Manual of socio-ecological production
MANUAL of
Socio-ecological production
Value creation through appreciation – Sustainable economic activity by conserving resources, strengthening regional cycles and social balance
Drawn up in the project „SoPro HU-AT“
1 Manual of socio-ecological production
Impressum
Published by: SoPro InnovationsPlattform
Editing: Mag. Robert Rybaczek-Schwarz
Texts produced by: Dr. Dietmar Kanatschnig, Mag.a Ulrike Kabosch, Bernhard Kuderer, Msc, Martá Regner, Franz Rybaczek, Mag. Robert Rybaczek-Schwarz.
Contains results of Master- and Bachelortheses, which were written within the scope of the project from: Sebastian Beer (FH Campus Wien), Najwa Duzdar (WU Wien), Cornelia Forsthuber (WU Wien), Martina Frank (FH Wr. Neustadt – Campus Wieselburg), Anke Harnisch (FH Campus Wien), Daniela Kitzberger (FH Wr. Neustadt – Campus Wieselburg), Alexandra Pusta (FH Wr. Neustadt – Campus Wieselburg).
Graphics: Christina Trah, Markus Damböck
Fotos: SoPro InnovationsPlattform
Contact: [email protected] www.sozialproduziert.at
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Contents ! 1.!INTRODUCTION:!SOCIO.ECOLOGICAL!PRODUCTION!–!VALUE!CREATION!THROUGH! APPRECIATION...... 6! Project(of(SoPro(HU-AT...... 6! Fair(economic(acitivities? ...... 7! 2.!SOCIO.ECOLOGICAL!PRODUCTION!AND!SUSTAINABILITY ...... 8!
SOPRO!AND!THE!THREE!DIMENSIONS!OF!SUSTAINABILITY ...... 8! Ecological(dimension...... 8! Economic(dimension ...... 9! Social(dimension...... 10!
THE!APPROACH!OF!“SOCIO7ECOLOGICAL!PRODUCTION“!FROM!THE!PERSPECTIVE!OF!SUSTAINABILITY ...... 11! Sustainability(and(positions...... 12! Positions:(“Strong”(and(“weak”(sustainability...... 13! Dimensions(of(sustainability...... 13! Summary:(socio-ecological(production(from(the(perspective(of(sustainability...... 16! 3.!ORAGNIZATION!AND!STRUCTURE!–!THE!SOPRO!INNOVATION.PLATFORM ...... 17!
OFFERS!AND!ORGANIZATIONAL!FORM...... 18! Legal(form(of(EEIG(–(European(Economic(Interest(Grouping ...... 18! The(SoPro(Innovation(Agency(EEIG...... 19!
STRUCTURE!OF!THE!SOPRO!INNOVATION!AGENCY ...... 19!
TASK!SHARING!WITHIN!THE!SOPRO!INNOVATION!AGENCY ...... 21! Tasks(of(the(EEIG...... 21! Tasks(of(national(service(point:...... 21! Tasks(of(regional(service(point:...... 22! 4.!THE!CONSULTANCY.MODEL!OF!SOPRO...... 23!
COLLABORATION!OF!PRIVATE!ENTERPRISES!AND!PUBLIC!INSTITUTIONS!WITH!SOCIAL!ENTERPRISES...... 23! Consultation(–(development(–(mediation ...... 23!
FACTORS!OF!SUCCESS!AND!ROLE!OF!PROCUREMENT!IN!THE!SOCIO7ECOLOGICAL!PRODUCTION...... 24! The(role(of(male(and(female(procurers(in(consultancy...... 24! Factors(of(success(in(the(procurement(activity ...... 25! ! !
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GOOD!PRACTICE!–!SUCCESSFUL!COOPERATION ...... 27! Organic(and(social(vegetable(box(–(produced(in(Styria...... 27! Delicious(natural(beer(in(exquisite(natural(wood...... 28! Innovative(design(bags(made(of(residual(materials...... 29! From(the(company(news-paper(wraped(in(plastics(to(low-wast(distribution ...... 30! Telephone(replacement(a(university(of(Vienna(–(in(social(cooperation(with(Wien(Work...... 31! Individual(toy(brick(package(of(the(Caritas(of(the(Diocese(of(Szombathely...... 32! Presentation(of(activities(of(the(organization(of(“PAKK(–(sustainable(technologies,(educational( and(training(center,(Pakod”...... 33! Handicap(Tailor’s ...... 34! The(“treasure(chest”(with(a(sustainable(effect ...... 35! Fleece(hoods(embroidered(with(company(logo...... 36! 5.!QUALITY!LABEL!OF!“SOPRO!CERTIFIED!–SOCIO.ECOLOGICALLY!PRODUCED”...... 37!
“SOPRO!CERTIFIED”:!INCENTIVE!FOR!SUSTAINABLE!PROCUREMENT!AND!CONSUMPTION ...... 37! Target(groups ...... 38! Criteria...... 39! “SoPro-certified“(as(a(signal(of(image(and(rise(in(sales...... 39!
THE!QUALITY!LABEL!AND!CONSUMERS...... 40! Topic(area(of(consumption...... 40! Topic(area(of(sustainability ...... 40! Topic(area(of(quality(label...... 41! Topic(area(of(quality(label(of(“SoPro(–(socio-ecologically(produced“...... 41! 6.!SOCIO.ECOLOGICAL!PRODUCTION!FOR!ECONOMIC!ENTERPRISES...... 43!
RESEARCH!IN!ECONOMIC!ENTERPRISES ...... 43!
RESULTS...... 44! Workshop(together(with(economic(enterprises(on(June(14,(2013 ...... 44! Online(questionnaire(for(CSR(enterprises(–(cooperation(with(social(institutions...... 44! Qualitative(interviews(of(three(enterprises(cooperating ...... 45!
CSR!–!SUSTAINABILITY!IN!ENTERPRISES ...... 47! !
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! 7.!SOCIO.ECOLOGICAL!PRODUCTION!FOR!SOCIAL!ENTERPRISES...... 51!
SOPRO!FOR!SOCIAL!ENTERPRISES:!REQUIREMENTS!&!OFFERS...... 51! Values(and(quality(in(social(enterprises...... 53! Offers(of(the(SoPro(Platform...... 54! Master’s(theses:(online(marketing(und(appreciation ...... 55!
SOCIAL!ENTERPRISES!IN!AUSTRIA...... 56! Survey(of(types,(target(groups(and(offers(of(socio-economic(enterprises(in(Austria ...... 56!
SECOND!LABOR!MARKET...... 57!
THIRD!LABOR!MARKET...... 57!
TYPES!OF!ORGANIZATION!OF!SOCIAL!ENTERPRISES...... 58!
ON!THE!SECOND!LABOR!MARKET:...... 58!
ON!THE!THIRD!LABOR!MARKET ...... 59! 8.!SOCIAL!PRODUCTION!IN!HUNGARY.!THE!SITUATION!OF!SOCIAL!ENTERPRISES!AND! ACTIVITIES!IN!THE!PROJECT!“SOPRO!HU.AT”...... 62!
THE!POLICY!AND!LEGAL!FRAMEWORK!FOR!SOCIAL!ENTERPRISES...... 62!
ESTIMATED!SCALE!OF!SOCIAL!ENTERPRISES!IN!HUNGARY!(2011)...... 64!
CONCLUSIONS!OF!THE!NATIONAL!REPORT...... 65!
SOPRO!PROJECT!AND!SOCIAL!ECONOMY!RELATED!ACTIVITIES!IN!HU...... 65! 9.!SOPRO!HU.AT:!RESULTS!&!PERSPECTIVES!OF!A!SUCCESSFUL!CROSS.BOARDER!PROJECT ...... 68! goodworks:(Innovation(Agency(and(quality(label...... 68! Contribution(to(growth,(preservation(of(resources(regional(value(creation ...... 69! Prospect:(New(projects(and(cooperations ...... 69!
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1. Introduction: Socio-ecological production – value creation through appreciation
Sustainability in cooperation between the public sector, economic enterprises, agriculture and social enterprises
Social and socio-ecological production (SoPro), respectively pursue the aim to link the increasing demand of the economy, public institutions and private consumers for sustainable products and services with offers and opportunities of enterprises on the “expanded labor market” (social enterprises of the second and third labor markets). The SoPro consultancy model procures between private-economic enterprises / public institutions and social enterprises with the target of developing and implementing sustainable high-quality products and services. Socio-ecological production orients itself towards the principles of complete sustainability, for SoPro means regional and ecological, resource- conserving economic activity with a social component. This approach of sustainable economic activity is implemented by the SoPro Innovation Platform, currently being established, which is currently active, starting from Lower Austria, in Eastern Austria (Vienna, Burgenland, Styria) and in West Hungary. It forms an interface between potential clients and implementing social enterprises. Consistently a creative, process- and demand-oriented co-development of product ideas is needed, and linking is required in order to find the right partners in the social economy. This is safeguarded by an active process of consultancy and procurement.
Project of SoPro HU-AT
The approach of socio-ecological production within the framework of the EU-financed cross- border project (ETC) “SoPro HU-AT: Social production for the environment” was implemented and developed further from March 2012 until December 2014. Also the present manual has been created within the framework of this project.
In more than 1,000 consultations and information contacts with economic enterprises and public institutions more than 250 practical products and services have been developed and implemented through processes of consultation, development and procurement. The majority of the new products is created by methods of re-use, up-cycling and re-design. In addition to the practical products and services, this project fosters creation of awareness in the fields of sustainability and social responsibility of enterprises (CSR) through targeted media and press work.
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Fair economic acitivities?
The principal motivation of Sopro is the economic implementation of the ethical conception of sustainability, which is based on the principle of fairness. A change in our life style and consumption of resources is required, so that persons in the global South on the one hand and also future generations on the other will be able to live in a world worth living in. A future-oriented society has to facilitate inclusion to all people – i.e. participation in life as well as in the work process. SoPro is oriented towards the three-dimensional concept of sustainable development. We integrate social and ecological considerations in the implementation of your economic projects, assist in practiceoriented development, and procure regional implementation by social institutions. An economic activity is sustainable only then, if it is useful in the long run not only for the business partners, but also for the part of society concerned by this business!
About this manual In this manual, the most important results and findings of the project of SoPro HU-AT are gathered, and the approach of socio-ecological production is described, inclusive of the results of various masters’ and bachelors’ theses and students’ papers, which have been created within the framework of this project. This manual is directed to economic, social and agricultural enterprises as well as to public institutions that are interested in sustainable economic activity, in the model of socio- ecological production and in new instances of cooperation. It describes the value-based background of sustainability (chapter 1), the organization behind (chapter 2), the consultation model for procurement of instances of cooperation with social enterprises (chapter 3), the quality label of “socio-ecologically produced”, which has come into existence in the course of this EU project (chapter 4), socio-ecological production for social enterprises (chapter 5) and economic enterprises (chapter 6), the specific situation in Hungary (chapter 7), as well as a survey of the most important results of this project with prospects (chapter 8). In addition a second manual has been created, which describes the internal, organizational and structural aspects in a more detailed manner, as well as the detailed description of single offers of the SoPro Innovation Platform. It is directed to consultants and organizations that would like to cooperate as SoPro partners. Both manuals are available in German and in English.
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2. Socio-ecological production and sustainability
SoPro and the three dimensions of sustainability
The initiative of “socio-ecologically produced“ attempts to actively implement sustainability in its three dimensions. Sustainability means the organization of a system in a way that it can endure in the long run. The most widely spread definition of sustainability was formulated by the so-called Brundtland Commission in 1987: Sustainable development is a “development, which meets the needs of current generations without compromising the ability of future generations to meet their own needs” and to choose their own life styles. (Brundtland report, 1987) The UN Commission emphasizes through this definition intra- and intergenerational justice, which is the basis of the sustainability concept: On the one hand distribution between current generations as a balance between people, mainly related to distribution between the Global North and the Global South. On the other, the balance between current and future generations, i.e. the duty to stand for conservation of the environment and stability of society in favor of the children and grandchildren. Sustainability appears (mainly) on three levels: the ecological dimension (the environment), the economic dimension (economy) and the social dimension (society). At the same time, these three dimensions are closely interconnected.
Ecological dimension
Starting point of assessment of ecological sustainability is the so-called social metabolism, which understands the Earth as a limited system of a materially closed global eco-system. Through increasing consumption of resources by man increasingly environmental problems occur, such as climate change, hole in the ozone layer, loss of biodiversity, erosion and desertification as well as pollution of soil, water and air. The most-known indicator of consumption of natural resources is the so-called ecological footprint. It quantifies the question, how many renewable resources there are required by human consumption of products and services. This means that the consumption of material, land and energy is calculated in terms of space. The consumption of fossil energy sources is calculated in terms of the required CO2
8 Manual of socio-ecological production absorption area, i.e. of the space of forests and oceans required. In the meantime, mankind annually consumes nearly 1.5 planets, with an increasing tendency. More about this topic: www.my-footprint.at
Covering resources through socio-ecological production SoPro promotes sustainable products made of renewable raw materials or recycled materials in a targeted manner, and thus afford a contribution towards active environmental conservation. Through procurement of regional cooperation partners, transport distances are reduced, and regional development is strengthened, especially because a large number of occupational projects are situated in rural regions lacking in infrastructure. Some social enterprises explicitly dedicate themselves to ecological social agriculture. Finally, the footprint of regionally produced products is clearly better than the one of globally imported products.
