CIRIEC Nº 83 April 2015
Social and economic impact of the Social Economy
'Social and economic impact of the social economy'. Introduction
Authors: Carmen Marcuello Servós
Toward a New Metrics for the Evaluation of the Social Added Value of Social Enterprises
Authors: Andrea Bassi and Giorgia Vincenti
Keywords: Social Impact Assessment, Social Added Value, Evaluation, Social Cooperatives.
Econlit Keywords: M140, P130, Q130.
There is a widespread dissatisfaction among nonprofit leaders and managers, private funders and public decision-makers concerning the current systems of social impact assessment of nonprofit organizations/social enterprises (NPO/SE).The systems of performance measurement of NPO/SE vary greatly in relationship to a series of endogenous and exogenous variables related to different organizational environments: economic, political, social and cultural.The aim of this article is to present an innovative theoretical framework on the basis of which it is possible to define a set of indicators for the evaluation of the social added value produced by NPO/SE. Our hypothesis is that NPO/SE are characterized by their ability to generate different outcome at each of the dimensions of social life: micro, meso and macro. Meaning, a sense of responsibility at the micro level; relational goods at the meso level; and social capital at the macro level.The article illustrates the assessment tool called S.A.V.E. applied, as empirical reference, to three Italian social enterprises operating in the field of health and social services (local welfare systems).
Monetarizing the social value: theory and evidence
Authors: José-Luis Retolaza, Leire San-Jose and Maite Ruiz-Roqueñi
Keywords: Social accounting, sostenibility, shared-value, stakeholder theory, finance.
Econlit Keywords: M140, P130, Q130.
Over the last decade important efforts were made to integrate economic and social value in organizations within a unic report. This is significant because it reflects greater interest and demands in society concerning not just economic but social responsibilities of organizations. However, social organizations are finding problems to give value to their social contribution, mainly due to the prominence of financial economic indicators; which curiously only have instrumental value in this type of entities.The aim of this paper is to develop a social accounting model that allows incorporating the social value, in its monetized form, employing accounting standards; with the economic one. It is not possible to monetize full social value with this model, although it does show economic value with social impact, socio-economic return and specific social value. Application of this model makes possible the quantitative and monetized comparison of integrated value between companies, which would involve more efficient decision-making based on symmetry and more complete information (private organizations), more efficiency in consumption or investment decisions (private individuals) and efficient indicators for establishing public policies (public administration). Overall, it could prove to be a basic and valuable component of business reputation.
The economic and employment impact of the Social Economy in Spain – A multi-sector analysis
Authors: Patricia D. Fuentes Saguar & Alfredo J. Mainar Causapé
Keywords: Social economy, employment, multi-sector models, social accounting matrix.
Econlit Keywords: E000, E200, P000.
In the current situation, the social economy has a very important role to play because of its capacity to create employment and to energise sectors or collectives with particular economic development problems. For this reason, the ability to measure the real scope – both direct and indirect – of its impact on economic activity and employment is a matter of great interest. This paper proposes the use of multi-sector models, based on social accounting matrices, to measure the total impact of the social economy. Combining these models with the available statistical data on social economy enterprises in Spain will also make it possible to obtain information to quantify this impact in particular sectors of interest. Additionally, in this way the capacity of the social economy to contribute to economic recovery can also be assessed.The results show that social economy enterprises have a greater capacity for job creation than other companies in Spain, particularly in service sectors. This is augmented by the considerable ability of these sectors (essentially services) to multiply impacts and by their high employment ratio, which is still greater in the case of the social economy.
Self-employment in the social economy: an approach to its territorial evolution in Spain
Authors: María del Carmen Pérez González & Lidia Valiente Palma
Keywords: Territorial development, social economy, labor-managed firms, cooperatives, self-employment, cluster analysis.
Econlit Keywords: J540, P130, R100.
The objective of this study was to identify the different behaviors of the Autonomous Communities of Spain regarding self-employment generated in the sphere of the Social Economy, and to attempt to establish behavior patterns according to the economic situation of each region. A cluster analysis was performed, incorporating variables that relate the territory and the Social Economy and focusing on the years 2007 (before the crisis) and 2013. Differences in the evolution of the Autonomous Communities for the period under review are among the main results, and are due largely to differences in the sector’s treatment by the institutional framework and to the specific characteristics of each territory.
Employment in cooperative societies – A comparative analysis of cyclical phases and synchronization
Authors: Mercè Sala Ríos, Teresa Torres Solé & Mariona Farré Perdiguer
Keywords: Cooperative societies, cyclical phases, turning points, Bry and Boschan algorithm, business cycle, cyclical synchronization, economic crisis.
Econlit Keywords: E240, E320, J210, J540, L210.
This study provides evidence on the relationship between business cycle, employment and cooperative society employment in Spain over the 1995-2014 period. The aim was to examine to what point the cooperative employment cycle is led by the business cycle and whether it shows different cyclical behavior to that of Spanish employment as a whole. The turning points of the cooperative employment, economic activity and total employment cycles were identified; the synchronization level between series was assessed; and the effects of the 2007 crisis on cycle synchronization were studied. The results show little synchronization between the phases of the employment cycle of cooperative societies and of the business cycle, although significant counter-cyclical behavior was not found. However, the crisis has increased their linkage: cooperative employment has become more sensitive to the business cycle and its capacity to create or maintain jobs has decreased.
