Thought Leadership

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Public Services Hub

VCSE Contract Readiness Programme

Delivered by the School for Social Entrepreneurs (SSE), Social Enterprise UK (SEUK) and Voice4Change England, and funded by the Department for Culture, Media and Sport (DCMS) – the VCSE Contract Readiness Programme‘s objective is to enable greater participation of charities and social enterprises (otherwise known as Voluntary, Community and Social Enterprise (VCSE) organisations) in public service procurement. The VCSE Pathway The VCSE pathway is the primary part of the programme. It offers charities and social enterprises a range of webinars, short and long courses to help them understand the public procurement process and provide them with support to better compete for public sector contracts. Upcoming courses and webinars can be found on the SSE website CLICK HERE TO FIND OUT MORE ABOUT THE VCSE PATHWAY AND GET INVOLVED The Commissioner Pathway The commissioner pathway offers a range of support for public sector commissioners to help them understand the charity and social enterprise sector and how best to work with them. Social Enterprise UK are leading on the commissioner engagement stream of the programme. This will involve working with government at a strategic and departmental level to make it easier for government to engage with VCSE suppliers. At a strategic level, this work will include: Working with Contracts Finder/Find a Tender on enriching the VCSE data held by government. Driving engagement with government platforms/tenders from a wider range of VCSEs. Building a Champions network of commissioners to help them to drive the agenda forward.  At a departmental level, SEUK will also be: Benchmarking departmental spend with VCSEs by using SEUK’s datasets to help departments. understand how much they’re spending with VCSEs and how they can do more. Engaging staff through a series of “Demystifying the VCSE sector” webinars. Driving new relationships through a series of targeted meet the buyer events working with relevant VCSE suppliers for specific departmental/category level spend. SEUK are working closely with DCMS to drive all of the above activity with the relevant areas of government. If you work for a department and would like to engage with the programme or find our more please email the DCMS public sector commissioning team at public-sector-commissioning-team@dcms.gov.uk

01 Mar

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2 min

News

What is the purpose of social value?

Jeremy Nicholls is an international expert on social value and has written a paper on the Future of Social Value as part of our Social Value 2032 programme to stimulate discussion and debate. You can read the full paper here Jeremy’s views are his own and not representative of Social Enterprise UK or any of the Social Value 2032 partners. For those of us who think about social value in the context of the Social Value Act, the idea of social value is relatively new. For others it has been around a bit longer – rooted in the idea of value for society. Go back a bit further and economists, politicians and philosophers have been grappling with the question of value for society for a long time. The increase in the use of fossil fuels, the age of exploration – aka invasion, the enslavement of people whose countries had been ‘explored’ and the increase in the use of fossil fuels, alongside innovations in systems to manage all this; financial markets, accountancy, joint stock and later limited liability companies, all contributed to a rapid increase in global GDP.  All this drove, and still drives, more argument and debate over the nature of value. Arguments that became both revolutions and wars, over access to resources that drive capitalism and the distribution of the benefits that arise. And we built an economic system to allocate those resources to activities to meet those demands, And we talk as if markets had agency as opposed to being people, a few people in the end who either manage huge sums on behalf of others or own huge sums in their own right. Unfortunately we (I say we though I mean men) built an economic system on the premise that private financial returns will maximise wealth, a system where there is no feedback loop and no limit to that wealth – aside from there also being no control of its distribution - to the point that 1% of the world’s population own 52% of its wealth. So if social value is to be useful, it needs to be a vehicle for a more radical, systemic rethink of our economic system. It may be already too late to do this for so many people around the world, and the implications are coming closer to all of us. But it is not too late to redress some of this, to regenerate a damaged society or to provide hope for future generations.   We need to recognise that we allocate resources to activities that should meet people’s needs and that those needs relate to their well-being. This means realising that there is only so much well-being (currently largely measured still by wealth) that you can squeeze into somebody and that endlessly pursuing ever more wealth is no good for anyone. It means recognising that a living wage is one without endless worry and should not be a survival wage. It means recognising that dependency on supply chains where people work in conditions that are lower, much lower, than we would ever accept is a legal sidestep of responsibility as they are someone else’s issue. These are all issues that social value should address, and the international networks that promote and support approaches to accounting and management of social value seek to address. But they are also the issues that public sector accounting seeks to address, and that with a couple of small tweaks, even private sector accounting could address. Public sector accounting already references the purpose as being well-being. Charity trustees should already be able to evidence that the public benefits outweigh the negatives. Were it not for a private sector approach to accounting that allows obligations to be ignored, obligations that most people would, and company directors could, already be willing to recognise, it would quickly be much more aligned. Social value is a way that we can divert the corporation away from focusing purely on expectation of financial returns to an expectation of financial, and social and environmental returns. Ironically, despite the opposition from some, this more closely represents the real investor interest, the interests of you, me and wider society, not the “professional” investment managers. Remembering that the purpose of allocating our scarce resources is wellbeing, and that this means recognising how dependent we are on natural, social and human capitals, would allow us to align private public and charitable approaches to accounting, and to be held to account, even if indirectly, by the people experiencing the consequences of our private businesses and our public services. We could even unleash all our human creativity on a goal of contributing to sustainability (and those SDGs which would of course include financial returns). And we might find that sustainability, social value and multi capital approaches all share the same purpose of maintaining and enhancing well-being. Yes, I remain a resolute optimist, but these are all changes within our power, they are all systems created by people and they can be changed by people too. Public, private and non-profit sectors respond to the incentives that society sets in its legal frameworks. Small changes to these incentive systems - to the wiring behind the walls - can have significant consequences for how resources are allocated – to create social value. Some are already happening, like proposals around s172 of the Companies Act. Some changes will need to go further if we are to align incentives around well-being; changing the purpose behind international accounting standards, developing new public sector accounting standards and aligning accounting with cost benefit analysis. This is the future of social value.