Economic dimension
Sustainable economic activity is closely connected with the two remaining dimensions. Economic sustainability is linked to the ecological dimension, for instance in relation to economical use of resources and energy, as well as with the social dimension, for instance through creation and safeguarding of workplaces. Two central concepts, which describe the nature of sustainable economic activity, are therefore efficiency and stability. Enterprises are able to make a considerable contribution towards a more sustainable society through their orientation and activity. However, they are considerably dependent on the wishes of consumers, who often prefer “cheap products” to “more sustainable” products. The market by itself therefore cannot lead to sustainability, because CSR measures may afford advantages for single enterprises, the bulk, however, produce in the most cost-efficient way. As the market pays insufficient attention to external factors, such as destruction of the environment, political management systems are required which regulate these concerns by law in favor of the community (environmental specifications, taxes, fines, preferential treatment etc.). On a macro-economic level, i.e. society as a whole, the discussion about a sustainable future reaches up to the challenge of current economic paradigms. The current politico- economic approaches aim at a stronger growth of economy than consumption of resources, designated as a relative decoupling. If an absolute decoupling can be reached – increasing growth of economy, at the same time decreasing consumption of resources – is doubted, at the same time taken as a necessity by many researchers of sustainability. Therefore, also departing from the paradigm of growth is considered, for instance within the framework of the initiative of “Beyond GDP”.
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Socio-ecological production as form of sustainable economic activites Socio-ecological production regards itself as a comprehensive form of sustainable economic activity. Through targeted promotion of sustainable high-quality products and services, this project affords a contribution towards saving of resources. Fostering regional instances of cooperation helps cutting down on transport distances, production in occupational projects qualifies and integrates disadvantaged persons and supports safeguarding of workplaces. goodworks strengthen regional value creation, as well as small and medium-sized enterprises, and can contribute towards better use to capacity and increase in efficiency of (largely or) partly publicly financed social enterprises. Finally, they encourage private economic enterprises to actively assume social responsibility.
Social dimension
The social dimension of sustainability is most difficult to grasp, and thus only little light is thrown thereupon in the discussion about a sustainable future. The reasons for this are, amongst others, that different (scientific) disciplines are connected with the social dimension, and that the social dimension can hardly be quantified. Therefore, today there is no clear concept of social sustainability, and broad recognition is lacking. Social sustainability aims at a humane life, i.e. distribution of social pressure, role allocation, distribution of work / fighting unemployment, and equality of opportunities. The focus is on a humane existence, which can provide for the material and immaterial basic needs. The topic of work plays a crucial role: gainful employment facilitates material participation and safeguarding existence on account of an income, but it also has an essential influence on social and cultural participation. An approach towards measuring and assessment of social sustainability is formed by the concept of quality of life, which is connected to skepticism about the model of growth, according to which increasing prosperity automatically leads to a better life. Studies show that an increasing per-capita income of a society does not correlate directly with the percentage of “very happy people”. Other investigations show that mainly just distribution, not the material prosperity of single individuals, leads to better quality of life of all people.
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Social balance and more social participation through SoPro The social dimension of sustainability, whereupon often only little light is thrown, plays a crucial role in socio-ecological production on various levels. SoPro strengthen social occupational enterprises in their task of inclusion of disadvantaged persons in the labor market and their participation in working life, respectively through procurement and support of suitable orders. SoPro intend to facilitate appreciative and sensible activities for disadvantaged persons. SoPro thus indirectly affords a contribution towards social balance and more equality of opportunities in society. At the interface between social and economic sustainability, SoPro assist economic enterprises in actively assuming social responsibility, and consciously cooperating with social enterprises.
The approach of “socio-ecological production“ from the perspective of sustainability
Scientific article – produced for the Conference of the Sustainability Working Group of the Working Community of the Danube Regions in March 2014 The initiative of “SoPro – socio-ecologically produced“ procures appreciative cooperation between economic enterprises or public institutions and social enterprises (social enterprises, workshops and projects offering occupation for socially disadvantaged persons) with an additional focus on utilization of residual materials and of ecological preliminary products and resources. Furthermore, the SoPro platform support social enterprises in marketing and procuring their products and services. The socio-ecological production is currently developed further and expanded within the framework of the cross-border EU project of “SoPro HU-AT” in Eastern Austria and West Hungary, and in the long run it shall
11 Manual of socio-ecological production become an international initiative. SoPro have positioned themselves as totally sustainable, considering all three dimensions of sustainability, with a focus on the social dimension. This article shows the scientific basis and crucial definitions of the concept of sustainability, especially the social dimension, in order to illuminate the approach of the socio-ecological production from a critical sustainability perspective.
Sustainability and positions
The following basic idea lies behind the concept of sustainable development: The partial system of economy may not grow beyond the means within which it is permanently sustained and maintained by the comprehensive eco-system.1 (Daly 1999).2 Thinking about sustainability mainly stems from one problem analysis: excessive use of natural resources. Neither the problem nor the solution approach of maintenance of natural resources through careful use are new. The idea of sustainability was for the first time formulated, according to “official historiography”, at the dawn of the 18th century for forestry, and in this context it had mainly economic significance: only to take away as much wood as to safeguard stable yields in the long run. The starting point of nowadays‘ understanding of sustainability was the slow comprehension, starting from the 1970ies, that an unlimited ecological growth would meet natural limits. In the first report of the Club of Rome under the heading of “The limits to growth” (Meadows et al., 1972)3, for the first time public attention was drawn to this precarious connection between economic growth and use of resources. The work and formulation of the Brundtland Committee are considered the central point of reference to the topic of sustainability, who defined the guiding principle of a sustainable development for all areas of society in their report “Our common future” (1987) as follows: “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.“ This up to now mostly received definition of “sustainable development” emphasizes, through the connection with “development”, the dynamic character of sustainability, and is strongly related to needs. In addition to the intra- generational claim that society shall not live at the cost of future generations, also the inter- generational level is of crucial importance, i.e. the distribution between the rich and the poor, and between the North and the South, respectively. Sustainability thus is an extremely
1 Hinter dem Konzept nachhaltiger Entwicklung steckt folgende Grundidee: Das Teilsystem Wirtschaft darf nicht über jenes Maß hinauswachsen, innerhalb dessen es vom umfassenden Ökosystem permanent aufrechterhalten und getragen werden kann. 2 Daly, Hermann E. (1999): Wirtschaft jenseits von Wachstum. Die Volkswirtschaftslehre nachhaltiger Entwicklung. (Economy beyond growth. Economics of sustainable development. Salzburg; Munich: Pustet.
3 Meadows, Donella H. u. a. (1972): The limits to growth. A report for the Club of Rome’s project on the predicament of mankind. New York: Universe Books.
12 Manual of socio-ecological production normative and political term, which builds on an ethical and moral, regulatory idea. A new type of resource-saving and efficient growth is regarded as a solution approach, which mainly benefits poorer social classes.
Positions: “Strong” and “weak” sustainability
Weak sustainability, on the one hand, is largely based on the assumptions and values of the neo-classical economy; at least it does not contradict unambiguously. This understanding solves environmental problems in the first place by efficiency and technology, for natural capital is regarded as substitutable by physical capital, by which compensation payments for environmental pollution is justified (emissions trade). The paradigm of economic growth is not questioned. This is the understanding which currently dominates politics and economy. Strong sustainability, on the other hand, refuses the “belief in substitutability”, and values nature as an irretrievable good, which must be protected at any price. It therefore refuses valorization of nature, and does not think that economic growth is the decisive solution, but it emphasizes, instead of efficiency, the necessity of sufficiency, which is not at all thought to be negative, but is argued with more quality of life (instead of economic growth). The focal target, therefore must be to develop and practice less resource-consuming life styles.
Dimensions of sustainability
Sustainability and sustainable development respectively mean the target that our children and grandchildren will have food on their plates tomorrow, too, and that in general all people in this world will have something on their plates for the first time. It is a matter of a liberal and peaceful Earth worth living for all people.4 (Ekardt 2005)5 The concept of sustainable development is largely represented as a “three-column model” and a triangle of ecology, economy and social issues. The apparent separation of the different areas is criticized, whereby sustainability can only be understood as an integral concept. Partially, there are also figures using five dimensions, which are supplemented by a political (or institutional) and a cultural dimension. A separate presentation of the dimensions of sustainability (see figure on the left) is based on the effort to render the systemic connections between the levels more clearly visible, inspired by Dietmar Kanatschnig. Ecology forms the frame in which human society exists. Through economy, man performs most of his exchange with nature: he takes away resources and gives them back in the form of “waste”. In this place, economy is consciously
4 Nachhaltigkeit bzw. nachhaltige Entwicklung meint das Ziel, daß unsere Kinder und Kindeskinder auch morgen noch etwas auf dem Teller haben – und daß überhaupt erstmals alle Menschen dieser Welt etwas auf den Teller bekommen. Es geht also um eine lebenswerte, freiheitliche und friedliche Erde für alle Menschen.
5 Ekardt, Felix (2005): Das Prinzip Nachhaltigkeit. Generationengerechtigkeit und globale Gerechtigkeit. (The principle of sustainability. Intergenerational justice and global justice.) Munich: C. H. Beck.
13 Manual of socio-ecological production depicted in its functionality between society and the environment. Within society there is the cultural dimension, which is not limited to ethnical cultures, but within the meaning of a broad term of culture comprising any kind of thinking and behaving.
The political sphere as the decision- making committee of society is not limited to national politics, but it comprises within a braod meaning of politics also civil society, enterprises and families. Politics thus constitutes the central connection to economy. The society decides on the practical rules of economy through political decision-making processes, i.e. in which way the relations of exchange with nature (and between the members of society, respectively) are regulated.
Fundamentals of the social dimension of sustainability: social justice, participation, solidarity and quality of life A society can be considered as sustainable, if it remains capable of existence by itself. (…) so far-sighted that it does not undermine its own material and social basis of existence.6 (Günter 2002)7 Sustainability can only be implemented as a multi-dimensional concept, despite this fact the analytical separation is important in order to elaborate specific aspects. As socio-ecological production focuses on social sustainability, it shall be dealt with in detail in the following. Basically, the normative concept of sustainability revolves around justice. Without a term of justice, the idea of sustainability loses its meaning, for it is determined by the question of just distribution between the people living today and future generations, and thus by just behavior towards fellow beings, people living in the future and nature itself. Sustainability is based on the ethical postulate that all people irrespective of their place of birth (intra-generational) and their date of birth (inter-generational) have a right to a good life.
6 Eine Gesellschaft kann dann als nachhaltig bezeichnet werden, wenn sie selbst existenzfähig bleibt. (...) so weitsichtig, daß sie die eigenen materiellen und sozialen Existenzgrundlagen nicht unterminiert. 7 Günter, Mario (2002): Kriterien und Indikatoren als Instrumentarium nachhaltiger Entwicklung. Eine Untersuchung zur Operationalisierung sozialer Nachhaltigkeit am Beispiel von Interessengruppen der Forstbewirtschaftung auf Trinidad. (Criteria and indicators as tools of a sustainable development. An investigation on the operationalization of social sustainability using the example of special interest groups of the forest cultivation at Trinidad.) Dissertation at the geographical institute of the Heidelberg University.
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Among the manifold definitions and descriptions of “social sustainability”, in my view four aspects are of crucial importance: social sustainability as social participation, as solidarity, as “social justice”, i.e. avoidance of huge social inequalities in a society, and the quality of life.
Concerning the topic of participation, for instance Paech and Pfriem write (2007)8: “The core of social sustainability (…) is to open ever new opportunities of inclusion (…) to the people on Earth.”9 In some articles, in this context a strong linking between social sustainability and (gainful) employment is found. Sebastian Brandl and Eckart Hildebrandt (2002)10, for instance, define the “self-determined life by one’s own work” as a central element of the social dimension, whereby they consider (gainful) employment as a precondition for participation in society and for the individual quality of life. Questions regarding just distribution and sustainable development are based on a feeling of solidarity between people. To many authors, solidarity is therefore a central precondition for creating a socially stable society in which individual liberty rights are granted. For confidence, feeling of community and compassion form the bases for cooperation and collective action. Huge social inequalities between the generations living today are the starting point for the principle of just distribution, inherent in sustainability, connected with the demand for redistribution between the North and the South. A study with many insights on the topic of inequality is provided by Richard Wilkinson and Kate Pickett (2009)11 under the characteristic headline “The spirit level”. Wilkinson and Pickett examine the relation between social inequality and social problems in the highly developed states of the global North. They are able to state a clear correlation of the amount of national inequalities of income with surprising clarity with a large number of social indicators (mental health, teenager pregnancies, number of prison sentences, level of confidence, social mobility, performance of children at school), i.e. societies with much inequality are more seriously affected by the problems mentioned. This is justified by findings from the individual psychology, namely that huge social inequalities lead to increased peer pressure, more fear of social decline, decreasing self-confidence etc. Wilkinson and Pickett moreover show a clear connection with the question of sustainable development by interpreting their findings also such, that the quality of life does not correlate with higher national income, but that it depends on the degree of distribution. They consent to analyses which stand for defining and pursuing factors of the quality of life,
8 Paech, Niko; Pfriem, Reinhard (2007): „Wie kommt das Soziale in die Nachhaltigkeit?“ (How does the social dimension come to sustainability?) In: Meyerhoff, Jürgen (Hrsg.): Soziale Nachhaltigkeit. (Social sustainability.) Marburg: Metropolis, S. 99–128. 9 „Soziale Nachhaltigkeit hat (...) zum Kern, den Menschen auf Erden (...) immer wieder neue Inklusionschancen zu eröffnen." 10 Brandl, Sebastian; Hildebrandt, Eckart (2002): Zukunft der Arbeit und soziale Nachhaltigkeit. Zur Transformation der Arbeitsgesellschaft vor dem Hintergrund der Nachhaltigkeitsdebatte. (The future of work and social sustainability. On the transformation of the working society before the background of the sustainability discussion.) Opladen: Leske.
11 Wilkinson, Richard; Pickett, Kate (2009): Gleichheit ist Glück. Warum gerechte Gesellschaften für alle besser sind. (Equality is happiness. Why just societies are better of all of us.) Berlin: Tolkemitt.
15 Manual of socio-ecological production instead of striving for an ever higher living standard within the meaning of material consumption. For, in the long run, fear, depression and other social problems have increased with growing wealth.
