Thought Leadership

By Tom Cracknell - Co-Founder Origin Africa Problem 1: Historically, in manufacturing, the value-added activity has been prioritised to the Global North. Hence the wealth gap increases. This leaves individuals and communities in places like Kikambala, Kenya, with very little control over their own economic path. Problem 2: The textile industry has a responsibility to clean up its act. Enormous swathes of polyester and energy consuming materials are produced to satisfy an increasingly fickle market of consumption in the global north. All this production takes energy, resources and often denatures water and fertile land (let's not forget recycling clothing takes energy too). Fashion Revolution Kenya worked with the British Council in 2020 to investigate what materials really are the most efficacious and least environmentally damaging to produce apparel. They looked to establish the pros and cons of each fibre and where improvements still needed to be made. The fibres were nettle, flax, pineapple, banana, hemp, water hyacinth, sisal, cotton, silk and fish leather and wool. A lot of these do not produce suitable fabric for garments but it's worth having a look at this paper because the options are exciting! The latest evidence points to the use of cotton but not in its traditional sense of landscape changing vast production that harms environments and livelihoods. However, the Report does highlight, along with other cutting edge non biased research such as the Transformers Foundation's Cotton Myths Debunked, that a sustainable solution is to overcome the issue of water consumption (an oft-quoted criticism of cotton) by ensuring production is catalysed by rain water rather than mass hectares of irrigated land: 'A shift to mainly or solely using rain-fed cotton is a tangible solution when looking to create a more sustainable industry.' When looking to establish our own supply chain from the get-go, it took time. We had to make sure we were making the right choices. This included country of origin, textile of the garment, materials consumed, methods employed, dyes used, pesticide consumption, quality of garments, nature of factory and finally, conditions in which the garment workers worked. Let's come back to that in a moment. So, having done our research, we settled on rain-fed cotton, using an absolute minimum of pesticides along with natural water-based dyes that would not denature water, and we would go to establish the ethics of production ourselves as cottage industries in Kenya have yet been unable to establish the expensive 'Organic' certification, albeit in planning. Environmentally satisfied we were doing everything possible to tackle problem 2, back to Problem 1! We needed to find a way to ensure clothing was being produced in a way that was respectful and even beneficial to those working in the supply chain. This needed to include ensuring basic employment rights such as maternity leave, secure contracts and protection from unlawful loss of employment. It also meant looking at working conditions to make sure that harmful materials were not being used, that working hours were not exploitative and that the factory was at a temperature which was not detrimental to health. Finally we also needed to ensure that workers had the opportunity to progress and develop. According to a 2019 Oxfam Australia report, 9 out of 10 garment workers felt that their income is not sufficient or partially sufficient to meet their needs and, as a result, 87% of workers take loans from the local shop to fill their income expenditure gap. Fashion companies are forcing this to happen and consumers, all too often, don’t pay attention to the detail enough to see the harm caused in the production of their new garments. In the fiscal year 2021-22, Next Plc (the UK’s largest fast fashion brand) reported a profit of £823 million, up 140% from the previous year. With some years of experience under our belt, we have come to a certain conclusion in fashion: If an organisation is not talking about the good things they are doing, they aren’t doing them. Basically, as consumers, we should be asking the hard questions. So, in researching our new supply chain, when we approached factories and organisations who could not explain to us their employment methods, their conditions of working or whether their employees were paid above the living wage, it was obvious to us that the organisation does not align with the ethics of Origin. We simply did not work with them. However, after lengthy research and really at a point when we felt ethical production in Africa may well not be possible for Origin clothing, opportunities began to spring up that offered hope. We began to see this may be possible and may actually happen. Working with garment factory SOKO Kenya in Kikambala and farm-to-fabric business Tosheka Textiles in Wote (both female-led businesses that emphasise female opportunity every day) one can see the unquestionable opportunity generated by good employment. Women are paid above the living wage, given appropriate training for personal and entrepreneurial development and are respected to pursue their own path for establishing themselves and ensuring a bright future for their families. With such an empowering culture for women, we decided we had to work with them. When profits are generated from this clothing, we share the profits equally with each step of the production process. This means that garment workers and their communities directly benefit from a greater proportion of value-added activity in the production process of the garments they actually made, thus fighting the enormous inequalities that have historically come from large companies keeping the poor down by extracting low-cost goods and adding all that value in the Global North. It is proven that for every woman that is lifted above thefinancial poverty line, she brings 7 people with her. Now, why? Well, as Sven Beckert explains in 'The Empire of Cotton', it is curious that after millennia of equal development in the Global South and North, what academics refer to as the 'great divergence' occurred at a time when cotton's properties were being fully discovered and utilised to propel clothing into a massive world changing engine. The previously Southern industry of cotton was usurped by an increasingly Europe-centric business class and the seeds were ironically sown for this 'great divergence' to create a rich Global North at the cost of the Global South. Our supply chain methods directly combat this damaging skew. We believe fashion has a responsibility to reverse the deleterious effects it has had on the Global South. The opportunities generated within our ethical and responsible supply chain are the weapon we can use to pursue that change and, as long as brands stick to the principles that make a social enterprise (or truly ethical brand), we can fight that battle together for as long as Origin keeps trading originafrica.co.uk

