SENS

Glossary

Glossary of social entrepreneurship

Added Value

Added value is a particular or special contribution achieved as a result of our (business) activity. For example, through their social programmes, social enterprises can add value to the quality of public services or better fulfilment of needs of their beneficiary groups, but also have impact on the increase in social cohesion in society.

Asset Lock

Asset Lock applies to all financial provisions designed to ensure that the company assets, focused on the interests of the community (including the profits arising from its activities) are used exclusively for the benefit of the community.

Community benefit clauses

Community benefit clauses may be involved in the public procurement procedures or tenders and in that case socially and environmentally responsible companies or social enterprises are preferred. Clauses of social significance are often supported by strategic documents on the development of the community and are most commonly used in the procedures of local governments.

Community Interest Company (CIC)

Community Interest Company is a new type of company, designed for social enterprises that want to use their resources and profits for the public good. CIC is obliged to report to the independent regulatory body on its contribution to the community and the way stakeholders are included in their activities. The asset lock and reporting on the community benefit make type of company an ideal tool for organisations that want to move towards the public service delivery market.

Corporate Social Responsibility

Governments view the corporate social responsibility as a contribution of the business sector to achieving the sustainable development goals. Essentially, it is about how the business sector takes into account the economic, social and environmental impact during its operation - maximising profits and minimising harmful consequences.

Entrepreneur

Entrepreneur is a person who encourages economic growth by finding innovative and efficient ways to implement business activities.