Summary: socio-ecological production from the perspective of sustainability
“Social production intends to procure appreciative and meaningful activities for disadvantaged persons. It thus affords a contribution towards social balance and more equality of opportunities within society.”12 (socially produced) The platform of SoPro position themselves as an integrally sustainable initiative. The focus is on the social dimension, for SoPro strengthen, through procurement and support of suitable orders, social occupational enterprises in their task of inclusion of disadvantaged persons into the employment market and their participation in work life, respectively. The economic dimension, sustainable economic activity, means to SoPro resource efficiency through fostering high-quality products and services, cutting-down transport distances, creating workplaces for disadvantaged persons, as well as fostering regional instances of economic cooperation. Ecological sustainability is achieved by a targeted use of residual materials, renewable raw materials for production and ecological resources, respectively in providing for services. Corresponding to the fundamentals of social sustainability defined, thus it can be stated concerning SoPro that fostering participation, social solidarity and social balance is largely fulfilled by this initiative. As an economic initiative, concerning a clear demand for more justice in distribution there are limits to be observed. In respect of the concepts of weak and strong sustainability, there is an ambivalent approach. It goes without saying that SoPro as an economic project does not necessarily have an approach of sufficiency, also technologies and innovation are regarded as solution approaches, which may suggest rather weak sustainability. But SoPro does indeed push sustainable and conscious consumption. Through fostering regional economic cycles, SoPro withstands the world-wide liberal economic mainstream of globalization and of global value chains.
12 „Soziale Produktion möchte benachteiligten Personen zu wertschätzenden und sinnvollen Tätigkeiten verhelfen. Sie leistet dadurch einen Beitrag zu sozialem Ausgleich und größerer Chancengleichheit in der Gesellschaft.“
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3. Oragnization and structure – The SoPro Innovation-Platform
On March 21, 2013 the foundations for a long-term continuation of this initiative have been laid through the foundation of the platform of social production by the Austrian (BIENE Association, KOMUNITAS OG, Burgenland waste association (Burgenlaendischer Muellverband), Radkersburg waste association (Abfallwirtschaftsverband), Radkersburg assisted living (Lebenshilfe), organic research Austria (Bio Forschung) and environmental consultants (“die umweltberatung”)) and Hungarian project partners (LEED non-profit Ltd. and Zalakar non-profit Ltd.) of the SoPro HU- AT project. The structure was developed further in common, and until June 2014, a concept for the foundation of an independent organization was developed.
Flip chart worksheets of the networking meeting of the platform on November 21, 2013 at Mureck Numerous enterprises and public institutions have expressed their interest in membership of this platform through the declarations of support submitted by them. The long-term organization will facilitate partnership or also membership of various institutions, and will be suited for a broad network.
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Offers and organizational form
The offers of the platform of social production will be continued in the long run:
• The consultation model on socio-ecological production > consultation of enterprises and public institutions for appreciative cooperation with social enterprises with the target to develop and implement sustainable products and services. (This consultation model has been developed further, made public and examined very successfully within the SoPro HU-AT project.)
• The “SoPro – socio-ecologically produced“ quality label for distinguishing products and services (criteria and award procedure were developed within the framework of the SoPro HU-AT project).
• The SoPro platform as a network and “value cluster” of enterprises, public institutions and social enterprises for strengthening regional economic cycles and for creation of new job opportunities for socially disadvantaged persons.
On this basis, the following demands for a long-term legal form were defined within the framework of the SoPro HU-AT ETC project:
• opportunities of cross-border / international memberships • low resource requirements • active participation of various players (economic and social enterprises, public institutions, associations and other organizations of civil society)
• membership and participation, respectively of various legal forms
Legal form of EEIG – European Economic Interest Grouping
Corresponding to the demands of a comprehensive research and investigation, the legal form of EEIG (European Economic Interest Grouping) was chosen as the legal form of an internationally active platform. The following arguments were decisive:
• An EEIG is an international (European) legal form, which is acknowledged in the EU member countries and beyond.
• Most diverse legal forms may become members of an EEIG (i.e. economic enterprises just as well as public institutions, associations, cooperatives etc.)
• An EEIG is oriented to working in the interest of their members. • An EEIG can be organized as a non-profit organization (no profits may be realized)
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The SoPro Innovation Agency EEIG
In the course of the “SoPro HU-AT” project, innovation proved to be the central and connecting term of various activities for socio-ecological production. It aims at technical innovations (for instance in product developments), ecological innovations (for instance in the fields of upcycling, eco-design) as well as especially social innovations (new kinds of cooperation between economic enterprises and social enterprises, strengthening of the regions etc.). Finally, the term of innovation is a suitable cardinal point for interested economic and social enterprises. Furthermore, economic partners have suggested the designation of “agency”, in order to emphasize its economic competence and the active economic activity of this organization (contrary to the rather passive terms like “platform” or “network”). As an internationally active organization, the English designation of “innovation agency” has been chosen. This organization is founded in December 2014.
Structure of the SoPro Innovation Agency
The structure of the future platform shall be designed in such a way that the EEIG acts as an umbrella or a center, respectively in which a “national service point” each per country shall have a vote. In order to safeguard regional anchorage, furthermore there will be installed “regional service sites“ in the single countries, which will be coordinated by the respective national service point. These regional service points are central contact points for economic enterprises, public institutions and social enterprises. In order to integrate social enterprises, economic enterprises and public institutions as active players, a “value cluster” shall be created in the long run. Economic cooperation between various partners are the core of this network, which is based on the values of sustainability and appreciation for man and nature. Much information has been gathered concerning the organizational form of a “cluster”. The creation of a cluster is, however, only scheduled as a next step.
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The following charts show the long-term organizational structure:
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Task sharing within the SoPro Innovation Agency
The tasks within the SoPro Innovation Agency have to be harmonized between the umbrella organization EEIG, national and regional service points. – This will require some practical trial.
Tasks of the EEIG
The umbrella organization is responsible for the rough scope, provides for international dissemination of socio-ecological production (international projects), administrates the quality label etc. In detail:
• responsible for internal communication, networking, decision structures • organization of internal procedures and processes • specification of standards: for instance for trainings of the consultation and procurement model (SoPro consultant)
• international administration of membership (cluster) • international projects and internationalization (new countries, new members) • administration of quality label • development and implementation of model projects • public relations and creation of awareness for strengthening socio-ecological production and a sustainable manner of consumption
• organization of international events • marketing of products and services from socio-ecological production
Tasks of national service point:
• membership and communication with EEIG • national expansion, projects, financing • coordination of regional service points • development and implementation of national model projects • instruction / training of consultation and procurement model (SoPro consultant) • active implementation of consultations in regions, where the are not (yet) regional service points
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• development of products and services • national product labelling • national member administration (cluster) • public relations and creation of awareness on a national scale • organization of national events
Tasks of regional service point:
• participation in national network meetings (at least once a year), preparation of information for regional players
• coordination of SoPro consultation (avoidance of duplication) • communication with national service point • short documentation of all regional SoPro activities • regional administration of cluster • regional contact platform for enquiries about SoPro • contact point for national and international enquiries about SoPro concerning regions • active implementation of consultation and procurement model on a regional scale (plus product developments)
• financing options and projects within the region • consultation on quality label
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4. The Consultancy-Model of SoPro
Collaboration of private enterprises and public institutions with social enterprises
Life is more successful, if we live together instead of living against one another, and so are economic activities! A challenge in our times is sustainable economic activity, i.e. to harmonize environmental awareness, social thinking and entrepreneurial core business. A main focus of SoPro ist the networking between private enterprises and public institutions with social enterprises. To start this cooperations enterprises and institutions can use consultancy and mediation support. As an innovative link, SoPro procures based on partnership and appreciation at eye level between possibilities and potential of disadvantaged persons and the requirements of economic enterprises, public institutions and private consumers. We support the process and develop high-quality products, services and projects, which are implemented together with disadvantaged persons. We link the offers of social enterprises, and support them in sales and marketing. Socio-ecological production is the starting point and companion for small and large innovations, imbedded into a system of sustainable economic activity. Its benefit lies with individuals (people and enterprises), as well as with society as a whole (inclusion, social cohesion).
Consultation – development – mediation
Our consultation offer comprises:
• Free reps. funded initial consultation – with inspection on site, check of residual material (which high-quality residual materials occur in your enterprise, which are suited for up-cycling production or re-utilization), check of regionalism (offers of social enterprises in your closer surroundings), check of core business (which fields relevant to your enterprise are possibly suited for “social cooperation”?)
• Development and procurement of individual and innovative products and services, which are drafted and implemented in common according to criteria of eco-design (up-cycling of residual materials, utilization of renewable raw materials, certified preliminary products)
• Support of implementation: procurement and implementation in a regional social enterprise, quality management, handling, cost accounting etc.
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• Public relations (optional): documentation, PR activities, presentations, event management, social media activities. Our SoPro-consultant-team offer various CSR consultation packages: product development, procurement of services up to implementation of innovative CSR projects. We develop innovative products (especially in the field of upcycling) and services: from the classical giveaway and merchandising production up to complex products / services and project management.
Factors of success and role of procurement in the socio- ecological production
Martina Frank (UAS Wiener Neustadt, Wieselburg Campus) deals with the role of male and female procurers of instances of cooperation in her master’s thesis (2013), and elaborates numerous factors of success.13 In this context, 13 personal interviews with consultants from partner organizations of the project of SoPro HU-AT in Lower Austria, Vienna, Burgenland, Styria and West Hungary have been performed. In the following, some essential contents of her thesis are mentioned.
The role of male and female procurers in consultancy
The consultancy model of socio-ecological production deals with various opportunities of cooperation, which are based on the same principle of establishing innovative projects under the aspect of sustainability, which are neither of purely non-profit nor of purely economic nature. Reliable instances of cooperation shall be developed, which are not scheduled for a short term, but are of a sustainable character. The focus lies on cooperation between economic enterprises, public institutions and social enterprises, i.e. on regional economic activity with a social component. The target is the implementation of instances of cooperation between the parties mentioned, and the development of products and services in the three dimensions of sustainability.
13 Frank, Martina (2013): Rahmenbedingungen und Erfolgsfaktoren der Sozialen-Ko-Produktion. Vermittlung nachhaltiger CSR-Kooperationen zwischen Sozialbetrieben, Unternehmen und öffentlichen Einrichtungen. Masterarbeit an der FH Wiener Neustadt, Campus Wieselburg.
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These instances of cooperation are shaped, on account of the different players participating, also by a confrontation of various targets, corporate cultures and processes of action. Consequently, between the single partners of cooperation, a consistent harmonization and openness to cooperation are required. The male and the female procurer and the procuring organization, respectively assume a decisive role in social co-production. They assume a broad range of tasks within this cooperation, from establishing contacts and linking of economic and social enterprises to consultation and development of possible project contents and to constant support in the course of the process and fostering internal and external communication. The procuring organization strives to re-use residual materials in procuring a product or a service, and to develop a CSR lead product for economic enterprises using this socially and ecologically oriented action. Through this activity of procurement, the procurer fulfill their task of encouraging economic enterprises to a long-term and thus sustainable social commitment, and of supporting the enterprises in the course of the project period. In developing new, social models of cooperation between the economy, non-profit organizations and the public sector, procurers may assume an important role, because as a link they have important know-how of structures and cultures of the different cooperation partners. The procurer can make a corresponding use of this knowledge, in order to balance consistently different targets and ideas of the parties involved. The players, that have a very different background, can be brought closer through the activity of the male or female procurer. The procurer assume thus also the role of a mediator, in order to remove barriers and thus to create the base for common cooperation for the solution of social problems. The role of a procurer goes far beyond the simple activity of procurement, and comprises in the best case also the different roles of an initiator, project developer, procurer and consultant.
Factors of success in the procurement activity
Martina Frank elaborates the following aspects, amongst others, as factors of success in the procurement activity (see Frank 2013, pp 80):
• Technical know-how of procurers: relating to corresponding knowledge of social enterprises and their offers, ecological knowledge of suitable production materials, creative and technical abilities in product development.
• Preliminary measures of procurement activity: research on social enterprises, knowledge of enterprise before consultation talks
• In acquiring new cooperation partners: making use of existing CSR networks of enterprises; also the personal contact proves to be very helpful (personal acquisition).
• In establishing cooperation / consultation: openness to proposals and demands of the enterprise; developing win-win perspectives; raising awareness of sustainability and especially social dimensions.
• In the process of implementation: providing for mutual understanding and a relationship at eye level between the cooperation partners; special attention to quality of products and services (request of measures of quality assurance).
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• Concerning the personal values of cooperation partners: a corresponding set of values of the persons involved is an advantage in any case!
• Internal acceptance in the organization: mainly in case of long-term instances of cooperation it is important that not only the person responsible, but also the team / management support the project to the implemented.
• External communication of CSR cooperation / supporting in PR, so that economic enterprises may make corresponding use of the image promoting power of these instances of cooperation.
• Regular exchange / reflection / feedback between the procurers.
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Good practice – Successful cooperation
Organic and social vegetable box – produced in Styria
www.sozialproduziert.at Organic and social vegetable box Produced in Styria #JP'VDITtChance B
Since 1993, in the Eastern outskirts of Graz organic vegetables and fruits have been cultivated. The family Fuchs and Ambrosch consciously count on variety, true-breeding plants, and they can o!er seasonal fresh vegetables all the year round. Approx. 40 kinds of vegetables and 20 kinds of fruits are cultivated on an area totaling 4 ha, thereof 4,000 m² under sheeting.
Inspired by Eliot Coleman, familiar as an expert of organic winter vegetables, Anna Ambrosch intended to give a personal touch to her enterprise, and decided to o!er the vegetables henceforth in handmade boxes made of domestic wood, instead of cheap plastics.
Since May 2014, Chance B, situated in Gleisdorf, produce the precious vegetable boxes for this organic enterprise. Sepp Faerber, head of the wood workshop, is happy to be able to produce a product where he can well integrate his clients.
