Creating fair work opportunities for people who have barriers to employment is an important issue facing all of Canada. Manitoba has been a national leader in the development of social enterprises that provide training and employment opportunities for people with barriers to employment. The provincial budget, to be released Thursday, is a key opportunity for Broadway to bolster its support for these innovative enterprises.

Ottawa recently sparked sizeable outcry by indicating its intentions to end a 30-year contract for paper disposal that would have seen the layoff of dozens of people with developmental disabilities. Media attention helped halt the decision, but it sparked an important conversation about the power of government purchasing to support employment opportunities for citizens often marginalized by the labour market.

Employment is more than a paycheque. For many people, it is a key source of self-esteem, social networks, education and dignity. For our communities, it is essential for social inclusion and poverty reduction.

Social enterprises are businesses operated by non-profit organizations that create both social impact and income. Like any business, social enterprises must provide goods or services that meet consumer demand and need. As non-profit organizations, they must generate social value as well, and profits must be reinvested into the organization’s mission.

The social-enterprise model offers the powerful potential of addressing social and economic challenges using existing government and private sector spending. By purchasing from social enterprise, government and private business can meet social and economic goals while receiving the quality goods and services they need.

The return on investment of purchasing through social enterprise is profound: Reductions in crime, savings in health-care costs and reduced strain on our social assistance systems for individuals otherwise left out of our job markets and communities.

For close to a decade, Manitoba Housing has been hiring social enterprises such as BUILD and BEEP for cost-reducing energy retrofits and apartment-unit maintenance. They provide supportive training and employment opportunities for individuals with barriers to employment, such as a lack of a Grade 12 diploma, language barriers or a criminal record.

Another example is ImagineAbility a social enterprise that provides packaging and assembling services along with meaningful employment to more than 200 people with intellectual disabilities. Diversity Food Services provides sustainable food services to the University of Winnipeg while providing good jobs and ownership opportunities for the community.

Manitoba is building momentum. Over the last year the Province of Manitoba partnered with the Canadian Community Economic Development Network (CCEDNet) to produce the Manitoba Social Enterprise Strategy, a community-led collection of recommendations to strengthen job creation for people with barriers to employment.

The Winnipeg Chamber of Commerce’s most recent municipal election campaign, BOLD Winnipeg, ambitiously set a goal of making Winnipeg “Canada’s undisputed social-enterprise capital.” The Winnipeg Police Service is working with CCEDNet and the City of Winnipeg to find ways the city can purchase some of its goods and services from social enterprises creating jobs for people who have been involved with the justice system, thereby reducing crime.

While we have accomplishments that merit celebrating, there is much opportunity in the province’s budget.

The Manitoba social-enterprise strategy will remain merely words until it gets funding for social enterprise, including long-term purchasing contracts, to ensure Manitoba continues as a national leader in these innovations. Together, we can ensure our vulnerable citizens have access to meaningful training and employment opportunities, and taxpayers receive this lucrative return on investment.

Originally published in the Winnipeg Free Press on April 28, 2015


Darcy Penner is a Social Enterprise Policy & Program Co-ordinator with the Canadian CED Network. He has been working in community economic development since graduating from the University of Winnipeg with a BA (Honours) degree in Politics. Starting at CCEDNet in 2013, his role has seen him work with member-organizations to pursue a broad policy agenda through workshops, presentations, budget submissions, policy papers and community-organizing, while specializing in supportive social enterprise policy and research – including coordinating the Manitoba Social Enterprise Sector Survey and the Manitoba Social Enterprise Strategy being co-created with the Province of Manitoba. Darcy was also a contributing author to the Alternative Municipal Budget for CCEDNet-Manitoba.

David LePage is a member (and past Chair) of CCEDNet’s Policy Council.  He is a Principal with Accelerating Social Impact CCC, Ltd. (ASI), one of Canada’s first incorporated social purpose hybrid corporations. Through ASI David provides direct support and strategic advice to blended value businesses, social enterprises and social finance developments. He is involved in multiple public policy initiatives and research projects to support the social enterprise ecosystem across Canada. ASI is a partner in launching and building the Buy Social Canada campaign.  He is the former Team Manager of Enterprising Non-Profits, where he led the effort to expand the enp social enterprise development and training model across Canada. He initiated Canada’s first Social Purchasing Portal in 2003.

Share

The 2015 Election for CCEDNet’s Board of Directors is now open and will close on May 11th.

Five candidates are running for four seats on the Board.

Presented below in random order are our five candidates running in the 2015 CCEDNet Board elections.


