marina gana vida - overfishing in philippines
TRANSCRIPT
posc217: faith ooi | khoo kimberly | ng yu hang
Marina Gana Vida
Wednesday, February 12, 14
DO YOU LIKE eating FISH?Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
90%OF THE WORLD’S BIG FISH STOCKS has been depleted in the past
century
Wednesday, February 12, 14
k
“I want there to be hammerhead sharks and
bluefin tuna around when my five-year old son grows up. If present fishing levels persist, these great fish will go the
way of the dinosaurs.”
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
overarching questions of the caseZ
How should one balance philanthropic and business goals in a social enterprise like MGV?
How is a social enterprise different from a normal business and how is a social enterprise different from a normal charity?
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
SUB-questions of the caseZZ
How should one balance philanthropic and business goals in a social enterprise like MGV?
What does MGV hold itself responsible for?
What should a social enterprise be responsible for?
Is MGV’s business operations sustainable and scalable in the long run?
Why the social enterprise model as opposed to traditional business/charities?
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
FROM THE POINT OF VIEW OF
an INVESTOR
donor agency
no
i
qw
the firm
marina gana vida
society
communities
CONTEXT OFOVERFISHING WORLDWIDE
& philippinesA
RECOMMENDATIONSAND CONCLUSIONV
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CONTEXT OF
OVERFISHING WORLDWIDE & philippines
AzWednesday, February 12, 14
technological developments
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Rapid growth of the
fishing industry
Rapid advances in
fishing technology
Overfishing+m
AND RAPID GROWTH OF THE FISHING INDUSTRY LED TO
OVERFISHING
A
Wednesday, February 12, 14
WORLD FISH CATCH HAS REMAINED STAGNANTA
The ‘fisheries boom’ was short-lived
Since 1989, world fish catch has not increased despite continued investment in fishing technology
despite advances in fishing technology
g
g
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
The result of overfishingA
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
overexploitation of fisheries worldwideA
In 1994, UN FAO estimated that about 74% of the world’s major fisheries had been fully exploited, overexploited, or depleted
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
CASE STUDY 1: depletion of atlantic codAGrand Bank fisheries: Point of no return
1500 Explorers found rich fisheries in Newfoundland, Canada
1981 Brought in 779,000 tons of cod
1992 After decades of overfishing, the fishery was forced to shut down
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
CASE STUDY 1: depletion of atlantic codAGrand Bank fisheries: Point of no return
2014 The fishery has still not recovered
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
THE FISHING INDUSTRY IN THE PHILIPPINESA• An archipelagic state with 2.2 million km2
of highly productive seas
• 12th largest producer of fish in 1998
• Fish provide income to some 1.3 million small fishers and their families
• Preferential rights given to small-scale fishermen but lax enforcement allowed commercial fishermen to dominate the industry
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
overfishing led to a steep declineAin catch per unit effort
Declining catch per unit effort severely effected the livelihood of fishermen
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
overfishing led to a steep declineAin catch per unit effort
For common hook-and-line fishing, fish catch is in some cases less than 5% of the original levels of 1940
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
Map of heavily exploited areasAin the philippines
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
nthe firm
marina gana vidazWednesday, February 12, 14
KEY QUESTION
g
o
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
What does MGV hold itself responsible for?
Wednesday, February 12, 14
mgv BASE OF OPERATIONS
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
n
Wednesday, February 12, 14
mgv’s goalsnWhat does MGV hold itself responsible for?
o
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
POVERTY ALLEVIATION
Wednesday, February 12, 14
mgv’s goalsnWhat does MGV hold itself responsible for?
