E-Magazine
David Maher
Globally the world of social enterprise and social investment could learn vast amounts from the commercialisation of carbon and the creation of a Clean Development Mechanism for those wishing to offset their carbon usage.
Social enterprises as trading entities are in the business of 'selling' social outcomes. The people who 'buy' those outcomes are a range of statutory commissioners and providers, foundations, philanthropists and those with a defined CSR budget. Increasingly we will see individuals and businesses buy those outcomes as personal budgets become more commonplace and businesses look at ways to meet CSR budgets. However, what would it take to 'commercialise' those social outcomes? Could an outcome be categorised on a unit basis and assigned a value. For example: could a value for one person being supported and maintained into employment be measured and fully costed? And if it could, who would 'buy' that outcome? And if someone 'bought' it and it appeared on a social balance sheet, could the outcome be sold again - and if so could it be traded on an open exchange?
So many questions. And so many potential dilemmas and ethical questions. I would suggest that if we could arrive at a process of measuring social outcomes in a consistent way then we were certainly on a meaningful track to developing an exchange mechanism for social investment which would have international impact.
So what are its implications. Well, in the Carbon offset world (and to some extent the Carbon Cap and Trade world) we see organisations having to 'buy' or invest in green initiatives if they want to exceed a certain threshold. We see those who are falling short of their threshold (carbon surplus) being able to 'sell' their allowances to others who are failing to trade within a set range. So now let's assume that we replace Carbon for Social Outcomes (one person in a job, or a disabled person having x amount of personal assistance to live an ordinary life) what process would we need to design to engage corporations with CSR budgets to spend? Could we develop a system of trading so that enterprises delivering certain outcomes can have Initial Public Offerings and the like to open up a whole new spectrum of revenue beyond the staid grant aid, block grants, SLA's etc etc?
Reading the news from the airport after a recent trip to the West Indies on CSR related work, I am beginning to see some further clarity emerging in the mist. The energy sector there is extremely engaged from a CSR perspective but despite their best attempts their investment barely impacts. Not because the need is so great (it is), mainly because their investment is so badly targeted and the investment targets or outcomes are so badly defined. Or not defined at all.
The UN COP15 Climate Change Conference reminds us of the gap in the market for the social entrepreneurs amongst us to begin to develop a Social Development Mechanism to take and expand the best bits from the carbon worlds Clean Development Mechanism.
A new opportunity for supporting corporations invest as socially minded citizens may well provide a clear and unambiguous way of harnessing and measuring their outcomes 'pitching' for social investment from CSR funding. The private sector involved in this way is the missing link in Mulgan's Collaborative State. Roll it on. I for one cannot wait to engage the social enterprise sector on a more entrepreneurial and tangible results focused footing. In the meantime I am going to continue working on CSR Brokerage, Social Development Mechanism and Social Credits business plan! The future’s bright, the future is Social Credits.
David Maher, djsc.maher@gmail.com
<Back to Contents Next Article>