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 School Wiesbaden, Germany The 4th International Seville Conference on Future-Oriented Technology Analysis (FTA) 12 & 13 May 2011
19
Embed
Social Business as Future Institutional Technology in European Countries
The 4th International Seville Conference on Future-Oriented Technology Analysis (FTA) 12 & 13 May 2011. Social Business as Future Institutional Technology in European Countries. Stefanie Mauksch, Henning Engelke, Inga-Lena Darkow, Heiko von der Gracht. - PowerPoint PPT Presentation
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
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
Social Business as Future Institutional Technology
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
Social Business as Future Institutional Technology
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
Social Business as Future Institutional Technology
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
Social Business as Future Institutional Technology
The Process: From Theses to Scenarios
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
Social Business as Future Institutional Technology
The Process: From Theses to Scenarios
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
Social Business as Future Institutional Technology
The Process: From Theses to Scenarios
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
Social Business as Future Institutional Technology
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
Social Business as Future Institutional Technology
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
Social Business as Future Institutional Technology
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
Social Business as Future Institutional Technology
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 as Future Institutional Technology
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
Social Business as Future Institutional Technology
Social Business Scenarios for 2030
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 Business as Future Institutional Technology
Social Business Scenarios for 2030
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 Business as Future Institutional Technology
Social Business Scenarios for 2030
Social CapitalismSocial sector
dominated by free market economy
Social businesses are more sucessful than
traditional ones
Social businesses are forced to remain
competitive
17
Social Business as Future Institutional Technology
Social Business as Future Institutional Technology
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
Social Business as Future Institutional Technology