Social and Solidarity Economy: Our common road towards Decent ...

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SOCIAL AND SOLIDARITY ECONOMY ACADEMY Figure 1.1: Combined social and economic objectives Participation Economic and Social Function Voluntary Involvement Social and Solidarity Economy Collective dimension Autonomy Solidarity Since the economies of most countries operate according to market principles, goods and services supplied by SSEOs are traded in those markets and compete with the goods, products and knowledge supplied by other private operators. However, in certain cases, (particularly with social services), public service rules serve as a reference. The social economy may also have to create special markets – such as the fair trade market – where market economy principles (particularly competition) are combined with certain features (e.g positive externalities for a group of producers or environmental protection). The fact that the SSE combines social and economic objectives is considered paradoxical by some economic actors. Some public authorities also find it difficult to position SSEOs in public policies that are often elaborated in silos more than in comprehensive approaches. Including the social, financial and environmental dimensions of sustainability is indeed a challenge for SSEOs. 1.3.2 Whose economy? The social economy is sometimes confused with an economy of the poor or “for the poor and other vulnerable categories,” such as women, disabled persons, low-skilled workers, migrants or young workers. This is certainly not a criterion for distinguishing the social economy from other forms of economy. The social economy is not, by definition, an economy of the poorest or most vulnerable. It is, in fact, a choice that is made. People can choose to combine (economic, social, environmental or other) objectives, not maximize the financial return on investment and establish participatory governance. However, this perception of the social economy is not altogether incorrect. By virtue of the solidarity principles and mechanisms involved, enterprises and organizations of social economy are often the only forms accessible to people who cannot mobilize sufficient capital or other resources to launch and develop economic activities. And, as Jacques Defourny (1992) has stated so aptly, 6 READER
necessity is often a condition which prompts the emergence of social economy initiatives. Given the specific social purpose of this type of economy, it naturally tends to attract groups, users or clients who do not have access to employment or certain goods, products and knowledge, or whose access to them is limited. In this way, the social economy develops as much by aspiration as by necessity (Lévesque, 2003). It is, however, in the interests of social economy organizations to ensure a mix in their membership as long as they guarantee that their members have common interests. For it does not make sense for a mutual health society, for example, to unite members whose profiles or economic activities would make them more vulnerable regarding health care. This would amount to establishing solidarity mechanisms among the poor or the vulnerable (distributive solidarity). On the contrary, it is very much in the interests of social economy organizations to have members from different economic and social categories in order to ensure greater economic viability and to provide a basis for redistributive solidarity. Organizations very often have to find a balance among economic interests, this solidarity mechanism and a mutually generating and reinforcing mechanism of social cohesion, which is essential to collective action. 1.3.3 Common operating principles recognition and that none of these forms of input (such as money) is valued any higher than others or given any more weight in the organization and in the decisions taken. In some SSEOs, the decision-making process may be different (e.g. decisions made by consensus). The degree of participation can thus vary widely from one type of enterprise or organization to another, even among organizations that share the same legal status. Some SSEOs will thus be more “democratic” than others. The forms of participation can be even more varied when additional stakeholders are involved (e.g. members, beneficiaries, users) or as a result of the particularities of some sectors in which SSEOs are operating (particularly in terms of, among others, efficiency, speed or user/client profile). The possibility of control and of imposing sanctions, which is inseparable from participation, guarantees that the decisions that are taken are in line with the originally agreed goals and spirit of the organization. The participatory nature of decision-making distinguishes SSEOs from private for-profit-making enterprises or public enterprises, in which sanctions are imposed by the market or by vote. In the final analysis, these operating mechanisms and procedures guarantee the user, member or beneficiary confidence in the social economy organization and its leaders, whether they are elected (as is the case in cooperatives) or not (as is the case in social enterprises). Participation Solidarity and innovation The members, users or beneficiaries of SSEOs have the opportunity to be either the owners of the organization or to actively take part in the decision-making process. By granting the membership or the beneficiaries/users the capacity to equitably take part in decisions, these organizations establish participative operating methods. This participation can exist in diverse forms. In cooperatives, mutual benefit societies and associations, the principle is, in theory: “one person, one vote”. This principle aims to ensure that the various contributions of individual members (e.g. work, contribution in kind, money) are given equal The operating methods of social economy organizations are often described as being based on solidarity. In fact, some authors prefer to use the term “solidarity economy” precisely to emphasize this dimension. Operating methods based on the solidarity principle aim to include rather than exclude; their goals are not limited to accumulating capital or generating profits, but include using resources to achieve objectives that will benefit the initiators as well as the workers and users/beneficiaries involved. It is this solidarity aspect which also explains why flexibility and innovation are often features of these
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Social and Solidarity Economy: Our common road towards Decent ...

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