The Happy Economy: Exploring Social Enterprise & Social Purchasing

The Happy Economy: Exploring Social

Enterprise & Social Purchasing

“Happiness,” the term that Aristotle uses to designate the

highest human good...

Philosophers and religious thinkers often define happiness in terms of living a good

life, or flourishing…

Economics is the activity of the market place…

The “Market Place” has two components:

• Supply Side–producing and selling of goods and services in the market place

• Demand Side – the purchasing of goods and services in the market place

Happy Economy is a Marketplacewhere the exchange of goods and services

creates flourishing communities…

The Emerging Market Place Ecosystem

Former Emerging

Decide – Announce - Defend

Quarterly Financials

Compete

Avoid RiskSilos

Shared Values

Create Opportunities

Blended Value ROI

Collaborate

DevelopmentProfits

StakeholdersShareholders

Share

Prevent

React Solve

TraditionalNon-Profit

Relies on Charitable Gifts

Inputs Activity Output Outcome Impact

Social Evaluation Framework

Former Context Emerging Context

Traditional For-Profit Enterprise

Seeks only a Financial Return

on Investment

Budget Implications

Short Term $$$ ROI

Long Term $$$ ROI

Financial Evaluation Framework

Former Context Emerging Context

Emerging Model isa Blended Value Impact

Emerging Blended Value Model

Financial Return

on Investme

nt

Social Services Blended

Value Impact

Blended Value “Supply Side”

Social Enterprises• They sell goods or services in the market

place • to achieve a social, cultural and/or

environmental purpose • And they reinvest their profits to maximize

their social mission.

•Catering

•Office Cleaning

•Health Care

•Building Maintenance

Social Enterprises Offer a Full Array of Goods & Services

•Manufacturing

•Temporary Labour Services

•Recycling

•Landscaping13

Blended Value “Demand Side”

Social Purchasing

Social Purchasing uses existing purchasing to create a social value

Not less value or more cost-- blended value!

Progression of Social Purchasing

LegalMinimumExternal

EthicalPhilanthropy

CSR

EngageStakeholdersCollaborate

TransformInitiate

Integrate

Former Context

Emerging Context

Social Purchasing Framework

Price

Social Green

Quality

Social Enterprise

Social Purchasing

Happy Economy

Blended Value Marketplace

A Happy Economy is a Community Economy…

Where the exchange of goods and services creates flourishing communities…

www.buysocialcanada.ca

David LePageAccelerating Social Impact CCC

david@asiccc.ca