Social disclosure based on the GRI guidelines for the social economy: a tool for improving member-cooperative relations
Authors: Francisca Castilla-Polo, Dolores Gallardo-Vázquez & Mª Isabel Sánchez-Hernández
Keywords: Cooperative societies, stakeholders, social disclosure, GRI, Social Economy.
Econlit Keywords: M140, M400, P130.
The problems of the members within the cooperative society and their relation to Stakeholder Theory are the focus of this paper. Considering not only the members’ democratic participation but also their potential role in different economic functions, we address the need for proper management of member-cooperative relations. To help create or maintain these relations, we suggest using social disclosure, particularly sustainability reports prepared according to the specific GRI guidelines for the Social Economy. They are easy to apply and the benefits associated with their use would appear to more than offset the costs of implementation, justifying this proposal. In conclusion, we can state that sustainability reporting is a powerful tool for cooperatives to improve their relations with their members, although we have found few social disclosure initiatives in this type of company.
The globalisation of manufacturing and its socio-economic impact – The case of Orkli S. Coop in China
Authors: Paula Arzadun
Keywords: Socio-economic impact, economic globalization, manufacturing globalization, Mondragon, Orkli S.Coop.
Econlit Keywords: F620, F610, F630, M140, L240.
Mondragon is the largest business group in the Basque Country, the tenth largest in Spain and the largest in the social economy. In recent years, Mondragon has been seeking to adapt to a new context of increasingly complex and global markets. One result of this process of adaptation has been the full entry of Mondragón itself into the global economy in general, and, in particular, the international expansion of its manufacturing activities.This paper is the result of a wider study that developed an analytical tool for the evaluation of socio-economic impact which has been applied to Mondragon enterprises in risk countries identified as target markets. It combines two kinds of measurement: firstly, the economic impact of these firms´ manufacturing activities through Input-Output tables (Leontief, 1970), and, secondly, the alignment of different economic, environmental and socially-responsible policies and practices with their core business strategies (Porter y Kramer, 2006). This paper presents the case of Orkli S.Coop in Kunshan, China, following fieldwork that took place in June 2009.
Size and profitability in co-operative banking: a picture from inside a Portuguese institution
Authors: Sérgio Lagoa and Licínio Prata Pina
Keywords: Banks, co-operatives, profitability, Crédito Agrícola, mergers.
Econlit Keywords: D240, G210, M100, P130.
The European co-operative banks play an important role in promoting savings and in financing small and medium enterprises. Their distinctive characteristics have allowed them to get through the Subprime crisis with remarkable resilience. Nevertheless, co-operative banks operate in a very competitive market, where they are constantly under pressure to improve their position. Increasing the size of local co-operative banks is often the strategy used to deal with this pressure. Based on data from a Portuguese co-operative banking group for 2009-11, we assess the impact of size on assets profitability, and conduct a disaggregated analysis of the ratios affecting it. Results indicate that size has an insignificant effect on profitability after controlling for the time-invariant characteristics of each local bank (i.e. caixa). This suggests that the initial higher profitability identified in small and larger caixas vis-à-vis that of medium-size caixas was explained by their specific time-invariant features. However our evidence suggests that size has an indirect effect on return through credit risk: larger caixas have better credit risk management.
Decisive factors for purchasing products with social and environmental labels
Authors: Isabel Carrero, Carmen Valor & Raquel Redondo
Keywords: Corporate social responsibility (CSR), labelling and branding, label knowledge, social and environmental labels, sustainability, Spain.
Econlit Keywords: D830, M140, M310.
Socially and environmentally responsible firms make great efforts to obtain the labels that certify their social and environmental standards. To differentiate them from their competitors, the so-called ‘socially responsible’ labels are considered the best way to inform consumers of their social and environmental performance. However, previous studies have concluded that most consumers do not recognize, do not understand or do not trust labels. Whereas previous studies have examined the influence of attitudes on the purchase of labelled products, this study analyses the influence of understanding and of variables associated with motivation to purchase such products. On interviewing 289 consumers in Madrid, it was found that knowledge of the label is a key precursor to CSR purchasing. The paper concludes by suggesting that organizations and marketing professionals with an interest in the CSR-labelled market should invest in building up familiarity with the label. Avenues for academic research are also proposed.
What is a food bank for? Relations with beneficiary organizations in a region of northern Spain
Authors: Jorge Coque, Pilar L. González-Torre & Marta García Rodríguez
Keywords: Food banks, food consumption organizations, food distribution organizations, survey, participative action research, demand, supply.
Econlit Keywords: I310, L310, Q180, Q510, R410.
Food banks are volunteer-based non-profit organizations whose goal is to recover and redistribute food surpluses to needy people through other organizations. This study focuses on the relationship between a food bank and its beneficiary organizations, which can be classified into food consumption organizations and food distribution organizations. The study adopted a hybrid quantitative-qualitative methodology. The first step was an exploratory survey addressed to all those organizations. The second step consisted in a participatory workshop for returning the survey and contrasting and exploring the data collected in greater depth. The results show the differences between the two types of organization in the framework of the current socio-economic crisis, and their common problems, which can be summarized as the difficulties in satisfying demand when it is very heterogeneous and is growing, and when the supply follows its own rules.