Putting People Before Profits Social Economy Handbook FUNDAMENTALS for Caritas Europa Contents Written by Julia Sonnleitner (Caritas Published in November 2018 by Vienna) and Antonio Fantasia (Caritas Caritas Europa, Rue de la Charité 43, Europa Secretariat), and edited by Shannon 1210 Brussels, Belgium. Pfohman (Caritas Europa Secretariat). Contributions to this handbook were made by the members of the Caritas Europa Task Force on Social Economy This handbook has received financial listed below: support from the European Union Programme for Employment and Caritas Austria: Florian Pomper Social Innovation “EaSI” (2014-2020). (Task Force chair) For further information please consult: Caritas England and Wales (CSAN): http://ec.europa.eu/social/easi Dan Belloso Caritas Finland: Larissa Franz Caritas France (Secours Catholique): The information contained in this Irene Valdelomar Zurera handbook does not necessarily reflect Caritas Italy: Tiziana Ciampolini the official position of the European Caritas Luxembourg: Daniela Ragni Commission. Caritas Serbia: Marina Kostić Caritas Spain: Ruben Requena Morcillo Caritas Europa reserves the right to not be held responsible for the accuracy A special thanks to Alberto Puyo and completeness of the information (Caritas Spain), Patrick Debucquois provided in this handbook. Liability claims (Caritas Belgium), Maryana Hnyp regarding damage caused by the use (Caritas Europa Secretariat) and to of any information provided, including Caritas Europa’s Advocacy Steering Group any information which is incomplete or members for their valuable input. incorrect, will therefore be rejected. 2 Social Economy Handbook Contents Preface 4 What to find in this handbook? 5 What is Social Economy for Caritas? 6 Part 1: Why Caritas promotes Social Economy 8 1.1. How Social Economy contributes to Catholic Social Thought 9 and supports Caritas principles 1.2. Benefits of Social Economy Enterprises for Caritas organisations 11 1.3. How Social Economy contributes to a more sustainable 16 and cohesive society 1.3.1. Social Economy and the Caritas Social Model 16 1.3.2. Social Economy and the 2030 Agenda 17 1.3.3. Social Economy and the European Pillar of Social Rights 20 Part 2: How Caritas works in practice on Social Economy 24 2.1. Promoting an ecosystem where Social Economy Enterprises 26 can flourish 2.1.1. Make the ecosystem work 27 2.1.2. The role of the government in the development of an ecosystem 30 2.2. Starting and managing a Social Economy Enterprise 32 2.2.1. Assessment 32 2.2.2 Make it work: developing a business plan 33 What’s next? 42 References 44 3 Preface Preface This handbook spearheads with fresh Although rooted in a long tradition within Caritas, energy towards the future of Caritas the Social Economy is reinventing itself, adapting to the new reality with a new, fresh and powerful style. and of the societal understanding of Social economy challenges us to think in different economy, a human-centred-economy. ways about our economy – the processes and institutions through which we meet our needs. Social And this handbook is also very special and dear economy organisations and social enterprises put to me personally. When, back in 1992, I started people before profits. They invest in people, in their working for Caritas Spain it was in the “Programa capacities and creativity, and empower them by de Economía Social”, at that time under the lead of creating quality jobs and by providing training. They Pancho Salinas, who in the 80’s and early 90’s led a prioritise social objectives and social values. In recent movement through which Caritas created several years, many Caritas Europa Member Organisations thousand cooperatives all over Spain, offering a have engaged (wo)manpower and invested financial participatory employment scheme to thousands of resources to find innovative solutions to counteract unemployed people. Later I would work under the poverty and to start up, manage, and promote Social leadership of Andrés Aganzo, an amazing colleague Economy Enterprises as a way to holistically and rooted in the Catholic Workers Movement, who effectively address the causes of poverty. The impact started systematizing and promoting the incipient of their work demonstrates that a more inclusive, social integration enterprises and advocating for social, and human-centred economy is possible. their legal framework. My part in this systematization was to research the European experiences: The aim of the present handbook is to share I discovered, like treasures, the incredible experience information and promising practices, and to and work done by Caritas Switzerland, Caritas increase the understanding of Social Economy Luxembourg (Co-Labour), Caritas Germany, Enterprises within the Caritas