Christine Landry     Winnipeg, Manitoba

Christine Landry has been with Community Futures Manitoba, the association of Manitoba’s 16 Community Futures organizations (CFs), since 2000.

As Project Coordinator, she works with the 16 CF offices to strengthen their capacity to assist rural, northern an Aboriginal communities in strengthening their business sector and build capacity for CED. Christine has been actively involved with CCEDNet, sitting on the annual CED Gathering planning committee since 2004. She was also a member of the planning committee for the 2009 National CCEDNet Conference in Winnipeg.

Christine works with Community Futures offices each year to plan their annual provincial conference, which is promoted to CED service providers across the province. She also handles the association’s marketing and communications activities. Recently she was pleased to be a member of CCEDNet Manitoba’s Interim Governance Committee to develop a model for improving communication and efficiency in the Network.

 


William (Bill) Ninacs     Victoriaville, Québec

My background includes management positions in the public and private sectors as well as wide experience in the community sector where I helped support service and advocacy groups, worker and consumer co-operatives, and other social agencies.  I have been active in CED for more than 25 years, notably as Coordinator of the first community development corporation in Québec and as Co-Director of the Canadian CED Network.  For more than 20 years, I have been a researcher in the field and on the subjects of empowerment-based interventions, local community development and the social economy, with publications in English and in French.  I have taught at the School of Community Economic Development at Southern New Hampshire University and in the CED program at Concordia University.  Currently I am also Associate Professor at the Université du Québec en Outaouais. 

 


Élodie Bedouet    Thunder Bay, Ontario

Élodie is Executive Director of the Association des francophones du Nord-Ouest de l’Ontario in Thunder Bay.  She has worked in CED with francophone communities in Ontario and the Northwest Territories for several years and has a keen interest in social enterprise.  Following graduate work in political science (specialization in international political economy) at the Université de Montréal, she did research for a UN agency in Chile on economic development and education and worked on youth inclusion projects with new technologies in Morocco.

 


Elspeth McKay    Ottawa, Ontario

Elspeth McKay joined the Operation Come Home team in December 2007 with over 25+ years of experience as a senior manager in the not-for-profit sector. Elspeth is a dedicated fundraiser and innovator in CED. She has years of experience in developing programs such as supported employment, education, and social enterprise.  Elspeth has devoted her career to imrproving the lives of the disabled and those that are economically disadvantaged. Working collaboratively with a number of private, public sector and social service partners, she provides leadership and consultation to not-for-profit organizations, as well as the federal and provincial governments.

In CCEDNet, Elspeth was a member of the membership committee.  Elspeth is a member of the Alliance to End Homelessness, Ottawa Youth Justice Network and various local networks and coalitions, including chairing the United Way Turning Lives Around Taskforce. 
 


Ryan Gibson    Halifax, Nova Scotia

I am keenly interested how we can better use community economic development to enhance rural and northern regions. Over the past ten years I have been working with voluntary organizations, communities, and government on CED initiatives focused on rural development, philanthropy, governance, and public policy. I am an assistant professor of geography at Saint Mary’s University and the past-president of the Canadian Rural Revitalization Foundation. I have been actively engaged with CCEDNet through a number of board committees and served on the executive. I would like the opportunity to continue my engagement with the Board of Directors to further advance CCEDNet’s mandate, to enhance CCEDNet’s presence in Atlantic Canada, and strengthen our membership engagement.
 


If you’d like to know more about our candidates, watch the recording of the April 30th candidates meeting to hear about their vision and what they’d like to achieve on the Board.

The full list of current Board members can be found here.  Current Board members whose term is ending at the 2015 AGM are: Élodie Bedouet, Ryan Gibson, Indu Krishnamurthy and Christine Landry. 

This year, the Board election process is using a more proportional system.  With advice on best practices for civil society organizations from the good folks at Fair Vote Canada, we are using OpenSTV for a ranked choice vote according to the Scottish STV model.  We hope you enjoy this step towards a fairer voting system.

How to Vote

All CCEDNet members in good standing are eligible to vote.  To vote, visit https://ccednet-rcdec.ca/en/boardelections2015 and log into your CCEDNet account. Once you’ve logged in, you’ll see the link for the 2015 Board Elections / Élections 2015 au Conseil d’administration.  If you encounter any issues please contact us at info (at) ccednet-rcdec.ca or call 1-877-202-2268.

