Social Enterprise, Social Innovation and Alternative Economies: Insights from Fair Trade and Renewable Energy

in Zademach, Hans-Martin; Hillebrand, Sebastian (Eds.) Alternative Economies and Spaces. New Perspectives for a Sustainable Economy (2013)

The transition towards a more sustainable economic system is increasingly seen as an urgency to respond to the social, environmental and economic challenges of our times. Mirroring this increased ... [more ▼]

The transition towards a more sustainable economic system is increasingly seen as an urgency to respond to the social, environmental and economic challenges of our times. Mirroring this increased attention, the scholarly literature on transition and transition management, “degrowth” and sustainable development (e.g., Loorbach, 2007, Boulanger, 2008) has considerably developed across a set of disciplines (sociology, geography, economics, engineering, etc.). The solutions put forth by the different literature streams vary to a large extent and rely on distinct if not opposed ideological foundations, from the radical, anti-consumerist vision of “degrowth” to the much softer and vaguer, reformist trend of “sustainable development”. Common to the different literature streams, however, is to mainly focus on two levels of analysis. First, the systemic level receives most attention when it comes to diagnoses of limitations in the extant system and exploration of what alternative – non-growth, post-transition or at least sustainable – systems or economies would look like. This focus on systems is logical given the scope of the expected (r)evolutions to undertake. It is also coherent with the main disciplines involved in this “macro-level” research effort: economics, sociology, political science, philosophy, etc. A second and subsequent level of analysis that has been considered lies at the other extreme of the continuum: the individual. Indeed, as the failures of the extant economic system have been linked to the unrealistic and ideologically oriented vision of the individual as an ever-calculating, utility-maximizing “homo oeconomicus” (Stiglitz, 2009), questions have arisen about the human behavior required to generate or at least participate in the alternative systems conceived at the macro level. Put another way, to what extent and in what sense do we need to change our individual behaviors, in terms of purchasing, working, voting, investing, moving, and acting in general, in order to liberate ourselves from the homo oeconomicus patterns and consider alternative behaviours that, put together, may contribute to alternative systems? This “micro-level” perspective has relied on work in psychology and anthropology in order to (re)discover new avenues for increased reflexivity and conscious action. Between the macro and micro perspectives lie a diversity of “meso” actors consisting of more or less formalized groups of individuals, organizations and institutions such as: public authorities (from local to global), businesses, civil society, educational institutions, etc. Much work has been undertaken on the role of these different types of “meso-actor” in the transition towards alternative economies, but in view of the author of this chapter this has been developed either in a superficial way, mentioning the different actors to engage in these processes, or using “black boxes” that suppose homogeneous sets of actors such as “companies” or “civil society actors”. In other words, although several case studies enter into the complexity of one or several of these black boxes, there is lack of clarity and depth in the study of how different types of actors, especially economic actors, may engage in and inspire societal change. In particular, little work makes the connection between how economic organizations function internally, and how they (may) act towards society (e.g., Moore et al., 2009). This chapter does not aim, of course, to fill this knowledge gap on its own. It intends to bring a modest contribution to understanding the role of meso actors and in particular economic organizations by focusing on one specific, under-researched but important actor that is social enterprise. As will be described further, social enterprises are still weakly defined and heterogeneous (Dart, 2004, Defourny and Nyssens, 2010, Huybrechts and Nicholls, 2012). Yet, they share two features that seem of particular interest in the debate mentioned here. First, they do not correspond to a neatly defined organizational category as they precisely lie at the intersection of two spheres that are commonly clearly separated and often opposed to each other: the market and the civil society. Such a “hybrid” nature offers the potential for a specific and original contribution to the debate on alternative economies and systems, insofar as hybridity is synonym for innovation and unconventional thinking, as this chapter aims to show. A second feature of social enterprises is their supposed coherence, at least theoretically, between internal functioning and external contribution. In other words, the new societal solutions that social enterprises offer through their products and services are supposed to be coherent with the solutions experimented within their very organizational structures. Despite their diversity and their obvious limitations, it is thus suggested here that examining social enterprises may offer at least two contributions to the discussion on alternative economies. First, by understanding the potential of hybridity, i.e. combination of distinct institutional patterns, to the reconfiguration of economic systems. Second, by highlighting the link between intra-organizational functioning and societal behavior, in order to show how engaging actors in building alternative economies must involve in one way or another these two dimensions. [less ▲]