Unternehmen Sozialbetrieb Vermittler
SoPro-InnovationsPlattform / Chance B, Team Holzwerkstatt AWV Radkersburg Bio Fuchs Hausmasters Ratschendorf 267 Jaklhof 1 Mühlgasse 126 8483 Deutsch Goritz 8010 Graz 8200 Gleisdorf Tel.: +43 (0)699 18 19 20 27 Tel.: +43 (0)664 88 74 46 87 Tel.: +43 (0)3112 4911 22 54 awv.radkersburg@abfallwirtschaft. [email protected] o#[email protected] steiermark.at www.bio-fuchs.at www.chance-b.at www.awv.steiermark.at
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Delicious natural beer in exquisite natural wood
www.sozialproduziert.at Delicious natural beer in exquisite natural wood #SBVFSFJ(SBU[FSt$IBODF#t-FCFOTIJMGF'àSTUFOGFME
The task Alois Gratzer chose with youthful delight in experimentation, at the age of 15, turned out to be a recipe for success some years later. Ten summers and ten winters after formation of his brewery, it has been chosen to be the !rst CO2-neutral brewery in Austria. One year later, he was awarded the Daphne environmental prize in silver.
On account of consistent continuation of his thought, Alois Gratzer has become a pioneer in the !eld of beer. A close contact with nature, which is now expressed by a bunny in the logo, has always gone without saying for this native East Styrian.
The comprehensive thought of this master brewer lead to the logical step towards CO2-neutrality through reorganization towards beer boxes made of wood, instead of beer boxes made of plastics, also mainly due to the fact that this region plays an important part in the overall concept of procurement of raw materials as well as in delivery of !nished products. Vermittler The beer boxes made of wood are produced by two social enterprises. The 6 pack of beer boxes is produced by Chance B, situated at Gleisdorf, and the bigger one by Assisted Living Fuerstenfeld. SoPro-InnovationsPlattform / AWV Radkersburg Ratschendorf 267 8483 Deutsch Goritz Tel.: +43 (0)699 18 19 20 27 awv.radkersburg@abfallwirtschaft. steiermark.at www.awv.steiermark.at
Unternehmen Sozialbetrieb Sozialbetrieb
Brauerei Gratzer Chance B, Team Holzwerkstatt Alois Gratzer Hausmasters Lebenshilfe Fürstenfeld Obertiefenbach 26 Mühlgasse 126 Buchwaldstraße 14 8224 Kaindorf 8200 Gleisdorf 8280 Fürstenfeld Tel.: +43 (0)664 302 33 44 Tel.: +43 (0)3112 4911 22 54 Tel.: +43 (0)3382 54013-0 o"[email protected] o"[email protected] o"ce@lh#.at www.brauereigratzer.at www.chance-b.at www.lh#.at
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Innovative design bags made of residual materials
www.sozialproduziert.at Innovative design bags made of residual materials "MFYBOEFS4DIÊSG4ÚIOF(NC)tKoryphäen
Take a used bicycle tube, canvas rests, a used co!ee bag made of jute, and torn inner tubes. Mix them with buttons, a zipper and a sprinkle of sewing thread. Done. The innovative design bag of the Koryphaeen (female luminaries) is "nished!
These instructions of use conceal that the knowledge of a female master tailor and committed transit workers are required in addition. There are, however, su#cient workers at the socio-oeconomic enterprise of the Koryphaeen at Neusiedl am See in Burgenland.
The Koryphaeen have a broad o!er for women looking for work and women, who wish to take the "nal examinations of apprenticeship after abandoned apprenticeship. From supervised occupation to a transit workplace, opportunities for re-entering the "rst labor market can be developed and used. The cardinal rule is to support each of the women with the target to make her life self-determined, "nancially independent and satisfactory.
With procurement of the SoPro partner BMV and cooperating enterprises, mainly the company Schaerf, the corresponding residual materials for these innovative bags have been found and supplied.
Unternehmen Sozialbetrieb Vermittler
Alexander Schärf & Söhne GmbH Koryphäen SoPro-InnovationsPlattform / Dr. Alexander Schärf Platz 1 Obere Hauptstraße 14-16 BMV Burgenländischer Müllverband 7100 Neusiedl am See 7100 Neusiedl am See Rottwiese 65 Tel.: +43 (0)5 9010 430 Tel.: +43 (0)2167 35 97 7350 Oberpullendorf Fax: +43 (0)5 9010 431 Fax: +43 (0)2167 59 60 Tel.: +43 (0)2612 424 82 [email protected] o#ce@koryphäen.eu [email protected] www.schaerf.at www.koryphaen.eu www.bmv.at
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From the company news-paper wraped in plastics to low- wast distribution
www.sozialproduziert.at From the company news- paper wrapped in plastics to low-waste distribution Social services by “fix und fertig” for Langmann (3#HMBOHNBOOtfix und fertig
Since 1967, the Langmann company has been selling cleaning products and cleaning machines as a wholesaler in the area of Vienna, Lower Austria and Burgenland to hospitals, homes for elderly persons, municipal enterprises, universities, professional building cleaners, schools, property management companies, hotels etc. Four times a year, the customers receive their company newspaper.
“die umweltberatung" Wien (Vienna environmental consultants) established contacts between the Langmann company and the “!x und fertig” Suchthilfe Wien GmbH. This has resulted in permanent cooperation. Since January 2014, Excerpt from the customer newspaper of the Langmann “!x und fertig” regularly perform delivery of the company newspaper. Not only company: „Durchblick“, issue from January 29, 2014 on the cooperation between the Langmann company and the this service is new concerning distributions by the Langmann company, but also socio-economic enterprise “!x und fertig”. the disappearance of plastic wrapping. The address labels are glued by “!x und fertig” in such a manner that no further wrapping is required.
This cooperation creates a social added value for the newspaper of the Langmann company, and thus a win-win situation is established for the economy, social enterprises, society and the environment. The January 2014 issue reported on this new cooperation.
Unternehmen Sozialbetrieb Vermittler
GRB g. langmann, Gebäuderei- nigungsbedarf - Handelsgesell- SoPro InnovationsPlattform / schaft m.b.H. "die umweltberatung" Wien Großmarktstraße 7C !x und fertig Buchengasse 77 / 4. Stock 1230 Wien Rotenmühlgasse 26 1100 Wien Tel +43 (0)1 604 01 66, 602 44 51 1120 Wien Tel.: +43 (0)1 803 32 32 [email protected] Tel.: +43 (0)1 810 13 03 [email protected] www.langmann.co.at www.!xundfertig.at www.umweltberatung.at
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Telephone replacement a university of Vienna – in social cooperation with Wien Work
www.sozialproduziert.at Telephone replacement at university Service for the University of Vienna in social cooperation with Wien Work
In 2014, at the University of Vienna the telephone sets are replaced on site. The University Computer Center (ZID) of the University of Vienna is actively supported by the social enterprise Wien Work.
More than 8,000 telephone sets are connected The new telephone system of the University of Vienna, "u:phone", requires replacement of all hardware on account of the current VoIP technique. Thus the employees receive replacement of a total of more than 8,000 terminals. The workers of Wien Work, who are specially trained for this job, assume important work steps from con!guration and installation of the software to setting up and connecting the devices. Cooperation is successful for both sides, so that it will be continued also in the further steps of the launch of this service. Photo Copyright: Wien Work
Linking of the two institutions arose within the frame of the project of "socially produced", where sustainable cooperation based on partnership is established between social economy, public institutions and economic enterprises.
Wien Work is a non-pro!t enterprise of social economy, which procures and adds employment for persons disadvantaged in the labour market. Persons with disabilities, chronic diseases or long-term unemployed persons get the opportunity to participate in the economic and social process. Cooperation, such as the cooperation with the ZID, is an important basis for Wien Work in order to ful!ll this non-commercial task.
(For further information about WienWork: www.wienwork.at)
Öffentliche Einrichtung Sozialbetrieb Vermittler
Zentraler Informatikdienst SoPro InnovationsPlattform / Universität Wien Wien Work - Integrative Betriebe "die umweltberatung" Wien Universitätsstraße 7 und AusbildungsgmbH Buchengasse 77 / 4. Stock 1010 Wien Ulrike Votypka 1100 Wien Tel.: +43 (0)1 4277 140 01 Tel.: +43 (0)1 985 91 66-23 Tel.: +43 (0)1 803 32 32 [email protected] [email protected] [email protected] zid.univie.ac.at www.wienwork.at www.umweltberatung.at
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Individual toy brick package of the Caritas of the Diocese of
Szombathely
www.sozialproduziert.at Product development: Individual toy brick package of the Caritas of the Diocese of Szombathely -&&%/POQSPGJU,GUt Caritas of the Diocese of Szombathely
The Caritas of the Diocese of Szombathely was founded by Dr. István Konkoly, diocesan bishop of Szombathely in 1992. In the Diocese of Szombathely, currently 88 Caritas organizations are active at parish level with the support of approx. 800 male and female voluntary workers.
Their day care centers are frequented by mentally ill persons as well as persons with an altered working ability. In these institutions, in addition to care also social occupation is o!ered, the aims of which are restoring the working ability as well as social and mental rehabilitation. The cure and rehabilitation, respectively of the participants are essentially improved by their awareness that their services are needed, and that the income received in this way contributes to their own maintenance, and often to the maintenance of their families. Sozialbetrieb
Since 2014, approx. 300 persons have been ocuupied in cooperation with the for-pro"t-sector. In addition to home-based work in the publishing system, these people also develop their own products. They run their own print shop. They have an essential share in the market in the administrative region in the area of cultivation and processing of medical plants. In addition, their handicraft Caritas der Diözese Szombathely products, such as ceramics and textiles, are well-known and frequently Hollán E. u. 10-12. demanded in the whole administrative region. 9700 Szombathely Tel.: +36-94-318-560 Within the framework of the “SoPro“ consultancy, the Biotextima company [email protected] with their headquarters at Bősárkány have contributed a large amount of karitaszszombathely.hu foam to this organization, from which toy bricks are produced. Subsequently, a product development process was launched, in the course of which drafts, show schedules and descriptions of technology, respectively have been drafted with the support of an industrial designer, which have safeguarded the design of a Vermittler product meeting market demands. This organization has the corresponding infrastructure for the production of this product.
The originality of the textiles, especially the production of the “toy brick package“, builds on the artistic disposition, on the abilities of mentally ill persons. Through a re-utilization of textiles (clothes, foam etc.), this product LEED Nonpro!t Kft. meets the demands of ecological sustainability, through the claim to marketing, Semmelweis utca 4-6. I/6 economic sustainability is achieved, furthermore, if there is demand for this 9700 Szombathely product, also social sustainability will be achieved. Tel.: +36-30-227-7559 [email protected] leedkft.hu
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Presentation of activities of the organization of “PAKK – sustainable technologies, educational and training center, Pakod”
www.sozialproduziert.at Presentation of activities of the organization of ”PAKK – sustainable technologies, educational and training center, Pakod“
The sustainable technologies, educational and training center, Pakod (Hungarian abbreviation PAKK) was founded in 2013 within the framework of the SoPro project, project number: L00150, in the sign of sustainability in society, the environment and economy. The main target is to produce precious products made of waste with creative ideas, as well as to o!er a resting place for all ideas fostering an environmentally conscious, healthy and sustainable way of life, or reducing di"culties in regional occupation.
The human capacity and technical equipment of this center are suited for implementation of the de#ned targets, this type of responsibility for society and the environment, however, is still completely new to the inhabitants and enterprises of this region, they cannot yet rely on a stable market for the products produced in this social enterprise. This means, a change of the view and marketing are required.
In the course of this project, astonishing results have been yielded, which may be suitable for achieving the targets of this center after their further development. Here you will #nd some examples thereof.
Sozialbetrieb
Foglalkoztató ZalA-KAR NKft. Dózsa Gy. u. 9. 8790 Zalaszentgrót Tel.: +36-30-622-4445 www.zfp.hu
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Handicap Tailor’s
www.sozialproduziert.at Handicap Tailor‘s $MVCtESÈLY Kft.
Within the framework of a cooperation between SoPro, the CLUB 81 (club for handicapped and non-handicapped persons in St. Poelten) and the Hungarian ESÈLY Kft. (social enterprise at Gyoer), true-to-size, custom-!t, timeless fashionable functional clothing for persons with special needs is produced. Persons with disabilities and their relatives are invited to introduce their personal clothing wishes into the development process of this project, and to bene!t from such clothing specially tailored for them.
Low-cost clothes made to measure for everybody? In autumn 2013, the !rst “socially produced“ clothes for wheelchair users were presented in St. Poelten. This “fashion show” and further discussion with persons especially interested showed that there is on the one hand actually demand for such clothing, and on the other that good support is required right from the start, in order to get perfectly suiting clothes, which are comfortable and visually appealing, of high quality and at a reasonable price.
The entire organization is performed by SoPro. Through much commitment by an expert woman (master tailor Silvia Buchetitsch), in the meantime a complete sample collection of trousers in nine sizes each has been created for ladies and gentlemen. In the Hungarian workshop, these trousers are currently tailored.
Auftraggeber Sozialbetrieb Vermittler
Club 81 - Club für Behinderte und Nichtbehinderte ESÉLY GYŐRI REHABILITÁCIÓS ÉS SoPro-InnovationsPlattform / Wirkungsbereich NÖ FOGLALKOZTATÁSI KÖZHASZNÚ KOMUNITAG OG Eybnerstraße 5 NONPROFIT KORLÁTOLT Hauptstraße 23 3100 St.Pölten FELELŐSSÉGŰ TÁRSASÁG 3153 Eschenau Tel. 0043-650/2070257 Lajta u. 38. Tel.: +43(0)664 885 328 67 [email protected] 9024 Győr [email protected] www.club81.at Tel/fax.: 96/426-229, 418-785 www.sozialproduziert.at
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The “treasure chest” with a sustainable effect
www.sozialproduziert.at The “treasure chest” with a sustainable effect -PXFS"VTUSJBO"HSBSJBO%JTUSJDU"VUIPSJUJFTt Emmaus St. Poelten
“Painting with the Colors of the Earth” links arts, culture, history and the people in the Danube region.
