Social Enterprise Lecture 1 The Third Sector the 3 rd sector
Nov 02, 2014
Social Enterprise Lecture 1 The Third Sector
the3rd sector
Social Enterprise Lecture 1 The Third 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 Enterprise Lecture 1 The Third Sector
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.
Social Enterprise Lecture 1 The Third Sector
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Market
Civil Society
(distinct from the state and the market)
State
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector?Market State
Social Enterprise Lecture 1 The Third Sector
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
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Characteristics ?
??Market State
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Market
Civil Society
State
Available to those who can afford
Available to all
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Market
Civil Society
State
Available to those who can afford
Available to all
Available to whom?
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Market
Civil Society
State
Available to those who can afford
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
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Market
Civil Society
State
Available to those who can afford
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
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Market
Civil Society
State
Available to those who can afford
Available to all
Free Democratic
Society
Available by cause
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Market
Civil Society
State
Available to those who can afford
Available to all
State Control
Available by cause
Social Enterprise Lecture 1 The Third Sector
Third sector
Private sector
Mapping the sector
Public Sector
Market
Civil Society
State
Available to those who can afford
Available to all
UK political, economic and social system
Social Enterprise Lecture 1 The Third Sector
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.
Social Enterprise Lecture 1 The Third Sector
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. . .
Social Enterprise Lecture 1 The Third Sector
Historical context for the third sector. . . .
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
Social Enterprise Lecture 1 The Third Sector
Historical context for the third sector. . . .
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
Social Enterprise Lecture 1 The Third Sector
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 . . . . ?????
Social Enterprise Lecture 1 The Third Sector
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
Social Enterprise Lecture 1 The Third Sector
Organisations whose 1st objectives are social
not economic.
. . . Driven by a cause.
Socially Entrepreneurial.
That is the 3rd Sector.
Why? . . . The 3rd Sector
Social Enterprise Lecture 1 The Third 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
Social Enterprise Lecture 1 The Third Sector
the3rd sector