Don’t Forget to Register for the AGM

Election results will be announced at CCEDNet’s 2015 Annual General Meeting, which will be held entirely online on May 29th. CCEDNet members who would like to participate must confirm their attendance by registering before May 26.

Share

The Federal government’s 2015 budget was presented on April 21st.  This year, CCEDNet submitted six recommendations to the Federal government’s pre-budget consultations to scale up the impact of successful practices in community economic development and social enterprise. 

The budget contains some measures of interest to the CED sector:

  • Continued focus on social finance, with a commitment to implement a ‘social finance accelerator initiative’ to help develop promising social finance proposals. (p.271 of the PDF budget document)
  • $35 million to make the Foreign Credential Recognition Loans pilot program permanent, to support internationally trained workers in obtaining Canadian recognition of their credentials  (p.165)  The pilot program was delivered by a number of CCEDNet members. 
  • Allowing charities to invest in limited partnerships, providing greater flexibility for social impact investments.  (p.271)
  • A national financial literacy strategy that will be released in the next year to engage the private, public and non-profit sectors towards shared financial literacy goals.  Canada’s banks have agreed to establish a 5-year Financial Literacy Partnership Fund of $10 million to provide grants to eligible community organizations for projects that improve the financial literacy capabilities of Canadians. (p.251)
  • $150 million over four years to allow co-operative and non-profit social housing providers to pre-pay long-term and non-renewable mortgages without penalty.  (p.278)
  • Reiteration of a commitment to provide Futurpreneur Canada with $14 million over two years. Futurpreneur Canada (previously the Canadian Youth Business Foundation) is a non-profit organization that helps young entrepreneurs – including social entrepreneurs access financing and mentorship. (p.131)

CCEDNet would have liked to see more specific measures supporting community economic development, such as a neighbourhood revitalization fund and a CED lens, which were part of the Alternative Federal Budget released in March. 

The Canadian Community Economic Development Network looks forward to continuing our work with the federal government to implement enabling policy for innovative local leaders building resilient, inclusive community economies.

Other Budget Responses

Share

LIFT Philanthropy Partners is pleased to announce that it is seeking proposals from Ontario-based social enterprises with an interest in scaling their activities, leading to job creation for Ontarians experiencing barriers to employment.

The call for proposals is part of LIFT’s new initiative, LIFT for Social Enterprise, which is supported in part by the Office for Social Enterprise at Ontario’s Ministry of Economic Development, Employment and Infrastructure through its Social Enterprise Demonstration Fund.

LIFT is a national not-for-profit that takes a venture philanthropy approach to investing in social purpose organizations tackling issues of health, education, skills development and employment. It provides a combination of skills, expertise and resources from its team and a pro bono partner network of experts and businesses to help organizations enhance their capacity, become more measurable and sustainable, and ultimately increase their impact so that they can transform the lives of more Canadians.

Through this call for proposals, LIFT hopes to identify a select number of social enterprises in Ontario – business ventures whose primary purpose is to address a social, environmental or economic issue – and work with them over an 18 month period to identify their vision and goals, assess organizational capacity to achieve those goals, and develop a growth strategy. Capacity-building support and coaching from LIFT and its partners will be specific to the needs and goals of the organizations selected.

Successful proponents will be able to demonstrate the potential for scaling their activities, and how this will lead to job creation for those experiencing barriers to employment.

Interested applicants can learn more and submit proposals online at liftpartners.ca/en/call-for-proposals.

Quotes:

“Through the Social Enterprise Demonstration Fund, we are connecting high-potential social enterprises with the resources they need to grow and create jobs. This not only contributes to a fairer, more prosperous province; it also helps position Ontario as a global impact investment leader.” – Brad Duguid, Minister of Economic Development, Employment and Infrastructure

“Employment is one of the fundamental contributors to a person’s long-term health and prosperity. To be able to create more employment opportunities for Ontarians at the same time as we are helping create a stronger social sector is a win-win.” – Bruce Dewar, President and CEO, LIFT Philanthropy Partners

About LIFT Philanthropy Partners

LIFT Philanthropy Partners is pioneering venture philanthropy in Canada – an approach that has proven successful in other parts of the world at addressing longstanding social issues. It leverages financial investments with hands-on management support from its team and pro bono contributions of time and expertise from its partner network to strengthen social purpose organizations and help them have a greater impact on the health and productivity of vulnerable and at-risk Canadians.