Soil colors have accompanied us for thousands of years. Already the oldest cave paintings have been created with the “colors of the Earth”. More than 100,000 persons from Lower Austria and its neighboring countries have occupied themselves up to now with soil colors and a conscious treatment of “our soil” in trainings, competitions and events.
Soil links all generations, and it has a special task: All work steps for the production and distribution of soil colors are performed with much joy and commitment by persons occupied in social institutions.
Since 2007, Emmaus St. Poelten are responsible for the project of „Painting with the colors of the Earth“. On behalf of the Technical Department of Rural Development of the Lower Austrian Agrarian District Authorities, up to now more than 1,000 soil color paint boxes have been produced for national and international projects. All work steps are performed by Emmaus: From extracting soil colors up to sale and taking back / repair of paint boxes, the project is totally sustainable.
Öffentliche Einrichtung Sozialbetrieb Vermittler
NÖ ABB, AK Nachhaltigkeit der SoPro-InnovationsPlattform / ARGE Donauländer Emmausgemeinschaft St. Pölten KOMUNITAG OG Dr. Erwin Szlezak Herzogenburgerstraße 48-50 Hauptstraße 23 Landhausplatz 1, Haus 12, Zimmer 210 3100 St. Pölten 3153 Eschenau 3100 St.Pölten Tel.: +43 (0)676 88 0 44 - 0 Tel.: +43 (0)664 885 328 67 Tel.: +43 (0)2742 9005-15291 Fax: +43 (0)2742 20956 [email protected] [email protected] www.emmaus.at www.sozialproduziert.at
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Fleece hoods embroidered with company logo
www.sozialproduziert.at Fleece hoods embroidered with company logo produced in Lower Austria for the Stoecklin GmbH 4UÚDLMJO(NC)t"*#tMFCNJUCVOUUFY
For four decades, the Stoecklin GmbH has been a reliable partner in the area of door, loading and materials handling technologies all over Austria. They are specialized in planning, sale, mounting as well as service, repair, preventive maintenance, replacement and optimizing in all products of door, loading and materials handling technologies o!ered on the market.
Among the ALC (Austria’s Leading Companies), the Stoecklin GmbH has been numbered among the 10 best enterprises of the province of Lower Austria in the ranking of “solid small enterprises“. As a member of respACT since 2011, social commitment is not only exercised, but also shown towards the outside.
In the course of the "rst consultation in November 2013, there were many approaches and ideas for cooperation with SoPro and social enterprises. Such the employees received, in time before X-mas, the wonderfully warm hoods with the Stoecklin logo, developed and designed by SoPro. The company logo was embroidered by persons with a mental illness in the occupational project of AIB Vermittler in Krems (an institution of the PSZ Schiltern). The hoods were sewn by the lebmit & bunttex, association of social initiative of Gmuend for the re-integration of unemployed women into working life. SoPro-InnovationsPlattform / The "rst hoods have already been ordered in another instance of cooperation KOMUNITAG OG procured by SoPro between lebmit & bunttex and the “Kopfarbeit” company (a Hauptstraße 23 label for individual outdoor style with social responsibility, exclusively produced 3153 Eschenau in Austria). Tel.: +43(0)664 885 328 67 [email protected] www.sozialproduziert.at
Unternehmen Sozialbetrieb Sozialbetrieb
AIB - Aktivierende Individuelle Beschäftigung Stöcklin GmbH Untere Landstraße 53 lebmit & bunttex Industriestrasse 23 3500 Krems Schubertplatz 19 2353 Guntramsdorf Eine Maßnahme des Psycho- 3950 Gmünd Tel.: +43(0)2236 255 66-0 sozialen Zentrum Schiltern GmbH Tel.: +43(0)2852 545 19 Fax: +43(0)2236 255 66-50 Tel.: +43(0)2732 703 26 Fax: +43(0)2852 545 19-19 o#[email protected] [email protected] [email protected] www.verladerampen.at www.schloss-schiltern.at www.lebmit-bunttex.at
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5. Quality label of “SoPro certified –socio- ecologically produced”
The trademark of “SoPro socio-ecologically produced” distinguishes certified sustainable products and services, which have largely been produced by disadvantaged persons, and which meet social, ecological and regional criteria. Economy thus receives a tool of communication of their commitment as well as an increase of marketing opportunities of their products. For public procurement, social and environment-friendly criteria are safeguarded. Consumers receive products with a “sustainable biography” and of high quality, on which they can rely. The bases for this quality label were developed in the “SoPro HU-AT“ 2012-2014 project, fostered by the EU. As of spring 2015, enterprises and public institutions may apply for this quality label for products and services produced in cooperation with social enterprises, social enterprises for their own products and services. The SoPro innovation platform supports in marketing and distribution of certified products on the website, by e-newsletters and through processes of procurement with enterprises and public institutions.
“SoPro certified”: incentive for sustainable procurement and consumption
More and more enterprises and public institutions intend to assume their social responsibility and produce sustainable products are use services, which do not only meet the ecological dimension of sustainability, but also the social dimension. The quality label of “SoPro – socio-ecologically produced“ shall raise the attention of international consumers and create awareness for certified sustainable products and services, which meet social, ecological, regional, innovation and quality criteria. The social criterion safeguards that products and services distinguished by this quality label have largely been produced and offered, respectively by disadvantaged persons. Persons are said to be socially disadvantaged, if their opportunities of social participation are limited, because they are affected by poverty and/or social exclusion. These are especially vulnerable groups, such as long-term unemployed, persons with a migration background, single parents, and families with several children.
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In a guideline also the EU has affirmed that decision-makers in public invitations to tender shall in the future take social criteria into consideration. The SoPro quality label safeguards social and environment-friendly criteria for the public procurement. Economy thus receives a tool for the communication of their commitment, because the example made is of crucial importance for a sustainable social change of awareness. Consumers also want meaningful products “with a sustainable biography”, on which they can rely.
Target groups
“SoPro-certified” is directed towards economic enterprises that intend to proudly distinguish their socially produced products, and the consumers receive an orientation aid and an added value: responsible action in favor of the community. Their attention is drawn to environment- friendly and social (socio-ecological) products among the range of goods. “SoPro-certified“ shall also motivate producers to take into consideration, already at the time of development of new products, which components can be produced with the help of disadvantaged persons, which services of social enterprises can be integrated. Moreover, awareness of eco-design shall be increased: orientation towards the principles of sustainability. The target is to achieve the maximum benefit for all players participating (along the value chain) through an intelligent use of available resources, at the same time minimum environmental impact and under socially fair conditions. A dynamic process shall thereby be triggered on the market, which influences the structure of offers positively towards socio-ecological products (effect of competition). Furthermore, only these proven socio-ecological products are distinguished, which also show an adequate usability (high quality).
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Criteria
Products and services distinguished by the quality label of “SoPro-certified“ must comply with a range of criteria, which are assessed by an internal expert committee in the fields of social affairs, economy and ecology. The criteria are constantly examined by an external advisory board (renowned persons from the economy, public institutions, science and social enterprises). These criteria are as follows:
• Social: mainly produced by disadvantaged persons • Resource-saving (ecology): utilization of residual materials, renewable raw materials, certified preliminary products
• Regional (economy): preliminary products and raw materials possibly stem from the region where the producer resides (>regional value creation)
• High-quality and quality-assured • Innovative: concerning development process, easy to repair, eco-design etc. The connection between the different criteria render the quality label a unique multi- dimensional sustainability label. This trademark creates equally awareness of the significance of sustainability, regional economic activity and social balance.
“SoPro-certified“ as a signal of image and rise in sales
“SoPro-certified” indicates to the target groups great environment-friendliness and health- compatibility and a consistent orientation, respectively towards the environment and sustainability. In this context, the quality label takes the place of an “additional trademark”, and has an effect as an “additional bonus” in addition to other important decision factors, such as price, service, high quality and trademark. In the area of private consumption as well as in the area of public procurement, in situations, where competing offers are balanced, “SoPro-certified” may easily become the decisive criterion.
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The quality label and consumers
Within the framework of her bachelor thesis, Najwa Duzdar (Vienna University of Economics and Business) dealt with the attitude of consumers towards this quality label. 15 persons were interviewed personally, and were asked about the topic areas of consumption, sustainability, quality labels in general and the practical quality label of “SoPro – socio- ecologically produced”.
Topic area of consumption
The interviews showed that the criterion of high quality is most demanded by the consumers, followed by ecological aspects and the price, whilst “trademarks” are far less relevant to this target group (persons with a higher education). This confirms the relevance of inclusion of the quality criterion in the catalogue of criteria of the SoPro quality label.
Topic area of sustainability
Concerning the second topic area, namely “sustainability“, Duzdar states a discrepancy between knowledge and interest of consumers concerning the topic of sustainability. Furthermore, consumers mainly relate to ecological aspects of sustainability. This is also reflected in the preponderance of the ecological dimension among quality labels. Therefore, it is important to SoPro to convey the integral concept of sustainability to the consumers. For only the consumers’ understanding of the three dimensions of sustainability makes the potential and uniqueness of the SoPro quality label completely visible to the consumers.
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Topic area of quality label
The results show a certain distrust of the consumers concerning the use of a quality label. Despite this fact, the function of quality labels to convey safety and confidence is assessed by most persons interviewed as “very important”. The consumers have a somehow skeptical attitude towards quality labels, at the same time they are, however, perceived as relevant.
Topic area of quality label of “SoPro – socio-ecologically produced“
Duzdar states in her interviews that the designation of the quality label of “socio-ecologically produced” seems not to be comprehensible at first glance. Therefore, a definition should be conveyed to the consumers as directly as possible (directly on the products, information leaflet, website contact etc.). Among the consumers, there is only then an actual incentive to buy, when also the special background and the criteria of this quality label are familiar, as is shown by the following graphics:
The abbreviation of “SoPro” makes an ambivalent impression on the consumers, because on the one hand the syllable “Pro” is positively influenced, on the other some feel a negative, political undertone. Therefore, a change of this abbreviation might be considered a possibility, whilst it is not a necessity, on account of the differentiated reaction of the consumers.
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As the above graphic shows, in the assessment of criteria of the SoPro quality label, the social criterion (production of products in workshops for disadvantaged persons) is identified as innovative by many consumers. The interest of consumers in the social aspect might be increased due to the fact that the producers of the products are situated in the region. As the social aspect plays a crucial role for SoPro, its emphasis may incite the interest of consumers in the SoPro quality label.
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6. Socio-ecological production for economic enterprises
A central aim of the “SoPro HU-AT“ project is procurement and firm establishment of an order-related cooperation between economic enterprises and public institutions, respectively and social enterprises through the consultation model of socio-ecological co-production. Through consultation, development of innovative products / services / solutions, procurement between customers / clients and contractors and support of implementation in social enterprises, mutual trust is built and appreciative cooperation at eye level is fostered. These instances of cooperation facilitate sensible occupation and participation in working life for disadvantaged persons; jobs for disadvantaged persons are created; precious incentives for regional economy arise; cutting down on transport distances, and so on. Enterprises can implement social responsibility in their core business with the assistance of SoPro!
Research in economic enterprises
In order to learn more about the experiences and demands of economic enterprises in cooperation with social enterprises, and to develop suitable offers of consultation and support, some steps of research have been taken. Firstly, on June 14, 2013, i.e. in the first half of the project, a “science workshop” with enterprises took place at Absdorf. There the demands were discussed in a personal, small discussion group with already involved representatives of CSR enterprises. Secondly, Daniela Kitzberger (UAS Wiener Neustadt, Campus Wieselburg) performed an online enquiry of CSR-affine enterprises within the framework of her Master’s Thesis14, which enquired about experiences and potential of cooperation with social enterprises. Thirdly, in the course of consultations of SME within the framework of the project of “Erfolg mit FAIRantwortung” (success with fair responsibility) in Lower Austria, significant findings were gained – especially through presentation of the consultation approach and discussion at the final event on October 29, 2013. Furthermore, qualitative interviews with enterprises involved, made by Cornelia Forsthuber (Vienna University of Economics and Business) within the framework of her Bachelor’s Thesis15, yielded significant findings on the attitude and demands of the cooperating enterprises. Furthermore there has been a permanent exchange of experiences,
14 Daniela Kitzberger (2013): Kriterienentwicklung für das Nachhaltigkeitslabel „SoPro“ (Development of criteria for the SoPro sustainability label). Master’s Thesis at the UAS Wiener Neustadt, Campus Wieselburg.
15 Forsthuber, Cornelia (2014): Die Bedeutung der Sozialen Produktion (SoPro) als Maßnahme sozialer Nachhaltigkeit im Beschaffungsmanagement von CSR-Unternehmen. (The significance of social production (SoPro) as a measure of social sustainability in procurement management of CSR enterprises), Bachelor’s Thesis at the Vienna University of Economics and Business.
43 Manual of socio-ecological production gained in enterprise consultations, with project partners from other federal states and from Hungary. On the basis of these findings, the consultation model has been improved and teaching material has been compiled by our scientific expert Dr. Dietmar Kanatschnig.
Results
Workshop together with economic enterprises on June 14, 2013
On June 14, 2013 at Absdorf, a workshop took place together with enterprises, which have already implemented consultations and projects in cooperation with SoPro (amongst others BENE, Janetschek, Vermigrand, Metaflex, SDPro). Also the project partner “die umweltberatung” (environmental consultants) and co-financing departments of the Lower Austrian Government (Department of Rural Development, Department of Economy) were involved. In addition to a technical contribution on the topic of CSR in enterprises by Dr. Kanatschnig, experiences and demands in cooperation with social enterprises were evaluated. An essential aspect was the topic of quality. Social enterprises shall be supported in introducing and implementing improved measures of quality assurance (or SoPro has to assume quality examination externally). As a further obstacle, the partially low flexibility of social enterprises was discussed (in respect of fixed dates as well as of order quantities). At this point, SoPro can make an essential contribution as a procurement point, and facilitate implementation of larger orders through splitting orders between more than one enterprises.
