The Way Forward: Achieving Socio-Economic Sustainability with SMEs

by Benjamin R. Quiñones, Jr.Chairman & President

Coalition of Socially Responsible SMEs in Asia(CSRSME Asia)

• Global crisis of mainstream economic systems (capitalist & socialist): energy crisis, environmental crisis, food crisis, financial crisis, spiritual crisis marginalization of less developed countries

Globalization of poverty: creeping poverty in both developed and less developed countries

CURRENT SOCIO-ECONOMIC SITUATION

CURRENT SOCIO-ECONOMIC SITUATION

Systemic limitations of the program-oriented approach and the community development approach.

Supremacy of global supply/value chains over communities & nation states

Building blocks of an economy

1- the enterprise 2- supply/value chains of enterprises 3- supply/value chains of enterprises + Government (G) + Private corporate sector (C) + Rest of the World (RW) Focal

systemFocal

systemIndividualEnterprise IndividualEnterprise

MacrosystemMacrosystem

Integration of supply chains of

enterprises

Integration of supply chains of

enterprises

MegasystemMega

system

Integrated supply chains of

enterprises+ G + C+ RW

Integrated supply chains of

enterprises+ G + C+ RW

Two kinds of enterprise in terms of motivation

1- COMMERCIAL ENTERPRISE (CE): mainly for-profit (single bottom line)

2- SOCIAL ENTERPRISE (SE) : mission-oriented, triple bottom line (social development, environmental conservation, economic sustainability)

IndividualSE

IndividualSE

Integration of supply chains of

SE

Integration of supply chains of

SE

Integrated supply chains of SE + G +

C+ RW

Integrated supply chains of SE + G +

C+ RW

Integrated supply chains of CE+ G + C+

RW

Integrated supply chains of CE+ G + C+

RW

Integration of supply chains of

SE

Integration of supply chains of

SE

IndividualCE

IndividualCE

The only difference between CE & SE is the

MOTIVATION

The only difference between CE & SE is the

MOTIVATION

TRIPLE BOTTOM LINE ECONOMY

An economy that pursues the triple bottom line goals of social development, environmental conservation, and sustainability co-created by supply chains of SOCIAL ENTERPRISES & their allies in the country & from the Rest of the World

Government, Private corporate sector

Rest of the World

Integrated SE Supply Chains

SOCIAL ENTERPRISE AS A VEHICLE FOR SOCIO-ECONOMIC TRANSFORMATION OF COMMUNITIES

Theme of 3rd ASEF, Kuala Lumpur, October 31-Nov 2, 2011. Cempaka Hotel, Cheras, Kuala Lumpur.

Online registration https://sites.google.com/site/scdsef/registration

Inquiries at Center for Public Policy Studies, ASLI

STRATEGIES FOR DEVELOPING SOCIAL ENTERPRISES?

1. Value Chain Development 2. Social Enterprise Stock Exchange3. Fair Trade Market for Social Enterprises

STRATEGIES FOR DEVELOPING SOCIAL ENTERPRISES?

Value Chain Development

- Cluster approach: consolidation of social capital & finance capital

- Economies of scale- Access to resource (expertise, finance, markets, &

technology) - Capacity to compete in the market

Social Enterprise Stock Exchange

-Impact Investment Exchange Asia (IIX) www.asiaiix.com is a Social Enterprise (SE) with a social mission to provide greater access to capital for SEs in Asia-Pacific allowing them to grow more rapidly and expand their impact.

Social Enterprise Stock Exchange

- IIX created IMPACT PARTNERS which introduces impact investors to a select group of pre-screened Asian social enterprises in sectors such as agriculture, clean technology, renewable energy, education, healthcare and microfinance. -Impact Partners is now live at www.impactpartners.asiaiix.com

Fair Trade Market for Social Enterprises

Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade.

It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South.

- World Fair Trade Organization

Fair Trade Market for Social Enterprises

Fair trade is an organized social movement & market-based approach that aims to help producers in developing countries make better trading conditions and promote sustainability.

The movement advocates the payment of a higher price to producers as well as higher social and environmental standards. In 2008, products certified with FLO international certification amounted to $4.08 Billion, a 22% year-year increase.

- Wikipedia

THANK YOU! To gain more information on and

contacts with SOCIAL ENTERPRISES, participate in ASEF 2011

October 28-November 2, 2011Inquiries @ Center for Public Policy

Studies, ASLI