Learn more about LIFT:
Visit liftpartners.ca
Join on Facebook
Follow on Twitter
Visit on LinkedIn
Watch on YouTube
                                                                For more information, contact:
Lisa Dooling
Director, Communications
LIFT Philanthropy Partners
778-327-5170 (office)
778-840-5170 (cell)
ldooling at liftpartners.ca

Source: LIFT Philanthropy Partners

Share

Strengthening Non-Profits workshops will help you to

  • Learn skills to make your work more effective
  • Meet local practitioners with expertise who can support your work
  • Network with others doing important work

Build and Grow Your Social Enterprise | May 7, 2015

Are you looking to start a social enterprise? Are you working to help start social enterprise? Or are you someone just interested in expanding your knowledge on social enterprise? This interactive session will explore examples of successful social enterprise across Canada and identify some of the nuts and bolts of how to create a business that will not only succeed along conventional lines but will have social impact.

Additionally, you will receive a hard copy of Enterprising Non-Profit’s comprehensive Canadian Guide to Social Enterprise.

Organizations must attend this workshop to be eligible for an enp-mb Social Enterprise Development Grant.

Learn more and register for Build and Grow Your Social Enterprise


Sponsorship Strategies for Today’s Market | May 21, 2015

Let’s face it, funding your organization is becoming more and more of a challenge. Becoming enterprising (see above) is one option to help finance your social mission. Sponsorship is another area non-profits are exploring. But while mainstream businesses are taking corporate social responsibility more seriously, often they are looking for more than just logo recognition.

Chrystal Robert-Macey is an expert in the area of sponsorship. She understands the sponsorship experience from both sides and can help guide you on how to meet the needs and expectations of sponsors while at the same time meeting your needs.

Learn more and register for Sponsorship Strategies for Today’s Market


3 wrenches held up in the airTools for Effective Community Engagement | June 4, 2015

So you want to be an organization that is community-led. This means you need to effectively engage the community you are working with. But there are many challenges to community engagement, from increased individualization and isolation to growing diversity and distraction. How can you overcome the barriers to effective engagement, and how do you measure your success?

Join Erin Huck from Health in Common to get hands-on experience with community engagement tools and techniques. Erin has vast and ongoing experience in the field and can help you to develop the strategies you need to collectively build and meet community goals.

Learn more and register for Tools for Effective Community Engagement


Also this spring!

Planning for Your Organization’s Financial Sustainability Series | May 5 & 19 and June 2 & 16

Begin creating a sound financial plan that will help your organization in the long run. Over four sessions, learn about innovative tools for identifying financial and non-financial resources and for making strategic decisions around priorities and programming. Strengthen your emerging plan through ongoing feedback from peers in the workshop.

This session is great for executive directors, program managers, or others who do financial planning for organizations.

Learn more and register for Planning for Your Organization’s Financial Sustainability


For more information

Contact Nadia Kidwai: n.kidwai at ccednet-rcdec.ca | 204.943.0547


Strengthening Non-Profits workshops are presented by Spark, a pro bono matching service of the Canadian CED Network. Financial support is provided by United Way of Winnipeg.    

 

Share

Congratulations to Lawrence Lazarko, winner of the first-ever Spark Outstanding Pro Bono Consultant Award, a new category at Volunteer Manitoba‘s Annual Volunteer Awards.

Lawrence was nominated by IRCOM (Immigrant and Refugee Community Organization of Manitoba) for IT assistance he provided in 2014 after IRCOM’s long-time IT consultant, Masoud, passed away unexpectedly. “Not only did his passing have an impact on staff,” said Erin Anderson, IRCOM’s Volunteer Manager, “it had a profound impact on our capacity to handle even the simplest of IT concerns. Masoud had been responsible for IRCOM’s IT systems for over 20 years, and… we found ourselves with a very limited understanding of our existing IT network, no idea of what processes to follow and with no staff able to fill the gap.” Over the course of the next few months, Lawrence led a project that helped IRCOM understand their current IT situation and set them up to be able to hire a new IT employee.

“Mr. Lazarko was a truly outstanding volunteer. After hearing of our circumstances, and without hesitation, he stepped forward to assist IRCOM… Without his expertise and generosity it is difficult to say where we would be today.

Carlos and Erin from IRCOM standing beside Lawrence (centre) following a Spark match

“Mr. Lazarko was always extremely sensitive and responsive to the long history Masoud had with our organization prior to his passing and was remarkably patient in the face of our lack of technical knowledge and our unconventional set up. He seemed to immediately understand and appreciate the context we operate in and made recommendations and shared guidance that was realistic and thoughtful.