Online questionnaire for CSR enterprises – cooperation with social institutions
A broad enquiry of CSR-affine enterprises was performed by Daniela Kitzberger (UAS Wiener Neustadt) within the framework of her Master’s Thesis. By means of an online questionnaire, in addition to attitude towards labels, certification and standards, experiences in cooperation with social institutions were enquired. Precisely, Daniela Kitzberger evaluated, whether enterprises have already cooperated with social institutions, what the quality of this cooperation was like, and why they decided for / against cooperation, respectively. Some significant results are the following (compare Kitzberger 2013, pages 101 ff.):
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75 % of the enterprises participating have already cooperated with social institutions. This large number is relative insofar, as these enterprises also understand donations, sponsoring and aid as instances of cooperation. Mostly, the performance of services as well as X-mas gifts and give-aways are concerned, in fewer cases support in the process of production. The enterprises questioned mention the following motives of cooperation: mainly social responsibility (84 %), ecological responsibility (37 %), and a better image (26 %). More efficient processes (17 %) and cost reduction (14 %) play a lesser role. Satisfaction with cooperation concerning reliability, adherence to schedules, price, performance and communication has generally been assessed as very high / high. An interesting result is shown insofar, as more than three quarters of these instances of cooperation are still continuing and exist in the long run (see figure on the right). The attitude of the 25 % of enterprises enquired that do not yet cooperate with social institutions is exciting for the future consultation offer of the SoPro Innovation Platform. For more than a quarter (28 %) thereof it is conceivable to cooperate with social institutions, if they receive consultation in this respect. This percentage may not seem very high, but in total this would be a considerable number of enterprises that are open to new instances of cooperation with social enterprises and consultation on this topic.
Qualitative interviews of three enterprises cooperating
In her Bachelor’s Thesis at the Vienna University of Economics and Business, Cornelia Forsthuber dealt with the significance and interpretation of the social dimension of sustainability in enterprises. On the one hand, the web sites of eleven enterprises in the CSR environment were examined, on the other three qualitative interviews of enterprises that also cooperate with SoPro were performed (BENE, Spreitzer Bau and Variotherm). In the context of the web sites Forsthuber states that the interior perspective of social sustainability in enterprises is dominating, i.e. the focus lies on furthering employees, training, furthering women, balance between work and life, health care, human resources development, teambuilding etc. Measures taken towards the exterior are often sponsoring activities for social associations, partly working hours for non-profit projects or cooperation with Children’s Cancer Aid and others. In this field, also the activities of SoPro are
45 Manual of socio-ecological production mentioned. They differ insofar as they are not simply sponsoring activities only, but are actual entrepreneurial instances of cooperation. The interviews with these three enterprises yielded some exciting statements, and assumptions were confirmed, respectively (compare Forsthuber 2014, pages 51 ff.):
• If sustainable activities shall actually be implemented, sustainability has to be found within the core business of an enterprise, and supported by the management of this enterprise.
• All enterprises enquired appreciate the basic thought and concept of socio-ecological production as a future-oriented project and measure.
• The representatives of the enterprises enquired emphasize that often far too little is known about the services and offers of social enterprises. Therefore, the SoPro consultation offer is of crucial importance in order to convey the idea of cooperating with social enterprises at all.
• The role of SoPro in procurement is regarded as very positive and necessary by the enterprises enquired, in order to “translate” between these two worlds. The factor of time is regarded as the biggest obstacle, because especially temporal flexibility and production just in time are difficult tasks for social enterprises.
• The following proposals of improvement are mentioned: speeding up timing; introducing standard communication common in the business world, such as confirmations of orders; and furthermore, partially optimizing invoices and price lists.
• All the three enterprises are basically very interested in continuing this cooperation, but at the same time they refer to the limits of time-related and economic resources.
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CSR – Sustainability in enterprises
Artikel verfasst von Dr. Dietmar Kanatschnig – Austrian Business Academy for Stustainable Development (ASD)
Corporate Social Responsibility (CSR) is generally understood as the contribution, which enterprises can afford towards sustainable development of their social, ecological and economic environment. Thus the responsibility also lies with enterprises to participate in the shaping of future developments, so that high quality of life for all generations with as little as possible consumption of resources and social justice are permanently facilitated and maintained, respectively. In order to achieve this goal, there are two distinct ways, which we call the American and the European way. The American way is based on the conviction that an enterprise first has to achieve profits, in order to be able to subsequently support social and ecological objectives. Criticism of this approach results from the fact that the manner, in which an enterprise gains profits, is principally not questioned. Therefore, the European way assumes, on the contrary, that only social and environment-friendly economic activity facilitates profits of an enterprise permanently. The economic guarantor of success in Europe is therefore a certain type of economic activity, which we designate as sustainable. When we take a close view on this type of economic activity, at first it becomes clear that the development of an enterprise is closely connected with the development of its environment, moreover that the development of an enterprise and its environment even influence each other. An enterprise bears effects upon its environment through its products and services, its enterprise culture represented by its employees, selection of raw materials and preliminary products used, through marketing, logistics and many more. And this environment in turn bears effects upon the enterprise through the behavior and preference of values of the consumer, the demands of various groups of stakeholders (from municipalities to NGOs), regional innovation climate and many more. A future-oriented management of enterprises therefore does not stop at its company gates, but is essentially responsible for active and value-oriented shaping of the mutual effects between the enterprise and its environment. This basic attitude is designated as “co-evolutionary management”, which makes clear that enterprises also bear responsibility for the (sustainable) development of their environment. The connections become clearer when one realizes that a stable enterprise cannot be economically successful in the long run in an unstable environment, just the same as an enterprise oriented towards sustainability in an environment, which is not sustainable. In both cases permanent economic success depends upon the enterprises bearing effects on their environment in such a manner as to support sustainable development therein. Actually the environment of the enterprise is not abstract, but it consists of a multitude of different demand and interest groups, the so-called stakeholders. The better the enterprise is able to comprehend the demands and requirements of these groups and to consider them in developing this enterprise, the more economic success it usually achieves. It is clear that this is connected with sustainability from the fact, that one of the most important targets of an enterprise is permanent safeguarding of the existence of this enterprise. Thus a saving
47 Manual of socio-ecological production treatment of natural resources and an appreciative treatment of human resources are two crucial columns of a future-oriented corporate strategy. It corresponds to the European understanding of CSR that the social anchorage of an enterprise necessarily also positively influences its market position, also and especially in times of crises. If we summarize the statements up to now, as a result thereof there are three factors of success for CSR in enterprises: 1. CSR must be anchored in the corporate strategy (und may not be limited to single projects); 2. CSR must become effective down to the core business of an enterprise (and correspondingly also comprise its products and services); 3. CSR requires a management approach, within the framework of which also the effects of an enterprise on its environment (and vice versa) are considered.
If these factors of success are met, CSR turns out to drive innovations. Major trends, such as globalization, climate change and shortening of resources lead to a radical change. The first signals thereof from the market are a change in prices of raw materials, power supply and food. Enterprises, which are oriented along the concept of sustainable development and which assume their social responsibility, do not opt for renunciation and limitation, but use the (economic) opportunities of this new challenge. They are sensitive about social demands and ecological framework conditions, thus they organize their strategy in a manner that new ideas can be developed more quickly and social acceptance of their activities can be better safeguarded. The recipe for success of CSR enterprises is not orientation towards short-term profits, but orientation towards changed realities. As the major trends already now influence conditions of competition, such as availability of raw materials, cost structures or sales potential, the success of an enterprise will in the future depend upon whether the change towards energy-efficient, resource-saving, environment-friendly and social economic activity is made successfully. Anchoring of CSR in the corporate strategy and its implementation in the single operative fields also changes the enterprise itself in the course of time. The development of CSR enterprises is mainly shaped by the following five trends: 1. From environmental conservation to society Whilst environmental conservation (for instance cutting down on resources) partly is already integrated into operational procedures to such an extent that it is no longer perceived sector by sector, the aspects of sustainability related to society are of an ever increasing importance for enterprises. This applies to internal activities and such related to employees as well as to external activities, which are rather related to stakeholders and the common weal. 2. From objectives to values Business objectives are important and will also in the future stay important. Whilst the objectives mainly refer to the desired effects of company-related activities, the values originate from the causative level of success (the desired effects). They are therefore the
48 Manual of socio-ecological production trigger for achieving business objectives. Then appreciation means to breathe life into these values in economic practice. 3. From product to benefit The question, which benefit is afforded to society because there is a certain enterprise and a certain product, respectively moves increasingly into the spotlight. The orientation along social benefit and benefit afforded by the products, respectively can open new room for innovation and development opportunities for enterprises, which remains closed in case of mere orientation towards products (and their increased sale). 4. From single activities to process If CSR shall support sustainable DEVELOPMENT of the enterprise and its environment, it may not be limited to single activities, but is must constitute a continuous, deepening and extending process. This is comparable to a continuous process of improvement concerning observation of social and ecological aspects in the development of the enterprise. 5. From enterprise to its environment As explained above, within the framework of CSR the environment of an enterprise increasingly gains significance. The shaping of mutual effects between the enterprise and its environment thus becomes a management task. This also means that enterprises have a social responsibility, which exceeds mere economic responsibility for the enterprise itself.
Oriented towards such objectives, private and public enterprises, which assume their social responsibility (independent of whether they are declared CSR enterprises or pursue this orientation without explicit declaration), are main partners of social enterprises in SoPro. No matter whether an enterprise produces products and services for the regional, national or international market, the respective region, where the respective enterprise has its business location, is of crucial importance for the enterprise in general and especially concerning CSR. On the one hand, as a rule a majority of employees live in this respective region of the company location, and not only they, but also their families feel associated with this enterprise. For them it is motivating if values are connected with the economic activity, which bear positive effects upon this regional environment. Social acceptance of the enterprise and the credibility of CSR strategies through values that can be experienced are thus specially fostered. On the other, through orientation towards sustainable development regional resources increasingly gain importance, no matter whether power supply or raw materials or preliminary products or other products or services (from giveaways to consultation services) conducing to support of production are concerned.
The appreciative cooperation between private and public companies on the one hand and social enterprises on the other, as it has been fostered within the framework of SoPro,
• strengthens regional economy on the whole through more integration of regional suppliers in the social sector than up to now. This also contributes towards increase of regional value creation;
• uses the raw materials occurring and re-growing in the respective region, and thus increases self-supply in terms of resources in the respective region;
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• fosters the human resources of the respective region through job creation for persons disadvantaged in the regional labor market. Especially for this group of persons, who are not as mobile and show strong social connection, occupation in their regional environment is of great significance.
On account of CSR enterprises supporting these positive economic, ecological and social effects through an extension of cooperation with social enterprises, an essential contribution is made towards maintenance and extension, respectively of quality of life in the region of their company location. This finally also increases stability and attractiveness of the location and economic region, respectively as a whole, and thus this cooperation also bears positive effects upon the CSR enterprises themselves.
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7. Socio-ecological production for social enterprises
Social enterprises (socio-economic enterprises, workshops for persons with learning difficulties etc.) fulfill an important social function, because they create opportunities of participation for disadvantaged persons through (gainful) work. Man is in the center in social enterprises, with the target of offering sensible and individually fulfilling work as well as qualifications. The products and services produced must comply with these requirements. More and more social enterprises attach great importance not to sell their products and services on account of pity, but to position them as high-quality products. These are regional, frequently handcrafted high-quality products produced under ecological aspects! The SoPro Innovation Platform support social enterprises in marketing, development and networking. Within the framework of the SoPro HU-AT project, together with social enterprises (and also with economic enterprises and public institutions) the services of the SoPro Innovation Platform have been developed corresponding to the wishes and demands determined. SoPro support social enterprises in entering professional cooperation with clients (economic enterprises, public institutions), in developing further and consciously designing products and services in a sustainable manner, in safeguarding high quality through measures of quality assurance, and in improving the public presence and exterior perception.
SoPro for social enterprises: requirements & offers
In order to determine experience, needs and difficulties of social enterprises concerning orders and instances of cooperation with economic enterprises and public institutions, concerning marketing, coordination etc., in the course of the SoPro HU-AT project some exchange meetings took place, where numerous social enterprises were involved. On the one hand, two workshops with some representatives of different social enterprises took place. Workshop on September 27, 2012 in St. Poelten, where the representatives especially dealt with the following questions:
• Values of social enterprises • Specialities of type of economic activity • Chances and obstacles of stronger cooperation with economic enterprises / public institutions
• First considerations about a trademark of “socially produced“
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Workshop on March 21, 2014 in Vienna, where especially questions around the platform and the trademark were dealt with:
• SoPro Platform: Wishes (what shall the platform achieve for social enterprises?), chances, difficulties?
• Trademark: Wishes (which values shall be conveyed by the trademark), needs, chances, difficulties?
• Criteria of the trademark • Administration of trademark (certification etc.) • Word mark and logo
On the other, numerous personal talks with social enterprises took place in Lower Austria: Through meetings / interviews (questionnaire) with 18 social enterprises from different fields and regions in Lower Austria, experience and expertise were gathered. In this context, mainly questions of cooperation with economic enterprises, required economic processes and procedures in the enterprise, the topic of sustainability for social enterprises and questions about marketing were dealt with, of the enterprise as such (image, public perception), as well as of practical products and services. Target: evaluating needs of social enterprises in the field of socio-ecological production, in order to correspondingly design the offers of the future platform (organization).
