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Social Business as Future Institutional Technology in European Countries

The 4th International Seville Conference on Future-Oriented Technology Analysis (FTA) 12 & 13 May 2011. Social Business as Future Institutional Technology in European Countries. Stefanie Mauksch, Henning Engelke, Inga-Lena Darkow, Heiko von der Gracht.

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Social Business as Future Institutional Technology in European Countries

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  1. The 4th International Seville Conference onFuture-Oriented Technology Analysis (FTA)12 & 13 May 2011 Social Business as Future Institutional Technology in European Countries Stefanie Mauksch, Henning Engelke, Inga-Lena Darkow, Heiko von der Gracht CEFU - Center for Futures Studies and Knowledge Management EBS Business School Wiesbaden, Germany

  2. Social Business as Future Institutional Technology Introduction What is Social Business? „The origin of the idea of social business was really quite simple: Whenever I wanted to deal with a social or economic problem, I tried to solve the problem by creating a social business around it. Over time I became convinced that it is an excellent way to address social and economic problems, but one that is missing in the framework of economic theory. I strongly feel that it should be included. The missing piece in the theoretical framework is what I call social business.“ Prof. Muhammad Yunus Founder of Grameen Bank and Nobel Peace Price Laureate

  3. Social Business as Future Institutional Technology Introduction Muhammad Yunus’ Social Business Principles • Tackling of social problems • Financial and economic sustainability • Repayment of investions, but no repayment of dividends • Profit stays within the company for expansion and improvement • Ecological responsible behaviour • Market-based loans • Do it with joy!

  4. Social Business as Future Institutional Technology Introduction Example: Grameen Danone Foods Company: Joint Venture between Grameen and Danone Objective: supplying nutritious food to poor children of Bangladesh Formation: 2006 in Bangladesh Product: Yoghurt Shakti Doi Price: 80g cup for 8/12 Taka Production: over 10,000 kilos per year Distribution: Grameen Borrowers

  5. Social Business as Future Institutional Technology The Process: From Theses to Scenarios Research Steps

  6. Social Business as Future Institutional Technology The Process: From Theses to Scenarios Literature Review Social Business • Authors • Year • Research Detail • Defourney & Nyssens • 2010 Analyses public policies introduced in several European countries and logic of finance social enterprises • Ghalib, Hossain, & Arun • 2009 Presents case study: Grameen Danone Foods and examines potential uplift through social business • Kerlin • 2006 Compares contrasting American and European conceptions of social enterprise through an extensive literature review • Kerlin • 2010 Compares social enterprises across seven regions and countries based on social origins theory and identifies different concepts and contexts • Vidal • 2005 Analyses socioeconomic performance of work-integration social enterprises Examines origins, nature and objectives of resources used by social enterprises • Yunus, Moingeon, & Lehmann-Ortaga • 2010 Presents social business as new business model Example-driven approach; names five criteria of successful social business Findings • Most approaches introduce the topic and elaborate categories for the definition of social business • Rare empirical research; most work with case studies • None of the studies employs statistical analyses • None develops a futures perspective

  7. Social Business as Future Institutional Technology The Process: From Theses to Scenarios Real – Time Delphi Delphi Anonymous, systematic, multi-level survey procedure Feedback of expert group opinions is provided after each round Real – Time Delphi Web-based platform where calculations of group assessments are carried out immediately 16 Theses | 1.200 Arguments

  8. Social Business as Future Institutional Technology The Process: From Theses to Scenarios The Experts

  9. Social Business as Future Institutional Technology Results Main Topics • Social Business reflects the zeitgeist: Change in vales as most important topic • Steady but sustainable: Social Business fills supply gaps • Standards as enablers • Social Entrepreneurship vs. Welfare State • Social Business in the economic system – Entrepreneurs instead of do-gooder • First choice of employees: Socially responsible companies • Mainly applicable to the social services sector

  10. Social Business as Future Institutional Technology Results Main Topics • Establishment of Standards for Social Businesses • Social Business engagement will lead to identification of employees with their company • Social Business will be part of education offers