“Mr. Lazarko is a deeply considerate, thoughtful individual who clearly cares a great deal about improving our community for others. Throughout his placement with us he was consistently grateful for the opportunity to help out and showed a genuine appreciation for the work IRCOM does… He is a very generous individual that is truly a gift to our community.”

Spark is a pro bono matching service of the Canadian CED Network, matching Winnipeg’s community development organizations with professionals volunteering their skills for social good.

Share

The MaRS Centre for Impact Investing has launched a new place-based Social Finance Network. This network brings together leaders in cities and towns across Canada who are creating new social finance funds, financial products, or strategies to mobilize capital to meet the challenges their communities face.

The group kicked off in February 2015 with representatives of cross-sectoral collaborations in cities from coast to coast:

  • Victoria, British Columbia
  • Calgary, Alberta
  • Winnipeg, Manitoba
  • London, Ontario
  • Charlottetown, PEI
  • St. John’s, Newfoundland & Labrador

WHAT IS PLACE-BASED SOCIAL FINANCE?

Place-based social finance is an approach to mobilizing private capital that intends to create financial returns for investors and also social or environmental benefits for a city or town.

Place-based social finance incorporates a range of activities, including exploring the local potential for social finance, creating an impact investing fund, building an impact investing platform, or creating an investment product.

Place-based social finance projects are initiated by a range of actors: municipal governments, foundations or philanthropists, local businesses, and/or community groups.

WHY IS PLACE-BASED SOCIAL FINANCE IMPORTANT?

Cities and towns need to mobilize new sources of capital to meet the challenges they face, and social finance is an important tool. Here are some of the many reasons why we believe place-based social finance deserves attention.

  1. Social finance operates well when rooted in a place.
    • Capital Demand: Many social and environmental issues amenable to social finance solutions are best addressed at the scale of the city or town. This includes everything from building affordable housing and community infrastructure to creating jobs for young people.
    • Capital Supply: At the same time, many impact investors, in what could be called “IMBYism”, seek local investing opportunities. They wish to seed change in their own community. Foundations, credit unions, local philanthropists, and everyday investors are leading the way.
  2. As a political unit and an imagined community, a city or town is a locus for convening unlikely collaborators. Social finance solutions require cross-sectoral collaboration. A place provides the private, public, and community sector with a focal point.
  3. Social finance is an important tool for urban resilience. Social finance can build the resilience of cities and towns to the physical, social, and economic challenges they face. It is an important tool in the resilience toolkit that enables a place to withstand stresses including food insecurity, health crises, economic downturns, and climate change.
  4. Place-based social finance solutions are proving successful. From Edmonton, Alberta’s Social Enterprise Fund to the New York City Acquisition Fund to the London UK Homelessness Social Impact Bond, place-based approaches to social finance are proving successful.

HOW CAN GROUPS GET INVOLVED?

If you are involved in a cross-sectoral collaboration considering building a social finance fund, financial product, or strategy on your city, please contact Katie Gibson (kgibson at marsdd.com), Manager, Community Finance Solutions. She can discuss with you how you can join the network and receive capital advisory support from the MaRS Centre for Impact Investing. Leaders from across the public, private, and community sectors are invited!

Originally published by Katie Gibson on SocialFinance.ca

Share

WIN UP TO $75,000 FOR YOUR NEW SOCIAL ENTERPRISE!

The Toronto Enterprise Fund is pleased to announce the launch of its 2015 Business Plan Competition. The competition is open to non-profit social enterprises that provide transitional or permanent employment for people who are marginalized. A social enterprise is a business operated by a non-profit that sells goods and services in the market place, for the dual purpose of generating income and achieving a social, cultural or environmental goal.

This year, the deadline for submissions to the Competition is October 9, 2015. The first place winner can receive up to $75,000 in seed funding. A total of $155,000 is available for the winners.

To enter the competition, your organization or group must be a non-profit social enterprise, attend all the workshops (see content and dates below) and submit a comprehensive business plan including a feasibility study and financial projections. For more details on eligibility, please read through the eligibility criteria of the Business Plan Competition . If you plan to submit a business plan to the competition, please contact us to talk about your submission.

Contact Shahil at (416) 777-1444 ext. 365 or sthomas at uwgt.org, or Heba at (416) 777-1444 ext. 238 or hwahby at uwgt.org.

Business Plan Development Mentor

TEF has recruited qualified volunteers to support enterprises that are ready to develop their business plans. The volunteers will provide mentorship and coaching to the organisation and be the enterprise champion.