Organisation du commerce équitable

in Blanchet, Vivien; Carimentrand, Aurélie (Eds.) Dictionnaire du commerce équitable (2012)

Définition et discussion de la notion d'organisation du commerce équitable

Fair Trade Organizations and Social Enterprise. Social Innovation through Hybrid Organization Models

Book published by Routledge (2012)

For several decades, Fair Trade Social Enterprises (FTSEs) have set up partnerships with producer groups in the South and distributed the latter’s products through different types of channels in the North ... [more ▼]

For several decades, Fair Trade Social Enterprises (FTSEs) have set up partnerships with producer groups in the South and distributed the latter’s products through different types of channels in the North. However, while pioneers in the early years were relatively homogeneous (nonprofit organizations relying on voluntary work and selling through “worldshops”), organizational diversity has tremendously increased in recent times, including other types of legal forms, architectures, and governance models (volunteer-based, manager-based, multi-stakeholder, etc.). As a result, different categories of FTSEs now coexist in the sector with diverse missions and strategies. Since Fair Trade (FT) is a hybrid concept, entailing economic, social and political dimensions, the diversity of organizational models might reflect or enable different ways of articulating these dimensions. In other words, different organizational models might be suited for different ways of conceiving and practicing FT. Such an articulation through specific forms has been suggested by previous concepts that can be related to FT, such as cooperatives, the social economy, the solidarity economy, and, more recently, social enterprise. The latter is particularly useful as an umbrella concept that embraces the diverse types of FTSEs and accounts for their use of market mechanisms to pursue social innovation. This research first aims to explore and to structure FTSEs’ organizational diversity. For that purpose, the managers of 57 FTSEs were interviewed in four European regions: Belgium, France (Rhône-Alpes), the United Kingdom (England) and Italy (Rome). Based on the combinations of different elements of the organizational form, five categories emerge: individual FTSEs; entrepreneurial, business-form FTSEs; volunteer-based FTSEs; multi-stakeholder cooperative FTSEs; and group structures. Although certain FTSEs share features corresponding to several models, these categories seem adequate in the sense are relatively homogeneous and distinct from each other. The second question examines the factors or forces that lead FTSEs to adopt particular and diverse organizational forms. Using sociological and economic “new institutional” approaches, this book explores the influence of a number of factors on the organizational form: age, size, region, goals, activities, resources, and leaders’ profiles. From an economic standpoint, organizational diversity may be explained by the fact that FTSEs do not all produce the same types of goods when practicing FT. Thus, FTSEs will adopt the organizational form that minimizes their transaction costs in the production of particular goods. From a sociological standpoint, the analysis suggests that weak and sometimes conflicting institutional pressures explain organizational diversity. Indeed, uniformity is limited (within certain generations of FTSEs or in particular regions), although there is a dominant trend toward a stronger business orientation in the models. The third question examines how organizational actors within FTSEs experience and foster hybridity at the field level, thereby contributing to organizational diversification. Looking at six cases of FTSEs covering the different types of models, the strategic role of FTSEs is examined, as “institutional entrepreneurs” capable of influencing the environment in a way that legitimizes their own organizational model and secures their access to crucial resources. This strategic analysis allows for a more dynamic view of organizational models as “institutional bricolage”. Finally, the book ends with a number of recommendations for FT entrepreneurs on the strengths and the weaknesses of each organizational model. [less ▲]

Les entreprises sociales d'insertion : des parties prenantes multiples pour des objectifs multiples ?

