How for-profit businesses and NGOs can reduce their distance and cooperate.
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Transcript of How for-profit businesses and NGOs can reduce their distance and cooperate.
SUSTAINABLE SOCIETY
How for-profit businesses and NGOs can reduce their distance and
cooperate
A SNAPSHOT OF THE PRESENT SITUATION For-profit businesses and NGOs operate
in different sectors with hardly any meeting points
CSR? Donations?
POWER INEQUALITY
TRADITIONAL ATTITUDES AND CONCEPTS Business is business Market rulez NGOs are needy, low-status, charitable
organizations with philantropic ambitions
Business is evil Market is evil For profits exploit
employees/environment
MUTUAL PREJUDICE VS MUTUAL INTEREST Cooperations based on needs
NGOs need
- Income- New connections - Acknowledgment /respectable status- Sensitive social environment
- BUT WHAT MIGHT BUSINESSES NEED?
FOR-PROFIT BUSINESSES NEED:
A better image Bigger market Affordable services Cost reduction
HOW TO PAIR THEM UP? FOR-PROFITS SEEK:Economically sound solutionsSocially sound solutions
NGOs SEEK:Solutions in line with their missionMarketable and profitable solutions (which
enable them to build connections in the entire society thus promoting their aims and causes)
ONE POSSIBLE SOLUTION Austrian So-Pro initiative (Soziale
Produziert)
Products produced by social enterprises Production spares resources, as it is
produced:
Locally By local partnerships By supported employment From waste materials
IN THE HUNGARIAN SO-PRO Supporting social enterprises’
appearance in the market
Preparing cooperation with for-profit actors
Finding common opportunities for cooperation
INTERNATIONAL DISSEMINATION Preparig the international network
Preparing a European trademark (high quality, economically and socially sustainable product)
Cooperation with Danube Region Strategy
EXAMPLES SO FAR Industrial waste of a matress producing company is
turned into construction toy cubes by people employed by Caritas
Gardening jobs are done by mentally handicapped people at a car dealership
Coffeepods from a cafeteria are turned into jewellery by under-educated and drug-addicted young people
Bags are produced from waterproof textile banners previously produced and used by an advertising agency
TO SUMMARIZE THE CONCEPT BASIC PRINCIPLES:
Environmental awareness Social responsibility Economic responsibility (reasonable
wages, free from tax evasion and corruption)
IT IS NOT:- Donation / Charity / CSR
THE NOVELTY OF THE CONCEPT It accepts that market is profit-oriented
It accepts the basic principles how the market works
It emphasizes responsibility and sustainability: they are a priority for all actors
AND WHAT IS OUR ROLE IN THIS?
We work as advisors with both parties
WITH FOR-PROFIT COMPANIES:
We build connections We introduce the model We explore opportunities
(with state sector actors cooperation is also possible, local authorities, etc)
WITH NGOS:
A much more gradual process
1. Fundraising techniques (donations, volunteers, etc) – 1st stage of social enterprises
2. Finding services our products they can supply even if only temporarily or seasonally – handicappes people making Christmas decorations – how and where to sell it – involvement of professionals,eg.a designer – 2nd stage of social enterprises
3. Services or products which are self-sustaining – environmentalist NGO letting accommodation in a house in a forest – thus making it possible for the activists to use it for free – market research, marketing, business plan – all needed. -3rd stage of social enterprises
4. Profitable product or service is developed and launched – a full scale business by the NGO though the profit is used in order to help the beneficiaries, the NGO’s target group – 4th stage of social enterprises