Thought Leadership

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.”

Social Enterprise UK is working in partnership with the University of Westminster on a programme of work focused on social enterprises and gender empowerment. Many social enterprises are working to tackle gender inequality – creating jobs, opening up opportunities and tackling entrenched social attitudes. This programme aims to work with social enterprises to help them embed gender empowerment into their work and day-to-day operations. Since November 2021 an expert team of academics from the university have been running a series of practical workshops with participating social enterprises to help them develop strategies to empower the women they employ or support. Early workshops took place online but have now moved to in person events, the latest of which looked at how the Theory of Change and Social Relations Approach can be used to develop gender empowerment strategies. Academics taking part in the programme are Dr Lilian Miles, Dr Maria Granados, Dr Vincent Rich and Dr Anastasia Alexeeva Why should I get involved and who can take part? The workshops are open to any Social Enterprise UK member interested in doing their part to create a gender equal world. Participating social enterprises do not need to have a primary social purpose of tackling gender inequality. The programme is a great way to provide your social enterprise with the organisational tools necessary to put in place systems which empower the women you work with and support, taking academic theory and putting it into practice. Workshops so have have looked in depth at areas such as creating a theory of change, design thinking and impact measurement. If you’re interested in taking part, please contact our membership team at membership@socialenterprise.org.uk Gender Empowerment Guide for Social Enterprises in the UK As part of this series of work the University of Westminster produced a Gender Empowerment Guide for use by social enterprises to empower the women they employ. Co-produced with social enterprises, the guide showcases best practice, potential challenges and how to address them, and provides clear indicators to measure the effectiveness and impact of gender empowerment practices. Click here to read the guide 

The Summer 2022 Social Enterprise Barometer report shows that social enterprises are stepping up to the challenges of the economic storms battering many businesses and communities, but signs of strains are beginning to show. The Social Enterprise Barometer is published quarterly by Social Enterprise UK based on survey feedback from social enterprises. The survey looked at the economic performance of social enterprises in the last quarter as well as the impact rising costs and the resulting cost-of-living crisis is having on these businesses. Overall, across the 173 respondents, turnover and staffing had recovered since January and social enterprises are generally optimistic about the future. There has however been a downward trend in cashflow among those surveyed with more social enterprises responding that they have less than three months’ funds available. Responding to rising costs A key focus of the report was on the impact of rising costs across the economy and the survey showed that two thirds (66%) of social enterprises reported an increase in operating costs with around a quarter (24%) saying costs had increased significantly in the last quarter. Leaders at social enterprises are responding to the challenges of increasing costs for their businesses, staff and customers in different ways. Despite an increase in running costs for 66% of those surveyed, just 27% of respondents had increased their prices. When asked how the cost-of-living crisis was affecting the people and communities they work with and support, a third (33%) of those surveyed expected an increase in demand for their services, and conversely a quarter (23%) expected a fall in demand as people would struggle to afford their products or services. One in five (19%) expected to have to refer people on more to other support services. Supporting and growing the workforce A third (33%) of social enterprises reported having increased their staff numbers in the previous quarter, compared to a quarter (23%) who had done so in March. This may demonstrate that social enterprises tend not to offload staff as a solution to financial difficulties or uncertainty. A third (31%) of those surveyed had increased staff pay and one in six (17%) have taken other measures to protect staff amid the cost-of-living crisis. One London social enterprise leader said: “I have allowed staff to do more hours than I know we can realistically afford in the long term. I let them take more food home and feed them more at work. I have reworked shift patterns to support more lift sharing to save petrol.” Report author Emily Darko, Director of Research at SEUK, said:   “This report offers a finger on the pulse of the social enterprise movement and shows that because social enterprises are mission-led, their emphasis is on responding to growing demands for support and services – not on profits. We know that social enterprises are resilient and are excellent at flexing to accommodate challenges and pushing for change. However, they of course are not immune to the effects of the economic turbulence: there are clear signs of strain emerging – financially, but also in terms of leadership and staff capacity and wellbeing." You can read the barometer report here