Enterprise can no longer be seen only as an engine of economic progress. Today's global society needs enterprise to be driver for socially and ecologically sustainable social progress.
Support for social enterprise as a concept is rapidly increasing around the world but little agreement exists on how 'social enterprise' should be defined. We see this as an important opportunity to integrate social goals with the ecological and justice pillars of sustainability.
Sustainable social enterprises must generate sustainable benefits for society. Through preliminary research conducted in Kenya during 2009 and reviews of literature on social enterprise we propose the following principles for sustainable social enterprises. They must:
- Have explicit aims to benefit the community
- Be governed democratically, not based on capital ownership
- Involve stakeholders in a participatory manner
- Limit profit distribution and reinvest profits for community benefit
While also achieving most, or all, of these goals in some way:
- Improving social wellbeing
- Reducing poverty and inequality
- Conserving life-supporting ecological systems
- Eventually restoring ecological systems.
These are meant as broad principles that can be followed in any context. Ensuring their local relevance requires further elaboration on how these principles should be understood and approached in a specific place.
Sustainable enterprises could become a widespread reality but this will require new, visionary and committed policy and investment support. |