  11. Social Business as Future Institutional Technology Results Clustered Future Projections – Strategic Map 4,0 T15 T4 T9 T7 T14 T12 T10 T8 T1 T16 3,0 T11 expectations T5 T6 T13 Impact on German economy T3 eventualities 2,0 surprises 40 50 60 70 80 30 Expected Probabilities Red: dissent; IQR >= 20 Blue: consent < 20 T1: Economic stabilization T2: Countercyclical tendency T3: Competitiveness T4: Consumer‘s buying behaviour T5: Profitability/Survival T6: Investor‘s investment behaviour T7: Employee identification T8: Industry sectors T9: Establishment of standards T10: Change in values T11: Regionalization of the economy T12: Social problem-solving potential T13: Shifts in motivation T14: Consumer‘s buying behaviour T15: Education and training T16: Reduction of CO2-emission

  12. Social Business as Future Institutional Technology Results Main Arguments

  13. Social Business as Future Institutional Technology Social Business Scenarios for 2030 The Social Guardian All private suppliers replaced by publicly subsidized organizations Exploding social costs and extremely hightaxes State cares for the old and the young

  14. Social Business as Future Institutional Technology Social Business Scenarios for 2030 The Social Paradise Establishment of innovative forms of corporate organizations Supply of affordable social services has improved Competition and market principles in the Third sector

  15. Social Business as Future Institutional Technology Social Business Scenarios for 2030 Social Fallow Donations at an all-time low and social services solely covered by private corporations Social market economy has broken down Two-class society

  16. Social Business as Future Institutional Technology Social Business Scenarios for 2030 Social Capitalism Social sector dominated by free market economy Social businesses are more sucessful than traditional ones Social businesses are forced to remain competitive

  17. Social Business as Future Institutional Technology Research Team Center for Futures Studies and Knowledge Management www.ebs.edu/futurestudies Stefanie Mauksch Internal Research Assistant Stefanie.mauksch@ebs.edu + 49 611 7102 2108 Dr. Inga-Lena Darkow Research Director Inga-lena.darkow@ebs.edu + 49 611 7102 2100 Henning Engelke External Research Assistant Henning.engelke@ebs.edu + 49 611 7102 2100 Dr. Heiko von der Gracht Managing Director Heiko.vondergracht@ebs.edu + 49 611 7102 2100

  18. Social Business as Future Institutional Technology References Defourny, J., & Nyssens, M. (2010). Social enterprise in Europe: At the crossroads of market, public policies and third sector. Policy and Society, 29(3), 231-242. doi: DOI: 10.1016/j.polsoc.2010.07.002 Ghalib, A., Hossain, F., & Arun, T. (2009). Social Responsibility, Business Strategy and Development: The Case of Grameen-Danone Foods Limited. [Article]. Australasian Accounting Business & Finance Journal, 3(4), 1-14. Kerlin, J. (2006). Social Enterprise in the United States and Europe: Understanding and Learning from the Differences. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 17(3), 246-262. doi: 10.1007/s11266-006-9016-2 Kerlin, J. (2010). A Comparative Analysis of the Global Emergence of Social Enterprise. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 21(2), 162-179. doi: 10.1007/s11266-010-9126-8 Vidal, I. (2005). Social Enterprise and Social Inclusion: Social Enterprises in the Sphere of Work Integration. [Article]. International Journal of Public Administration, 28(9/10), 807-825. doi: 10.1081/pad-200067347 Yunus, M., Moingeon, B., & Lehmann-Ortega, L. (2010). Building Social Business Models: Lessons from the Grameen Experience. Long Range Planning, 43(2-3), 308-325. doi: DOI: 10.1016/j.lrp.2009.12.005

  19. Social Business as Future Institutional Technology Scenario 1 Scenario 2 Scenario 3 Scenario 4 Timeframe Methodological Lead Center for Futures Studies. Shaping the future together! Mission • To pursue scientifically-established research in Futures Studies and manage its quality • To generate futures knowledge to support decision-making processes on governmental, economic and scientific issues • To establish Futures Studies research as an academic discipline / strategic instrument in business practice Achievements • Contract research with business partners (futures studies, tool development) • Scenario transfer: turn research results into strategy • Collaborate in public sector research projects • High diversity in team (mix of expertise) • Methodical and professional competence Key Aspects Center for Futures Studies Research and Knowledge Management Research • Scenario and Delphi Analyses • Roadmapping & Backcasting • Early Warning and Risk Management • Wildcard Analyses • Futures Studies Workshops • Method Integration (Scenario-Toolbox) Create the future together Network • Part of EBS Network with 180 partner universities and 200 business partners worldwide • Anchored in the Foresight-Community: Network for Future Studies Research, European Foresight Network, World Future Society, Oxford Scenario Network, EIRAC • Present in emerging markets (Russia, India and China) • www.ebs.edu/smi/futurestudies.html

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