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Visits and talks took place in the following Lower Austrian social enterprises:
• Fairwurzelt • Lebenshilfe Rogatsboden • GESA • Lebenshilfe Hiesbach • Verein Sozial Aktiv • Lebenshilfe Mödling • UNIDA Services • Scheibbser Keramik • Verein Zuversicht • Ökokreis Naturwerkstatt • Eibe Waidhofen • lebmit&bunttex • Arge Chance • Mühlenhof-RadVit • Lebenshilfe Merkenstetten • Verein Morgenstern • Lebenshilfe Puchberg • Lebenshilfe Oberwöbling
Most important contents / targets:
• Presentation of the SoPro HU-AT project and socio-ecological production, respectively
• Getting to know the social enterprise (target group, offers, services, products) • Examining the products (inclusive of quality criteria) • Clarifying concerns and needs of social enterprises • Suggesting possible solution approaches
Values and quality in social enterprises
A central finding of the discussions with social enterprises was the elaboration of certain values, as well as the topic of quality.
Topic of appreciation: Man is in the center in social enterprises. The enterprises consider themselves as value-based enterprises, which treat their workers with special appreciation. Topic of sustainability: Partly, social enterprises consciously deal with sustainability, and position themselves in a targeted manner, for instance through the effort to produce
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ecologically sensible products and services. Often this only happens implicitly, i.e. sustainable action and economic activity is not realized as such and called such. This could be used more strongly for public relations and marketing. SoPro intend to encourage social enterprises to consciously deal with the topic of sustainability, and to use this in their communication. Topic of quality: Many social enterprises have the wish not to be perceived as handicraft workshops only, but as professional producers and service providers (high quality). Correspondingly, measures are required for quality assurance. And especially in this field, the support by the SoPro Innovation Platform is required:
• Internal process flows – production process from offer to delivery • Quality assurance • Management of complaints • Formulation of general terms and conditions • Presence on the web • Public presentation and public relations for the enterprise • Know-how in marketing • Product presentation
Offers of the SoPro Platform
Within the framework of workshops and dates, a large number of needs and wishes for the SoPro Innovation Platform were determined. Some of the most essential are:
• Procurement of orders and support of instances of cooperation: support in quality assurance, function as an interface, support in splitting bulk orders.
• Product development: “residual material market” > procurement of enterprise waste to social enterprises, support in development and design of up-cycling products.
• Appreciation: definition of fundamentals for appreciative instances of cooperation at eye level.
• Quality label: valorization by a trademark is seen as positive, social criteria are the decisive characteristic of distinction; also quality criteria are of special importance; there are, however, concerns about the (too broadly applied) term of “socially produced” for this label.
At a glance, correspondingly the following offers of the SoPro Platform were defined for social enterprises:
• Procurement of clients through consultation of enterprises and public institutions • Advertising the broad offer of social enterprises for potential clients
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• Development of products and services for and with social enterprises
• Marking of corresponding products with the quality label of „socio-ecologically produced“
• Support in marketing and quality assurance • Networking: cooperation with other social enterprises (possibly purchase and / or production communities)
• Take-over of social franchising offers of the SoPro Platform and dissemination of functional concepts and products by means of social franchising, respectively
Master’s theses: online marketing und appreciation
Two of the eight master’s theses, bachelor’s theses and project papers created within the framework of the SoPro HU-AT project especially deal with social enterprises. Anke Harnisch (UAS Campus Vienna) deals with possibilities of online marketing (affiliate marketing), and with the willingness of social enterprises to participate. Sebastian Beer (also UAS Campus Vienna) deals with appreciation in social enterprises in his paper. Anke Harnisch states that measures for online marketing are basically conceivable for many social enterprises, but that there is little knowledge thereof in social enterprises. Online marketing offers huge opportunities for social enterprises, because there are not yet any common sales platforms. Sebastian Beer interviewed ten transit workers and management staff in social enterprises for his paper, in order to elaborate in which manner appreciation is practically shown in social enterprises. Amongst others, he defines the following levels of appreciation: appreciation through feedback, through one’s own job, through one’s one achievements, through demands, through remuneration, through confidence, through being responsive to needs, through occupation etc. He states that appreciation is shown in many ways in the enterprises interviewed, but that a clear strategy, for instance in the form of a corresponding manual, is missing. At this point, the SoPro Innovation Platform might offer practical support, and thus provide clear strategies and measures for this rather vague term. Moreover, it might also support economic enterprises in adopting such measures and in consciously offering them in instances of cooperation.
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Social enterprises in Austria
Survey of types, target groups and offers of socio-economic enterprises in Austria
Social enterprises in Austria offer opportunities of gainful and sensible occupation for disadvantaged persons outside the regular labor market. These are mainly publicly subsidized enterprises and workplaces on the “expanded” labor market, which is conceptually often divided into a second and a third labor market. On the second labor market, persons “remote from the labor market” are occupied for a fixed term in socially inclusive enterprises with the goal of finding their way back to the first labor market through measures of qualification and work training. These enterprises are founded and financed by labor market policy, i.e. largely by funds from the employment center. In enterprises on the third labor market, however, persons with physical disabilities and persons with learning disabilities receive long-term or even permanent occupation.
In this spirit, the term of “social enterprise“ has been chosen consciously as an umbrella term for socially inclusive enterprises on the second labor market, various workshops and projects of the third labor market, and various combinations thereof. However, it implies that these enterprises and projects “produce” something, i.e. social enterprises, workshops or social projects producing products, offering services, and offering them to private customers, public clients and/or private customers. This article therefore focuses on this type of socio- economic enterprises. The offers of qualification, support and consultation apart from these (for instance, information centers of labor market policy, course activities, assisted work for persons with disabilities etc.) are not discussed in detail. Roughly, the two types can be subdivided as follows (whilst there are many combinations and also enterprises, which combine both offers):
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Second labor market The second labor market is addressed to persons, who are job-seekers registered with the employment center, but have not found a workplace for a considerable time (at least 12 months) due to personal, health-related, mental or other impediments (for instance re- entry after long maternity leave). They may receive a fixed-term occupation (usually six months, maximum of a year) as so-called “transit workers” on the second labor market, and are supported when re-entering the regular labor market and in job-seeking. This takes places in the form of a work training, possibly through targeted trainings, in order to improve the work profile, and above all through psychosocial support in seeking employment on the first labor market. The designation of socially inclusive enterprises is an umbrella term for different legal forms of non-profit enterprises (socio-economic enterprises, non-profit occupational projects, job creation companies, for further details, see below). Unemployed persons without earnings are assigned to socially inclusive enterprises by the employment center, in this context a certain force gives rise to criticism.
Third labor market The third labor market, which is considered to be a substitute for the regular labor market, comprises all persons, who are permanently dependent upon a “sheltered” workplace due to physical and/or mental disabilities/disease. By means of national subsidies, they become active in workshops and institutions of the third labor market according to their potential. Re- integration into the first labor market is not considered a goal. The goal is participation of persons with disabilities in working life as well as providing for opportunities of sensible occupation and daily routines. The second as well as the third labor markets are, in addition to various public subsidies, dependent upon a certain quantitiy of internal cash generation through production and/or services for their permanent existence and further development. The initiative of socio-ecologically produced have set themselves the goal of supporting enterprises on the 2nd and 3rd labor markets, extending their range of services and products, thereby developing new business areas, and thus safeguarding their existence in the long run. Instances of cooperation between private economy, the public sector and social economy shall be developed and strengthened.
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Types of organization of social enterprises On the second labor market: In Austria, on the 2nd labor market there are four types of socially inclusive enterprises. Three of them offer products and services themselves.
Socio-economic enterprises – “Sozialökonomische Betriebe (SÖB)” A socio-economic enterprise is a socially inclusive enterprise subsidized by the employment center, which offers temporary workplaces (at the most one year) for persons remote from the labor market. These temporary workers, so-called transit workforce, encounter conditions very close to the first labor market in socio-economic enterprises, and are prepared for their re-entry into the first labor market through targeted work training, measures of qualification and socio-educational support in job-seeking. Socio-economic enterprises have, according to their bylaws, the objective to generate at least 20 % of all costs of operation through internal cash generation. Therefore they offer products and services on the free market at regular prices. The public subsidies are used for occupation of temporary workforce, for financing so-called key-men, for measures of qualification and for socio-educational support. Socio-economic enterprises are service providers for the Austrian employment center. Basically, agreements on subsidies have to be agreed with the employment center every year. In the course of renewal of the subsidy agreement, the achievement of objectives in the previous year is examined.16
Non proft occupational projects – “Gemeinnützige Beschäftigungsprojekte (GBP)” Non-profit occupational projects are a further type of socially inclusive enterprises, which are also subsidized by the Austrian employment center (and others). As socio-economic enterprises, they offer fixed-term workplaces for persons remote from the regular labor market, and have the task of supporting male and female workers in their re-entry into the first labor market and in finding a non-subsidized workplace. The main difference from socio-economic enterprises is that they need not be active on the free market, and also do not compete with classical private-economy enterprises. They rather produce products or offer services fulfilling a purpose of common weal and purposes of public interest, respectively. The activities of non-profit occupational projects have to benefit the general public, and to contribute to the achievement of regional or municipal goals. Non-profit occupational projects have the status of non-profit organizations, and contribute to the reduction of a workplace deficit through creation of additional jobs. The
16 Further link: Federal guideline on the granting of subsidies to socio-economic enterprises 2014: http://www.ams.at/_docs/001_soeb_RILI.pdf
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concept of non-profit occupational projects is based on the consideration that it is better, in respect of society and occupation policy, to use public funds for socially useful work and services, than to spend them for passive supporting benefits. Thereby new occupational relations can be created, and additional receipts can be generated.17
Job creation companies – “Beschäftigungsgesellschaften (BG)” Job creation companies are a special type of non-profit occupational projects in Styria, and they only differ in small details. Job creation companies are always organized in the form of a GmbH (company with limited liability), and have traditionally strong municipal relations or are even owned by communities. Job creation companies can also be organized as associations. Basically, the same federal guideline is applied to job creation companies as to non-profit occupational projects. In Austria-wide reports, they are counted among non-profit occupational projects. The fourth type of socially inclusive enterprises is not so relevant to socio-ecological production, as in this case products and services are not directly produced and offered. Non- profit temporary employment (temp agencies or staff leasing by socio-economic enterprises) are organized like socio-economic enterprises, and lease so-called transit workers, at first temporarily to companies on the first labor market with the goal of permanently procuring a regular employment contract in the free market economy for the persons subsidized. Contrary to traditional temporary employment agencies, the persons leased receive socio-educational and in case of need also psychosocial support in staff leasing socio-economic enterprises.
On the third labor market The “3rd labor market” or substitute for the regular labor market offers, by means of national subsidies, permanent sheltered workplaces. It offers opportunities of gainful employment for those persons, who have no chance of occupation on the regular labor market due to their physical and/or mental disabilities. Examples for institutions offering occupation on the 3rd labor market are inclusive enterprises (for instance sheltered workshops) and workshops for persons with disabilities.
Inclusive Enterprises (sheltered Workshops) Inclusive enterprises (also called sheltered workshops) offer occupation on the free labor market for persons with physical impairments. The precondition is that their handicap reduces their capacity at the most by 50 %, compared to the “normal” capacity. The so-called registered disabled persons are remunerated on the basis of the collective labor agreement.
17 Further link: Federal guideline on non-profit occupational projects: http://www.ams.at/_docs/001_gbp_RILI.pdf
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Inclusive enterprises traditionally work in various areas of handicraft, for instance wood and metal processing, printing, but also in the fields of assembling and service. In these enterprises, persons occupied are partly also qualified and supported according to their potential within the framework of a professional preparation with the goal of procurement to the free labor market. National subsidies balance the additional expenses for care and less productivity in inclusive enterprises.18
Workshops of persons with disabilities In Austria, workshops for persons with disabilities are mainly maintained by the Caritas and Assisted Living. Persons are occupied there, who have an increased need of support due to their physical or learning disabilities. The activities and offers to be executed are therefore very different, according to scope of disability. Partly, in these workshops there are special training offers for young people, for instance an apprenticeship for partial qualification. Thereby young people with learning disabilities can require a longer period of training, or only complete a certain part of an apprenticeship, which is examined and acknowledged by the Austrian Economic Chambers. These workshops give rise to criticism concerning the fact that there is no actual employment contract, and the persons occupied there do not receive any wages, but only pocket money (in addition to social benefits, for instance increased family allowance).
Others Further models of the third labor market are institutions, which offer, for instance, occupation on an hourly basis for persons with mental impairments or diseases, or measures of occupational therapy in health institutions.
The theoretical and strict distinction between the second and third labor market is softening in modern labor market policy. This takes place, because there are actually opportunities of procuring persons on the 3rd labor market to the 1st labor market. Then again there are persons, who have such heavy impairments that they can absolutely not perform regulated, productive work and are only able to work according to their day’s condition. In this case, in our days we do not talk about a “labor market”, but rather about “work therapy” or “occupational therapy”19. It goes without saying that also in “work therapy” products are produced, which can be marketed in the spirit of the concept of socio-ecological production.
18 Further links: https://www.help.gv.at/Portal.Node/hlpd/public/content/124/Seite.1240600.html Information on behalf of the Austrian Ministry of Social Affairs: http://www.sozialministeriumservice.at/site/UnternehmerInnen/Integrative_Betriebe
19 Refer to: https://www.help.gv.at/Portal.Node/hlpd/public/content/124/Seite.1241100.html)
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Many enterprises and associations cannot be subdivided into this strict scheme. Such there are also institutions, which consciously decide to refrain from public subsidies and thus can act independently of the strictly time-regulating system of the employment center (fixed term for 6 months etc.).20 Thus also persons get an opportunity of participating in gainful employment, who cannot gain ground in non-subsidized enterprises due to their huge need of support and their deficits.