2015 TEF Business Planning Workshops

The Toronto Enterprise Fund (TEF) requires that all prospective applicants to the Business Plan Competition ATTEND ALL FOUR WORKSHOPS presented by TEF.

TEF will host the following workshops during 2015 to help prospective competition participants and all other non-profits, regardless of their level of readiness, develop a business plan.

Source: Toronto Enterprise Fund

Share

This op-ed was originally published in The Hill Times, April 13, 2015

The recent media coverage of the proposed layoffs of dozens of developmentally disabled people in Ottawa due to the end of a 30-year contract for paper disposal with the federal government has sparked well-founded interest and concern. For people with disabilities, these employment opportunities represent much more than simply jobs  they also provide a source of self-esteem, income, social networks and dignity.

Although the public outcry has won a reprieve in this particular case, the fundamental issue across all of Canada is how to create fair employment opportunities for persons with disabilities and other barriers to employment, especially when the employment also provides vital social inclusion.

One solution that is emerging is called social enterprise.

Social enterprises are businesses operated by non-profit organizations for the blended value of generating income from sales and creating a social impact. Like any business, the social enterprise model places strong emphasis on producing a service or product that meets consumer demand and need. As a non-profit organization, though, the model ensures that, rather than focus only on profits it generates social value as well, such as targeted and supported employment opportunities.

The social enterprise model offers the potential for leveraging social value from existing government procurement and private sector supply chains. By purchasing from social enterprises, government and businesses meet two objectives simultaneously: the creation of targeted employment opportunities for persons with disabilities, youth at risk or anyone facing barriers to employment, all the while ensuring theyre receiving quality products without additional costs.

Not surprisingly, the model has been growing in popularity in Canada as it offers non-profit organizations and charities a more sustainable, self-reliant future. More specifically to the context at hand, organizations are increasingly discovering that their social objectives and the health and success of persons with disabilities can be effectively met under this innovative business model called social enterprise.

Take Vancouver-based Starworks Packaging and Assembly. The social enterprise, established by the Developmental Disabilities Association (DDA), provides employment to over 50 individuals with developmental disabilities. Workers receive financial gain, an accessible work environment and skills training. Over in Winnipeg, ImagineAbility is a social enterprise that provides packaging and assembly services and meaningful employment to over 200 people with intellectual disabilities. Both social enterprises build employee training and workplace support into their business models, ensuring theyre embedded in their vision, culture and long-term strategies.  

Governments on all levels have taken some valuable initial steps to support social enterprise across Canada, and businesses have begun the process of adding social value in their supply chains, but we have a really long way to go.

The upcoming Canadian Conference on Social Enterprise in London, Ontario April 22 to 24, will bring people together from across the country to discuss and explore the value of social enterprises and their social impact. Considering the importance of these discussions and the various first steps starting to take shape among all sectors, there is perhaps no better time for the support of community-based social enterprise efforts.

Let’s all work together to achieve social impact and financially sustainable solutions so that persons with disabilities, and others who want to work, have that chance. 

David LePage is Chair of the Social Enterprise Council of Canada and Michael Toye is Executive Director of the Canadian Community Economic Development Network

Share

Provincial, territorial and local government spending across Canada is in excess of $400 billion annually. And even at these current levels, budgets continue to be squeezed, cut and restricted. Meanwhile social challenges amplify, remaining unmet and driving us to find new solutions

One emerging solution is social purchasing. Social purchasing uses existing government spending to create an added social value. For instance, a government can ensure its building maintenance contracts provide employment and training opportunities for people on social assistance. This means government infrastructure investments are simultaneously easing the financial strain facing our social assistance, health, and justice systems.

The Primer on Trade Agreements for Social Purchasing offers a brief review of the key trade agreements that influence provincial and municipal procurement discretion and how they affect social purchasing. The report was published by the Canadian CED Network in partnership with Accelerating Social Impact CCC

By targeting existing purchasing for needed services or supplies to social enterprises, government spending can tackle social challenges without new spending, nor compromising service or product value. Social purchasing means public spending goes further for our communities. It means our governments get more value out of their spending.

Many government policy makers and purchasers believe Canada’s trade agreements limit, or even prohibit, them from considering social purchasing as an option. However, this is not the case. Canada’s obligations only apply to procurement contracts valued above certain thresholds and there are specific exemptions that may apply when seeking to implement social purchasing.

Download the Primer on Trade Agreements for Social Purchasing

Share

Public sector procurement objectives are quite predictable and intuitive – find savings for other departments to be able to meet their budgets. Why do municipalities, as an example, have a procurement department? The rationale is that supply chain professionals know how to put deals together, can understand the world of competitive bidding and the applicable laws, trade agreements, and principles of buying and are good at dealing with multiple contracts.

