Social Enterprise
|
A Social enterprise is any for-profit or non-profit organization that applies capitalistic strategies to achieving philanthropic goals. Many commercial enterprises would consider themselves to have social objectives, but commitment to these objectives is fundamentally motivated by the perception that such commitment will ultimately make the enterprise more financially valuable. Social enterprises differ in that, inversely, they do not aim to offer any benefit to their investors, except where they believe that doing so will ultimately further their capacity to realise their philanthropic goals. Many entrepreneurs, running a profit focused enterprise that they own, will make genuinely charitable gestures through the enterprise, expecting to make a loss in the process. While noble, this is not considered to be social enterprise. The term is more specific, meaning 'doing charity by doing trade', rather than 'doing charity while doing trade'. By definition a Social Enterprise should have: Enterprise Orientation – they are directly involved in producing goods or providing services to a market. Social Aims – they have explicit social and/or environmental aims such as job creation, training or the provision of local services. Their ethical values may include a commitment to building skills in local communities. Their profits are principally reinvested to achieve their social objectives. Social Ownership – many social enterprises are also characterised by their social ownership. They are autonomous organisations whose governance and ownership structures are normally based on participation by stakeholder groups (eg. Employees, users, clients, local community groups and social investors) or by trustees or directors who control the enterprise on behalf of a wider group of stakeholders. They are accountable to their stakeholders and the wider community for their social, environmental and economic impact. Profits can be distributed as profit share to stakeholders or used for the benefit of the community. TPG has several Australia Post Contracts primarily to provide employment and training for Jobseekers with a disability or mental health condition. By providing training and ongoing support, people whom previously would not have been able to apply for jobs in this area, become skilled and competent postal workers, as well as confident jobseekers for other positions. There is no pressure on them to stay or leave. The section of TPG is totally self funding and sustainable. |