20 For instance the Socius association in Vienna or the Emmaus Community at Lilienfeld.
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8. Social Production in Hungary. The situation of social enterprises and activities in the project “SoPro HU-AT”21
The state has been traditionally having a strong role in tackling social problems, especially employability and social exclusion issues in Hungary, a former socialist country. After the democratic transition a newly emerged third sector has shown significant engagement in addressing social needs, establishing a broader ‘social economy’. However, these organisations are still heavily reliant on public funding. Market-oriented ‘social enterprises’ with both social aims and sustainable business models have appeared in recent times but they are still relatively rare and not sufficiently visible among the broader public. After the democratic transition, a vibrant third sector with the mission of tackling social and environmental problems has established itself, but it is strongly dependent on external funding - mostly from the state, either the central government or its agencies, or municipalities. For most organisations in the third sector, the pursuit of commercial activities is constrained by law, but sustainable business models are rare even among the rest. Developing a ‘social economy’ has been on the government’s agenda for recent years. Considerable funds – from the national budget and later from EU-cofinanced programmes – were allocated to support the establishment, investments and ongoing operations of social cooperatives. The majority of these cooperatives serve as employment vehicles for the work integration of the long-term unemployed - often Roma – which is a prime government priority. Experience so far shows that these organisations could typically not develop into viable businesses and cannot survive without further funding. Although recent times saw new types of more ‘business-like’ social enterprises emerge this is still a rather slow process to date.
The policy and legal framework for social enterprises
At present, Hungary lacks a legal definition or an exclusive legal form for social enterprises (the term ‘social enterprise’ does not appear in legal documents). Existing legislation and government policy is focusing on the role of organisations of a set of concrete legal form – i.e. (social) cooperatives and various types of non-profit organisations - in pursuing social goals in the economy. Public grant programmes offering support to organisations in the ‘social economy’ of course apply definitions and concrete criteria to determining eligible applicants. These criteria are based on EU definitions (SBI) and linked to various existing
21 The summary is based on the document titled „A map of social enterprises and their eco-systems in Europe“ ( European Comission, 31 October 2014)
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Hungarian legal company and non-profit organisational forms, but they are not part of a more comprehensive national framework. The closely related concept of social cooperatives is legally recognised. According to Law No. X. of 2006 on cooperatives, social cooperatives aim to provide adequate work conditions and improve the social circumstances of its socially disadvantaged members. Social cooperatives providing employment opportunities for the long-term unemployed or groups who are disadvantaged on the labour market are seen as an important vehicle of the government’s employment policy - but other forms of social entrepreneurship do not seem to appear on the political agenda. The employment chapter of the New Széchenyi Plan6 (the Economy Development Programme of the Hungarian Government), launched in 2011, does, however, mention the concept of ‘social enterprise’ in the context of increasing sustainability of the non-profit sector. It recognises the need of adapting the business models of non-profit organisations to market trends while concentrating their activities on socially disadvantaged groups. Furthermore, it was emphasised that the New Széchenyi Plan will break with the tradition of subsidising organisations that rely solely on public funds and rather support the ones which focus on achieving social aims in a sustainable manner. Also it intends to support organisations offering innovative solutions for the creation of new employment opportunities. There is no web platform or a collaboration mechanism at national to date bringing together social enterprises. This may add to the problem of low visibility of social enterprises. According to recent research trying to classify social enterprises in Hungary and stakeholder interviews, social enterprises or similar organisations typically appear in four forms: Social cooperatives: appearing after 2006, introduced by new legislation establishing this new organisational form and offering them certain tax advantages (as compared to normal employment contracts, for example), social cooperatives are currently the most visible form of social enterprise in Hungary and relatively wide-spread, boosted by public funds made available for establishing and operating them. The mission of most social cooperatives is to provide work for their previously unemployed members – integrate or reintegrate them into the labour market. Social cooperatives have, apart from the main category, two distinct sub- categories: school cooperatives and employment cooperatives. School cooperatives aim to find job opportunities for its student members. Employment cooperatives were introduced in 2012: they are established by at least 500 natural persons and/or a national ethnic minorities’ organisation (notable the Roma). A number of social cooperatives have been established, but this was made possible only by considerable – project-based – public support. The new legislation has allowed all social cooperatives to include individuals or legal persons not actively taking part in its activities among its members (‘new type’ cooperatives)
Traditional cooperatives: whereas most of the traditional cooperatives (with a legal statute known in Hungary since the 19th century) are just vehicles serving the economic interests of their members (examples are agricultural cooperatives, cooperatives in certain professions such as hairdressers, homebuilders’ cooperatives etc.), some also have explicit social aims.
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NGOs with economic activities: Many associations and foundations undertake significant economic activities in the pursuit of social aims, for example by operating sheltered workshops, employing persons normally excluded from the labour market, or carrying out activities in the fields of education, culture and preservation of the environment. But their economic activities are rarely commercially viable and sustainable, and are dependent on continuous external funding.
(Private) non-profit companies with social aims: these can be community-supported micro-enterprises producing goods for the purpose of providing employment for participating families, with the produce being often sold locally. Some enterprises specialise in region- specific products (food and drinks), which may sometimes find wider market uptake, especially in case of high-quality products from geographically protected denominations. Other enterprises operate sheltered workshops or offer services for the public benefit, such as education for pupils with special needs or with learning difficulties, preserving cultural heritage, cleaning the urban environment etc. They often also employ persons who normally face difficulties entering the labour market (for instance disabled persons). This group contains examples of viable social enterprises, operating under sustainable business models and meeting all the criteria of the Operational Definition.
Estimated scale of social enterprises in Hungary (2011)
Typ$! Gesamtzahl$ %,$die$die$ Geschätzte$Anzahl$von$ (eingetragen)$! operationellen$ Sozialen$ Kriterien$der$EU$ Unternehmen$ erfüllen$! ! Social!cooperatives! 260 100% 260 ‘old!type’,!established! between!2007!and! 2013!! ! Social!cooperatives! 250 (2013) 100% 250 ‘new!type’,!since!May! 2013!! ! Traditional! 3,000 20%* 600 cooperatives!! ! Associations!and! 400 100% 400 foundations!(NGO)! undertaking!some! economic!activity!! ! NonIprofit!companies! 2,600 60%* 1,600 with!social!aims! Total! 6,510 3,360
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Conclusions of the national report
As explained earlier, most organisations understood as ‘social enterprises’ by stakeholders were established on the back of available public funding, provided predominantly from national or regional programmes co-financed from the EU’s Structural Funds. In the poor regions of Hungary, suffering from high long-term unemployment especially among the disabled and Roma, the heavily promoted social and employment cooperatives enjoying favourable tax treatment and public funding are one of the few options to create jobs. A large number of ‘new type’ of social and employment cooperatives have been established using funding from an ESF-cofinanced grant programme for their setting up and operation. However, the jobs created are typically not sustainable without continuing public support. Little emphasis was put on ensuring that there is indeed a market for its activities and on viable business models. On the other hand, conditions are not favourable to ‘genuine’ social enterprises not depending on public funding: while there is a wealth of social problems to be addressed (unemployment, poverty, limited access to quality education and training, poor health and living conditions, environmental damage, poorly preserved cultural heritage etc.), stakeholders who could address them usually lack entrepreneurial skills, management capabilities and will have difficulties finding private funding. Whereas generic technical advice (business administration, tax etc.) is available from local Chambers of Commerce and Business Development Centres (HVK), social entrepreneurs-to-be are less able to receive help in understanding their market and in developing their business plan. Especially advice on how to create the delicate balance between commercial activities and the pursuit of social goals in a difficult business environment seems to be scarce. The lack of visibility of social enterprises and insufficient acknowledgement of social entrepreneurs are additional obstacles to the development of the sector.
SoPro project and social economy related activities in HU
Reflecting to the trends in social production and situation of social enterprises, the principle of SoPro project was to boost the regional social economic trends regionally taking over Lower Austrian successful practical examples of sustainable quality products and services. We strivedto help the development of social economy with manufacturing local products, reusing and recycling household and industrial waste, and decreasing waste production. As a part of our consultancy we incubated regional social enterprises and spur eco-innovations that moderate ecological load and produce new sustainable workplaces.
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Our target groups were regional performers of social economy, socially responsible enterprises, local governments and their institutions as well as local residents (in the field of sustainable lifestyle, attitude shaping, knowledge expansion). As secondary beneficiaries, people with altered working abilities, job searchers and public workers may find value producing workplaces in the social economy.
During project implementation period, the following, most important activities were fulfilled in West-Transdanubian region:
→ Preparation of 30 case studies presenting social enterprises exemplary cooperations.
→ Professional support of incubation process – To achieve product development at three social enterprises involved in the project (1-1 product) :
• Zala County Organisation of the Hungarian Red Cross: textile toys, balls, drop-of- blood shaped
• pillows, bags from recycled clothes
• Esély Non-profit Ltd.: raincoat, trousers, skirts for persons with reduced mobility, bags
• Caritas of the Szombathely Diocese: sponge cubes made out of sponge waste (offer of a mattress producing firm) and reused, cleaned textile
→Description of the legal and financial background of the Hungarian social enterprises, opportunities and constraints census, drafting recommendations . The study proposal has been drafted some opportunities to contribute to the development of greater social economy.
→Expertizing in social trademark creation: the created report highlights the differences between the brands and trademarks, and to provides information to trademark protection.
→ Sensitization and awareness raising campaign - dissemination of project results in a media campaign and conducting targeted negotiations at 10 public institutions and 10 enterprises in order to develop business collaborations
→One-day regional project conference with the participation of 100 people. Conference was held on 21 February 2013, took place in Szombathely, Ecotourism Kámon Arboretum Visitor Center. In preparation for the event, a "waste recycling competition" was announced in the
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region. The conference topic was SoPro products of social economy: in partnership with the environmental, economic and social sustainability
→One-day study tour in Austria for 20 people (projectmembers and affected partners) to learn and share experiences.
According to our values, since beginning of 2014 we worked on the establishment of two new organizations.
ECOS Social Cooperative’s slogan being set up by committed individuals is cooperation for the ecological, economic and social sustainability – to make our words echo/resound.
We are committed towards sustainable development, but for us it does not only mean environment consciousness, but a responsible attitude for the society as well as establishing an even-handed trade. Beside the purchase we offer training and supervisory services, thus moderating digital illiteracy and giving chance to enter the world of online information.
Together with the Lead Partner of SoPro project BIENE Association we established a European Economic Interest Grouping with the name of goodworks to spread the project within the European Union. We are working to put about best practice models in the social economy as well as the introduction of SoPro trademark for products and services.
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9. SoPro HU-AT: Results & perspectives of a successful cross-boarder project
The cross-border project term of “SoPro HU-AT: Social production for the environment” lasted from March 2012 until December 2014, together with partners in Eastern Austria and West Hungary for the development of the consultation and procurement model of socio- ecological production. Through consultation, development and procurement processes, 200 practical products and services were developed and implemented in the course of 1,200 consultations of and provisions of information to enterprises and public institutions. The majority of the new products contain methods of re-use, upcycling and re-design. In addition to practical products and services, this project fosters, through targeted media and press relations, creation of awareness in the fields of sustainability and social responsibility of enterprises (CSR). In eight scientific papers (Bachelors’ and Masters’ Theses, as well as projects by students), students of the Wiener Neustadt UAS, Campus Wieselburg (study course of product marketing and innovation management), of the Vienna University of Economics and Business (socio-economics – consumer research), as well as the UAS Campus Vienna (social economy and social work) dealt with aspects of socio- ecological production. These papers as well as numerous good-practice examples were presented at the 1st International SoPro Congress in with almost 200 participants in Vienna in June 2014. In November 2014, his project has been awarded the RECOM Innovation Prize in the category of “Economy and Innovation”, and was the winner of a placard competition by the administrative authorities on the occasion of the European Cooperation Day.
goodworks: Innovation Agency and quality label
One of the main targets of this project was the creation of a structure, in order to establish this initiative in the long run. At the end of this project in December 2014, the lead partner, BIENE Association (Soil and Bioenergy Network of European Countries), the KOMUNITAS OG (both in Lower Austria), and LEED Non-profit Kft. in Hungary founded the non-profit goodworks Innovation Agency EEIG. Under the trade name of goodworks, the activities of socio-ecological production are continued and expanded.
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Also the quality label, developed within the framework of the „SoPro HU- AT“ project, for products and services from socio-ecological production, has in the meantime been registered under the trade name of “goodworks”. The “goodworks- socio-ecologically produced” quality label distinguishes certified sustainable products and services. The combination of different criteria – preserving resources (ecological), produced by disadvantaged persons (social), preliminary products and raw materials from the respective region (regional), of high quality (quality-assured) and innovative – renders the quality label a unique multidimensional sustainability label. For the integration of this new quality label into existing plans of action for sustainable procurement, discussions with the authorities responsible have been initiated on all levels.
Contribution to growth, preservation of resources regional value creation
Through procurement and support of suitable orders, socio-ecological production strengthens social occupational enterprises in their task of inclusion of disadvantaged persons into the labor market and their participation in working life, respectively. This initiative, at the interface between social and economic sustainability, facilitates economic enterprises to actively assume social responsibility, and to consciously cooperate with social enterprises. These instances of cooperation yield positive incentives for:
• sustainable work: occupation and qualification, and thus gainful employment and social inclusion of disadvantaged groups of persons
• sustainable economy: regional value creation, new instances of economic cooperation
• sustainable consumption: innovative products, eco-design, preservation of resources
Prospect: New projects and cooperations
Some plans and projects are being prepared.
• In Lower Austria, together with the Economic Chamber a consultation programme for enterprises is being developed
• The quality label and an online market-place for products and services from social production will be further developed in 2015
• In Hungary, new partnerships are being created in other regions • First steps for further internationalization (e.g. in Croatia and Romania) are planned. • A project for South-East Europe is being scheduled together with the IOM (International Organization for Migration)
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