The need for municipalities to deliver value for money as it relates to infrastructure investment and operations requires a team approach. Engineers and operational staff design and procurement collaborate by putting their specifications into commercial documents for the private sector to respond to with competitive tension. We measure the performance of procurement by and large as to what the difference was on the budgeted amount and the final out-of-pocket cost. If favourable, the recognition goes to procurement.

This public sector means of doing business is based on the consumption of resources to provide goods and services to the taxpaying stakeholders. It makes sense to do this following best practice. Another concurrent opportunity is also present in each municipality. The ability to affect value on behalf of the taxpayers through procurement by engaging with social enterprises in their community.

Why should procurement take this step outside of its usual mandate and engage with social development? If a municipality is able to create meaningful employment for individuals through social enterprises, the municipality reduces its financial burden related to delivering conventional social services. By creating employment opportunities, procurement can contract for its requisite goods and/or services through social enterprises at very competitive rates meeting two important functions – providing value for money and building social capital.

What is social procurement?

Social procurement is utilizing procurement policies and practices to affect social impact. Procurement can run a competitive process and/or make a direct award to a social enterprise to deliver goods and/or services.

Social impact results in measureable improvements in the living standards of individuals, groups and communities. This is the noteworthy component of social procurement – building the social capital within the community. Society acknowledges that there will always be a requirement to provide food, shelter, clothing, and health services to those who are unable to care adequately for themselves. By removing the stigma attached to charity or conventional social services and providing meaningful work to many individuals who are typically under-employed, procurement can contribute in an important way.

What is a social enterprise?

Social enterprises are the bridge between the under-employed and the public workplace. Social enterprises operate as non-profit organizations to provide work to the under-employed, disenfranchised, or people with other employment barriers. The under-employed often have employment barriers but have the desire and capability of working. They need the opportunity. Many private sector companies are engaged with social enterprises as well.

It is not a zero sum game of taking away business from the private sector and giving work to a social enterprise. Social enterprises complement the private sector. Social enterprises usually have a targeted employee focus such as new immigrants who learn sewing and production skills; or people with mental illness who learn how to assemble and package safety kits. While some social enterprises are started with grants, few rely on those grants to continue operating. Social enterprises must be financially sustainable.

What types of goods or services can they provide?

To name a few – assembly, banners, couriers, cartage, carpentry, catering, custodial, construction, demolition, distribution, drywall, electrical, fencing, graffiti removal, landscaping, packaging, pressure washing, roofing, sewing, snow removal, tile, upholstery, window cleaning, etc.

All of these types of goods and services are required on a daily basis in all municipalities or on a seasonal basis. These contracts may be awarded under competitive bids, direct awards, or pilot programs as part of a larger economic development strategy.

Can the benefits of social procurement be quantified?

The 2013 study by Ernst & Young for Vancouver-based Atira Property Management provides a very good insight into the business case for social impact. Summarily, this report indicates that for every dollar spent with a target employee group, the social return on investment is ~$3.50! This study was based on a target group of 105 employees which had the economic multiplier effect of generating over $600,000 in the local economy.

This study revealed several key facts. Meaningful work represents a society’s values and expanding the opportunities pays dividends. There is a reduction in crime-related costs, reducing housing and shelter costs, less dependence on food banks and social assistance and an improvement in health, quality of life, and employability. Most of the target group’s living expenses are spent locally in the form of taxes and with local retailers which is a redistribution of the wealth to the community.

The message here is that public procurement should work with social enterprises to expand the opportunities to continue this type of success. It’s not that this isn’t being done today – it’s just that there is so much room for expanding the role for supply chain professionals in this area. This implies that how we measure the performance of procurement may need to include social engagement as a factor.

Another quantitative example in the lower mainland is provided through a recent report by Starworks Packaging & Assembly. Starting with 7 employees 15-years ago, it has paid $1.8M in wages and now employees ~45 employees with a payroll of $250K per year. This could be extrapolated to represent a social impact of $750K per year!

Starworks provides services to public and private sector organizations. Starworks offers high quality services at very competitive rates. Their employees are paid at minimum wage rates within a safe working environment. Many of their employees faced employment barriers but were given the chance to show their worth.

Starworks’ employees pay taxes and contribute to the local economy through their living expenses. They support local businesses, arts and entertainment. Their self-esteem improves through the meaningful employment they have and this in turn provides them with a healthier and more independent life style. The attention is on the prevention rather than the cure.

