The Way Forward: Achieving Socio-Economic Sustainability with SMEs by Benjamin R. Quiñones, Jr. Chairman & President Coalition of Socially Responsible SMEs in Asia (CSRSME Asia)

Global crisis of mainstream economic systems (capitalist & socialist): energy crisis, environmental crisis, food crisis, financial crisis, spiritual crisis  marginalization of less developed countries  Globalization of poverty: creeping poverty in both developed and less developed countries CURRENT SOCIO-ECONOMIC SITUATION

 Systemic limitations of the program-oriented approach and the community development approach.  Supremacy of global supply/value chains over communities & nation states

Building blocks of an economy 1- the enterprise 2- supply/value chains of enterprises 3- supply/value chains of enterprises + Government (G) + Private corporate sector (C) + Rest of the World (RW) Focal system Individual Enterprise Individual Enterprise Macro system Macro system Integration of supply chains of enterprises Mega system Mega system Integrated supply chains of enterprises+ G + C+ RW

Two kinds of enterprise in terms of motivation 1- COMMERCIAL ENTERPRISE (CE): mainly for-profit (single bottom line) 2- SOCIAL ENTERPRISE (SE) : mission-oriented, triple bottom line (social development, environmental conservation, economic sustainability) Individual SE Individual SE Integration of supply chains of SE Integrated supply chains of SE + G + C+ RW Integrated supply chains of CE+ G + C+ RW Integration of supply chains of SE Individual CE Individual CE The only difference between CE & SE is the MOTIVATION

TRIPLE BOTTOM LINE ECONOMY An economy that pursues the triple bottom line goals of social development, environmental conservation, and sustainability co-created by supply chains of SOCIAL ENTERPRISES & their allies in the country & from the Rest of the World Government, Private corporate sector Rest of the World Integrated SE Supply Chains

SOCIAL ENTERPRISE AS A VEHICLE FOR SOCIO- ECONOMIC TRANSFORMATION OF COMMUNITIES Theme of 3 rd ASEF, Kuala Lumpur, October 31-Nov 2, Cempaka Hotel, Cheras, Kuala Lumpur. Online registration Inquiries at Center for Public Policy Studies, ASLI

STRATEGIES FOR DEVELOPING SOCIAL ENTERPRISES? 1.Value Chain Development 2.Social Enterprise Stock Exchange 3.Fair Trade Market for Social Enterprises

STRATEGIES FOR DEVELOPING SOCIAL ENTERPRISES? Value Chain Development - Cluster approach: consolidation of social capital & finance capital - Economies of scale - Access to resource (expertise, finance, markets, & technology) - Capacity to compete in the market

Social Enterprise Stock Exchange -Impact Investment Exchange Asia (IIX) is a Social Enterprise (SE) with a social mission to provide greater access to capital for SEs in Asia-Pacific allowing them to grow more rapidly and expand their impact.

Social Enterprise Stock Exchange - IIX created IMPACT PARTNERS which introduces impact investors to a select group of pre-screened Asian social enterprises in sectors such as agriculture, clean technology, renewable energy, education, healthcare and microfinance. -Impact Partners is now live at

Fair Trade Market for Social Enterprises Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers – especially in the South. - World Fair Trade Organization

Fair Trade Market for Social Enterprises Fair trade is an organized social movement & market-based approach that aims to help producers in developing countries make better trading conditions and promote sustainability. The movement advocates the payment of a higher price to producers as well as higher social and environmental standards. In 2008, products certified with FLO international certification amounted to $4.08 Billion, a 22% year-year increase. - Wikipedia

THANK YOU! To gain more information on and contacts with SOCIAL ENTERPRISES, participate in ASEF 2011 October 28-November 2, 2011 Center for Public Policy Studies, ASLI