y F
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
7HAPPY PEOPLE
HAPPY earth
healthy food
Wednesday, February 12, 14
happy peoplenEmployees
Good working conditions*Flexible working shifts*Taking ownership of their work
Micro-Franchises
*Franchises buy hatchery fry and sell the seafood back to MGV*MGV provides necessary technical training
zero turnover rate
community benefit
outreach of 2,500
households
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Women empowerment*Positive effect of lending money to women
Wednesday, February 12, 14
happy peoplen
Is MGV’s impact substantial?INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
happy peoplen
Clearly, MGV has had success on a small scale but is far from its vision of employing “10,000 households as labour force or independent suppliers with net incomes of at least 30% above the poverty threshold”
MIXED SUCCESSbINTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
happy EARTHn
SUCCESSFUL8
Sustainable fish farmingObtained excess fish eggs instead of taking the fry directly from the sea
Adhered to regulations*Annual checks on the seabed, water, and marine life*Adhered to government fishing regulations
No chemicals or hormones
Preserved soil and water quality
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
healthy food
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
n
SUCCESSFUL8
No preservatives
Health-Conscious BrandIts gourmet retail shops also sold health drinks and other healthy foods to promote the MGV brand image as a health-conscious brand
Wednesday, February 12, 14
mgv’s goalsnWhat does MGV hold itself responsible for?
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
y F7HAPPY PEOPLE
HAPPY earth
healthy food
82 8 8
Wednesday, February 12, 14
an INVESTOR
donor agency
ozWednesday, February 12, 14
KEY QUESTIONS
g
o
f Are MGV’s business operations sustainable and scalable in the long run?
From the POV of an investor in MGV, what is it responsible for?
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
what is mgv responsible for?oWho are the potential
investors in MGV?
tDonor agencies who needed to see that MGV could scale up
easily with its current business model before they could provide any kind of financial support
Existing financing model
tRaised capital using its own means together with ‘necessary financial assistance in terms of training and market and value
chain analysis from SDCAsia’
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
wHAT ARE MGV’S BUSINESS GOALS?o“After MGV ran a sustainable business with respectable growth, and
was able to show that its ideas were working, it approached the same donor agencies for financial support because it was ready to scale up
its business operations.”
Timeframe Objective
Immediate Immediate business goal was to scale up its operations’
Long-Term *Within a period of 10 years (2007 - 2017), MGV will be a leading supplier of all natural marine products in the Philippines
*Progressively integrate in its operation 10,000 households as labour force or independent businesses/suppliers with net
incomes of at least 30% above the poverty threshold
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
MGV IS RESPONSIBLE FOR CREATINGoA SCALABLE AND SUSTAINABLE BUSINESS
ScalabilitySUSTAINABILITY
A characteristic of a system, model or function that describes its capability
to cope and perform an increased or expanding workload (investopedia)
Moving your business beyond initial investment to
sustenance (harvard business review)
+
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
MGV IS RESPONSIBLE FOR CREATINGoA SCALABLE AND SUSTAINABLE BUSINESS
MGV was ‘intended from the beginning to be self-sustainable, and that meant being able to generate profits to cover the costs of running
and expanding the business’
fish production
fish processing
small-scale retailers
& brokers
obtained excess fish eggs from commercial
breeders retail & distribution
network
Supporting operations: feed mill technology in collaboration with local farmersINTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
HAS MGV generated profits to ocover the costs of running the business?
Their profits have been increasing YOY.
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
HAS MGV generated profits to ocover the costs of running the business?
29%
30%
42%
FishFingerlingsProcessed Products
Total net income in 2011 amounted to US$13,270
YES8
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
HAS MGV generated profits to oEXPAND THE BUSINESS?
MGV has attempted to scale up horizontally*Building another plant with the prize money of US$19,343 from MaD*Intention to hire more women workers *Replication of existing business model
MGV has insufficient profits to expand the business through scaling up its processing arm
*High fixed cost from purchasing machinery *Necessary to engage external funding in order to go forward
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
NO2Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
fish production
fish processing
small-scale retailers
& brokers
obtained excess fish eggs from commercial
breeders retail & distribution
network
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
fish production
fish processing
small-scale retailers
& brokers
obtained excess fish eggs from commercial
breeders retail & distribution
networkaquaculture
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
aquaculture
Mariculture Park Fishing Farm in Davao
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
Total areas for mariculture farm
development343 ha
Average cage size 10 x 10 x 5m
Maximum stock per cage 15,000 fingerlings
Days of culture 120 days
Average production/cage 7,000kg
*Must be managed well *Impact minimized for low-priced species*Involves a capital outlay
*MGV is underutilizing its current resources*71.3% of its net income in 2011 came from the sale of fingerlings and fish
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
Utilization of resources to
maximize profitsReaching the official limit of 600 cages
Protection to the vulnerable
environmentUsing 300 cages
existing
Usage of hormones or chemicals to
increase fish harvest and in turn MGV’s
revenue
Using government-approved feeds
existing
environmentalECONOMIC vs
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
fish production
fish processing
small-scale retailers
& brokers
obtained excess fish eggs from commercial
breeders retail & distribution
network
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
processing plant
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
processing plant*Operating costs in 2011: US$21,527*Scale of production: 400kg of fish meat per worker, 30 workers = 12 tonnes of fish meat*Main product sold: Bangus Pate500 jars produced a day *Sold at 67.00 pesos
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
processing plant
vs
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
vsman machine
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
ARE THE CURRENT BUSINESS OPERATIONSoSCALABLE?