in Gardin, Laurent; Laville, Jean-Louis; Nyssens, Marthe (Eds.) L’insertion par l’économique au prisme de l'entreprise sociale : un bilan international (2012)

Suivant les analyses théoriques proposées au sein du réseau EMES (Borzaga et Defourny 2001), la multiplicité des parties prenantes et la multiplicité des objectifs sont considérées comme des aspects ... [more ▼]

Suivant les analyses théoriques proposées au sein du réseau EMES (Borzaga et Defourny 2001), la multiplicité des parties prenantes et la multiplicité des objectifs sont considérées comme des aspects importants des entreprises sociales. Cependant, bien que ces caractéristiques aient été soulignées par divers auteurs sur le plan théorique, leur validation empirique reste relativement limitée. Le présent chapitre entend combler ce vide en menant une analyse approfondie de la multiplicité des parties prenantes et des objectifs au sein des entreprises sociales d'insertion en Europe. Nous nous penchons dans la première section sur la multiplicité des objectifs, en fournissant quelques éléments théoriques utiles pour interpréter ses origines et son apport analytique. Les théories sont ensuite confrontées aux données collectées dans le cadre de la recherche PERSE La deuxième section propose un bref aperçu de la littérature économique et organisationnelle relative à la gouvernance et à l’implication des parties prenantes, avant d’analyser dans quelle mesure les ESI européennes impliquent une multiplicité de parties prenantes. La troisième section examine les raisons permettant d'expliquer l'implication de diverses catégories de parties prenantes dans la structure de propriété et dans le processus de prise de décision de ces organisations. [less ▲]

Managing Hybridity: (Inter-)Organizational Strategies in the Fair Trade Field

Conference (2011, July 07)

This paper aims to examine the concrete strategies through which organizations may reach compromises between conflicting logics. To reach this goal, this paper tries to capture some of the interactions ... [more ▼]

This paper aims to examine the concrete strategies through which organizations may reach compromises between conflicting logics. To reach this goal, this paper tries to capture some of the interactions between the organizational, inter-organizational and field levels in terms of management and diffusion of plural logics, using the case of social enterprises in the Fair Trade field. [less ▲]

Caught on the Boundary: The Micro-Processes of Social Movement-Corporate Relationships

Conference (2010, September 13)

Cross-Sector Collaboration and Organizational Legitimacy: Insights from Fair Trade

Conference (2010, June)

This research examines the collaborations between social enterprises (SEs) and corporations, which have been flourishing over the last decades. These collaborations differ from both philanthropic ... [more ▼]

This research examines the collaborations between social enterprises (SEs) and corporations, which have been flourishing over the last decades. These collaborations differ from both philanthropic partnerships and classical business alliances. Unlike the former, these collaborations are centred on the joint development of a product or service which represents a business opportunity for both the SE and the corporation. Unlike the latter, these collaborations contribute at least partially to the pursuit of a social mission, which is the main driver of the SE and may motivate the corporation as well. While most work on cross-sector collaboration examines the advantages of collaboration for the different types of organizations, we take a slightly different perspective, using institutional theory to look at the implications of collaboration in terms of organizational legitimacy. As organizational legitimacy is contingent on a given institutional field in which a number of stakeholders provide legitimacy based on patterns of appropriateness, questions emerge about what happens when organizations from different fields embodying different logics and responding to various legitimating stakeholders collaborate. Surprisingly, while institutional theory has become a widely used theoretical framework, it has only little been applied to examine interorganizational collaboration, let alone cross-sector collaboration between social enterprises and corporations. This research aims to fill this gap in order to enrich both the understanding of interorganizational collaboration and its implications in terms of organizational legitimacy, and the knowledge and practice of cross-sector collaboration. [less ▲]

Fair Trade Organizations in Belgium: Unity in Diversity?

in Journal of Business Ethics (2010), 92(2), 217-240

This article analyzes the dual process occurring in the field of Fair Trade organizations (FTOs) in Belgium. On the one hand, there has been a gradual diversification of the organizational landscape over ... [more ▼]

