Social enterprise a world movement

1
Social Enterprise - The Social Value Act Dave
Miller Social Entrepreneur SE UK Associate
2
(No Transcript)
3
Four things...

• What is social value?
• Background to the Public Services (Social Value)
  Act
• What the Act covers
• What can you do?

4
What is social value?

• Social value has been loosely defined as
• the additional benefit to the community from a
  commissioning/procurement process over and above
  the direct purchasing of goods, services and
  outcomes
• This may also be your USP as a business!

5
Background to the Public Services (Social
Value) Act

• The social enterprise sector has long called for
  social value to be factored into commissioning
  to
• support local job creation
• improve access to market entry for civil society
  organisations
• minimise the impact of the spending cuts on civil
  society organisations
• Social Enterprise UK included this recommendation
  in our 2010 General Election manifesto

6
More background

• In July 2010, Chris White MP tabled the Public
  Services (Social Value) Bill
• He felt the Bill
• tied in to the Big Society vision
• would help create a mixed market of providers and
  encourage market entry for civil society
  organisations
• could give rise to cross-departmental
  efficiencies
• The Bill became law on 8th March 2012 and was
  implemented on 31st January 2013

7
What the Act covers

• Public bodies are required to consider how they
  might improve the economic, social and
  environmental well-being of the area at the
  pre-procurement stage of public service
  commissioning.
• The Act applies to
• all public service contracts over a certain
  threshold
• those public services contracts with only an
  element of goods or works
• All English bodies will have to comply with the
  new law, including local authorities, government
  departments, NHS Trusts, PCTs, fire and rescue
  services, and housing associations.

8
What the Act covers cont.

• Thresholds
• 113,057 (central govt)
• 173,934 (everything else)
• The Act does not apply in legislation to
  contracts below these amounts
• But.

9
What can you do? 5 point plan

• Get informed - be in the know
• Get in touch - be proactive
• Get thinking - be confident
• Get ready - be aware
• Get real - be realistic

10
Key documents

• Social Enterprise UK guide
• http//www.socialenterprise.org.uk/uploads/files/2
  012/12/social_value_guide.pdf
• Cabinet Office Procurement Policy Note 10/12 The
  Public Services (Social Value) Act 2012 advice
  for commissioners and procurers 20th December
  2012
• https//www.gov.uk/government/uploads/system/uploa
  ds/attachment_data/file/79273/Public_Services_Soci
  al_Value_Act_2012_PPN.pdf

11
Any Questions? mail_at_daveymiller.co.uk Social
Enterprise UK www.socialenterprise.org.uk
12
Corporate governance and responsibilities
13
The system of rules, practices and processes by
which a company is directed and controlled
14
(No Transcript)
15
Principles of Corporate Governance

• Ethical approach
• Balanced objectives
• Each party plays their part
• Decision-making processes in place
• Equal concern for all stakeholders
• Accountability and transparency

16
Balancing stakeholder interest

• Owners
• Management
• Customers
• Suppliers
• Investors
• Government
• Community

17
typical governance problems and challenges

• board recruitment such as problems
  recruiting/electing people with the right
  skills and experience and areas of expertise
  that are commonly lacking
• board roles some roles may be problematic for
  the board to fulfill (safeguarding values and
  mission shaping strategy risk assessment
  ensuring effective performance ensuring board
  operates in responsible and accountable manner
  maintaining an effective board compliance with
  external (government) demands and measures)
• problems in managing relationships with
  management boards becoming a rubber stamp or
  conversely interfering too much
• managing the tension between social and business
  goals
• managing member relations and involvement
• managing the demands of different stakeholders
  and regulators.

18
Key governance paradoxes

• Who governs? experts vs stakeholders
• Board roles conformance vs performance
• Relationship with management supervision vs
  support
• Multiple or ambiguous accountability

19
Member-led / mutual challenges

• Often problems in attracting people with
  appropriate skills to serve on board, people get
  involved because they are interested in the
  cause rather than governance
• Election process can mean boards to not have
  appropriate skill mix
• Problem of maintaining membership involvement and
  commitment, particularly as the organisation
  grows and becomes more professionally led.
• Public sector spin-offs/hybrids
• Managing multi-stakeholder boards
• Managing staff involvement and control
• Managing tensions between staff who are members
  and those who are not
• Developing appropriate mechanisms to involve
  users
• Managing contracting relationships

20
Governance themes

• A common theme is the range of governance
  structures goes from Small informal to larger
  more formal professional, with different issues
  associated. Eg some issues of insularity with
  small informals
• Multi-stakeholder structures issues about how
  to manage different interests
• Influence of regulatory structures on boards
  can be quite demanding, requiring a number of
  changes
• Involving users a wide variety of ways of
  addressing this including users on boards
• Location and expertise? Eg Few inner city
  accountants ready to sit on regional SE boards?
• A lot of specific issues that can arise around
  different types (see types below)
• eg1 business people moving into SE sector,
  getting pressure to shape up through Governance
  requirements
• eg 2. Charities overdoing governance and
  procedural stuff, and so hampering
  entrepreneurial activity
• contracting issues not just public sector,
  but also subcontracting with private business
• Transitions a lot of trends eg towards
  increasing emphasis on governance but also
  organisations in transition moving into
  contracting, moving from small business, spinning
  off from public sector

21
Corporate governance in employee owned businesses
some examples
22
Case Study John Lewis Partnership
23
John Lewis Partnership Council

• 83 of its members are elected by Partners
  (others by Chairman)
• Hold management to account, influence policy and
  make key governance decisions.
• Elects five directors to the Partnership board.
• Has the ultimate power of dismissing the Chairman
  if he fails to fulfil his responsibilities.
• Influencing Partnership policy and how profits
  are spent, such as pay, pensions and discount
  policies.
• The Chairman appears before the Council twice a
  year to report and answer questions on his
  running of the Partnership.

24
Case Study Central Surrey Health

• Representative body The Voice
• 7 democratically elected representatives from
  across business geographically split
• Objectives
• Enable co-owners to have a say in and feel
  involved with how Central Surrey Health is run
• Hold the Board to account on behalf of the
  co-owners of CSH
• Question and influence the Board on company
  direction and performance

25
Case Study Central Surrey Health

• How this is done
• Formal reporting by the MDs to the Voice
• The Voice appoints a non executive director that
  sits on board
• Feedback to co-owners
• Co-owner engagement
• Objectives learning / development

26
Case Study Central Surrey Health

• Recent work
• Representing views on range of issues from
  efficiency projects to IT investment.
• Closely involved in the development of 2012-2016
  strategy, securing Central Surrey Healths values
  and vision
• Consulting co-owners on key projects such as
  Co-ownership Strategy

27
Any Questions? mail_at_daveymiller.co.uk Social
Enterprise UK www.socialenterprise.org.uk