1. Christopher Herriot Senior Lecturer De Montfort University
“THE SOCIAL ENTERPRISE: AN INSTRUMENT OF SUPER-EXPLOITATION OR OF SOCIAL CHANGE?”
Christopher Herriot
Senior Lecturer
De Montfort University

2. Capitalist Development
Historical Materialism – constant change;
Karl Marx & Adam Smith;
Classic Liberalism to WW1 & 1929;
Endemic Booms & Slumps;

5. Capitalist Development
Hayek & Friedman – Neoliberalism;
The End of History;
The Crash of 2008;
Brave New World of Super-Exploitation

6. The Social Enterprise
The Social Enterprise Alliance suggests the following basic working definition:
Organizations that address a basic unmet need or solve a social problem through a market-driven approach.

7. Social Enterprise?

8. The Social Enterprise
Social enterprises should:
Have a clear social and/or environmental mission set out in their governing documents;
Generate the majority of their income through trade;
Reinvest the majority of their profits;
Be autonomous of the state;
Be majority controlled in the interests of the social mission;
Be accountable and transparent.

9. The Social Enterprise
“To boldly go where no one has gone before”

11. The Big Society
the NHS should become 'the largest social enterprise sector in the world‘;
the government committed to promoting greater competition in the health service by allowing any qualified provider to deliver services….
….a fig leaf for privatisation?

12. Private Profit or Social Good
There is no nexus between private profit and social good;
Every penny or pound taken in profit is a penny or a pound lost from the social aims of the enterprise.
For example,

13. Private Profit
Private profit is the unpaid labour of the working class
3 basic means of increasing profit:-
Extend the working day;
Intensify the working day;
Cut the share going to labour – cut wages!

14. Good business practice?

15. Starbucks Tax Breaks
Coffee shop sales have surged by 37 per cent - around £1 billion - since 2011 to reach £3.4billion, according to retail analysts Mintel
Starbucks UK paid just £6.7m in tax last year despite this…..

16. Good business practice?
Amazon, Facebook, Google UK and Starbucks – have paid just £30m between them in tax over the past four years despite generating more than £3.1bn in sales;
The Starbucks model is to bill the UK from Starbucks in the Netherlands to wipe out its profits, thereby avoiding tax…..

17. Good business practice?
Grenfell Towers – 181 tested, 181 failed.

18. Good business practice?
The human being as commodity?

19. Good business practice?

20. Modern Slavery
The Modern Slavery Act was introduced into UK law in 2015;
It states an offence is committed if someone holds another in slavery or servitude or requires them to perform forced or compulsory labour;
The legislation also increased the maximum jail term for people traffickers from 14 years to life.

21. Modern Slavery
The 2016 global slavery index, funded by the Walk Free Foundation, says 45.8 million people are trapped in some form of slavery;
The International Labour Organisation (ILO) estimates that 21 million people are trapped in forced labour;
There were 12 million Africans displaced in whole period of the Transatlantic Slave Trade!

22. Good business practice?
Oxfam 2013 – 85 people have more wealth than 3.5 billion people (50% world population)
Oxfam 2015 – 62 people have more wealth than half world’s population
Oxfam 2017 – 8 people have more wealth than 50% of world’s population!

23. Every enterprise a social enterprise?
Conclusion
Every enterprise a social enterprise?

24. References
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25. References (ctd)
Galbraith, J.K. (1987) The Great Crash 1929, Pelican Edition, London: Penguin Books
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Kaletsky, A (2010) Capitalism 4.0 – The Birth of a New Economy, 1st Edition, London: Bloomsbury

26. References (ctd)
Marx, K and Engels, F (1986) Manifesto of the Communist Party, 1888 Edition, Moscow: Progress Publishers
Marx, K (no date) On the Question of Free Trade, [www] Available from:- [Last Accessed:- 11th January 2015]
Minsky, H (1992) The Financial Instability Hypothesis, [www] Jerome levy Institute of Economics, [last accessed: 11th January 2015]
Mitchell, W.C. (n.d.) Business Cycles: The Problem and Its Setting, [www] [Last Accessed:10th January 2015]
 Piketty, T (2014) Capital in the Twenty-First Century, Cambridge (MA) & London: Harvard University Press
Schneider, M (Ed.)(n.d.) Sismondi’s Macroeconomic Model: An Annotated Translation, HETSA [www] [Last Accessed: 30th December 2014]
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Social Enterprise Alliance (2017) [www] [Last Accessed: 14th November 2017
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Wilkinson, R & Pickett, K (2010) The Spirit Level, Revised Edition, London: Penguin