Cheryl Kernot Session – Summer Forum

Video link at the Summer Forum  Cheryl Kernot – topic The Changing Social Landscape:

The following was live-blogged at the TheMHS Summer Forum

• new sectoral relationships
• new organisation forms
• new forms of finance
• why is all this happening now? combination of factors we have increase in wealth, increased life expectancy, under collapse of faith in heirachies individuals respond to that include govt moving to free markets, increases in freedom for individuals, the rise of corporate power, when you overlay that with rising crises, health environmental, economic inequality, contrasting world and there are people saying  I want to do something about this – there are new forms of social action – led by social entreapeneurs, big focus on social capital, social innovations
• Social Entrepreneurs have responded by approaching society and its organisations differently
• We used to have three distinct sectors private, public, third sector/civil society – (non profits, ngos)
• We see  more overlapping of parterships between all the sectors -hybrid
• Marrying entrepeuarial charastics with the social purpose focus (mother theresa meets richard branson)
• The model is about creating social value – not to create shareholder wealth, primary focus on creating social value with reinvesting the profits into the core purpose of the business
• Example is the Grameen Bank – they challenged the status quo – people have no collatoral so lets get around that – poverty in Bangladesh, gave money to women, yet 99% repayment from these businesses – this model has now been replicated around the world, ideas such as microloans – touch lives half billion family members
• Example 2 – a not for profits drug company – One World Health – by Victoria Hale – identified a drug whose patent was lapsing, took drug to clinical trial it is being used in India, she relies on some input from the Gates Foundation, but wants to drive the price down, make available to the poorer consumers of the world
• Example 3 – social business in Scotland – core product is lunch but purpose is to bring people with mental health problems into contact. Called Rolls on Wheels – provided employment
• Example 4 – creative partnership – idea to reduce landfill, person was engineer, he collected unwanted office furniture, HSBC had surplus workstations, they should dispose of equip more responsibily, offer to shift 8000 workstations – the model is important – this small social enterprise and negotiated advance on contract, now the business is called Green Works – making waste work for the community, all the employees have mental health issues – it is a profitable business
• Example 5- water bottle made out of corn starch, water locally sourced, dont export it, all the profits go to clean water projects in underdeveloped countries - marginally more expensive – the impact of the purchase is much greater than simply maximising wealth of private shareholders
• Example 6 – Play Pump – as kids play they are helping to pump the water – there is advertising on the pump – to help pay for maintenance – it is replicated over Africa
• Example 7- UK example, very skilled tradesman supervises employees – variety of organisations  discussed such as Busy Bodies, Ridge House, the profits go back into public health
• Example 8 – Canadian example – Coast Social Enterprise Foundation – profitable businesses that provide employment opportunities for those with mental health issues.
• Example 9 – Landscaping with Heart – similar business format
• SROI – Social Return on Investments  discussed, The UK Govt has put time into this impact measuremet tool – measures social impact, it uses an Impact Map to describe the change and the value of that change.
• So where does the $ come from? social investment options: charity banks, wholesale microfinance, venture philanthropy funds , social investment banks and others.
• In the UK they are looking at bringing together all the dormant bank accounts, a social stock exchange exists in Brasil,
• We could reorganise the way money is invested in the community in Australia – example for accomm for those with disabilities, in the UK there are ‘community shares’ – happy to support vulnerable members of the community at 3.5% return, we would probably get good response in Australia
• All over the world good examples of countries all over the world US, UK, Spain setting up social innovations
• Locally in Wollongong NSW – there is a mattress recycling – social business – bringing together ex-offenders, those with mental health issues – good example.
• Slide listing Infoexchange, STREAT, BigHeart Enterprises – businesses in this area
• In summary the social landscape is seeing huge social change away from reliance on charity and grants- much more about creative income generation. We need to let go of non-profit and profit distinction but how can we harness profits that put back into the social community, there needs to be a reassessment of “Not for Profit” terminology.
• Lots of exciting things happening out there, possible to imagine more creative futures around mental health, the rights of those with mental illness to employment and training, the concept of social enterprise it wont replace trad business but it will impact and offers a new range of creative options.