Tuesday 2 February 2010

Let me introduce you to real social enterprises

The world seems full of folk claiming that “social enterprise” is the way of the future. And, in doing so implying that good old-fashioned businesses – you know, the ones where I make something and sell it to you or do something because you pay me – are somehow “anti-social”.

Now I have no problem with how people organise their businesses – as a consumer I care only about the nature and quality of the service or goods I receive. Well that’s not entirely true – I’d also like them to behave ethically. But that doesn’t mean not taking a profit, not paying themselves well in recompense for the risks taken or not having shareholders. And it doesn’t mean having a “social mission”, it doesn’t mean “fair trade”, it doesn’t mean not owning shares in oil companies or aerospace manufacturers. These are just elements of a marketing strategy based on political positioning.

An ethical company is one that doesn’t mislead people about its products or services, that operates within the laws and mores of the country, and that seeks to exceed the service expectations of customers. Nothing more.

And, you know, all but a tiny handful of for profit businesses behave that way. These businesses are as ethical – perhaps more ethical – as all the Co-ops, so-called “social enterprises” strutting around out there saying “look at me, aren’t I the good boy”, and “third sector organisations” trying to pretend they aren’t really just government subcontractors.

There is nothing – absolutely nothing – more social than the market. The market requires people to engage, to interest, to participate. The market encourages people to compete, to create, to exceed expectations and to take risks. And the market also promotes co-operation, innovation and partnership. Businesses operating in a free market are social organisations – however they choose to govern themselves. These businesses have to interest themselves in their customers – what they want or need, what there problems may be, what help they might require. They are real social enterprises.

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2 comments:

Mike Chitty said...

Could not agree more.

Ingrid said...

You make the point brilliantly! I am so tired of all those travestied government subsidized organizations, calling themselves socent and padding themselves on the back for what a great job they do. The fact is that there is nothing enterprising about what they do. The minute the funds get pulled, they are back to square one. They are not providing a long-term solution to a problem.

Ingrid