Title: Community Economic Development: What Is It, and Why Should it Matter to Corporate Canada?
1Community Economic DevelopmentWhat Is It, and
Why Should it Matter to Corporate Canada?
Edward T. Jackson Carleton University
2(No Transcript)
3Community Economic Development What is It?
- A field of practice in which community-based
non-profits - blend business and social techniques
- mobilize both local and external resources
- to reduce poverty and unemployment
- and revitalize geographic communities (rural and
remote areas, urban neighbourhoods) - or communities of interest
4What Does CED Look Like?
- Community development corporations
- Community Futures Corporations
- Co-operatives (consumer, producer, worker,
multi-stakeholder) - Businesses owned by social-service non-profits or
charities - Aboriginal development corporations
- Community land trusts
- Community loan funds
- Micro-finance programs
- Social venture philanthropy
5Why Should CED Matter to Corporate Canada?
- CED contributes to solving social problems
- Stronger communities have healthier economies
- Local heroes need allies
- CED is good for the corporate bottom line
6The Business Case for Corporate Support of CED
- CED is a tool for corporate social responsibility
that generates benefits to corporate partners,
including - Reputational gains among investors and the public
- Open policy and regulatory relations with
government - Brand differentiation
- Customer loyalty
- Employee recruitment and retention
- Procurement savings
- A social license to operate
7Corporate Social Responsibility through Social
Community Economic Development
- Strategies
- Grantmaking to CED projects
- Venture philanthropy
- Joint ventures
- Procurement from community enterprises
- Employee volunteer engagement
8Hot-Button Policy Issues and CED Initiatives
9Hot-Button Policy Issues and CED Initiatives
10Capital Markets for Community Economic Development
Grants
-
- Governments
- Development Agencies
- Foundations
- Corporations
-
- Governments
- Regional Agencies
- Corporations
Loans / Equity
-
- Community Futures
- Community Loan Funds
- Credit Unions
- Social Venture Capital
- Banks
-
- Corporations
- Credit Unions
- Business Development Bank
- Regional Agencies
- Labour Funds
- Banks
-
-
- Corporations
- Credit Unions
- Targeted Pension Investments
- Regional Agencies
- Labour Funds
11Intermediaries Optimize CED Success
- Forms Community development corporation,
non-profit umbrella, foundation, program,
network, consortium - Functions Technical assistance (consulting,
training, business planning, market studies)
financing (grants, loans, equity) management
support political support (promotion, lobbying,
regulatory change) - Funding Foundation, corporate and government
grants loans and other program-related
investments contracts enterprise surplus asset
appreciation private philanthropy donations and
gifts volunteer time - Factors of Intermediary Success Leadership
(skills, vision continuity, succession)
structure (flexible, evolving) strategy (growth
opportunities, backward and forward linkages,
first-mover advantage) management human
resources innovation replication and scaling
up financing (diversification of revenues)
accountability
12Case Study New Dawn Enterprises
Cape Breton Association for Co-op Development
New Dawn Enterprises (Non-Profit CDC)
1973
- Cape Care Services Ltd.
- Home Care Services
- Cape Breton Association for Housing Development
- Real estate company for affordable housing
- Highland Resources Ltd.
- Private career college
- New Dawn Guest Home Ltd.
- 30-bed residential care facility
- David Realties
- Commercial landlord
Source newdawn.ca
13Case Study Social Capital Partners
Bill Young/ Bealight Foundation
Social Capital Partners
Social Venture Portfolio
Sector and Policy Engagement
Research on SROI/Evaluation
Grants, Loans, Equity
Renaissance, Montreal
Inner City Renovations, Winnipeg
Social Enterprise
Social Enterprise
- 50 K grant and board involvement
- 100K equity
- 100K loan
- Used to test new ideas in marketing,
merchandizing and pricing
- Investment-Decision Steps
- Concept Review
- Business Plan Review
- Due Diligence
- Alignment and Deal structure
- Investment and Ongoing Working Relationship
- Monitoring and Reinvestment
- Challenges
- Dearth of great social entrepreneurs
- Lack of sophisticated business models
- Limited sources of social capital
Sean VanDoorselaer, Venture Capital for Social
Enterprise, Making Waves, 15(3), 2004, 10-13
14Evaluation of Community Economic Development
- Evaluation Defined Assessment of social,
environmental and commercial results, lessons
learned and accountability systems by key
stakeholders. - Promising Methods
- Return on Taxpayer Investment (ROTI)
Input-output modeling of direct, indirect and
induced effects of government-supported
interventions - Social Return on Investment (SROI) Method for
assessing the social costs associated with the
individual employees and the community enterprise
itself (Social Capital Partners, Roberts
Enterprise Development Fund) - Enhanced Value-Added Statement (EVAS)
Quantifies the value of social impacts and
volunteer contributions of a non-profit or
cooperative (Quarter et al, OISE/UT) - Return on CSR investment in CED to the corporate
bottom line (surveys, focus groups on stakeholder
perceptions and decisions)
15Questions
16Useful Websites