machine
*A fish meat extractor costs approximately US$5,000 - 8,000 with a capacity to process 260-300kg of fish meat per hour *24 hours a day = 7.2 tonnes of fish meat per day
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
COMPARATIVE ANALYSIS: case study 2 oALSONS AQUACULTURE CORPORATION
*Philippines’ largest processor and exporter of premium quality bangus and other processed seafood products
*Largest and only commercial bangus fry hatchery in the Philippines and are capable of producing 1.2billion fry annually
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Wednesday, February 12, 14
MGV IS RESPONSIBLE FOR CREATINGo
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
A SCALABLE AND SUSTAINABLE BUSINESS
ScalabilitySUSTAINABILITY
*MGV is only partially sustainable.
+*On its own, MGV is not able to scale up.
Wednesday, February 12, 14
qwqwsociety
communities
zWednesday, February 12, 14
KEY QUESTIONSi
iWhich is better?
What is a social enterprise?
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw
charitysocial enterprise
vsbusinessvs
charitysocial enterprise
vsbusinessvs
i
What is a social enterprise responsible for?
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqwcharitysocial
enterprise vs
Goal/Agenda*Create social value (Austin et. Al, 2003)
*Seek business solutions to social problems (Michelini, 2012)
*Bring Relief and Advancement (Mak, 2012)*Champion and Advocate
for a cause (Ella Foundation)
Receives Funding from
*Trading Activities (Social Enterprise UK)*Profits reinvested (Rykaszewski et. Al,
2013)*Investors
*Grants and Donations (Social Enterprise UK)
Primarily Accountable to
*Customers *Beneficiaries
*Investors*Funders
Level of stakeholder involvement *High *Low
what is a social enterprise?
Wednesday, February 12, 14
KEY QUESTIONSi
iWhich is better?
What is a social enterprise?
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw
charitysocial enterprise
vsbusinessvs
charitysocial enterprise
vsbusinessvs
i
What is a social enterprise responsible for?
8 28
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw WHICH IS BETTER?
Social Impact
Durability of impact
Aims to remedy the fundamental
issues themselves
Aims to cure symptoms of the
fundamental problems
Create opportunities
within the social structural change
Working within the social structure
charitysocial enterprise >
Empower vs perpetuate
SE8
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw WHICH IS BETTER?
Financial sustainability
Reliability of flow of funds
Self-sustainable as it is a business Entirely dependent
on the generosity of philantrophistsUse of profits as
funding
Entirely dependent on the generosity of
philantrophists
charitysocial enterprise
vs
SE8
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw WHICH IS BETTER?
Autonomy
In decision-making
Can make decisions on internal organizational affairs
Constrained by funders’ opinions and
interests
charitysocial enterprise
vs
SE8
Wednesday, February 12, 14
KEY QUESTIONSi
iWhich is better?
What is a social enterprise?
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw
charitysocial enterprise
vsbusinessvs
charitysocial enterprise
vsbusinessvs
i
What is a social enterprise responsible for?
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqwbusinesssocial
enterprise vs
Goal/Agenda*Create social value (Austin et. Al, 2003)
*Seek business solutions to social problems (Michelini, 2012)
*Maximize Profits*Maximize Shareholder Value
*Operates in a competitive world*Measures success according to
profits realized
Receives Funding from
*Trading Activities (Social Enterprise UK)*Profits reinvested (Rykaszewski et. Al, 2013)
*Investors
*Trading Activities*Investors
Primarily Accountable
to
*Customers *Beneficiaries
*Investors
*Shareholders*Customers
Level of stakeholder involvement
*High *Low
what is a social enterprise?