23 Feb

by Jeremy Nicholls - Assurance Framework Lead for SDG Impact Standards at the United Nations Development Programme, Ambassador to the Capitals Coalition & Former Chief Executive of Social Value UK

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4 min

Member updates

Step by Step for Sustainability: LEYF’s pioneering sustainability journey

London Early Years Foundation (LEYF) Invites Children, Parents and all Early Years Settings to Join Them on their Pioneering Sustainability Journey with the Publication of its Unique Strategy. LEYF has launched its very first Sustainability Strategy which sets out its ‘Green LEYF’ approach to become a sector-leading sustainability organisation, working in partnership with the Early Years and Schools to lead and amplify best practice whilst preparing children to undertake their roles and responsibilities as dutiful global citizens. As LEYF celebrates its 120th anniversary in 2023 plus its Planet Mark Award for employee engagement and its ongoing carbon footprint measurement as an organisation, the social enterprise organisation is naming 2023 as its Year of Sustainability – with a call for all Early Years settings across the UK to put sustainability at its core. Framed within the 17 Sustainable Development Goals (SDGs) agreed by the United Nations (2015) which are underpinned by the three pillars of sustainability: economic prosperity, social equity and environmental integrity, LEYF’s approach to sustainability is based on its duty to do its bit to give our children the education needed to become rounded global citizens of the future. Sustainability is often focused on environmental issues through climate change issues but it is also critical to how we shape businesses, lead with a social purpose and address unfairness and environmental damage that comes through our current market economy. LEYF demonstrates how a social enterprise can operate an effective business model which allows us to subsidise up to 35% of places to children from more disadvantaged communities who benefit enormously from high quality Early Years education. When LEYF first started to define what was meant by sustainability nearly ten years ago, it sought the support of all the staff. LEYF believes that change needs be championed at every level of an organisation if it is to be fully embraced. The result was a very collaborative approach with engagement from the grassroots right through our governance, pedagogy and operations. LEYF continues to build this into a sustainability community of practice and hope people will join the journey. LEYF initially began looking at ‘little wins’ that would have a big effect such as removing single-use plastics where possible, changing all milk deliveries to glass bottles so they could be reused and recycled, banning glitter and placing wormeries and composters in every nursery garden to help reduce food waste. From that promising beginning, an organisation-wide approach was developed that mapped LEYF’s steps to complete the ISO 14001 and achieve the Planet Mark which provided the framework to plan a strategy that included our governance, operations, procurement and practice. To help educate staff, LEYF also developed and introduced the first Level 4 Cache endorsed qualification - Developing Sustainability in the Early Years and supported this with two books: one on social leadership and the other providing ideas for sustainability in a nursery. All this groundwork helped us make decisions through a stronger sustainable lens  and build a strong strategy. Furthermore, sustainability has been embedded into every element of the organisation including the governance, pedagogy and operations along with an understanding that motivates and empowers children, colleagues and parents. June O’Sullivan, CEO of LEYF says: “Sustainability is finally moving to the centre of political and public agenda, especially as we face huge global issues including growing poverty, inequity in education, environmental degradation and much more. Sustainability needs to be led from the top and engage everyone in the organisation. It needs a holistic strategy if it is to work.  Everyone needs to play their part including the children. People think children don’t understand about sustainability, but they do and they are interested. Our job is to prepare them to undertake their roles and responsibilities as global citizens of the future.” The 8 principles below that are underlying LEYF’s approach to sustainability stem from Permaculture–Permaculture which is a way of creating practical sustainable and self-sufficient ways of living – including principles that align with a holistic approach that can be altered to different scales. leyf.org.uk

