Social Innovation is the Sole Preserve of Third Sector Organisations (Coursework Sample)

‘SOCIAL INNOVATION IS THE SOLE PRESERVE OF THIRD SECTOR ORGANISATIONS’
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Recently, Policy makers, support agencies, academics and other stakeholders have shown a lot of interest in social innovation. As a result, greater emphasis has been placed on what exactly the meaning of social innovation is and how it can be categorised as a social activity or business. Many key players characterise their activities as social innovation. Social innovation eXchange (2010) defines social innovation is an innovation that is social in both its ends and means. Particularly, it is new ideas (services, products and models) that concurrently meet the social requirements (more effectively than alternatives) and generate new social relationships or partnerships. Social innovation is good for the society, and it enhances a society’s ability to perform. In most cases social innovation is connected to third sector organizations (TSOs) (organizations that are neither public nor private, for example, voluntary and community organizations and self-help groups). But, today, public and private organizations among others have adopted social innovation. Social innovation solves social problems and potential threats of social entrepreneurship (Harlock, 2013). This is why policy makers and governments promote social innovation initiatives. Since social innovation works by building and delivering social value, this paper critically discusses ‘Social innovation is the sole preserve of third sector organizations.’
The grant/social Third sector social innovation
Social innovation mostly occurs in the third sector, for instance, in social movements, campaigns non-governmental associations and associations. Though it is fragmented and operates in small scale, the third sector acts holistically and advocates for the needs of the people more than other sectors (INNOVATE, 2014). The third sector uses various new tools and methods to grow and support hopeful ideas. The third sector does well in generation of ideas. Third sector organizations such as social enterprises and Not-for-profit organizations have contributed to community empowerment. This is because they address specific local issues. They are deeply founded in local communities. Though financial crisis has impacted greatly on the third sector, the organizations are still struggling to exist by using alternative ways of provision for the society’s social needs (Mulgan, 2007).
The grant economy and civil society are the most common places of social innovation. It is highly engaging in the economy; through mutual, social enterprises, cooperatives and associations. Two million enterprises belong to the grant economy that is, 10% of all European businesses which offer jobs to more than eleven million workers, equivalent to 6% of the working population in Europe (Murray, R., Caulier-Grice, J., & Mulgan, 2010). Seventy percent of these work in not-for-profit associations, 26% in cooperatives and the remaining 3% in mutual. Social innovation enterprises occur in approximately every part of the economy, for instance, agriculture, insurance, banking, health and social services, craft, and various commercial services. Though the social economy is a bit smaller than the public sector, it is also aimed at innovation including activity in social entrepreneurship and increased interest. But, its efforts are informal and irregular. The civil society is often not well positioned to create rigorous innovation methods. It also lacks R&D capacity, has structures that are not fit for scaling and does not increase risk. Consequently, it requires more effective ways of designing, trying and distributing more effective models (Moulaert, Martinelli, Swyngedouw, & Gonzalez, 2005). In a few cases, there is demand in the thriving NGOs, umbrella organizations and smaller newer associations. An example of a third sector organization which contributes to social innovation specifically by providing employment to the unemployed in the society is ‘The Big Issue.’ It is a magazine sold by the long-term unemployed and homeless people. Vendors purchase copies at £1.25 and sell them at £2.50 (Sanzo-Perez, Alvarez-Gonzalez, & Rey-Garcia, 2014). Since its launch, the magazine has assisted many vulnerable people to take charge of their lives. They are granted a chance to make a genuine income.
Third sector organizations are specifically suitable for contributing to social innovations majorly than other sectors. Committed to change manifestation, third sector organizations are an important power in social innovation. Leadbeater (2007), states that in communities, not-for-profit sectors play a significant role in social innovation. This is specifically seen in post-community societies. For example, though local people were involved in social innovation and voluntary action prior to 1989, after the disintegration of communism, third sector was much visible than before. According to Poole (2003), "Through innovation nonprofit organizations find ways to use scarce resources wisely, acquire new resources, and improve the value of their services. Effective innovation is one key to the nonprofit sector’s ability to improve our quality of life and the health of the polity." For instance, The ‘London Re-use Network’ is a body consisting of social enterprises, charities and non-profit organizations that ensure re-use in London. The organization collects unwanted appliances, household items, and furniture. They are then checked for safety and quality before passed into new news. This organization aims to change the people’s thinking about discarded items. In doing so, it shows people the importance of re-use in attempt to save both money and the environment (greenworks.com).
Third sector organizations impact social innovation through a high degree of visibility and influence (Weerawardena, & Mort, 2010). There are structural and value-based properties that enable third sector organizations to play a significant role in social innovation. First, both third sector organizations and social innovation are similar in respect to social needs course, which is an important prerequisite for their work (Nock et al., 2013). Second, Osburg (2013) highlights that here is a greater emphasis on the fact that third sector organizations give voice to minority groups as well as expose and address their societal challenges. Third, part from their advocacy duty that plays an important role in lobbying needs and in communication, third sector organizations detect such needs as well. Forth, Anheier & Korreck (2013, p. 85), state "The change potential of civil society stems from its structural location: close to the grassroots and the local level, civil society actors are usually the first to become aware of social problems of many kinds." Fifth, Third sector organizations have proximity to their intended groups. They have multi-stakeholder systems which send signals to the sector. In return, the sector ‘receives’ and then ‘sends function.’ This is a feature of organizational openness that is a critical moderator of innovation, as identified in a wide range of innovation studies (The Young Foundation, 2012).
The TSOs position within the society is relevant not only acts a detecting device but also significant in respect to stakeholder mobilization (Ronald, 2012). It is believed that third sector organizations can accomplish tasks that the market and the state cannot in respect to social innovation because they are accepted as the organizational personification of civil society. They create a link between individual groups and the society at large. They also incorporate those groups into the society thereby becoming part of change initiators and power distributors. Research done by Evers et al., (2014); Ranci, Costa, Sabatinelli, & Brandsen, (2012) explain that third sector organizations have a high level of social capital due to civic engagement and the positioning as described above. Also, Valentinov, Hielscher, & Pies (2013, p. 372) describe third sector organizations as "facilitators of social learning." This increases approval of innovations and, therefore, acts as an important variable in creating and maintaining the legality, which has proved so important for social innovation sustainability, viability, and ultimately impact (Zappalà, & Lyons, 2009).
Moreover, the advocacy and service responsibility of third sector organizations are termed as compatible (Valentinov, et al., 2013, p. 367). This relationship between the two responsibilities enables the TSOs provide for both that is the transformational and functional aspects of social innovation. Transformational function is important in promoting the third sector organization’s major device of societal problem-solving in putting into practice ideational and institutional innovations that help in overcoming dysfunctional inconsistencies (Verjee, 2010). This function enables third sector organizations to be well-positioned to influence government innovation that can be linked to social innovation. In regard to functional aspect of social innovation, it is important in that third sector organizations are not subject to similar pressure as commercial organizations (ballot box or market expectations) (Nicholls, & Murdock, 2012). Consequently, they benefit from an increased level of independence than public and private agencies. They also have the freedom to test new methods or advocate new issues. This encourages third sector organizations to endure, a characteristic that is crucial in respect to the long period required for building sustained social innovation (Ranci, Costa, Sabatinelli, & Brandsen, 2012).
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