Greater Manchester based pop-up TV studio and newsroom Media Cubs has worked with their biggest number of children yet - more than 750 new young people in the six-week summer holidays - transforming them into 'mini reporters' to increase confidence, skills and aspirations.  A total of 154 children were asked about their experience of the Media Cubs workshops: 93% said they had learned something new, 88% felt more confident after taking part, 84% said they felt their views and opinions are important, 78% said they were happy to speak in front of others and 59% said they think they could work in a TV studio or newsroom.  Kirsty Day, co-founder of Media Cubs and project lead, said: “First and foremost, we want all the children we work with during the holidays to have lots of fun, which is why they took on new challenges this year from stop motion to creating their own adverts and interviewing sports stars and authors.   “And as a result of a diverse set of activities we were able to support them to grow in confidence, which has taken a big knock during the pandemic, and increase their skill set and understand that their views and opinions matter – which is reflected in the survey results.  “It is also important to us to work with young people to increase their aspirations and giving them an understanding that they can grow up to be anything they want to be by having a taste of what a newsroom and TV studio entails, where previously it may have felt out of their reach. We believe that children from all backgrounds have a place in the newsroom and should feel confident that their views matter and voices will be heard.  "Feedback from young people included “I got my lack of confidence up”, “I was able to share my feelings” and “I never thought I would get to interview a sports star” - and that is what makes Media Cubs so valuable. “750 children is the highest number we have worked with in the space of six weeks and we want to continue to grow these numbers across Greater Manchester to help more young people broadcast confidence. And we have some exciting new projects coming up in Autumn to strengthen that aim.”  As well as the data from the survey, the children were also asked what they enjoyed most about working with Media Cubs and some of the highlights included trying out new things and sharing their ideas, working with the cameras, making films, creating stop motion animations, presenting and interviewing sports stars and authors. Media Cubs worked across five boroughs - Salford, Wigan, Bolton, Trafford, Stockport - and expanded the providers that they teamed up with too, including Wigan Warriors Community Foundation, Wigan Athletic Community Trust, Sale Sharks, Foundation 92, Stockport Life Leisure, Salford Life Centre, Lancashire Cricket Club, Manchester City Council, Wigan Council, and many more. If you would like to learn more about Media Cubs please visit their website: https://www.mediacubs.co.uk/

Commenting on Patagonia’s shift to investing its profits into fighting the climate crisis, Peter Holbrook, Chief Executive of Social Enterprise UK, said: Patagonia’s decision to become a social enterprise proves that global brands can make the shift to build their business around purpose, while still delivering profit and aiming for growth. The company’s Board has explicitly stated that they believe by putting environmental purpose at the heart of their business, they will attract the best staff and deeper loyalty from customers. The scale of the climate crisis can no longer be denied and business has a vital role to play in protecting our planet. As more businesses explore how to improve their positive impact on the environment and society, Patagonia demonstrates the power of changing company structure and governance. We hope more business leaders will see this as a rallying cry and will be bolder in their pursuit of business where purpose and profit go hand in hand.

