 1993. The Grameen Bank of Bangladesh: A New Direction in Poverty Alleviation. WestviewPress.

Yunus, M. 1984. Credit is a Human Right. Dhaka: Grameen Bank. Yunus, M. 1999. The Grameen Bank. Scientific American, 281.5: 114-119.

Team assignment

Your team is the judging panel for the Nobel Prize for Social Innovation. The following list of contenders for this Nobel Prize is a composite of the short-list compiled by Dr. Geoff Mulgan of the Young Foundation (www.youngfoundation.org.uk) and emerging social innovations identified by your lecturers:

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1. The Open University – and the many models of distance learning that have opened up education across the world and are continuing to do so.

2. Fair Trade – pioneered in the UK and USA in the 1940s-1980s and now growing globally. 3. Greenpeace – and the many movements of ecological direct action which drew on much

older Quaker ideas and which have transformed how citizens can engage directly in social change.

4. Grameen Bank – alongside BRAC (www.brac.net) and others whose new models of village and community based microcredit have been emulated worldwide.

5. Amnesty International – and the growth of the human rights movement. 6. Oxfam (originally the Oxford Committee for Relief of Famine) - and the spread of

humanitarian relief. 7. The Women’s Institute (founded in Canada in the 1890s) – and the innumerable women’s

organisations and innovations which have made feminism mainstream. 8. Linux software – and any other open source methods, such as Wikipedia and Ohmynews,

that are transforming many fields. 9. NHS Direct (UK’s National Health Service) – and the many organisations ranging from

‘Doctor Foster’ to the ‘Expert Patients Programme’, which have opened up access to health and knowledge about health to ordinary people.

10. Participatory budgeting models – of the kind pioneered in Porto Alegre (Brazil) and now being emulated, alongside a broad range of democratic innovations all over the world.

Choose the winner and write up your decision in a report to the Nobel Prize Board. We will also debate your choice in class. Justify your choice by reference to criteria such as (but not exclusive to):

• The origin of the social innovation;

• The founder(s) motives;

• The unmet need the innovation is a response to;

• How growth and scale were/will be achieved (if that was/is important to its success);

• Its impact (making sure you explain how you have attempted to measure this). In justifying your choice you are eliminating the other nominations and you should refer briefly to each of them and why they are eliminated in your reasoning. Your team should apply ideas, concepts and frameworks from the range of literature examined in this course. You should aim to identify strengths and weaknesses of the models, the credibility of claims made by them and the claims made about them, and you should look for any similarities or differences in their approaches, performance and impact. There is NO correct choice, although some contenders have a stronger claim than others. You will be assessed on the strength of your group’s analysis, arguments and evidence. Information to assist your choice should come from a range of sources including:

• The organisation’s websites.

• The organisation’s published annual reports.

• Media reports.

• Reviews/reports of the organisations by external agencies/stakeholders.

• Reviews of social innovation cases, social innovation theory contained in various sources but particularly those of Stanford Social Innovation Review, Philadelphia Social Innovations Journal, Innovations, The Innovation Journal.

The report will be assessed as a whole and the final grade applied with reference to the peer group feedback form.

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Submission of assignments

Please remember to attach an Assignment Cover Sheet to the front of your assignment. You can download and print your Assignment Cover Sheet from the Current Students web page http://www.business.uwa.edu.au/students/assessments

Student Guild

Phone: (+61 8) 6488 2295 Facsimile: (+61 8) 6488 1041 E-mail: enquiries@guild.uwa.edu.au Website: http://www.guild.uwa.edu.au

Charter of Student Rights and Responsibilities

The Charter of Student Rights and Responsibilities outlines the fundamental rights and responsibilities of students who undertake their education at UWA (refer http://handbooks.uwa.edu.au/undergraduate/poliproc/policies/StudentRights ).

Appeals against academic assessment

The University provides the opportunity for students to lodge an appeal against assessment results and/or progress status (refer http://www.secretariat.uwa.edu.au/home/policies/appeals ). DEBATE TITLE Social Impact MGMT8516 Debate Purpose:

1. To examine whether to grant or invest 2. To develop skills in using theory and research as a basis for successfully communicating a point

of view. Step 1 – 15 minutes The class will break into the following three groups, affirmative, negative and a judging panel. Students will be asked to form teams of five and appoint a team leader. Each of the affirmative teams will prepare a debate resolved that to grant is the appropriate course of action. Each of the negative teams will prepare a debate that to invest is the appropriate course of action. Step 2 – 25 minutes The class will reassemble and each group will present their argument. Each team will be allowed three minutes to make their presentation, beginning with the affirmative and then alternating sides. Step 3 – 5 minutes Teams will have five minutes to prepare a final rebuttal and summary. The team leader will conclude with a one minute rebuttal and summary. Step 4 – 5 minutes The judges will decide on a winner and will state as part of their decision, why they chose the winning team(s). Step 5 – 15 minutes Discussion and conclusion

1. Without renewing the debate, how many people in the class think that to grant is the appropriate course of action?

2. Is there empirical evidence to support arguments for either side of this debate?