network. Read, be Caritas Italiana, Secours Catholique, etc. inspired, innovate, create new initiatives and don’t forget to tell everybody of your success, to explain Today, 10 years after the start of the big financial with concrete examples how the economy is at the crisis of 2008, the number of unemployed people, service of the people, especially those further from working poor and victims of labour exploitation is still the labour market. far too high. Moreover, social conflicts, inequalities, and divisions are more visible. The financial crisis, its Jorge Nuño Mayer roots, but also its consequences have shown that Secretary General the dignity of people, their welfare and right to social inclusion and participation in society has played a subordinated role in our countries. “Priority tends to be given to speculation and the pursuit of financial gain, which fail to take the context into account, let alone the effects on human dignity and natural environment”1. It has, consequently, become clear that interventions to counteract poverty cannot be realised in a similar manner as before the financial crisis. Instead, we need a new approach, a new paradigm, and a new way to rethink the economy, social protection, and social cohesion2. 4 Social Economy Handbook What to find in this handbook? This handbook is for all those who want The second part is addressed particularly to Caritas to deepen their knowledge of the Social experts and is based on the experience already gained in the various countries in which Caritas has Economy. been working on the Social Economy. It explains how Caritas works in practice and it analyses the In particular, the first part of the book is especially most important aspects to take into consideration designed for the directors and managers of Caritas. when investing, starting-up and developing Social It shows how investment in and promotion of Social Economy Enterprises. Economy Enterprises can support the work and the vision of Caritas (we have looked at Catholic Throughout the manual there are also 16 boxes that Social Thought, Caritas principles, and the Caritas describe concrete experiences carried out by Caritas Social model). It also explains how Social Economy in different countries and that refer to what is explained Enterprises contribute to ensuring sustainable social in the main text. These boxes allow the reader, on the services and social policies: we have considered some one hand, to better understand, having a practical reference frameworks at both global and European example, what has been said in the main text and, on levels such as the UN Sustainable Development Goals the other, to learn more about the variety of Caritas and the European Pillar of Social Rights. Social Economy Enterprises throughout Europe. Key words describing D’Ins SEE Restaurant in Barcelona. Photo by Antonio Fantasia 5 What is Social Economy for Caritas? What is Social Economy for Caritas? Social Economy Enterprises put • Communities become more cohesive, since people before profits. They innovatively Social Economy Enterprises can facilitate the development of inclusive local policies and tackle social, economic, and contribute to the common good of the local environmental needs in society that community. have been inadequately addressed by • The whole society benefits from innovative ideas the private or public sectors. and solutions that answer society’s needs and contribute to changing mind-sets. At the same time, Social Economy Enterprises are meant to generate profit. They operate according This requires the active participation of individuals to the logic of the market, providing goods and and groups in Social Economy initiatives, in addition services and aim at customers’ satisfaction. The to joint collaboration between different public and main difference is that Social Economy Enterprises private stakeholders. Hence, combining social, invest their profit into social objectives, rather than labour, and economic development policies is a generating individual wealth, by: great innovation for our societies and for Caritas organisations. The latter are actively involved • Creating spaces for participating and sharing in creating a variety of different types of Social ideas within a Social Economy Enterprise. Economy projects throughout Europe3. • Promoting cooperation, awareness and On top of this, Social Economy Enterprises also engagement among the community. contribute to reshaping the global economic system through one of their key features: instead of • Enhancing relationships between residents, the “shareholders”, they are accountable to a series of local community, and the wider society while also “stakeholders” and even though they may provide promoting collective responsibility. goods