Public procurement should seek input form social service specialists and economists when engaging with social enterprises and when evaluating the competitiveness of their proposals. Being a tax-supported organization, the public entity should explore the many ways to contract with social enterprises which are trying to build and contribute to the community social and economic interests. Social enterprises are helping to reduce operating costs for several branches or levels of government and should be viewed as an asset and not just an expense in terms of fiscal management.

How do I begin to engage with social enterprises?

They operate the same as any small business. They have a need for sales and revenues and welcome the business opportunities afforded by the various levels of government. Holding forums with social enterprises is a great way to find out who they are and what they can do. Reverse trade shows are also another means of contacting social enterprises. Meeting face to face and looking for the mutual benefits is a start.

Buy Social Canada is an organization with a focus on building social and economic development through social enterprises. They have the expertise and contacts to facilitate business partnerships. Buy Social sees the important role which can be played by procurement professionals.

Who are some of these social enterprises?      

The Vancouver lower mainland has many including: CleanStart, The Cleaning Solution, Common Thread, Embers, H.A.V.E., Mission-Possible and Starworks Packaging. They offer a wide range of goods and services.

Does this mean more work for procurement?

I would argue that it is not more work – it is different work. It is less focused on cost savings and more on enabling social value. Juxtaposing social and economic development along with environmental issues, really adds value. As procurement is the conduit between governmental needs for goods and services and the market, it is a natural move for procurement to adopt a more assertive role. The buyer becomes a broker in these situations. Brokering implies finding the right social enterprise to provide the services at competitive rates and capacity and matching them to the specific organizational needs. Brokering can also mean having a portion of the overall contracted goods or services with much larger sales organizations be supplied through social enterprises in local community partnerships.

Social enterprises that have been in business for a while can be treated much the same as other established businesses. They can be measured on price, quality, delivery and service performance. The distinction of the social enterprise is its non-profit business model and its purpose-based mission statement. Social enterprises are not impeded by the need to generate profits neither are they operating to subsidize social services. Social enterprises can be judged on their own merit.

As public procurement is funded directly by taxpayers, for the good of the taxpayers, it makes good sense to look at the ways to provide services through social enterprises to optimize the benefits to the taxpayers. That is buying, into the future.


Larry Berglund, SCMP, MBA, has been involved in supply management for 35 years, with experience in the forest industry, public health care, municipal government, university operations, and consulting services. He has taught accredited courses at the British Columbia Institute of Technology, the University College of the Fraser Valley, Kwantlen Polytechnic University, and UBC Continuing Studies, as well as supply management courses, seminars, webinars, and workshops for business and professional associations.

Larry writes on a wide variety of supply chain topics including operations management, negotiations, sustainability, corporate social responsibility, inventory management, and strategic management. He also conducts onsite operational reviews. Larry is the principal of Presentations Plus Training & Consulting Inc.

Share

Canada’s Social Impact Organizations Celebrated with Biggest Prize Package Ever
Over $200,000 in Prizes Available!

Created by the Trico Charitable Foundation in 2011, the biennial Social EnterPrize Awards celebrate Canadian social enterprises that demonstrate best practices, impact and innovation. Social enterprises are organizations, for-profit or not-for-profit, that blend financial success and social impact by using markets to solve social problems.

“The Social EnterPrize celebrates Canada’s best and brightest in what may well be the most powerful idea of our time, that we can use markets to directly solve the biggest social problems facing the world,” said Dan Overall, Director of Collaboration and Innovation at the Trico Charitable Foundation.

The 2015 edition of the Social EnterPrize will honour four of Canada’s leading social enterprises. Each of the recipients will receive:

  • $25,000 prize money
  • $5,000 in consulting services from the Business Development Bank of Canada
  • A video profile
  • In-depth profile in a case-study done by a Canadian post-secondary institution
  • Travel, accommodation and registration for Canada’s leading social finance gathering, the Social Finance Forum, in Toronto November 12-13, 2015
  • Participation in a 2015 Social Enterprize recipients’ dinner with four of Canada’s leading social finance experts (the private dinner will be held at the Social Finance Forum, in Toronto November 12-13, 2015).

The awards will be formally presented during a luncheon on November 12, 2015 at the Social Finance Forum in Toronto.

View details on the eligibility requirements and guidelines

Begin the application process

See videos of previous winners

Completed applications are due by 4 pm MST, May 29, 2015.

Source: Trico Charitable Foundation

Share