Ways People Around the World are Engaging in the Social Economy (Essay Sample)

Social Economy
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Ways people around the world are engaging in the social economy
A social economy can be defined as a sector of the economy which mediates between the private sector and the public sector. The aim of a social economy is to work together to ensure that the public benefits from an economy. Some of the organization put in place which is in line with the principles behind the social economy includes cooperatives, nonprofit organizations, charities, social enterprises among others.[Quarter, Jack, Laurie Mook and Ann Armstrong. Understanding the Social Economy: A Canadian Perspective. Toronto: University of Toronto Press, pp. 3-39, 2009.]
The social economy enterprises have different ways that they use to ensure that people in the world achieve social economy. This is through coming up with strategies that will ensure that productivity and competitiveness among people are achieved. Maximizing productivity and competitiveness is one of the principles behind a social economy. This is done through ensuring that people within a community/ area work jointly in order to maximize productivity. Through increasing competitiveness, a social economy ensures that organizations are established in such a way that they operate for the benefit of the whole community.[Nicholls, Alex. The social entrepreneurship: New models of sustainable social change. London: oxford university press, 2008.]
Another way in which these organizations have engaged in social economy is through contributing to wealth creation in a socially inclusive manner. This implies that people work collectively in the creation of wealth. Through these, most of the social economy have come up with initiatives which are aimed at enabling individuals as well as the communities to renew the local neighborhood. This implies that the local communities are empowered so that they can work towards achieving their own general good. Most organizations especially non-profit organizations are working to ensure that people around the community are empowered. They do this through equipping people within the community with skills and competencies that will enable them to achieve a social economy.[Quarter, Jack, Laurie Mook and Ann Armstrong. Understanding the Social Economy: A Canadian Perspective. Toronto: University of Toronto Press, pp. 3-39, 2009.]
A social economy is also based on ensuring that it delivers services to members of the community rather than working to seek financial returns or profits. Most of the organizations which exist today, especially the ones based on social economy principles are applying this principle. They develop strategies to ensure that the general community benefits from their existence. This is done based on mutual benefits. Mutual benefits imply that the organization gains from its existence in a certain place as well as other communities. A social economy is usually not in line with the principles which are behind privatization. This is because, for privatization, organizations are usually based on generating profits for the benefits of an individual.[Thierry Jeantet, Jean-Phillipe Poulnot. The social economy: A global alternative. South African local government association, 2 (2): 210-250, 2007.]
A social economy is based on democratic decision-making. Democratic decision making ensures that decisions made within an organization promote fairness and collectiveness. This ensures that decisions made are dependent on a group rather that an individual. An organization such as cooperatives, social enterprises as well as non-profit organization usually works together with the community and incorporates their ideas during the decision making process. Decision made are usually based on the principles of empowerment and all-inclusiveness.[Nicholls, Alex. The social entrepreneurship: New models of sustainable social change. London: oxford university press, 2008.]
A social economy is always behind the principles of autonomous management. By autonomous management, this implies that most of the existing business processes are not controlled by the governments. This is the main reason why some organizations have emerged in the world today. These organizations include cooperatives, nonprofit organizations, charities, social enterprises among others. Autonomous management works to ensure that the general good of the public is achieved as seen in most social economy organizations. Autonomous management can be defined as a business management system whereby the employees, as well as other workgroups, gets the chance of managing their own processes rather than having activities related to work managed by the general management board or the senior managers. The social economy currently applies autonomous management to ensure that members of the organization passionate to achieve their goals and ensure that productivity is achieved. In most organizations, autonomous management is applied through having an open-door management system. Through autonomous management, it is possible for collective decisions to be made within an organization at all times.[Thierry Jeantet, Jean-Phillipe Poulnot. The social economy: A global alternative. South African local government association, 2 (2): 210-250, 2007.]
Most of the social economy organizations operate based on the principles of participation, empowerment as well as individual and collective responsibility. Participation is important because it gives a sense of ownership of projects initiated for the benefits of the general community. Through this, it is possible to work to ensure that the general community benefits from the existence of an organization. When people participate in a project they get empowered. Again, social economy enterprises work to ensure that community members get empowered so that they can achieve their goals and objectives through working when they are motivated. These organizations regard employee empowerment as a very important popular management concept of the current time.[Nicholls, Alex. The social entrepreneurship: New models of sustainable social change. London: oxford university press, 2008.]
The social economy organization also apply the social economy principles through increasing social inclusion and reducing inequalities which might exist. The aim of these organizations is to create an economic value for their existence. It is for this reason that organizations behind social economy develop at a very high rate around the world. These organizations are considered as vibrant agents which are in existence to ensure that there is local as well as national development in the economy. Further, the organization works to ensure that there is an all-inclusive growth as well as a shared propensity through creating more job opportunities, ensuring that there is environmental sustainability as well as re-integration of people who are vulnerable to the society as a whole.[Thierry Jeantet, Jean-Phillipe Poulnot. The social economy: A global alternative. South African local government association, 2 (2): 210-250, 2007.]
The aim of a social economy is to ensure that it demonstrates an inclusive and an active society. It also has the aim of ensuring that new ways are initiated to deliver public services. Currently, in the world of today, there are various ways which organizations can evidently be seen to participate in ensuring that they achieve a social economy. This is through focusing on technological development to improve efficiency as well as productivity.[Nicholls, Alex. The social entrepreneurship: New models of sustainable social change. London: oxford university press, 2008.]
An example of an economy where the practices in support of the social economy have been applied is in Europe whereby a significant population of people who live in Europe's economy has placed strategies to ensure that the economy is mainly intended to make profits for people in general rather than making profits for the owners or investors within a business. This is a major characteristic of social economy which is seen in the world of today. The application of the social economy includes the cooperatives, societies which are founded on a mutual basis, Non-profit associations, social enterprises as well as other foundations. Within Europe, these organizations operate a broad range of services, especially in the commercial sector. These organizations also provide a wide range of products as well as services across European markets with the aim of generating jobs for the benefits of the general communities. These enterprises or organization is also known as social enterprises are seen to be an engine which ensures that social innovations are achieved. Within Europe, there are over 2 million enterprises which operate under the principles of the social economy. These enterprises give a general representation of around 10% of all business within the European Union. Within Europe more that 10 million people, which gives a representation of around 6% work for organizations or enterprises which are based on social-economies. These organizations run in different sectors which include agriculture, banking, and workshop among others. Generally, the social economy organizations have a primary objective of ensuring that they provide services to their members. The focus is not on profits and returns to investments. This is what most of the cooperatives, non-profit society, credit unions among others do. These organizations act behind the principles which are in line with solidarity as well as mutuality. These organizations also manage their businesses based on the principles behind a one man's vote. This implies that there is collective decision making within social economies. Most organizations whose principles are in line with the social economy always work through the formulation of policies or corp...