This article analyzes the dual process occurring in the field of Fair Trade organizations (FTOs) in Belgium. On the one hand, there has been a gradual diversification of the organizational landscape over time from pioneering volunteer-based non-profit organizations to a broader array including cooperatives, group structures, businesses and individual entrepreneurs exclusively devoted to FT. On the other hand, a process of networking is currently taking place among the various types of FTOs in the context of the creation of a Belgian Fair Trade Federation (BFTF). Drawing on neo-institutional theory, including institutional entrepreneurship, this article examines how and why these two processes have taken place. A qualitative field study in the Belgian FT sector, including interviews with 15 FTOs, offers rich empirical material which illustrates the diverse patterns of these organizations. Based on the observed combinations of different variables among Belgian FTOs, a taxonomy reflecting diverse means of conceiving and organizing FT activity is suggested. The different categories of FTOs and the evolution of these categories over time seem linked to the broader institutional evolutions of FT at the international as well as at the Belgian level. Finally, several factors are reviewed to explain why the diversity among Belgian FTOs has not been an obstacle to their collaboration. [less ▲]

Explaining Organisational Diversity in Fair Trade Social Enterprises

Doctoral thesis (2010)

This research aims to explain and understand the organisational diversity observed in the field of Fair Trade Social Enterprises or Fair Trade Organisations (FTOs). The transversal hypothesis is that such ... [more ▼]

This research aims to explain and understand the organisational diversity observed in the field of Fair Trade Social Enterprises or Fair Trade Organisations (FTOs). The transversal hypothesis is that such a diversity in organisational forms may be linked to the multidimensional (economic, social and/or political) nature of Fair Trade. First, since there are virtually no typologies focused on FTOs, it is necessary to look at how organisational diversity in FT can be categorised. A typology with five categories of organisational forms is suggested. Secondly, this work explores the reasons behind organisational diversity, using both an external, explanatory perspective, and an internal, interactionist perspective. A third key issue is to explore whether FTOs experience tensions between the different dimensions of FT, and how these tensions are managed in the different types of FTOs. These issues are examined under the light of different theoretical approaches linked to “new institutionalism” (economic, sociological and entrepreneurial) and resource dependence theory. The empirical material is provided by interviews with the leaders of 57 FTOs in four European regions: Belgium, France (Rhône-Alpes), the United Kingdom (England) and Italy (Rome). Eight of these FTOs, reflecting the different categories of organisational forms, are analysed more in depth. [less ▲]

Les organisations de commerce équitable entre solidarité et marché

in Turcotte, Marie-France; Hervieux, Chantal (Eds.) Mettre en marché pour une cause : Enjeux commerciaux et impacts du commerce équitable (2010)

Toutes les organisations de commerce équitable (OCE) ont en commun d’être confrontées aux tensions traversant l’ensemble du mouvement équitable, entre une logique de solidarité et une logique de marché ... [more ▼]

Toutes les organisations de commerce équitable (OCE) ont en commun d’être confrontées aux tensions traversant l’ensemble du mouvement équitable, entre une logique de solidarité et une logique de marché. Ce qui différencie les OCE, c’est la manière de gérer cette tension et de se positionner par rapport à ces différentes logiques. L’objectif de cette contribution est d’éclairer ces différents positionnements à travers l’étude des objectifs organisationnels, des ressources, du statut juridique et des instances de gouvernance des OCE. Nous commençons par présenter la grille théorique qui introduit ces différents indicateurs organisationnels. Ensuite, nous proposons quatre scénarios possibles (et empiriquement observés) de gestion des tensions : le scénario commercial, le scénario socio-politique, le scénario intégratif et le scénario de dédoublement. Ces scénarios sont illustrés par des exemples d’OCE du Nord. Enfin, après une synthèse de ces quatre scénarios, nous nous penchons sur leurs implications sur l’avenir du mouvement équitable. [less ▲]