What social economy is NOT
- Be the first to comment!
- 27 Apr
- Read 32620 times
Although it is relatively difficult to specify in absolute terms which initiatives form part of what we call “social economy”, it is relatively easy to provide a series of examples of what social economy is not.
This issue is particularly relevant to Greece, as the term is repeatedly accompanied in the media by references to business or charity practices that have nothing to do with social economy.
With this in mind, we could say that the following are NOT examples of social economy:
State social policy or church charity
The State can and should conduct social policy based on the needs of society and the redistribution of taxes, which, in any case, have nothing to do with any social economy notion.
For example, church charity is an activity carried out within its organizational structure and does not pertain to collective actions which either involve economic activities or operate in the spirit of solidarity.
Corporate social responsibility programmes - sponsoring
These programmes either concern private companies trying to compensate social groups disturbed by their activities or sponsoring activities of the State, local authorities and legal persons governed by public or private law. However, they are not social economy practices.
They usually pertain to tax exemptions for the companies or business deals between said companies and various entities. Allthoseworkingonsuchprogrammes are subject to the rules of the market, while those in charge of the programmes are company executives who manage them according to sponsor needs and interests.
Foundations
Foundations are governed by their respective legal frameworks, which explicitly define their structure and operation. Their BoDs are in most cases appointed, there is a distinct hierarchy and in the event they do not show a profit, they are audited by a supervising public entity.
Non-Governmental Organizations – NGO
NGO actions constitute a structural contradiction, as in most cases, they are anything but non-governmental, with their activities strictly controlled by state funding, which in some cases is preposterously high.
The salaries of people working in them are regulated via programmes the State implements through them and are predetermined. NGO management acts autonomously and hierarchically within the private sector.
Cooperatives established by order of elected officials to cooperate with the local authorities they manage
These are hybrids created in several municipalities where local elected officials either put pressure on or suggest to their employees to establish cooperatives in order to either manage municipality operations or undertake actions using municipal property.
These cooperatives are trapped in their municipality contracts and everything, even their structure and operation, is determined by local authorities.
Cooperatives established by professionals who seek to prolong their profitability under a different guise
Such cases are usually cooperatives where the managing members have the same profession as the cooperative scope, as set out in its articles of association.
These are attempts to raise profits in crisis-stricken private companies, which suddenly call themselves social businesses and their owners suddenly become social entrepreneurs.
All of these, together with the very bad examples of certain agricultural cooperatives, constitute the multi-faceted context of a series of practices that, either on purpose or due to ignorance, seem to represent social economy in Greece today. These endeavors satisfy a great number of needs, but have nothing to do with what social economy potentially represents.
A special category is Greek cooperative banks, which may have reached 14 in number, but their future is relatively uncertain. These banks are controlled in much the same way as commercial ones. It is worth noting that for a cooperative bank to be considered different than the rest, it should also apply the principles of solidarity to its credits.