8 September 2022 Lord Victor Adebowale, Chair of Social Enterprise UK and Peter Holbrook, Chief Executive of Social Enterprise UK, said:  Her Majesty the Queen has been the ultimate leader of our nation for the last 70 years. We, along with millions of others, have greatly admired her unwavering commitment to her duties and how she made supporting social causes a central part of her role, through her patronages.   Throughout all the challenges the UK has faced in her reign she has provided stability, comfort and shown steadfast leadership, often saying exactly what people have needed to hear in some of our most trying times. This is a deeply sad time for the UK and our thoughts are with the Royal Family at this time of their great personal loss. 

8 September 2022 Responding to the Prime Minister’s announcement on energy costs this afternoon, Peter Holbrook, Chief Executive of Social Enterprise UK said: Today businesses needed to hear from the Prime Minister that the government has a plan to help them stave off calamity this winter and beyond. We have heard only some of the plan for winter, but social enterprises need more detail. It is crucial that businesses are given clarity quickly. We also need to avoid needless cliff-edges. This energy crisis is predicted to last at least a year, not six months, as the government has recognised for households. We must avoid a situation where businesses close or jobs are lost because we have not put in place a long-term plan. The Prime Minister is right to be looking at how the UK can shore itself up against energy crises in future. Two-thirds of social enterprises have or plan to have tackling the climate crisis as one of their legally binding objectives. It’s clear more businesses need to adopt similar commitments to reduce dependency on fossil fuels. We also need to invest in community energy, where social enterprises are working with local people to develop renewables that can reduce carbon emissions and help reduce the cost of energy over the long term.

