Transcript Social enterprise a world movement

Social Enterprise The Social Value Act
Dave Miller
Social Entrepreneur & SE UK Associate
Four things...
1. What is social value?
2. Background to the Public Services
(Social Value) Act
3. What the Act covers
4. What can you do?
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!
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
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
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.
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….
What can you do? 5 point plan
1) Get informed - be in the know
2) Get in touch - be proactive
3) Get thinking - be confident
4) Get ready - be aware
5) Get real - be realistic
Key documents
• Social Enterprise UK guide:
http://www.socialenterprise.org.uk/uploads/files/2012/12/so
cial_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/uploads/att
achment_data/file/79273/Public_Services_Social_Value
_Act_2012_PPN.pdf
Any Questions?
[email protected]
Social Enterprise UK
www.socialenterprise.org.uk
Corporate governance and
responsibilities
“The system of rules, practices and
processes by which a company is
directed and controlled”
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
Balancing stakeholder interest
• Owners
• Management
• Customers
• Suppliers
• Investors
• Government
• Community
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.
Key governance paradoxes:
• Who governs? – ‘experts’ vs ‘stakeholders’
• Board roles – ‘conformance’ vs ‘performance’
• Relationship with management – supervision vs
support
• Multiple or ambiguous accountability
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
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
Corporate governance in employee
owned businesses – some examples
Case Study – John Lewis Partnership
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.
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
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
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 Health’s values and
vision
Consulting co-owners on key projects such as
Co-ownership Strategy
Any Questions?
[email protected]
Social Enterprise UK
www.socialenterprise.org.uk