Wednesday, February 12, 14
KEY QUESTIONSi
iWhich is better?
What is a social enterprise?
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw
charitysocial enterprise
vsbusinessvs
charitysocial enterprise
vsbusinessvs
i
What is a social enterprise responsible for?
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw WHICH IS BETTER?
Social Impact
Direct interaction with communities in need
Tend to be removed from communities in
need
Views helping these communities as their
core mission
Tends to sideline CSR and do cheque-book
philanthropy
businesssocial enterprise
vs
SE8Engagement with local communities
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw WHICH IS BETTER?
Financial sustainability
Substantial challenges in earning enough profits to
cover costsSeldom run into cash flow
problems to cover their costs. Able to finance through
multiple ways
Threats of being unable to attract or sustain investment
Seldom run into cash flow problems to cover their costs.
Able to finance through multiple ways
Potential problem of funding gap
Seldom run into cash flow problems to cover their costs.
Able to finance through multiple ways
BUSINESSsocial enterprise
vs
SE2
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw WHICH IS BETTER?
Autonomy
In decision-making
businesssocial enterprise
vs
BOTH8
Both have fairly high levels of autonomy to make internal organizational decisions
Wednesday, February 12, 14
KEY QUESTIONSi
iWhich is better?
What is a social enterprise?
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw
charitysocial enterprise
vsbusinessvs
charitysocial enterprise
vsbusinessvs
i
What is a social enterprise responsible for?
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw WHAT SHOULD A SOCIAL ENTERPRISEBE RESPONSIBLE FOR?
CREATE SOCIAL VALUE BE
FINANCIALLY SUSTAINABLE
+
Wednesday, February 12, 14
KEY QUESTIONSi
iWhich is better?
What is a social enterprise?
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw
charitysocial enterprise
vsbusinessvs
charitysocial enterprise
vsbusinessvs
i
What is a social enterprise responsible for?
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw IDENTITY CRISIS
social impact
FINANCIAL SUSTAINABILITY
8BALANCING BETWEEN
SOCIAL AND FINANCIAL GOALS
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw IDENTITY CRISIS
social impact
FINANCIAL SUSTAINABILITY
aBALANCING BETWEEN
SOCIAL AND FINANCIAL GOALS
ALWAYS?
CASE STUDY: UNILEVER ‘S FISH SUSTAINABILITY INITIATIVE (FSI)
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw CASE STUDY 3FISH SUSTAINABILITY initiative (FSI)
What it is
*Ensures that Unilever does
everything it takes to progressively
purchase all our fish from sustainable
sources
Motivations
*Decline in the world’s largest
fisheries*Livelihood of
coastal communities
What they do
*Take the lead in: planning, setting priorities, market research, forming external contacts
*To implement sustainable sourcing
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqw CASE STUDY 3Background
*Created in 1997*Partnership
between WWF and Unilever
Objectives
*Tackle the issue of seafood
sustainability
3-part mission
*Recognize and reward sustainable
fishing practices*Influence choices
people make *Work with partners to transform seafood
market
Wednesday, February 12, 14
INTRODUCTION | CONTEXT | MGV | INVESTOR | social ENTERPRISE | RECOMMENDATIONS
qwqwAchievements of
MSC*Fish & Kids Project
*Creates Market Incentives
*Every MSC certified fishery demonstrated
sustainable fish stocks*Best Available Science
CASE STUDY 3
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RECOMMENDATIONS
AND CONCLUSION
VzWednesday, February 12, 14
LOCAL
V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
recommendations
GLOBALShould they fire the factory workers and buy
machinery?
Should they use chemicals instead of
government-approved feeds?
How can we prevent
overfishing and protect the oceans from further harm?