Charity Bank, the loans and savings bank for charities and social enterprises, has signed up to the Diversity Forum Manifesto, reaffirming its commitment to Equity, Diversity, and Inclusion (EDI). Created by The Diversity Forum, a network with a mission to improve inclusion in the UK Social Investment sector, the Manifesto sets out 7 clear commitments that organisations are required to report on annually alongside 10 suggested initial implementing actions. The 7 EDI commitments ensure organisations are taking ownership of their EDI, creating meaningful collaborations, building an inclusive culture, being open and transparent, investing in equitable representation, engaging in sustainable inclusion, and advocating for marginalised voices. As part of their commitment, Charity Bank is joining the Diversity Champions Network which regularly meets to review best practice in the sector reviewing recruitment, training, and overall culture. The Champions network plays a crucial role in collecting data and sharing best practice relating to diversity and inclusion from across the social impact sector, helping to support the mission of the Diversity Forum. Charity Bank becomes the 12th organisation to sign the new Manifesto after its launch in January 2022. The Manifesto 2.0 was developed with the support of the Diversity Forum Steering Group and representatives from the Diversity Champions network. The Diversity Forum is funded by the Connect Fund, a joint fund supported by the barrow Cadbury Trust and Access – The Foundation for Social Investment. Other organisations that have signed up so far include; UnLtd, The Key Fund, Social Investment Business, Big Issue Invest, Access, Big Society Capital, Social Tech Trust, Social Investment Scotland, Co-operative and Community Finance, Architectural Heritage Fund, Resonance, Bristol and Bath Regional Capital and the School for Social Entrepreneurs. Ed Siegel, CEO of Charity Bank said “We’re proud to have signed the Diversity Forum Manifesto which reaffirms our commitment to improving Equity, Diversity, and Inclusion through our investing activities as well as our own day-to-day operations, employment practices and working culture. The 7 commitments outlined by the Manifesto will help challenge our whole organisation, empowering us to improve and work collaboratively towards a more inclusive future. We hope that more organisations will join us and the other Manifesto signatories in our efforts to rectify the longstanding disadvantage experienced by systemically excluded and underfunded groups.” Amir Rizwan, Chair of The Diversity Forum said “We are absolutely delighted that Charity Bank has signed the new Diversity Manifesto that we launched earlier this year and taking us to a total of 15 social investment signatories to date.” “The leadership shown by Charity Bank and its commitment to holding itself accountable to diversity, equality, and inclusion is much welcomed and we are looking forward to working with them over the coming months and years as they start their journey to become a more diverse and equitable organisation. Also, we hope that this signals to others in the sector that have not yet signed up to the new Diversity Manifesto to explore how they can join us on this journey.” About Charity Bank Charity Bank is the loans and savings bank for charities, social enterprises and people who want to make the world a better place. It uses its savers’ money to provide much needed loans to UK organisations working to drive positive social change – bringing benefits for people, communities, and the environment. Since 2002, Charity Bank has made more than 1,100 loans totalling over £400m to housing, education, social care, community, and other social purpose organisations. Charity Bank is owned by social purpose organisations and aims to use its expertise, commitment, and flexible approach to lending, to help charities and social enterprises get the support and funding they need. www.CharityBank.org About The Diversity Forum The Diversity Forum is a collective on a mission to drive inclusive social investment in the UK. We do this by commissioning research, sharing knowledge, and convening sector-wide groups to discuss equity, equality, diversity and inclusion in depth. The Diversity Forum is led by the Steering Group made up of representatives from across the social investment sector, including our Chair, Amir Rizwan. The Forum also has a Champions network of employees working within a number of social investment organisations who have a passion for EDI or are in an EDI related role, including EDI leads from organisations who have signed the Manifesto. The Champions network meets quarterly at present with the addition of one-off events and training as required or suggested by those within the network. In addition, the Diversity Forum holds monthly online events on topical EDI issues that are available on our YouTube channel here. We also have a monthly newsletter to promote diversity awareness and celebration days and recent updates within the sector. We commission research including our notable Inclusive Impact report on the diversity of UK social investment sector in 2018. Finally, the Diversity Forum are proud to be actively engaged in collaborating with EDI partners from across the sector, including EIIP, EquallyOurs and Addressing Imbalance.

Responding to Liz Truss winning the Conservative leadership election, Chief Executive of Social Enterprise UK Peter Holbrook said:  Liz Truss’ appointment as Prime Minister comes at a critical time for our society and economy. We look forward to working with her Government on the role of social enterprise in getting Britain back on track.  Like all businesses, social enterprises need to know that the Government has a plan for them this winter, which is why we are urging the new Prime Minister to include a substantial package for business in her forthcoming energy announcement, that reflects the scale and urgency of the threats at hand.   Social enterprises have proven themselves time and time again to be resilient, but they are not of course immune to the effects of skyrocketing energy bills, along with other eye watering increases in operating costs. They need to know the government is behind them for the tough winter ahead and beyond.  Social enterprise should be a vital component of the engine for delivering growth and prosperity to the UK, while also reaping benefits for the environment and communities. We want to work with the new Government so that its new vision sees the potential for social enterprise and all that it delivers. 

1 September 2022 Commenting on the serious financial pressures facing social enterprises, Peter Holbrook, Chief Executive of SEUK, said: “Social enterprise performance has strengthened as we emerge from the height of the COVID crisis. But this growth and resilience is under threat as the business community and wider society face a financial crisis the likes of which has not been seen in almost half a century. Social enterprises are stepping up to the plate to continue to deliver for the causes, communities and people they support and to do the best they can by their staff. However, for many the costs of operating are set to skyrocket, to levels that may challenge even the most robust of social enterprises.  “There are many social enterprises that will be providing vital support to those worst affected by the cost-of-living crisis, and it’s crucial they’re able to keep doing so in the coming winter and beyond.” “We have been working with other business sector groups over the summer on what the package of support required might be and expect to meet with Government representatives to discuss the swift rollout of support once the new Prime Minister is in place.”