Geof Cox's Blog

Social impact is no longer an option for big brands

According to Javier Rodriguez Merino, Global Marketing Sustainability Director of Coca-Cola,

"Considering social impact is no longer an option for big brands, it's a necessity... We cannot treat branding and social impact as separate anymore."

When I visited Cliff Southcombe's office in Robin Hood's Bay a few weeks ago he answered the phone to one of those 'state of social enterprise' surveys.  When the researcher asked him what his social mission was, he replied,

"The defeat of capitalism!"

But does Coca-Cola's new thinking mean that social enterprise has already won this battle?

What on earth is Social Enterprise UK doing?


The UK social enterprise movement has recently had to suffer the spectacle of a Regional Social Enterprise Partnership having to take Social Enterprise UK to court to get paid for work they had done on a Social Enterprise UK project. In the end, SEUK was forced to pay not only money owed to the Regional Partnership, but the legal costs as well.

But failing to pay what you owe raises not only legal, but also ethical questions.  A couple of years ago I took part in the Senscot AGM in Edinburgh, and was surprised by the passion with which business ethics were discussed in Scotland.  When was the last time you heard an English (or 'UK') social enterprise umbrella body talking about ethics?  And of course there is more at stake here than the ethics of one organisation failing to pay another – or even of a social enterprise body, whose business ethics should be exemplary, failing to pay its debts; this was a national social enterprise representative body failing to pay what should be one of it's own regional partnership organisations.  What on earth was Social Enterprise UK doing?  Has it lost its way entirely?  How did it let what should have been (at worst) a disagreement within a spirit of partnership end up in court?

Asset Based Strategy Matrix

A while back I was involved in some research on asset based community development, and started thinking about a typology of asset-based strategies.  I wondered if the key factors with regard at least to land and building assets might be

  • how the asset-based strategy relates to organisational aims, on the one hand, and on the other
  • the technical characteristics (method and terms) of the asset acquisition.

I started to fit projects I knew about into a matrix on this, colour-coded according to how successful I felt the asset based strategies had been, and what started to emerge was something like this (I have removed the actual project names)...

Asset Based Strategy Matrix

See the pattern? Intuitively it makes some sense that those projects that are either commercially harder or more important (to the mission) will succeed best - so perhaps I'm just proving the obvious. But can it really be true that the lower the cost the more likely the failure?

In the event the research took a different approach - the last thing anyone wanted was to raise unnecessary questions in the minds of grant funders - nevertheless 'easy come easy go' remains an intriguing speculation.

Copyright infringement is NOT theft

It's great to see mainstream economists like Ha-Joon Chang exposing the doubtful utility of big business approaches to intellectual property.

'Patent monopoly creates a lot of problems. It allows the patentee to charge the maximum to consumers. This ... can violate basic human rights if it involves things such as life-saving drugs. Patent monopoly also blocks technological progress... as other people cannot use the patented technologies in developing other technologies.'

Chang also points out that what big business likes to present as the natural state of things is in fact a very recent imposition – in some developed economies in the 1990s -  and never fully accepted in countries like India.  Far from being based firmly in natural justice, these big business approaches to intellectual property are in fact paradoxically associated with free-market ideology (paradoxically, because intellectual property rights are themselves a form of market regulation)

There is now of course broad and growing resistance to these approaches to intellectual property.

Impact2 Social Enterprise Conference

Impact2 at the Hotel de Ville de ParisImpact2 at the Hotel de Ville de Paris

Just back from the Impact2 Social Enterprise Conference in Paris.  Like many big-name conferences it was rather spoilt by the shameless self-promotion of 'speakers' from big banks and the likes of KPMG.  It's so transparently cynical, isn't it? – they pay their sponsorship and get their advertising slot.  There is I suppose a question of who's kidding who: the suits get put up on the platform alongside the predictable politicians and real social entrepreneurs, and think they gain a bit of credibility by association; we think we're taking their money and seeing right through them.

Not So Grim Up North (or Why Regional Social Enterprise Partnerships struggle in the South but thrive in the North)

Why is it that while regional Social Enterprise Partnerships in the South of England are dropping like nine-pins, those in the North seem to be going from strength to strength?

I was at the North East Social Enterprise Conference yesterday where the irrepressible Val Jones, who leads Social Enterprise North West, set out the exciting programme for the coming year across the North of England, including the development of Social Enterprise North - a new body to co-ordinate work across all of Northern England. which will share experience of the big ERDF social enterprise development programmes across the North, and carry forward a number of other progammes, such as Shared Growth – at last the social enterprise movement thinking seriously about replication – and the Northern Social Enterprise Academy – itself a replication learning from pioneering work still further north in Scotland.

I would appeal to the remaining regional Social Enterprise Partnerships in the South of England – some of which I know are struggling – to visit Social Enterprise North East, North West, or Yorkshire & Humber to help work out the secrets of success – and to social enterprise organisations in the regions that have closed down to look at developing new more viable regional bodies, modelled on the good practice in the North.

My own suspicion is that the very factors which favoured the South a few years ago – especially closeness to government – made it more difficult for them to weather the change in government and funding environment.  As Val said (I'm paraphrasing): 'It's tough, but so are we.'

Leicester Co-operative & Social Enterprise Development Agency's 30th Birthday

Last night Leicester Co-operative & Social Enterprise Development Agency celebrated it's 30th Birthday.  When I worked there, in the early 90s, it was one of nearly a hundred 'CDAs' – Co-op Development Agencies – across the UK.  The fact that it has survived when so many others haven't was reason enough to celebrate – and although there are many better reasons – all the people and enterprises it has helped over the years for example – I found myself thinking first about this simple fact of its survival.

Leicester CDA was always extraordinary.  When I joined at the start of the 90s it was already well known for 'the Leicester Model Rules' and other innovations.  Its first cohort of development workers – the likes of Andrew Bibby, Paul Gosling and Mick Taylor – were already established as leading experts in the social enterprise world, or beyond it as writers, journalists, etc.  It had set out on one of the earliest municipal bus company buy-outs – Leicester CityBus – a process which later formed the basis of my own first book on transformations to social enterprise, Turnarounds – and threw up one of the balls I have kept in the air ever since.

Guardian Blog

This is the full text of the blog piece on the most difficult social enterprise of all published in the Guardian Online earlier today...

The basic business proposition of social enterprise is pretty crazy: to go out into the market place and compete, but with one hand tied behind your back – by your higher cost base.  Most of the 'social value' we add has some kind of cost implication. It might be the higher environmental standards of green businesses, for example, or paying more to suppliers as in fair trade.  The trick, of course, is to find a business model that can realise the added social value in higher prices or cost savings elsewhere.  Green and fair trade businesses usually do charge a slight premium, sell into sympathetic markets, and fair trade usually shortens the supply chain too.  In fact there are many ingenious ways social enterprise realises the social value it creates (in my training sessions I delineate 5 basic strategies, but within these there are many more options).

Syndicate content