1. Charities and Social Enterprises: A day for practitioners and researchers to discuss current challenges and escalating change
Early Experiences Applying the FairShares Model to Social Enterprise Development
Rory Ridley-Duff (and Mike Bull)
Aston Business School, 24th April 2018

2. Part 1 – Communitarian Pluralism and the Social Solidarity Economy
Point 1: dominant discourse (public-social-private), that organising is done through states, foundations and charities (redistribution), civil society (reciprocity) and private businesses (market). This is no longer a viable or defensible theory of the economy.
Point 2: alternative discourse (associative-cooperative-responsible) - based on societies, associations, cooperatives, mutual and responsible (social) businesses, is a product of the motivations that create the social solidarity economy (SSE).
Communitarian pluralism sits at the inter-section of the dominant and alterative discourse (Ridley-Duff, 2007) and can be expressed through any action that supports the development of a social solidarity economy (Utting, 2015).

3. Defining social enterprise for this presentation
EMES
ENPs
SCs
SBs
Source:
Ridley-Duff and Bull (2018) ‘Towards an appreciation of the ethics of social enterprise business models’, Journal of Business Ethics, Figure 1.

4. Motivation to act… Activities directed by / towards others
Actions are self-directed
Benefit others
I'll help you to benefit others
I'll direct my efforts towards helping others
I'll help others without exploiting myself and share any benefits received with others
I'll help you to benefit myself
I'll direct my efforts towards helping myself
Benefit self

5. These motivations influence enterprise choices
Activities directed by / towards others
Actions are self-directed
Benefit others
Public service
Social entrepreneurship
Co-operative & mutual enterprise
Community action
Private enterprise
Benefit self

6. Underpinning socio-economics
Activities directed by / towards others
Actions are self-directed
Benefit others
Redistribution
Reciprocity
Market
Public service
Social entrepreneurship
Philanthropic
("Prosocial")
Co-operative & mutual enterprise
Cooperative
Community action
Private enterprise
Individualistic
Benefit self
Dreu, C. and Boles, T. (1998) "Share and share alike or winner take all?", Organization Behavior and Human Decision Decision Processes, 76(3):
Polanyi, K. (2001, [1944]) The Great Transformation, Boston: Beacon Press

7. Social Enterprise Types
Social & Solidarity Economy
Activities directed by / towards others
Actions are self-directed
Altruistic Communitarian
Pragmatic Communitarian
Benefit others
Redistribution
Reciprocity
Market
Public bodies
Public service
Social entrepreneurship
Philanthropic
("Prosocial")
Co-operative & mutual enterprise
Communitarian
Pluralism
Cooperative
Community action
Private enterprise
Individualistic
Benefit self
Social Liberal
Neo-Liberal

8. The SSE – the issue of definition
The social solidarity economy (SSE) is a term developed to embrace all the organisation types in the ‘alternative axis’
“The umbrella term is increasingly used to refer to forms of economic activity that prioritise social and often environment objectives, and involves producers, workers, consumers and citizens acting collectively and in solidarity”
Utting (2015), Social and Solidarity Economy: Beyond the Fringe, loc.
…cooperatives, mutual associations, grant-dependent and service-delivery NGOs, community volunteering, self-help groups, fair trade networks, solidarity purchasing, solidarity finance (complementary currencies/crowd finance), the sharing and collaborative economies.
Increasing focus on multi-stakeholder orientation and organisation, particularly through web-platforms (expression of communitarian pluralism).

9. The SSE – the issue of scale
Global employment in co-op economy (estimated) has risen from 100m (2011) to 279m (2017) (Coops UK, 2011; Eum, 2017).
European employment in the co-op economy estimated at 4.6m in (Avila and Campos, 2006) now 15.4m (Eum, 2017)
Fair trade: the proportion of small producer organisations (SPOs) (producer associations) has risen 73% to 80% between 2013 and (Fairtrade International, 2018), turnover now €7.88bn
Creative Commons: There are an estimated 1.2 billion works licenced with CC (growing at a rate of 761,000 a day).
Knowledge (outputs): 3m academic articles from 11,146 journals are now available through IS40A CIC. Research shifting to open access.
Knowledge (access): Wikipedia editors create 5 million new articles a year; 15 billion accesses a month (two for every person on the planet). (Wikimedia Foundation, 2017)
Mutual finance: 955m people have financial products from cooperatives and mutuals (ICMIF, 2016a; 2016b)
Summary claim: ICA estimates 3bn people ‘secured their livelihood’ through the co-operative economy (EURICSE/ICA, 2018).

10. Part 2 – Applying the FairShares Model
Sustainable co-operative enterprises that are legal persons designed to enfranchise primary stakeholders.
Investors
Users
Every FairShares enterprise recognises founders, labour and/or users as classes of member.
Labour
FairShares co-operatives and companies can issue shares to recognise financial investors as members.
Founders
FairShares values and principles can be operationalised through company, co-operative, partnership and association law.

11. Concepts in the FairShares Model
Consumer Co-operation
Social Entrepreneurship
Worker Co-operation
Founder Shares
FairShares Model
User Shares
Labour Shares
Investor Shares / Accounts
Supporting Institutions
Intellectual Property: managed as an intellectual commons. It is either:
Created in-house: owned by groups of Labour Shareholders, available to all members.
Bought/acquired: owned collectively by Labour Shareholders, available to all members
Labour cannot be alienated from the IP it creates (even when workers leave).
Ridley-Duff R. J. and Bull, M. (2013) The FairShares Model: a communitarian pluralist approach to constituting social enterprises?, paper to ISBE Conference, Cardiff, 11th-12th November, Figure 6

12. FairShares Model and Labs
Published June 2015 at the second conference of the FairShares Association.
FairShares Association Ltd incorporated in July 2015.
European FairShares Labs for Social and Blue Innovation, (Nov 2017 – March 2019), Erasmus+ Project

13. Mapping FairShares
(Early adopters and ‘relevant practice’ cases)

14. Tools for Planning FairShares
(Platform and Planner)

15. Mapping FairShares (Four Legal Models) Partnerships Companies
Cooperatives
Associations

16. Conclusion Early findings from the FairShares Labs project indicate:
New approaches to redistribution, reciprocity and markets through platforms for ‘associative’, ‘cooperative’ and ‘responsible’ social enterprise design.
Realisation of communitarian pluralism through enterprise education materials, platform support of multi-stakeholding, multi-stakeholder design tools and multi-stakeholder collaboration.
Legal expression of communitarian pluralism using existing bodies of law that prevent single-stakeholder hegemony (potentially compromised in practice).
Six FairShares Labs pilot projects take place in 2018 and a final project report will be published in 2019.

17. Rory Ridley-Duff r.ridley-duff@shu.ac.uk
Thank you!
Rory Ridley-Duff