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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.
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SUSTAINABLE SOCIETY Howfor-profit businesses and NGOscanreducetheirdistanceandcooperate
A snapshot of thepresentsituation • For-profit businesses and NGOsoperateindifferentsectorswithhardlyany meeting points • CSR? • Donations? • POWER INEQUALITY
TRADITIONAL ATTITUDES and concepts • Business is business • Market rulez • NGOsareneedy, low-status, charitableorganizationswithphilantropicambitions • Business is evil • Market is evil • Forprofitsexploitemployees/environment
MUTUAL PREJUDICE VS MUTUAL INTEREST • Cooperationsbasedonneeds • NGOsneed • Income • New connections • Acknowledgment /respectable status • Sensitivesocialenvironment • BUT WHAT MIGHT BUSINESSES NEED?
FOR-PROFIT BUSINESSES • NEED: • Abetter image • Bigger market • Affordableservices • Costreduction
HOW TO PAIR THEM UP? • FOR-PROFITS SEEK: Economicallysoundsolutions Sociallysoundsolutions • NGOs SEEK: Solutionsin line withtheirmission Marketable and profitablesolutions (whichenablethemtobuildconnectionsintheentiresocietythuspromotingtheiraimsandcauses)
Onepossiblesolution • AustrianSo-Proinitiative (SozialeProduziert) • Products producedbysocialenterprises • Productionsparesresources, asit is produced: • Locally • By local partnerships • Bysupportedemployment • Fromwastematerials
IN thehungarianso-pro • Supportingsocialenterprises’ appearanceinthe market • Preparingcooperationwithfor-profitactors • Findingcommonopportunitiesforcooperation
INTERNATIONAL dissemination • Preparigtheinternationalnetwork • Preparing a European trademark (highquality, economically and sociallysustainableproduct) • CooperationwithDanubeRegionStrategy
EXAMPLES SO FAR • Industrialwaste of a matressproducingcompany is turnedintoconstructiontoycubesbypeopleemployedbyCaritas • Gardeningjobsaredonebymentallyhandicappedpeopleat a cardealership • Coffeepodsfrom a cafeteriaareturnedintojewellerybyunder-educated and drug-addictedyoungpeople • Bagsareproducedfromwaterprooftextilebannerspreviouslyproduced and usedby an advertisingagency
TO sUMMARIZE THE CONCEPT • BASIC PRINCIPLES: • Environmentalawareness • Socialresponsibility • Economicresponsibility (reasonablewages, free fromtaxevasion and corruption) IT IS NOT: - Donation / Charity / CSR
THE NOVELTY OF THE CONCEPT • Itacceptsthat market is profit-oriented • Itacceptsthebasicprincipleshowthe market works • Itemphasizesresponsibility and sustainability: theyare a priorityforallactors
AND what is ourroleinthis? • Weworkasadvisorswithbothparties
WithFor-profitcompanies: • Webuildconnections • Weintroducethemodel • Weexploreopportunities (withstatesectoractorscooperation is alsopossible, local authorities, etc)
Withngos: A much more gradualprocess • Fundraisingtechniques (donations, volunteers, etc) – 1st stage of socialenterprises • Findingservicesourproductstheycansupplyevenifonlytemporarilyorseasonally – handicappespeoplemakingChristmasdecorations – how and wheretosellit – involvement of professionals,eg.adesigner – 2nd stage of socialenterprises • Servicesorproductswhichareself-sustaining – environmentalist NGO lettingaccommodationin a house in a forest – thusmakingitpossiblefortheactiviststouseitfor free – market research, marketing, business plan – allneeded. -3rd stage of socialenterprises • Profitableproductor service is developed and launched – a fullscale business bythe NGO thoughthe profit is usedinordertohelpthebeneficiaries, theNGO’stargetgroup – 4th stage of socialenterprises