20 Feb

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3 min

News

New report shows up to 18,000 social enterprises are at risk of closure

The most recent Social Enterprise Barometer report published on 9 February shows that the next quarter is critical for many social enterprises with more than one in ten social enterprises across the UK expecting reduced turnover or to close due to the tough economic climate. The Social Enterprise Barometer reports are published quarterly and provide a snapshot of social enterprise performance and as well as how specific economic and political developments are affecting social enterprises. The February report showed that overall, across the 101 respondents, 14% are expecting to reduce turnover and staff or to close completely. This is the highest proportion reporting a growth decline since the survey began two years ago. High costs continue to challenge social enterprises. Almost two-thirds of the social enterprises who took the survey (62%) said they saw an increase compared to last quarter and almost half (48%) saw an increase in staffing costs. Although there was a slight improvement in cashflow and reserve positions this quarter, but a high number of social enterprises expressed concern about projected cashflow and income. When social enterprises were asked about their turnover position since July 2021, 21% said they saw a decrease while 37% said their turnover remained the same since then. Factors included a reduction in commissioning opportunities for public sector contracts and smaller contracts as local authority budgets struggle. Despite the tough economic climate, more than half of the social enterprises surveyed said demand for their products and services increased. The number of people being supported through social missions has also increased since last quarter to 63%, demonstrating how social enterprises prioritisation of their mission continues to deliver in times of need. Social enterprises in London reported particularly weak growth and cashflow positions compared to counterparts elsewhere in the UK. Peter Holbrook, Chief Executive of SEUK, commenting on the findings said: “As the UK economy is predicted to fall into another recession and interest rates hit their highest levels in more than a decade, social enterprises continue to face a tough economic climate. “For many, the financial support they will try to get next quarter will be critical to their survival. “More than three quarters of social enterprises reported that the profits they reinvested into their social or environmental mission has increased or stayed level, highlighting the resilience and importance of the social enterprise business model to increase investment in the communities they serve. “Government support must prioritise sustaining businesses that serve our economy, community and planet in order to maximise returns on investment and to ensure that otherwise viable social enterprises aren’t lost to economic uncertainty.” The Social Enterprise Barometer report can be accessed through SEUK’s Social Enterprise Knowledge Centre. The Social Enterprise Knowledge Centre seeks to be the UK’s most comprehensive source of evidence on social enterprise. Click here to read the full Barometer Report

09 Feb

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2 min

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