Wednesday, February 12, 14
V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
recommendationsGLOBAL
“Preventing overfishing is fairly straightforward: first and foremost, scientifically-determined limits on the number of fish caught must be established for individual fisheries, and these limits must be enforced. Second, fishing methods responsible for most bycatch must either be
modified to make them less harmful, or made illegal. And third, key parts of the ecosystem, such as vulnerable spawning grounds and
coral reefs, must be fully protected.” - Save Our Seas
Wednesday, February 12, 14
V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
BUT WHO IS RESPONSIBLE?Enforce scientifically-determined limits on
number of fish caught
Modify fishing methods to make it less harmful
Protect key parts of ecosystem e.g. coral reefs
Government intervention needed to
create and enforce legislation
Workers on-the-groundBusinesses to uptake and commit to these methods
Government monitoringFisheries themselves
Wednesday, February 12, 14
V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
spot the problem?
Some governments and businesses are already doing something about the oceans, but:
1. Had limited impact2. Uncoordinated efforts
3. Lacked legitimacy
Wednesday, February 12, 14
V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
MSC’s LEGITIMACY QUESTIONED
eco-imperalism
violate national
sovereignty
Wednesday, February 12, 14
V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
SO HOW SHOULD WE SOLVE THIS PROBLEM?
SUPRANATIONAL LEVEL DIRECTIVES NEEDED tO:
• Support large-scale initiatives
• Provide a platform for the world’s leaders to coordinate their efforts
• Lend credibility and legitimacy to environmentally friendly measures
Wednesday, February 12, 14
local
V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
recommendations
Should they fire the factory workers and buy
machinery?
Should they use chemicals instead of government-
approved feeds?
Fundamental issue is about the difficulty it faces in gaining investments or funding which seems only possible through
scaling up.
Draw on current positive traits to attract investment
RECOMMENDATIONS
1
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V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
recommendationsDraw on current positive traits to
attract investment1
*Funding Implications of Social Enterprise: The role of Mission Consistency, Entrepreneurial
Competence, and Attitude Toward Social Enterprise on Donor Behaviour
By Brett R. Smith, Maria L. Cronley, Terri F. Barr
Wednesday, February 12, 14
V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
MAIN FINDINGSMission
ConsistencyEntrepreneurial Competence
*When a social enterprise has high mission consistency,
donors tend to view it positively and donation
likelihood increases
Social mission of the
NPO
Commercial Activity
*When a social enterprise has high entrepreneurial
competence, donation likelihood increases
Ability to identify opportunities
Marshal resources
Execute business opportunities
Wednesday, February 12, 14
V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
Social mission of MGV
g Macro Goal- Alleviate the poverty problem
in the Davao region and provide a stable and healthy
fish supply
Micro Goals- Happy People- Happy Earth- Healthy Food
Commercial Activity
*Processing plants: provided employment
*Microfranchising: helped them to set up companies and generate income for
themselves
Largely consistent in micro goalsBut in terms of macro goal largely inconsistent
mgv’S MISSION CONSISTENCY
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V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
mgv’S ENTREPRENEURIAL COMPETENCY
l Jonah Nobleza Good Aquaculture Practices (GAqP) standards
Jessie Lapaz Aquaculture Technology, Fish Hatchery Operation
Ivan IdvoroMarket Research and Private
Sector, Development, Enterprise Management
Relatively high entrepreneurial competencyExecuting business opportunities and marshaling resources
Wednesday, February 12, 14
overarching questions of the caseV
How should one balance philanthropic and business goals in a social enterprise like MGV?
How is a social enterprise different from a normal business and how is a social enterprise different from a normal charity?
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
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V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
conclusionUnderstanding its role
within the local community
• MGV is currently able to meet their micro level objectives
• However, it is limited in meeting its macro aims (e.g. vision and mission)
MGV’s POV:
• MGV is far too small to compete with larger players in the industry
• Cannot scale up to attract substantial investments
Investors’ POV
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SOCIAL ENTERPRISES OFFER A NICHE AREA V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
BETWEEN NON-PROFIT AND BUSINESS
charity/ngo
social enterprise BUSINESS
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CONCLUSIONV
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
MGV and COMMERCIAL FISHERIES
Philippines government
supranational bodies
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CONCLUSIONV
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
MGV and COMMERCIAL FISHERIES
Philippines government
supranational bodies
TRI-SECTOR COLLABORATION
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what can you do?V
INTRODUCTION | CONTEXT | MGV | INVESTOR | SOCIAL ENTERPRISE | RECOMMENDATIONS
The Singapore Seafood Guide
http://www.wwf.sg/take_action/sustainable_seafood/seafood_guide/
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